The Financial Sector Charter Council has been constituted and is responsible for overseeing implementation of the Charter between 2004 and 2014. It will conduct reviews in 2009 and 2015 to assess whether the Charter’s objectives have been achieved and the impact of the Charter on financial sector transformation.  The Council is made up of a board and a secretariat.

The board members reach all decisions by consensus and are assisted by technical committees on which all Charter constituencies are represented. At present, there are twelve such technical committees.

The Council has established a secretariat in Johannesburg to carry out its routine administrative tasks. This office will conduct the annual and periodic reviews and ratings of performance required to implement the Charter.  

Transformation in each of the areas described in the Charter is measured annually in terms of targets agreed by the Council. Performance in relation to these targets is assessed in terms of comprehensive reports submitted by each participating financial institution and is recorded on a scorecard. The reporting process has two outcomes:

• The Council uses the information provided in the reports to review the annual performance of the sector as a whole and to prepare and publish a report on the sector’s BEE performance; and

• It rates the BEE performance of each institution.

The first reporting cycle took place in 2006 to review performance in 2005.  The purpose of this initial review was to establish the transformation status of the industry and to assess progress in implementing the Charter.

From 2007 onwards performance by individual institutions will be rated. These ratings will be taken into account by all organs of state when they conduct business with the sector, thus providing an incentive to financial institutions to transform and promote broad-based black economic empowerment.