• Progress since last report - September 2004

• Financial Sector Charter Council

• Significant progress

• Policy and legislation

• Pensions Act policy process underway
• Co-operative & Dedicated Banks bills published
• National Credit Bill tabled

• Concerns

• overall rate of implementation is slower than anticipated
• Community Constituency participation in Summit agreements implementation

• Nedlac parties deadlocked on Charter Council composition

• September 2004

• Minister of Finance chaired meeting of Nedlac parties
• Agreed composition of the Charter Council

• 21 representatives - 4 each from community, labour and government and 6 from industry associations, 3 from Absip

• October 2004

• Charter Council first meeting
• Five meetings by May 2005

• Adopted constitution
• Finalised budget
• Established interim secretariat
• Agreed overall target of R122,5billion
• Agreed targets

• housing - R42bn
• infrastructure - R25bn
• SMEs-R7bn

• Appointed panel of adjudicators

• Council committees working on implementing Charter commitments in 10 areas:

• Access
• Housing
• Infrastructure
• Procurement
• Agriculture
• BEE transaction finance
• SMEs

• Designated investments
• Human Resources
• Regulatory reform

• Permanent secretariat - appointment of Principal Officer
• Confirmation of contribution to R122,5bn target by Retirement Funds industry
• Final targets for BEE transaction financing, agriculture
• BBBEE definition - discussions interrupted by publication of DTI Draft Codes

• Council constituencies have different positions

• Charter emphasis on ownership
• Community and labour want incentives for genuinely broad-based BEE that creates jobs and sustains livelihoods

• Awaiting outcomes of further interactions with DTI and finalisation of Council deliberations

Charter Council: Next steps

• Urgent appointment of CEO and establishment of office
• Finalise definitions
• Call for institutions to submit reports and start reviewing Charter compliance
• Finalise targets for BEE, agriculture
• Gazette Charter

• Significant progress since last report
• Challenges clearly defined
• Sufficient goodwill to achieve Charter transformation goals

• Slow progress on outstanding issues e.g. agreement on role of DFIs
• Community constituency status in Nedlac

• Effective participation by inclusion in Public Finance and Monetary Policy Chamber would require change to Nedlac constitution

• Government, Community and Labour support change to Nedlac constitution

• Business still to decide

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