Sustainability review 2009
Regulators
It is important for Capitec to ensure healthy relations with regulators as they play an integral role in the continued sustainability of the financial services industry and it is a priority to ensure compliance with their rules and regulations. The Compliance department of Capitec facilitates compliance with South African legislation and the regulations enforced by its various regulators.All banks are closely monitored by the Bank Supervision department of the SARB as the systemic health of the banking industry is fundamental for economic sustainability. Regular interaction with the SARB is appreciated and ensures open dialogue with the Bank Supervision team.
National Payment System (NPS) department (NPS Act)
The SARB oversees the safety and soundness of the national payment system and implements risk-reduction measures in the payment system to reduce systemic risk. The NPS Act and SARB support the principle of self- regulation in the NPS; as such the Payment Association of South Africa (PASA) was recognised by SARB as the official payment system management body. Capitec Bank is a member of PASA and actively participates in the payment environment and strives to ensure compliance with the industry rules in the provision of our payment services. The bank has regular interaction with the NPS Department and PASA to discuss matters relating to payments.National Credit Regulator (NCR) (National Credit Act)
The NCR is responsible for the regulation of the South African credit industry. Capitec Group complies with the provisions of the NCA to ensure that it can provide affordable credit to the market in a responsible manner. No penalties or regulatory sanctions were issued against Capitec Group for the year under review.Financial Intelligence Centre (FIC)
– Financial Intelligence Centre Act (FICA)
Capitec Bank is an accountable in stitution and is serious about the fight against crime, money laundering and terror financing to ensure it does its part to protect the integrity and stability of South Africa’s fi nancial system, develop economically and to be a responsible global citizen. No penalties or administrative actions were directed against Capitec Bank for the year under review
Financial Intelligence Centre Act PDF, 283KB
Broad-based Black Economic Empowerment Act
The Group has subscribed to the Financial Sector Charter since the inception of the latter. However, due to the unresolved impasse in having same gazetted, we have also had to take cognisance of the Codes of Good Practice issued under the Broad-based Black Economic Empowerment Act, No. 53 of 2003.In terms of the latter, Capitec Bank is a level-five contributor at a BEE procurement recognition level of 80%. Due to differences in the scorecards, we have achieved a somewhat lesser rating as a level-eight contributor under the Financial Sector Charter.
JSE Limited
Capitec and its board have complied with the requirements of the JSE Listings Requirements for the year under review.Policies and procedures
A Policies and Procedures department (Polproc) ensures that company policies and procedures are established as required, approved, implemented and communicated to employees in accordance with a board-approved policy framework. The board is kept updated, on a periodic basis, on the status of policies that are required by the Group to achieve its operational and financial objectives, to comply with applicable laws and to conform to the acceptable standards of corporate governance and best practice.
