Chartered Accountancy Sector Code: open for public comment

The Chartered Accountancy (CA) profession formulated their own Charter in 2004. After numerous revisions and consultation sessions, Government has gazetted the CA Charter on 26 April 2019 and the public has 60 days to comment on it.

The revised charter may be found in Gazette 42417 here (pdf document).

The CA Charter utilises the Generic Codes as a base for its charter as far possible, but it deviates from the standard allocation of points required under B-BBEE legislation in order to place a significant emphasis on the skills development that forms the foundation of the sector.

In so doing, the CA sector seeks to achieve its stated objective of growing the number of Black people in the CA profession to reflect the country’s population demographics.

These deviations are particularly evident in:

the increased weightings of targets set for the Skills Development Element, where ten additional points have been added to the weighting; and
the Enterprise and Supplier Development Element, where ten points have been removed from the procurement targets as it has less applicability in the CA sector.

Priority elements

The Charter makes provision for priority elements in the same way as the Codes and can be summarised as follows:

  • Ownership – To comply with Ownership as priority element, a measured entity must achieve a sub-minimum of 40% of the total weighting points of 6 points for sub-indicators dealing with economic interest in the hands of black people and economic interest in the hands of black CAs (40% of 6 points = 2,4 points);
  • Skills Development – A sub-minimum of 40% of the total weighting points of 30 points for Skills Development must be achieved (40% of 30 points = 12 points);
  • Enterprise and Supplier Development – A measured entity must achieve a sub-minimum of 40% for each of the following three categories:
  • Preferential Procurement: 40% of 15 points (6 points);
  • Supplier Development: 40% of 10 points (4 points); and
  • Enterprise Development: 40% of 5 points (2 points).

Large enterprises must comply with all three priority elements, while QSEs need to comply with Ownership and any one of the other two priority elements, being Skills Development or Enterprise and Supplier Development.

This article is provided for information only and does not constitute the provision of professional advice of any kind.

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