Black owners and managers of asset management firms want to participate meaningfully in the financial services value chain. In doing so, they want large asset management firms to be compelled by law to channel a substantial portion of the retirement savings that they manage to smaller firms.
Black asset managers are upping the ante on transformation in the financial sector by pushing for law changes that will make it compulsory for a sizeable portion of SA's retirement savings - worth trillions of rand - to be managed by their firms.
The Association of Black Securities and Investment Professionals (Absip), an organisation representing interests of black professionals, wants the Financial Sector Code, which is part of the Black Economic Empowerment (BEE) law, to be amended to include provisions for how retirement savings should be managed.
In the same way that BEE laws require companies in SA to have a scorecard for their compliance to transformation provisions such as preferential procurement, skills development, and ownership, Absip wants a mandatory scorecard for retirement funds to be included in the Financial Sector Code.
A mandatory scorecard for retirement funds would see more black asset managers manage more of SA's savings and investment pool, which...