JSE launches Enterprise Development programme to drive growth for black stock broking businesses
The JSE will be providing financial assistance to emerging black stock broking firms to support them in the sustainable growth of their businesses and recently launched an Enterprise Development programme to drive this growth and demonstrate its commitment to the transformation of South Africa’s Capital Markets.
Through the programme, the JSE will pay cash disbursements to black brokers on a quarterly basis which must be used to grow their businesses. The disbursements will equal to 33% of the equity trading and membership fees the brokers paid to the JSE during that quarter, based on the JSE’s financial performance.
The JSE has been engaging with The Black Broker Forum (BBF) for some time on how to raise awareness of the challenges facing black brokers and what can be done to develop these firms further and believe that this Enterprise Development programme shows a tangible commitment to supporting the
sustainable growth of black stock brokers in the country.
The JSE has defined black brokers as those who would qualify under the Financial Sector Code (or any successor Code). The Financial Sector Code states that companies with a turnover of less R35 million per year and with Black ownership of greater than 50% qualify to receive Enterprise Development contributions.
“The JSE is committed to the transformation of the South African capital market industry. Transforming and growing the South African stock broking industry will create more accessibility and encourage more black businesses and investors to enter our Capital Markets and therefore lead to the transformation of both the sector and the eco-system,” says Donna Nemer, Director of Capital Markets at the JSE.
Members qualifying as black brokers will also be reviewed annually.
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