South African Insurance Association

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2nd Nedlac Financial Sector Summit

While it was unfortunate that the 2nd Nedlac Financial Sector Summit did not take place as anticipated, it is pleasing to note that the two days were still utilised effectively, with the Nedlac constituencies coming together and utilising the time as part of the negotiations build up to the Summit instead.

In keeping with the Nedlac processes, the four constituencies represented at Nedlac - Community, Labour, Business and Government came together to the Nedlac Financial Sector Summit Workshop on the 5th and 6th of April at the CSIR Convention Centre, whereby delegates from the constituencies participated in commissions aimed at crafting the roadmap towards the Summit and potentially negotiating on issues impacting the financial sector to be signed-off as Agreements at the Summit and for implementation by impacted stakeholders over an agreed period of time.

The workshop was opened by the Nedlac representative and followed by presentations on the Review of the 1st Financial Sector Summit Agreements and Recommendations, that were signed at the 1st Nedlac Financial Sector Summit in 2002; feedback of the 1st Parliament Report on the Transformation of the Financial Sector, following the series of parliament enquiry sessions that took place in 2017; and the presentation on the Role of the Financial Sector Charter Council to set the scene. The presentations provided the fundamental foundation indicating that while there has been some progress made in transforming the sector, not enough of that progress had been achieve to consider the sector as transformed and thus the need to accelerate its transformation.

The presentations were followed by the constituencies presenting their positioning papers, before the delegates could break away into four commissions which carried through for the most part of the two days, whereby constituencies discussed issues impacting the sector and deliberated on matters that can be incorporated into Agreements to be signed off when the Summit takes place later in the year.

The following four commissions where constituted, with business represented by delegates from SAIA, ASISA and BASA:

Commission 1: Market concentration and monopoly in relation to ownership and licensing
Commission 2: Support for emerging enterprises and black business through procurement enterprise the role of financial sector charter council and financial sector regulatory bodies
Commission 3: The role of DFI’s and state owned financial institutions in the transformation of the financial sector
Commission 4: The role of financial sector charter council and financial sector regulatory bodies

During the plenary session, outcomes of the commissions indicated that the time allocated was not sufficient for the constituencies to discuss and agree on sector Agreements to signed off a the Summit and; it was therefore recommended and accepted that the negotiations should continue in a form of task teams to be coordinated by Nedlac, with timelines to reach some Agreements prior to the Summit.

The process of coordinating the task teams is currently underway, with the anticipation that the Summit will be hosted in the 3rd quarter of the year.

For more information contact:
Themba Palagangwe, SAIA GM Governance and Transformation