The intention of BEE share-ownership schemes is to provide previously disadvantaged South Africans with the opportunity to own a stake in a company and participate in its growth. JSE Investor Services (JIS), a wholly owned subsidiary of the JSE, plays a crucial role in ensuring that financial inclusion barriers, such as lengthy administration and limits on amounts invested, are removed as barriers to investing in BEE schemes, says Carol Crozier, CEO of JIS.

JIS is a share registry, custody and investor service provider, maintaining the registers of listed and unlisted companies including JSE Top 40 companies with more than 1.2 million shareholder records under management.

‘JIS has focused on streamlining communication with shareholders in order to simplify their interactions with us and issuers,’ says Crozier. ‘This is being done through tools such as the communication platform, ShareHub, for use across the market, including unlisted entities. In addition, cross-departmental upskilling of JIS staff also enables JIS to handle high-volume queries to assist shareholders and issuers. Further, the centralised BEE verification offering on the ShareHub platform assists BEE shareholders by providing a one-time verification for investment into BEE schemes across the market.’

The ShareHub platform is able to handle complex BEE verification requirements, especially when dealing with varying levels of ownership and participation in empowerment schemes. ‘The centralised BEE verification on the ShareHub platform has incorporated the various JSE listing requirements, including the JSE’s BEE board, into its verification process and allows shareholders to provide verification information in a seamless, easy-to-use process. In addition, where required, bespoke adaptations for specific BEE scheme requirements are also available.’

Crozier says there are multiple benefits for investors in using the ShareHub platform. ‘Investors have the ability to update their details that are verified by JIS, which ensures that their information is kept up to date. This improved information quality is also a positive step in ensuring the reunification of shareholders with unclaimed assets in the form of dividends and shares. In addition, the centralised mailbox functionality contains all shareholder communication from participating issuers, ensuring that shareholders have a centralised communication platform.’

JIS also has various other engagement tools, including a call centre and walk-in centre, telephonic and online platforms, email, SMS and a new WhatsApp feature that enables shareholders to understand their investments and address any questions in all official languages. ‘We also have the capacity to place agents at the premises of an issuer in order to ensure that employee share schemes are adequately supported.’

Additional services provided in the share plan offering include executive schemes, long-term incentives, employee share schemes and BEE schemes. These offerings, coupled with the traditional JIS transfer secretarial services and AGM services, provide a holistic service to clients.

JIS is one of the participants supporting the nationwide asset reunification project, which – together with the JSE and participating issuers – will enable and facilitate the identification, documentation and tracing of unclaimed assets (shares and dividends) in the financial markets.

‘The asset reunification campaign, as it gains momentum, will drive awareness and education, which will assist with further inclusion into the BEE segments and other asset classes.’

By Patrick Farrell
Image: Gallo/Getty Images