For investors in BEE schemes, the uncertainty on whether they would earn expected dividends on their investments is just one side of the story. The other one is the burden of over-the-counter trading which they have no choice but undergo, Transform SA learned in a survey conducted amongst investors of ten high profile ventures.
The misconception was that trading for investors was idiot-proof. Disappointingly, there are a number of areas that are opaque about the BEE market. Transform SA identified the following:
- Cautionaries on the effects of events in an organisation that issued the shares are not disclosed
- Director dealings are kept under wraps
- Insider trading does not come to light
- Shareholders are not protected by a fidelity fund
- Dealings can take a month to be matched
- Funds are not credited monthly
- Each BEE share requires a new user name and password
- Delays at call centres
- JSE costs are prohibitive and onerous
On the whole, investors lamented that the process was ponderous, time-consuming and bureaucratic. With any luck, the changes the Financial Services Board (FSB) is said to be undertaking should streamline the process.