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R.E.D.S Listed
Black Listed in South Africa's Financial Sector

The South African Financial Sector

The South African banking system comprises of a central bank. The financial sector is regulated by the major Big Five banks who are financially stable banks, investment companies as well as many smaller banks. The sector has many foreign banks operating in South Africa.

Legislation and regulation

The financial sector is primarily regulated the Banks Act 1990 and the Mutual Banks Act 1993. These acts were established to promote efficient and responsible banking system, with the interest of the depositors of banks and the economy respectively.

The Banking Association of South Africa is a body that represents all registered banks in South Africa; domestic and international. The Association acts as a representative of the sector, through lobbying, engagement with stakeholders and political influence. The Banking Association of South Africa ensures suitable and responsible banking, to better be equipped to contribute to the social and economic development of South Africa.

The Association supports its members through advocating the views of the banks on legislation, regulation, and social/ economic changes that affect the industry in order to ensure sustainable transformation of the banking sector.

R.E.D.S Listing

Being REDS Listed is a very serious matter - especially if you were unfairly dismissed. It can affect your career and prevent you from ever working in the financial sector again.

‘REDS’ is an acronym for ‘Register of Employees Dishonesty System’, a system creates by the Banking Association of South Africa in the mid-1990.

The Banking Association of South Africa represents all registered domestic and international banks. There are over 26 banks apart of The Association including the major banks in South Africa.

The Association cultivates ethical practices through a Code of Banking Practices, which aims to manage competitive and profitable banking in a responsible manner for all its members.

REDS Listing is a database for employees of the financial sector, who have been dismissed for dishonesty. This system forms a central database in which the names of all employees of the banking sector, who were previously dismissed for dishonesty, is recorded. This database provides as a useful resource for the sector to use when prospective employee arises.

Its purpose is to establish a particular point of reference for all financial sector employees, who have been dismissed for dishonesty, after a disciplinary hearing, or found guilty of dishonest misconduct post-dismissal. The REDS database can be used by all the participating banks as a source to screen an intended employee to avoid the risk of the dishonesty or misconduct happening again.

Being on the REDS database has a negative impact on you and your career in the financial sector. Being RED Listed blacklists your name in the financial sector. Thus, preventing your chance of working in the financial sector again, very low. You will have to change your career and work in another industry.

If you feel like you have been unfairly dismissed after a disciplinary hearing and you want to clear your name from the REDS database, you must prove that you are not guilty of dishonesty. If the disciplinary hearing found you guilty, you must take it up at the CCMA to prove your case and your innocence. If the CCMA finds you innocent, your next step is to write to REDS attaching your CCMA ruling, proving that you are not guilty. After providing them with this information, REDS will remove your name from the database. Clearing your name.

If these steps fail and your name is still on the REDS database, then you can approach the High Court to rule on removing your name from the REDS database, after you are found not guilty for dishonesty.

Remember to be calm. You are there to present your case in the best light possible. If your emotions get the better of you – it will be more difficult for you to win your case.

Example: “Hello Chairperson. My name is John from Durban. I am here to defend myself against the charges that are brought against me. I have been with the company for 2 years in the position of Admin Manager. I believe that these charges are without merit. And if I am not successful here, I will approach the CCMA for help because it is my legal right to do so”

Make sure to ask questions on what the witnesses’ against you are saying. Focus on the facts of the case. Check dates, times, version of events etc. Write their testimony down and cross examine them fully.


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