Bridging the skills gap:

Educating chartered secretaries Stephen Sadie

CEO

Chartered Secretaries Southern Africa

10 September 2009

Outline

1. Skills gap

2. Chartered accountants

3. Corporate governance failures

4. Our education process

5. Where we fit in

6. Our students

7. Our members

SKILLS GAP

Scarce skills in financial sector

• Accountants, auditors and company secretaries

• ICT managers

• HR and training managers

• Information and organisation professionals

• Business and systems analysts and programmers

• Accounting clerks and bookkeepers

• Fasset (2009: 51)

Financial service professionals by race (%)

• Van Zyl (2008: 375)

2000 2001 2002 2003 2004

African 11 16 17 21 18

Coloured 7 7 7 8 4

Indian 8 13 8 10 9

White 71 63 68 61 67

Other 3 1 0 0 2

100 100 100 100 100

Role of professional bodies

Professional bodies play a key role in the preparation of new entrants

•  the establishment of educational standards,

• the development of curricula for the qualifications they award,

• the provision of training,

• the accreditation of training institutions,

• the setting of and administration of examinations,

• the awarding of qualifications.

Professional body Acronym Membership

Association of Accounting Technicians AAT 1 017

Association for the Advancement of Black Accountants of SA ABASA 2 500

Association of Chartered Certified Accountants ACCA 1 800

Chartered Institute of Management Accountants CIMA 4 300

Chartered Secretaries Southern Africa ICSA 2 600

South African Institute of Professional Accountants SAIPA 7 500

South African Institute of Tax Practitioners SAIT 1 500

Institute of Administration and Commerce IAC 1 100

Institute of Internal Auditors of South Africa IIA-SA 5 000

Institute of Public Finance Accountants IPFA 400

South African Institute of Chartered Accountants SAICA 39 100

• Fasset (2009; 9)

CHARTERED ACCOUNTANTS

Immigration and emigration of accountants and related professionals 1990 - 2002

• Van Zyl (2008: 382)

Racial profile of chartered accountants, 2004

• Van Zyl (2008: 380)

Gender profile of people who majored in accounting at university (%)

1991 1996 2001

Female 15.3 21.3 29.2

Male 84.5 78.5 70.7

Total 100 100 100

• Van Zyl (2008: 381)

No of people who majored in accounting

Qualification 1991 1996 2001

First degree 9 842 14 680 20 694

Postgraduate diploma or honour’s degree

12 151 16 558 25 236

Master’s degree 42 69 213

Doctoral degree 4 5 15

Total 22 039 31 312 46 158

• Van Zyl (2008:376)

CORPORATE GOVERNANCE FAILURES

Corporate governance failures

Company secretaries

• King III – “The board should be assisted by a competent, suitably qualified company secretary”

• Companies Act – “knowledgeable or experienced in relevant laws”

• “Brave new era for company secretaries” - Mervyn King

• Advise the board

• Company secretaries should be chartered secretaries

OUR LEARNING PROCESS

Action learning cycle

Lifelong learning

• Learning@work

• Contact vs distance

• Ethics

• Accountability

• Disciplinary process

WHERE WE FIT IN

Accrediting bodies Qualifications Authority

Council on Higher Education (CHE) – universities, technikons and private

higher education

SAQA

UMALUSI – schools and further education colleges

NATIONAL QUALIFICATIONS FRAMEWORK (NQF)

10 levels (ABET to Doctorate)

Quality Council on Trades and Occupations (QCTO) – trades, occupations and professions

SETAs

FASSET

Chartered Secretaries Southern Africa

(NQF Level 7)

Fasset model of quality assurance

• Unique quality assurance model• Quality Assurance Partners (QAP)

• Quality Assurance functions are devolved to professional bodies

• QAP status granted to Chartered Secretaries Southern Africa in March 2008

– Responsible for accrediting training providers offering its qualifications

Status of our qualifications

• Professional body

• QAP

• 6 qualifications

• Registered on the NQF

• IBS (NQF3 and 4)

• CIS (NQF5 (x 2) and 6)

• Board (NQF7)

OUR STUDENTS

Board students by gender and race

CIS students by gender and race

Board students 2003 - 08

CIS students 2003 - 08

IBS students 2003 - 04

OUR MEMBERS

CPD 2009

Minutes and Resolutions (New Companies Act)

Olasesi Martins

Induction of Board Members Risenga MarumaThe Duties of Directors (New Companies Act)

Bethuel Ngwenya

The Compliance Function Bart HendersonBusiness Rescue (New Companies Act)

Jan van der Walt

CPD 2009

The Company Secretary and King III

Carina Wessels

The Consumer Protection Act Neville MelvilleThe Role and Functions of CIPRO

Rory Voller

Get your Money Sooner Roger KnowlesFinance for the Non-Financial Manager

Grant Vernon

Applied Corporate Governance: Governance in Motion

Bethuel Ngwenya

CPD 2008

Ethics Prof RossouwAssessor Training Jacqui BaumgardtMeetings, Minutes and Agendas Olasesi MartinsGovernance for Non-executive Directors

Jonathan Lewis

Risk Management Craig Rosewarne

CPD 2008

New Companies’ Act Carl SteinPractical Risk Management Pat MahonyBoard Evaluations for Company Secretaries

Pat Mahony

Excel Prof John ShochotBoard and Committee Charters Pat MahonyCompany Secretarial Practice and Corporate Laws

Joel Wolpert

PPG members by industry type

PPG members by race

5588

17

539

Asian

Black

Coloured

White

CIBM Member by type

0

200

400

600

800

1000

1200

1400

2009 2008 2007

ACIBM

AffCIBM

CIBM Member

FCIBM

LCIBM

RetiredMembers

TCIBM

References

• Fasset (2009), Fasset Sector Skills Plan 2005 to 2011. 11 August 2009. [online] Available http://www.fasset.org.za, (accessed 5 September, 2009)

• Van Zyl, E (2008), Financial Services Professions. In: Kraak, A. and Press, K. (Eds.) Human Resources Development Review. (365-387). Pretoria: HSRC Press.

ANY QUESTIONS?

Stephen Sadie

CEO (MBA, M. Ed)

Chartered Secretaries Southern Africa

stephen@icsa.co.za