Standard Bank supports transformation in conveyancing

Standard Bank is fully committed to transformation. As such the Bank views the legal requirements for the advancement of transformation as a minimum (a floor) rather than the maximum.

Over the recent past, Standard Bank has displayed an exemplary record in this regard and has not faced any legal issues pertaining to transformation.

Still, Standard Bank has continued to discuss, internally, what more we can do as a business to give expression to deeper and more fundamental transformation. This is the context in which Standard Bank engages external stakeholders such as regulators, businesses, individuals, interest groups and NGOs.

Standard Bank has had several engagements with the South African Competition Commission (Commission) in the past two years, to further transformation within conveyancing.

Standard Bank and the Commission have been engaging around conveyancing practices that will encourage greater inclusion and participation of small/HDI players.  As reported by the Commission, the themes of the advocacy were on 1) conflict of interest provisions in contracts, 2) investment criteria requirements that may be prohibitive for the entry of small firms and 3) service level agreements that have indefinite terms. 

With reference to the media statement issued by the Commission on 17th July 2020 Standard Bank wishes to clarify that it was not under investigation by the Commission on this matter and there were no allegations of contravening the Competition Act levelled by the Commission at the banks regarding conveyancing practices. While Standard Bank has removed the conflict of interest clause from its service level agreements, it has done so after meetings with the Commission and not because the clause prohibited firms from acting for other parties against the bank, nor as a result of the bank being instructed to do so by the Commission. Similarly, the Commission did not instruct Standard Bank to remove the minimum required investment criteria used (among other criteria) to measure the attorneys' performance.  There was also no agreement to limit the conveyancing service level agreement to a five-year term due to the impracticalities associated in doing so.  

However, Standard Bank has a range of measures to ensure that small conveyancing firms, particularly Black-owned firms, can grow and participate through its conveyancing business.  Standard Bank advised the Commission that prevailing market conditions and service level dynamics, as informed by Standard Bank’s transformation and small firm strategy, requires constant review of its conveyancing panel. 

Standard Bank’s engagements with the Commission have been positive and professional.  The Competition Commission has expressed satisfaction at our efforts to promote inclusion and participation and has welcomed our commitments in this area. Standard Bank remains committed to advancing transformation in its business and will continue to work with stakeholders such as the Commission in this regard.