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Investment Indicators - 5 June 2017 |
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Paul Kruger
Author/Editor |
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The right to be heard does not automatically include the right to be taken
seriously - Hubert H Humphrey |
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Distributed to 47,006 subscribers.
To advertise with us
click here |
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What if you could focus on doing what you love - looking after your
clients? |
Leading Independent Financial Advisory (IFA) practices are using GTC’s
Strategic Partner solution to:
- increase time with clients
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With offices nationally, we are well-placed to help you.
Call us to discuss a strategic partnership.
t. +27 (0) 10 597 6858
e. info@gtc.co.za
w. www.gtc.co.za
An authorised Financial Services Provider FSP no. 731. |
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| Rates Review |
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1. Secured Investment Rates |
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Please note that (G) indicates a Guaranteed and (L) a Linked product. In order to understand the difference between guaranteed and linked rates,
kindly click here for an explanation. |
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Company |
This Week |
Last Week |
| 1 |
Absa (L) |
6.476% |
6.557% |
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2 |
Assupol (G) |
6.290% |
6.260% |
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3 |
Old Mutual Wealth (L) |
5.880% |
6.000% |
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Company |
This Week |
Last Week |
| 1 |
Assupol (G) |
6.730% |
6.690% |
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2 |
Old Mutual Wealth (L) |
6.580% |
6.700% |
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3 |
Clientéle Life (G) |
6.560% |
6.700% |
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2. Money Market Funds |
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Please bear in mind that our figures, though based on the actual quotations that you also use, are for information purposes only,
and can never replace the official quotation from the product house. In terms of the guarantees, you are requested
to clarify the exact extent of such guarantees with the product house prior to advising clients. |
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From the Crow's Nest |
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Three new Appeals against Ombud findings |
The latest hearings schedule of the FSB Appeal board contains details
of three appeals against decisions made by the FAIS Ombud in 2016
which are to be heard in June 2017.
The Wallace determination 24 June 2016
A representative of Momentum referred a client to a broker who
invested the client’s funds in a Sharemax scheme.
The Ombud found that, the representative’s advice to invest in
Sharemax was not in itself authorised by Momentum and it does amount
to a deviation from his contract of employment. However this does
not absolve Momentum from liability as the representative’s conduct
was reasonably incidental to his work with Momentum.
The Ombud held Momentum, the representative and the broker jointly
and severally liable to pay back the complainant’s capital in the
amount of R730 000.
The following is excerpted from the actual Ombud determination:
“Momentum refer(sic) to a written contract between itself and Marais
(the representative) and point(sic) out that Marais was prohibited from promoting and
selling financial products not approved by themselves. Sharemax was
not approved by Momentum. Momentum deny(sic) any liability for the
consequences of their employee’s conduct in this transaction.”
Momentum, in its response to the complaint, stated that their
advisor was not licensed to give advice on the Sharemax product and
therefore the Ombus should rule that he could not give any advice in
respect of Sharemax. The duty to disclose risk and to keep a record
of advice resided with Storm (the broker) and not with Momentum or
its representative. Momentum also submitted that their
representative did not act outside the ambit of the Act and Code.
Click here to read the full determination.
Phoshera determination
The complaint was dismissed, but the client, an advocate, appealed
to the Board against the Ombud’s finding.
A claim was rejected because the vehicle, which was written off in
an accident, was not roadworthy. The tyres were worn and this was
“material to the cause of the loss”.
The complainant was aggrieved as it appears that MUA changed the
insurer from Compass to Auto and General without notice to him. He
states that he specifically did not want to have anything to do with
Auto and General due to the latter’s “bad record for repudiating
claims”. He states in no uncertain terms that if he was informed
about the change of insurer, he would not have agreed to contract
with Auto and General and would have chosen a different insurer to
undertake the risk.
The respondents pointed out that, although the insurer was changed,
the terms and conditions of complainant’s contract remained the
same.
The Ombud was also of the opinion that no other insurer would have
paid the claim, given the fact that the vehicle was not roadworthy.
Click here to download the full determination.
Prigge determination
This complaint involved an investment in Picvest.
“The basis of complainant’s claim against respondent is the latter’s
failure to render financial services in line with the FAIS Act and
the General Code of Conduct (the Code), which includes respondent’s
failure to appropriately advise complainant and disclose the risk
involved in the HS 22 investment.”
The respondent, in turn, provided a vast amount of evidence that it
had, in fact, complied with all legal requirements.
The Ombud found that, in advising the complainant to invest in HS 22, the respondent contravened sections 2, 7 (1) and (2) and 8 (1)
and (2) of the Code, and ordered him to refund the client’s
investment of R500 000 plus interest from seven days after the
determination.
Click here to read the full determination.
The outcomes of these appeals will be very interesting. We will keep
readers informed when it is published. |
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| Your Practice Made Perfect |
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AON Opts for Suitebox |
Global professional services firm Aon collaborated with global software
provider SuiteBox to roll out its digital workspace technology to its
Australian adviser network, to streamline their advice process and
provide improved client experience.
“Aon has had a client first philosophy for some time now. Leveraging
technology such as SuiteBox’s video conferencing platform is the next
logical step in improving the client experience. It also increases the
effectiveness and efficiencies for our advisers’ practices,” said Jayson
Walker, Aon’s General Manager of Financial Advice.
“A key innovation from SuiteBox was the integration of the digital
signatures into the video conference itself. To have an adviser be able
to digitally present a Statement of Advice and capture the Authority to
Proceed in the same session is the kind of easy and simple process
consumers have come to expect,” he added.
Aon has over 200 advisers across its Australian network who will have
access to SuiteBox’s video, collaboration, and digital signature tools.
Ian Dunbar, CEO of SuiteBox, commented: ‘Aon undertook a comprehensive
review of functionality, risk and suitability, and I am very proud that
SuiteBox was selected by Aon to deliver a comprehensive digital
workspace to their advisers and clients’.
“From inception, SuiteBox has always understood the importance of the
ability to not only meet, but also collaborate on documents and transact
business all in one digital solution. This combination puts SuiteBox
at the leading edge of digital workflows for professional services. The
adoption of SuiteBox by Aon is a true endorsement of this strategy”.
Over 800 companies globally use SuiteBox’s digital workspace. The
company is experiencing rapid expansion, given the growing popularity of
video conferencing in business and the engagement it offers with
clients.
Moonstone acquired the South African distribution rights. For more
information please contact Neil Summers at
neil@suitebox.com or phone
him on +27 72 908 8994. |
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Dubious Clause reinserted in Twin Peaks Bill
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LegalBrief Today reports:
The DA has raised a concern over the inclusion of a clause in the
Financial Sector Regulation Bill (FSRB) – also known as Twin Peaks –
that will allow the body that deals with the closure of bank accounts to
set specific standards for doing so, notes a
Fin24 report. ‘I’m
intrigued by the fact that the so-called 'Gupta clause' which would
allow the Financial Sector Conduct Authority to set standards in the
closure of bank accounts has now been reinserted into the Bill by the
National Treasury in the National Council of Provinces (NCOP) phase,’ DA
finance spokesperson David Maynier is quoted as saying.
The Bill makes provision for a so-called Twin Peaks model of financial
regulation. On the one hand the SA Reserve Bank will be responsible for
regulating all financial institutions – banks, insurance houses and the
asset management sector. On the other, financial conduct will be
governed by a new entity, called the Financial Sector Conduct Authority,
which will replace the current Financial Services Board.
In the amended version of the Bill, the Financial Sector Conduct
Authority will have the powers to set ‘conduct standards’ for the
refusal, withdrawal or closure of a financial product or a financial
institution. This includes bank accounts. |
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Old Mutual Hacked
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Last week was not a good one for the 172-year old Assurer.
News of a rather embarrassing Ombud determination was followed by
the news that unauthorised access was gained to some of its client
data.
“Old Mutual detected unauthorised entry to one of our systems, which
has led to some personal customer information being accessed.”
“We moved swiftly to close access to the targeted system. Our
control processes kicked in to safeguard customer portfolios and we
can confirm that no customers incurred any financial loss.”
“No transactional details, credit card information, banking details,
medical information or passwords were accessed. Immediate steps were
taken to further tighten our security, and our systems and
surveillance remain on high alert.”
“We would like to sincerely apologise for any concern this may raise
with our customers. We view this case in a very serious light – one
customer is one too many. We assure you we are conducting stringent
reviews to ensure that no incident of this nature is repeated.”
Whilst the assurer pointed out that the affected clients constituted
“less than 0.5%” of its clients, the actual number of 30 000 is a
concern.
One client that we spoke to advised that he was contacted
telephonically by someone claiming to be from Old Mutual Audit.
Old Mutual contacted all clients, as well as brokers whose clients
were affected. It also provided the following assistance to affected
parties:
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Regulatory Examinations |
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2017 Schedule updated |
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Our venues are filling up fast as we approach 30 June 2017.
Candidates who are obliged to write and pass by the end of June
must please register in time.
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Frequently Asked RE Questions |
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You can click on
this link to see the answers to the most common
questions we receive and links to the correct preparation
material.
Email enquiries should be addressed to
faisexam@moonstoneinfo.co.za. You can phone us on
021 883 8000 - select option 2 to speak to one of our
consultants.
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Careers Platform
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Are you hiring? Advertise your position on Moonstone’s Career Platform
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The Moonstone website -
www.moonstone.co.za
- enjoys an average of 15 000 visits and approximately 39 000 page views per month. |
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Moonstone boasts an exclusive newsletter mailing list of over 46000
dedicated financial decision makers who receive 2 newsletters per week. |
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Our audience is relevant and industry specific: individual and corporate advisors and brokers in the following financial sectors:
iInvestment, Risk, Healthcare, Banking, Retirement, and Insurance. |
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Featured Positions |
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In Lighter Wyn |
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Mediese raad van die Weskus af |
Verlede week gesels ek per epos met ‘n ou vriend op Vredenburg oor die
swaar straf wat vier perlemoensmokkelaars opgelê is.
Hy antwoord:
Ek het 2 weke terug ligte terugslag gehad maar is nou reg.
Vermoedelik was dit ‘n bloedklont as gevolg van hartkloppings wat ek
gereeld kry van te veel drank en kos.
Toe besluit ek maar om minder te eet.
Marcus Aurelius Advice For modern South Africans
If you are distressed by anything external, the pain is not due to
the thing itself, but to your estimate of it; and this you have the
power to revoke at any moment.
Never esteem anything as of advantage to you that will make you
break your word or lose your self-respect.
Look well into thyself; there is a source of strength which will
always spring up if thou wilt always look there.
Never let the future disturb you. You will meet it, if you have to,
with the same weapons of reason which today arm you against the
present.
The happiness of your life depends upon the quality of your
thoughts, therefore guard accordingly; and take care that you
entertain no notions unsuitable to virtue, and reasonable nature.
Nothing happens to anything which that thing is not made by nature
to bear.
Waste no more time talking about great souls and how they should be.
Become one yourself.
How much time he saves who does not look to see what his neighbor
says or does or thinks.
You will find rest from vain fancies if you perform every act in
life as though it were your last. |
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Tel: +27 21 883 8000 | Fax: +27 21 883 8005
info@moonstoneinfo.com
www.moonstone.co.za
P.O. Box 12662, Die Boord, Stellenbosch, 7613, Republic of South Africa
Disclaimer:
Services and products advertised by external product suppliers in
this newsletter are paid for by the respective suppliers. Moonstone
does not endorse any opinions, conclusions, data, products, services
or other information contained in this e-mail which is unrelated to
the official business of Moonstone and furthermore accepts no
liability in respect of the unauthorised use of its e-mail facility
or the sending of e-mail communications for other than strictly
business purposes.
The complete disclaimer can be accessed
here. |
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©2015 Moonstone. All rights reserved. |
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