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Investment Indicators - 3 July 2017 |
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Paul Kruger
Author/Editor |
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Middle age is when your broad mind and narrow waist begin to change places
- E. Joseph Cossman |
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Distributed to 46 681 subscribers.
To advertise with us
click here |
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GTC Medical Aid Survey 2017 reveals small medical aids also offer
good value |
Smaller medical schemes perform well by offering consumers value for
money, but they have not been as successful as some of the larger
schemes in attracting new members.
This is one of the significant conclusions from leading wealth and
financial advisory firm GTC in its seventh annual Medical Aid Survey
(MAS) for 2017.
The Medical Aid Survey analyses and rates medical aid schemes and
provides a standardised comparison and ranking of the choices available
to consumers.
This year’s survey reviewed 23 open medical aid providers, with a total
of 144 plans, which were categorised into 11 areas according to benefits
offered.
Click here to read
the article, or download the
2017 MAS
pdf.
For more information contact
Jill Larkan. |
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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 |
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1Life (L) |
7.060% |
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2 |
Absa (L) |
6.707% |
6.462% |
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3 |
Assupol (G) |
6.340% |
6.150% |
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Company |
This Week |
Last Week |
| 1 |
1Life (L) |
7.060% |
- |
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2 |
Assupol (G) |
6.770% |
6.580% |
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3 |
Absa (L) |
6.707% |
6.462% |
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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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FSB Appeal Board Clarifies Factual Causation
Alan Holton |
The recent Appeal Board Determination in the matter of J&G Financial
Service Assurance Brokers (Pty) Ltd and R L Prigge is an important
Determination for a number of reasons.
Mention has already been made in this publication of a number of the
comments and criticisms made by the Chairman of the Appeal Board
(Moonstone Investment Indicators of 26 June 2017 “Appeal
Board Comments on Ombud”).
There is, in my opinion, one very important comment that bears
emphasis. At paragraphs 43 and 44, the Chairman had the following to
say:
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43. |
In the case of a provider under the Act, more is
required namely, compliance with the provisions of the
Code. Failure to comply with the code can be seen in two
ways. The Code may be regarded as being impliedly part
of the agreement between the provider and the client and
its breach a breach of contract. The other approach is
that failure of the statutory duty gives rise to
delictual liability.
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44. |
In both instances the breach must be the cause of the
loss. We stress this point because the Ombud's reasons
give the impression that any breach of the Code makes a
provider liable for damages without due regard to this
aspect of causation, namely did the failure to comply
with the Code cause acceptance of the advice. For
instance, it is difficult to see how a failure to keep a
proper record of advice could lead to a loss and
liability. The advice may have been proper but not
recorded. That does not mean that the provider is liable
for a loss if an investment turns sour. |
A complaint as defined in the FAIS Act 2002 means:
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a specific complaint relating to a financial service
rendered by a financial services provider or representative
to the complainant
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in which complaint it is alleged that the provider or
representative has contravened or failed to comply with a
provision of the FAIS Act
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and/or has willfully or negligently rendered a financial
service to the complainant
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and that as a result thereof the complainant has suffered
or is likely to suffer financial prejudice or damage.
The alleged contravention or failure to comply or the
willful or negligent rendering of a financial service must
all have, as a direct result, the prejudice or damage
suffered by the complainant. This is referred to “factual
causation.” Factual causation relates to the question of
whether any factual link exists between the FSP’s conduct
and the detrimental consequence/s suffered by the
complainant.
In International Shipping Co (Pty) Ltd v Bentley (1990 1 SA
680 (A)) the court stated:
"The first inquiry is a factual one and relates to the
question as to whether the defendant's wrongful act was a
cause of the plaintiff 's loss. This has been referred to as
'factual causation'. The enquiry as to factual causation is
generally conducted by applying the so-called 'but-for'
test, which is designed to determine whether a postulated
cause can be identified as a causa sine qua non of the loss
in question. In order to apply this test one must make a
hypothetical enquiry as to what probably would have happened
but for the wrongful conduct of the defendant.”
In terms of S 17 of the General Code of Conduct, every FSP
must maintain an internal complaint resolution system and
have procedures based on, inter alia, fairness so as to
ensure that a resolution of a complaint can be effected in a
manner which is fair to both clients and the provider and
its staff.
It does seem appropriate then, for the complaints resolution
procedures adopted by FSPs to include a very clear
explanation to clients that, should they wish to complain
about the rendering of any financial service, the complaint
should contain a clear explanation of the nature of the
alleged contravention or failure to comply or the willful or
negligent rendering of a financial service and how this led
directly to the loss suffered. This will enable the FSP to
properly analyse the complaint and, at an early stage,
determine whether there is merit in the complaint. If there
is merit, the FSP should be able to resolve this with the
client without the client having to revert to the services
of the Ombud. If there is no merit, this can be factually
explained to the client and some resolution sought to ensure
the fair treatment of that client.
Factual cause is central to the handling of a complaint and
should, it is suggested, be given the emphasis it requires
when seeking certainty regarding any complaint or potential
complaint.
It is also one way to be fair to clients and to the
FSP itself.
Alan Holton is a director of Compliance Monitoring
Systems, a registered External Compliance Officer, a member
of the SA Compliance Institute and an associate of Moonstone
Compliance. |
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| Your Practice Made Perfect |
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1Life Guaranteed Future Value Investment |
The 1Life Guaranteed Future Value
Investment is a linked endowment policy where the original investment
amount, plus the yield at the guaranteed rate for the investment period,
is payable to the policyholder at the end of a five-year term.
The design of the product ensures that the earnings you receive on
maturity are tax free, making it a compelling offering for investors who
previously used their tax exemption in respect of interest.
The guaranteed capital growth in this investment portfolio drives peace
of mind for the high net worth investor looking for a low risk and
secure option in which to invest their discretionary savings.
1Life Insurance Limited is an authorised financial services provider (FSP
24769).
For more information click here
1Life Guaranteed Future Value Investment. |
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REs for Compliance Officers
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We recently published a template showing the deadlines for compliance
officers to successfully complete specific regulatory exams.
The FSB very kindly expanded on our original publication, including CO’s
for Licence Category 4, and also provided clarity on certain aspects
regarding COs who work under supervision.
Please note: this applies to registered compliance officers only. If you
are a sole proprietor, for instance, this does not apply to you.
If you still have to write one or more regulatory exams, please note
that the deadline of 31 August is just around the corner. Please do not
delay writing, in the hopefully unlikely event that you do not pass at
the first attempt.
Please
click here
to read
the amended document. |
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NHI White Paper Published
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Reports since the publication of this long awaited document certainly
contained conflicting reports on what we can expect.
Pam Saxby for Legalbrief Policy Watch notes that that references
in the media to proposals ‘scrapping’ tax credits for medical scheme
members altogether” may have been misinformed.
“The paper’s chapter on NHI financing acknowledges that these
requirements remain ‘uncertain’ and will depend ‘in part’ on public
health system improvements and medical scheme regulatory reforms ‘not
yet … fully articulated’.”
Media24 points out that the costs used in the White Paper published on
Friday are still those published in 2010. This not only does not
consider the impact of inflation, but also assumes economic growth of
3.5%, which is totally out of kilter with the current reality.
We hope to publish a comprehensive review of the NHI White Paper soon.
The Department of Health’s website contains a number of informative
documents, including the NHI White Paper.
Click here to access the page. |
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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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Self-Help Guidelines to make a
booking, download your certificate or view results |
Candidates who wrote with Moonstone can now view their results,
make a new booking or update their information on our website:
www.faisexam.co.za
Here is what you do:
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Click on the
Moonstone FAIS Exam website (www.faisexam.co.za)
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Click on the
second heading: “Update Your Booking/Personal Details/Get
results”.
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Key in your ID or
Passport Number used to register for the exam: click on Send
password.
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The system will
send a password to the e-mail address you provided at
registration.
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Use this password
to log in on the same address as above:
Type in the password – do not copy and paste.
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Click login.
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You will then be able to make a booking, download your
certificate or view results.
Frequently Asked RE Questions
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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Sales Consultant –
Medical Scheme Brokerage:
Optivest, Durbanville - The ideal candidate is RE 5 qualified, has
medical scheme experience and is comfortable to interact by phone.
Read More
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Accounts Executive /
Broker:
Garrun, Houghton - We require a FAIS compliant and experienced
Short-Term Insurance Broker with own transport.
Read More
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Life Insurance
Compliance Officer:
Bidvest Life Insurance, Umhlanga - If you have a minimum of 3 years
experience in the life insurance industry and Compliance Officer
experience, then
Read More
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Financial Planners:
Risk Free Solutions, Port Elizabeth & Kimberley - We are looking for
established, well balanced Financial Planners striving for financial
freedom. If you have matric, your own transport, driver’s licence and RE
qualificaton, then
Read More
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In Lighter Wyn |
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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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