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Investment Indicators - 10 July 2017 |
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Paul Kruger
Author/Editor |
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Knowledge comes, but wisdom lingers - Alfred Lord Tennyson |
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Distributed to 46 571 subscribers.
To advertise with us
click here |
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Are you experienced in providing technical support for EB
consultants? |
If you are, then there is an opportunity for you to join GTC’s leading
EB Consulting team. This role includes providing technical support for
EB consultants; management and monitoring of consultants’ tasks on GTC’s
operational systems; supporting client-facing consultants in daily
operational work; preparation of proposals, meeting packs, reports,
letters and presentations, etc.
If you are interested in this exciting role, request the full job spec
or submit your CV to
recruitment@gtc.co.za. If shortlisted, you will be contacted for an
interview. Should you not receive a response within 30 days, please
consider your application unsuccessful.
www.gtc.co.za. |
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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) |
7.070% |
7.060% |
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2 |
Absa (L) |
6.723% |
6.707% |
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3 |
Assupol (G) |
6.530% |
6.340% |
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Company |
This Week |
Last Week |
| 1 |
1Life (L) |
7.070% |
7.060% |
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2 |
Assupol (G) |
6.960% |
6.770% |
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3 |
Discovery (G) |
6.726% |
6.525% |
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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 again rules against FAIS Ombud |
In May 2016 we published an article titled
Ombud holds insurer liable for Sharemax loss.
Briefly: A Momentum representative (Marais) introduced the client to
a broker (Storm) who had a Sharemax contract. The representative was
not allowed to conduct business with the property syndication in
terms of his contract of employment with Momentum. When the client
expressed interest in a Sharemax investment, Marais introduced him
to Storm.
The Ombud held the broker, the representative and Momentum liable
for the loss.
At the conclusion of the article we noted:
It will be interesting to see whether this determination will be
tested at the Appeal Board as it is bound to have severe
repercussions for all FSPs who employ representatives.
It was, in fact, referred to the Appeal Board, despite the Ombud
again denying the three parties the right to do so. The Deputy Chair
of the Appeal Board allowed the appeal.
The original complaint was directed against CS Brokers CC (the FSP),
and Emile Storm, a representative of this FSP.
The Board notes that the appeal is "an appeal in the ordinary strict
sense, that is, a re-hearing on the merits but limited to the
evidence or information on which the decision under appeal was
given, and in which the only determination is whether that decision
was right or wrong."
“The Ombud is an adjudicator of fact and not a specialist organ such
as a registrar who makes administrative decisions in an
administrative context.”
The Ombud, “…in response to the application for leave to appeal,
found it necessary to justify her determination of more than 40
pages with a "judgment" of nearly 40 pages in which she made
findings that were not in her determination and never put to the
two, Storm or Marais.”
“The Ombud defined the complaint as being that "Marais and Storm"
had given inappropriate advice to the complainant. However, in her
second set of reasons, she conceded that the complainant had not
lodged a complaint against Marais and/or his employer. Marais was
also not served with a section 27(4)(a) notice. She nevertheless
made a determination against them in spite of the decision of this
Board in Sharemax Investments (Pty) Limited and others v Siegrist
and Bekker (FAIS cases 00039/11-12/GP1 and FAIS0661/10-11/WC1)
which held that she could not do so.”
“One of the important findings of the Ombud was that Storm and
Marais had "collaborated" in advising the complainant in making the
investment. The allegation of collaboration ("collusion" in the
words of the complainant) was made in the course of the
investigation by Wallace in supplementary statements. The statements
were never put to Storm. This is a breach of the first principle of
adjudication, namely audi alteram partem.”
“There are other findings of a like nature. In one instance she
found in her second set of reasons that Marais had written his
advice after the event and falsified it. In another she found that
Storm knew that the Sharemax scheme was a Ponzi scheme. Both
findings were based on suspicion or conjecture and nothing more.”
The Board then discusses at great length the failure of Storm, the
broker, to conduct the required due diligence, and therefore being
unable to advise the client with the required skill and diligence.
The final decision by the Appeal Board was that Storm was negligent,
and liable for the client’s loss. It found that Momentum and Marais
were not.
In the Siegrist and Bekker case referred to above, the Ombud held
the directors of Sharemax liable for the clients’ losses, despite
the fact that they were not included in the original complaint. The
same applied in this case, yet the Ombud saw fit to hold Momentum
and its representative liable despite not being cited in the
complaint.
The Siegrist and Bekker cases were landmark decisions, particularly
in view of determining accountability, and the Ombud’s powers to
involve parties outside of the complaint.
In the Prigge appeal we discussed last week, the Board said:
“Matters like this (there are other instances) add fuel to the
allegation that the Ombud is biased against financial service
providers and sees her role as champion of disappointed clients. The
Act requires her to deal with complaints impartially (section 20(4))
and whether or not she does so, depends on the facts of each case.” |
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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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Appeal Board upholds FSB debarment decision
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A FSP was suspended on 27 March 2015 for failure to submit a compliance
report and not successfully completing the RE1 for key individuals.
According to a recent Appeal Board decision, the FSP continued doing
business after being notified of the suspension of its licence. This
came to the attention of the FSB, who informed the FSP on
10 October 2016 that its authorisation had been withdrawn. The notice
also advised the FSP that it was debarred for a period of five years.
“The primary reason for the withdrawal of the license was due to the
appellant's failure to comply with the Act, in that she failed to file a
compliance report and did not pass the required regulatory exam for key
individuals. The grounds for the debarment was that the appellant
contravened the Act by conducting financial advisory and / or
Intermediary services without being licensed thereto, thus no longer
meeting the requirements contemplated in Section 8 of the FIAS Act
relating to qualities of honesty and integrity.”
Click here to read the appellant’s defence, the Appeal Board’s
finding and to download a copy of the decision. |
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NHI promises equality of care
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Jill Larkan, Head: Healthcare Consulting at financial advisory firm
GTC, writes:
Whilst every South African will find it difficult to argue with the
concept of National Health Insurance (NHI), a serious dichotomy exists
between those individuals who are currently covered by a medical aid,
who may not be willing to lower their current level of cover, and those
individuals without any medical aid who would no doubt wish to see the
new healthcare system implemented yesterday.
Larkan cautions that the country has a very busy agenda if it wishes to
adhere to the planned timetable.
Possibly the most discussed part of the NHI is funding, as it will
affect all layers of society in different ways. Larkan discusses some of
the options and considerations contained in the White paper.
She also briefly summarises possible structural changes which need to be
implemented in order to make the NHI work.
Click here to download the full article. |
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Regulatory Examinations |
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Next RE opportunities in the UK |
The next RE opportunity in
the UK will be as follows:
Date: 22 September 2017
Venue: CCT Venues-Barbican Aldersgate House London
Enquiries:
Please contact Marietjie Grant:
mgrant@moonstoneinfo.com /
faisexam@moonstoneinfo.co.za
Telephone:+27 21 883 9796 / +27 21 883 8000.
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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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Short Term Insurance
Junior Underwriter:
JFA Shortterm Brokers CC, Milnerton -
We require a responsible
person with NQF4 and RE5 for all relevant tasks related to client
services in our short term insurance practice.
Read More
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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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In Lighter Wyn |
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Birth Order of Children |
Maternity clothes
1st baby: You begin wearing maternity clothes as soon as your
OB/GYN confirms your pregnancy.
2nd baby: You wear your regular clothes for as long as
possible.
3rd baby: Your maternity clothes ARE your regular clothes.
Preparing for the Birth
1st baby: You practice your breathing religiously.
2nd baby: You don't bother because you remember that last
time, breathing didn't do a thing.
3rd baby: You ask for an epidural in your eighth month.
The Baby clothes
1st baby: You pre-wash newborn's clothes, colour co-ordinate
them, and fold them neatly in the baby's little bureau.
2nd baby: You check to make sure that the clothes are clean
and discard only the ones with the darkest stains.
3rd baby: Boys can wear pink, can't they?
Worries
1st baby: At the first sign of distress--a whimper, a
frown--you pick up the baby.
2nd baby: You pick the baby up when her wails threaten to
wake your firstborn.
3rd baby: You teach your three-year-old how to rewind the
mechanical swing
Dummies
1st baby: If the dummy falls on the floor, you put it away
until you can go home and wash and sterilise it.
2nd baby: When the dummy falls on the floor, you squirt it
off with some juice from the baby's bottle.
3rd baby: You wipe it off on your shirt and pop it back in.
Nappy changing
1st baby: You change your baby's nappies every hour, whether
they need it or not.
2nd baby: You change their nappy every two to three hours, if
needed.
3rd baby: You try to change their nappy before others start
to complain about the smell or you see it sagging to their knees.
Activities
1st baby: You take your infant to Baby Gymnastics, Baby
Swing, and Baby Story Hour.
2nd baby: You take your infant to Baby Gymnastics.
3rd baby: You take your infant to the supermarket and the dry
cleaner.
Going Out
1st baby: The first time you leave your baby with a sitter,
you call home five times.
2nd baby: Just before you walk out the door, you remember to
leave a number where you can be reached.
3rd baby: You leave instructions for the sitter to call only
if she sees blood.
At Home
1st baby: You spend a good bit of every day just gazing at
the baby.
2nd baby: You spend a bit of everyday watching to be sure
your older child isn't squeezing, poking, or hitting the baby.
3rd baby: You spend a little bit of every day hiding from the
children.
Swallowing Coins
1st child: When first child swallows a coin, you rush the
child to the hospital and demand x-rays.
2nd child: When second child swallows a coin, you carefully
watch for the coin to pass.
3rd child: When third child swallows a coin you deduct it
from his allowance.
GRANDCHILDREN: God's reward for allowing your children to live.
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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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