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Investment Indicators - 17 July 2017 |
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Paul Kruger
Author/Editor |
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The important thing is this: to be able at any moment to sacrifice what we
are, for what we could become – Charles du Bos |
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Distributed to 47 306 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. |
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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 |
1Life (L) |
6.900% |
7.070% |
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2 |
Absa (L) |
6.539% |
6.723% |
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3 |
Assupol (G) |
6.440% |
6.530% |
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Company |
This Week |
Last Week |
| 1 |
1Life (L) |
6.900% |
7.070% |
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2 |
Assupol (G) |
6.870% |
6.960% |
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3 |
Discovery |
6.634% |
6.726% |
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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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Twin Peaks making grim progress |
In the early days of “The Pill” the UCT rag magazine, Sax Appeal,
reported on a new book by the Pope titled: “The pill’s grim
progress.” No doubt, the same scepticism accompanies the Twin Peaks
legislation in some quarters.
On 13 July, the Minister of Finance released a blueprint of how he
plans to turn the economy around. Included in the 14-point plan is a
call for the implementation of the Twin Peaks regulation by February 2018.
It is quite ironic that the summary of the plan states that the
intention of Twin Peaks is to bring down banking costs. I suspect
that the architect of the 14-point plan did not study the Twin Peaks
regulations. It will most certainly add to the cost of banking.
Dr Azar Jammine, a leading South African economist, is of the
opinion that the plan is an attempt to stave off further downgrades
by rating agencies, rather than to address the issues which is
strangling the economy. He lists a number of fundamental structural
reforms needed to uplift the country’s longer-term economic growth
rate.
“Issues such as education and skills development, the need to break
down the concentration of power in South African business, reduction
of overregulation, encouragement of small business and
entrepreneurship, improvement of relations between public and
private sector and above all, in the context of recent
confidence-sapping events, the need to address corruption and State
capture, clearly do not form part of the GIGAP.”
A recently released document titled “Memorandum on the objects of
the Financial Sector Regulation Bill”, also known as the Twin Peaks
Bill, provides a 15 page summary of what the Bill entails. The FSRB
was passed in Parliament on 22 June 2017, despite being opposed by
the DA and others.
“Twin Peaks is intended to be a comprehensive and complete system
for regulating the financial sector, prioritising customers and
protecting their funds. It represents a decisive shift away from a
fragmented regulatory approach. This will be achieved by creating
dedicated Prudential and Financial Sector Conduct Authorities.”
In addition to the two regulators, the approach establishes a
harmonised system of licensing, supervision, enforcement, addressing
of customer com¬plaints (including ombuds), a mechanism for the
reconsideration of decisions and consumer education.
This "single system" supports regulatory consis¬tency, and reduces
the scope for regulatory arbitrage or "forum shopping". It also
makes it easier for any customer experiencing a problem, as the
customer is often confused about where to complain when experiencing
unfair treatment from a financial institution.
Given the scale of the transformation in regulating the financial
sector, the Twin Peaks system will be implemented in two stages. The
first stage establishes the regulators and a uniform system and
standards, with existing sub-sectoral (or activity-based) laws (for
example on insurance and banking) remaining in place. This is
possibly what the Minister referred to in his 14 point plan.
In the second stage, the focus will be to streamline the current
activity-based legislation (separate for banking, insurance, credit,
pensions, etc.) into consolidated legislation, to reduce the scope
for regulatory arbitrage.
Industry reaction
Possibly the harshest criticism comes from the Free Market
Foundation (FMF), who calls the FSR Bill “bad policy”.
The FMF is particularly concerned with what it terms the grossly
inadequate Cabinet mandated Social Economic Impact Assessment (SEIA)
required to precede all new policy.
“The analysis, which was done in the case of Twin Peaks, was wholly
inadequate and misleading as it did not contain an analysis of costs
versus benefits.”
In a nine-page
media release prior to a public workshop on the Bill,
it lists, amongst others, the following concerns:
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“Twin Peaks” is a system that already exists in practice but under
a single peak, rather that the proposed expensive and grossly
inefficient split into two.
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The Treasury and FSB have failed to give clarity on why this
legislation is necessary when its stated objectives can and are
being achieved under current, simpler legislation.
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Insurance has been unnecessarily lumped in with banking and other
financial services
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Twin Peaks will further deter transformation, already greatly
hampered by over-regulation.
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Far from increasing competition – monopoly conditions are being
created
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Twin Peaks, so far, has failed to deliver in the UK
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Twin Peaks will further compound the inefficiencies and massive
costs introduced by FAIS
“International financial history and hard experience clearly shows
that this model has not worked globally and will not work in SA. Not
least because the authorities tasked with regulation do not
understand the nature of the business they oversee. Therefore, all
they can do is regulate harder and harder in an attempt to bring all
insurance and financial business under their direct control.”
Academic view
In an interview with
Business Day TV, Professor Robert Vivian, an
outspoken critic of Twin Peaks, raised a number of concerns
regarding the cost of the new legislation as well as the
justification for the Bill.
He estimates that the cost of the two Regulators will be in the
region of R6 billion. The FMF states that the current cost of FAIS
is about R600 million.
Prof Vivian points out that banks pose systemic risk, while
insurance houses do not. It therefore does not make sense to have
the same system for both.
He is also of the view that the reason given for the new
legislation, namely the failure of the current model, was never
demonstrated.
He is also concerned that the Constitution provides the Reserve bank
with a mandate to regulate banks, not insurance companies. To be
able to do so under Twin Peaks will require a change in the
constitution. |
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5 reasons you should be talking about the FPI
Professionals Convention |
The
2017 FPI Professionals Convention, themed “Lead | Inspire |
Build Trust” takes place in the Mother City on
19 - 20 October 2017 at the Century City Conference Centre.
Here are five reasons why you should be talking about this event (and
booking your seat of course!):
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Meet experts and
thought-leaders in the industry face-to-face;
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Be
inspired by the latest industry trends and how they are
implemented;
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Gain tools and practical insights to
build trust with your clients;
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Immerse yourself in exceptional content, push your
career development
to the next level and claim CPD points; and
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Experience
transformational networking and lifelong
relationship-building with industry front-runners and fellow CFP®
professionals at the FPI Awards Ceremony Gala Dinner.
Join us in Cape Town by booking your seat now or to
register visit
www.fpiconvention.co.za. |
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| Your Practice Made Perfect |
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ConCourt Judgement on medical schemes savings accounts |
Following numerous enquiries for clarity on the implications of the
recent Constitutional Court judgment regarding the correct accounting
treatment of medical schemes members' personal savings accounts (MSA),
the Council for Medical Schemes (CMS) published an explanatory media
release.
Effect on medical schemes and administrators
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Medical schemes members' personal savings funds need not be accounted
for separately in the AFS and must be considered as an asset of the
scheme in the submission of the AFS.
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The judgment does not have an influence on the calculation of the
solvency levels of medical schemes.
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Previously savings monies were excluded from Annexure B as schemes
were directed to invest these monies separately from scheme funds.
Following the judgment these monies will now fall within the ambit of
Annexure B.
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Schemes no longer have to allocate the interest earned on medical
scheme members' personal savings balances to the individual savings
accounts of members and may retain the income with other scheme assets.
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Schemes that wish to amend their registered rules accordingly may do
so during the October rule submissions for incorporation from 1 January 2018.
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The Prescription Act will apply to unclaimed members' savings accounts
and if these claims prescribe the amounts will be written back to the
scheme.
Effect on members with savings accounts
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Funds deposited in a member's savings account shall be available for
the exclusive benefit of the member and his or her dependants but may
not be used to offset contributions, provided that the medial scheme may
use the funds to offset debt owed by the member to the scheme following
the member's termination of membership of the scheme (sub-regulation 3)
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Credit balances in a member's savings account shall be transferred to
another medial scheme or benefit option with a savings account, as the
case may be, when such member changes medical schemes or benefit options
(sub-regulation 4)
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Credit balances in a member's savings account must be taken as a cash
benefit, subject to applicable taxation laws, when the member terminates
his or her membership of a medical scheme or benefit option and then
enrols in another benefit option or medical scheme without a savings
account; or does not enrol in another medical scheme (sub-regulation 5)
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The funds in a member's savings account shall not be used to pay for
the costs of a prescribed minimum benefit (sub-regulation 6).
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Members are only affected if a scheme is liquidated in which instance,
their savings moneys will be divided amongst the creditors of the scheme
with the other assets of the scheme
Click here to download the comprehensive
media release. |
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FPI Financial Planner of the Year
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We would like to add our congratulations to the following top eight
entrants who have successfully advanced to the second round of this
year’s FPI Financial Planner of the Year Award.
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Craig Torr, CFP® - Crue Invest (Pty) Ltd in Pinelands
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Dirk Groeneveld, CFP® - Client Care in Port Elizabeth
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Francois Le Roux, CFP® - Private Wealth Management in Pretoria
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Janet Hugo, CFP® - Sterling Private Clients in Johannesburg
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Melony Jacoby, CFP® - Mvest Finance in Durban
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Mark MacSymon, CFP® - Private Client Holdings in Cape Town
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Lisa Hudson – Peacock, CFP®- Southwood Financial Planning in Tokia
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Thayn Niemand,CFP® - Verso Wealth (Pty) Ltd in East London
To proceed to round two, entrants had to submit a portfolio of evidence
which contained a detailed, holistic financial plan based on the FPI
Financial Plan Guide, as well as any supporting documentation relevant
to the financial plan. Scoring was based on the six-step financial
planning process and the documentation as evidence in the client’s file.
In round two, currently underway, each of the eight entrants will have a
panel site visit by the judges where their practices will be assessed on
all aspects of compliance, practice management, as well as all client
documentation and financial planning processes. The financial plan
submitted in round one will be authenticated during the site visits.
From the site visit scoring, the top three finalists will be chosen to
go to round three where they will be required to present to a panel on a
selected topic and questioned on a variety of industry trends, topics,
technical information and legislative changes. Round three of the
competition will be held in August at the FPI offices in Johannesburg.
Having reached the final eight is in itself a great achievement, and we
wish you all the best for the rest of the competition. |
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Regulatory Examinations |
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DOFA Do's and Don'ts |
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In response to many regular enquiries, we re-publish an article from
last year. Vetting the date of first appointment of applicants and appointees is an
important part of compliance.
FAIS Newsletter 20, published on 19 May 2016, contains a number of
pointers to make life easier for FSPs and the FSB. The article
concludes with a handy summary:
Do:
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Send all DOFA related enquiries to
FAIS.Dofa@fsb.co.za and not any
other inbox
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Include the ID number and full names of the individual concerned in
either the subject line or body of the e-mail (third party enquiries)
together with a signed consent letter.
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Include your full names and identity number (where you are requesting
your own DOFA information)
Do not:
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Submit a request for an individual’s DOFA record without attaching a
signed consent letter
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Send DOFA requests through to the administrative staff member’s
personal inboxes
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Submit the same DOFA request multiple times – this merely delays the
process for others.
An important reminder to compliance officers and key individuals is that
the DOFA report, which can be generated via the FAIS online reporting
system, provides the DOFA date(s) for all key individuals and
representatives of the FSP as well as their RE status..
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Important RE Considerations |
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We are experiencing an increase in the number of candidates attempting
to complete the REs before the expected changes in legislation, which
will have a direct impact on the current training and study material.
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Candidates who failed to pass before the 30 June 2017 DOFA cut-off
should also bear this in mind when planning when to re- write.
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Compliance officers are reminded of the 31 August 2017 deadline which
is just around the corner. Please do not take it for granted that you
will pass at the first attempt. Leave yourself enough time to re-write
in the hopefully unlikely event that you fail at the first attempt.
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The regulatory exams can also be written by those who are not
compelled by law to do so. Many candidates write to enhance their
chances of promotion or with a view to become representatives. There are
no legal restrictions – anyone can write.
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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. |
| • |
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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Wealth Management
Consultant:
Rockfin Wealth Management, Sandton - If you have the required
insurance sales experience for this client facing, sales and targets
driven profession, then
Read More
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Senior Client Liaison Officer:
Vunani Fund Managers, Newlands, Cape Town - VFM is looking for a
suitably qualified EE candidate with an accounting diploma or degree.
Read More
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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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In Lighter Wyn |
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Humour goes a long way |
Way back in 2012 we still published In Lighter Wyn on our website. This
week I received the following enquiry from a member of the public,
who is not a subscriber:
Some years ago, XY was my insurance advisor and we have lost
contact. I have an urgent question I need to ask him about a policy
and would really like to make contact – please will you supply me
with an email address or cell number for him.
I forwarded the request to the broker concerned to contact the
client, should he wish to do so.
The link which the client provided contained the following. I am
sure that, by now, you have forgotten these jokes, so here they are
again.
A senior moment – or two
This is dedicated to all of us who are seniors, to all of you who
know seniors, and to all of you who will become seniors.
An irate customer called the newspaper office, loudly demanding to
know where her Sunday edition was.
“Madam”, said the newspaper employee, “today is Saturday. The Sunday
paper is not delivered until tomorrow, on SUNDAY”.
There was quite a long pause on the other end of the phone, followed
by a ray of recognition as she was heard to mutter:
“Well, that explains why no one was at church either…”
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Dit herinner my aan die tyd toe ek in Vredendal gewoon het.
Een van die plaaslike karakters, wat soggens sy kop moes oopskiet
met ‘n regmaker, kon nie wag vir die kroeg wat eers 10.00 oopmaak
nie. Hy het dan gewoonlik by die buiteverbruik, of off sales, ‘n
bier of wat gekoop, terwyl hy wag.
Een oggend sien ‘n kelner hom aan die deur van die buiteverbruik ruk
en pluk, erg benoud, en nukkerig ook.
“Wat is dit dan nou, meneer?” vra die kelner.
“Die plek moes mos al tien minute gelede oopgemaak het, man!” snou
hy die kelner toe.
“Hulle maak nie vandag oop nie, Meneer” antwoord die kelner.
“En hoekom nogal nie?”
“Dis Sondag Meneer.”
“O my dooie d()**&r! Wat het dan van Saterdag geword?”
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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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