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Investment Indicators - 24 July 2017 |
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Paul Kruger
Author/Editor |
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One of the most important ways to manifest integrity is to be loyal to those
who are not present. In doing so, we build the trust of those who are
present – Stephen Covey |
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Distributed to 47 221 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 |
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) |
6.750% |
6.900% |
2 |
Absa (L) |
6.385% |
6.539% |
3 |
Assupol (G) |
6.290% |
6.440% |
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Company |
This Week |
Last Week |
1 |
1Life (L) |
6.750% |
6.900% |
2 |
Assupol (G) |
6.720% |
6.870% |
3 |
Absa (L) |
6.385% |
6.539% |
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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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Debarment and TCF |
The necessity for a process to ensure that those who fall foul of the
fit and proper requirements are not allowed to practice was never in
question. In particular, the bad apples need to be discarded.
Unfortunately, the application and execution of the debarment
process should possibly be regarded as one of the failures of the
FAIS Act.
The Good
The prescribed process, if followed to the letter, will ensure the
desired outcome, provided all parties conform to the requirements.
The FAIS Act clearly stipulates that the FSP must, within 15 days
after removal of the representative’s name from the register, inform
the Registrar in writing, and provide the Registrar with the reasons
for the debarment “…in such format as the Registrar may require”.
The “Debarment Notice” actually calls for documentation to be
included as proof that the correct disciplinary procedure was
followed, including the reasons for debarment and disciplinary
hearing documentation.
Importantly, it also asks for documentary proof that the
representative was informed, and acknowledgment of receipt of such
notification.
In July 2015, we published an article titled
Feedback on debarment of representatives, published in the FSB’s
FAIS Newsletter 17. In this document, the head of the Enforcement
Department set out his views on the process. In an earlier
newsletter, he also expanded on his department’s frustration with
FSPs who abdicated their responsibilities under Section 14(1) to his
department.
The Bad
The most common manifestations of people completely disregarding
these requirements are found in enquiries to us from representatives
who were basically shown the door without any disciplinary process
followed, or malicious debarments because the rep resigned and
joined another FSP. In many of these cases, they were debarred after
they left, and were oblivious of the debarment until their new
employer informed them that their names appear on the “blacklist”.
Most complained that they were never subjected to disciplinary
procedures, thus no documentation could have been sent to the
Regulator.
Under the current system, they have no recourse to the Regulator,
and are obliged to approach courts of law, which few can afford.
In the High Court case between Francois Gideon Pienaar and the
Registrar in July 2013, the court had to determine whether the FSP
had “lawful reason to request and secure a debarment”, and whether
the FSB had acted lawfully in effecting the debarment. The court
found for the applicant, Pienaar, and the Registrar was obliged to
lift his debarment, and bear the costs of the application.
This raises the question of what the FSB does with the documentation
that it requests as part of the debarment process. Does it actually
insist on it being submitted by the applying FSP? Surely this must
play an important role in both debarring a person, and when
considering a request for the debarment to be lifted?
The Ugly
It is not only representatives who complain about non-adherence to
guidelines published by the Registrar.
The rationale for regulation of the financial services industry is
protection and fair treatment of clients. The same can be said for
employees in the industry. Failure in this regard should receive
urgent attention.
The guidelines for reappointing debarred reps contain the following
statement:
It is the duty of the provider to ensure that their
representatives are fit and proper. The Registrar does not assess
the fitness and propriety of representatives. If the Registrar is of
the view that a representative is not fit and proper, the Registrar
must (my emphasis) take action against the provider for not
complying with section 13 (2) of the Act.
This places an obligation on the “applying” FSP to ensure that
all is kosher in terms the new appointee to avoid regulatory action
against it.
It also obliges the FSB to consider documentation in its possession,
including those relating to disciplinary hearings to ensure that the
public is protected against people not fit to deal with clients. It
cannot abdicate its responsibility to the public by shifting the
onus onto the FSP.
Going forward
The shortcomings of the current system have been clearly grasped,
and the entire section is to be replaced in the new legislation.
Importantly, there will now be a tribunal, similar to the current
Appeal Board, for disgruntled parties to state their case.
The point is: Can we wait that long? Or rather, should we have
waited this long before addressing obvious shortcomings in the Act?
Over the years, many other anomalies in the Act received attention
to ensure fair outcomes for clients. Why not this process? |
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Your Practice Made Perfect |
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New findings contradict NHI White Paper |
Recent research conducted by Econex, a leading firm in competition
economics, paints a different picture to that portrayed in the NHI White
Paper on healthcare in South Africa.
In a research note published this month, it challenges the claim that
the current financing system punishes the poor.
A summary of the research, published as a blog post, positions its
research:
“A central issue in driving universal cover under a National Health
Insurance (NHI) system is the redistribution of resources to the poor,
whose need for healthcare generally exceeds the resources allocated.
This is an important issue, as it is recognised that healthcare
resources need to be distributed in an equitable manner. However, the
South African debate has been polarised on this issue with claims that
the South Africa has a “financing system that punishes the poor” (stated
in both the 2015 and 2017 versions of the NHI White Paper).”
“In order to contribute to the ongoing debate and in the light of
renewed focus on the implementation of (NHI) in South Africa by
2025/2026, Econex has updated the research on the socioeconomic
distribution of healthcare benefit and healthcare financing, This
research has been commissioned by Mediclinic South Africa. In updating
the research on this issue we have relied on household survey data,
information from the Council for Medical Schemes, as well as estimates
from National Treasury.”
“We find that financing incidence is in fact pro-poor in the sense that
the wealthiest 40% of the population contributes the largest share. The
poorest 60% of the population receives a higher proportion of benefits
than what they pay for – a distribution that is in line with principles
of equity and social solidarity. However, it must be noted that this
poorer part of the population receives fewer benefits than those
received by the wealthier 40% of the population. Importantly, the poor
receive a smaller proportion of total healthcare benefits than what
their share of healthcare need warrants. This is problematic.”
The more comprehensive (9 page) Econex research Note 45 can be
downloaded here. |
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Regulatory Examinations |
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DOFA Do's and Don'ts |
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 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. |
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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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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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One-liners on relationships |
There are two theories to arguing with women. Neither one works.
I think, therefore I'm single.
Instead of getting married again, I'm going to find a woman I don't
like and just give her a house - Lewis Grizzard
Relationships are hard. It's like a full time job, and we should
treat it like one. If your boyfriend or girlfriend wants to leave
you, they should give you two weeks' notice. There should be
severance pay, and before they leave you, they should have to find
you a temp - Bob Ettinger.
My Mom said she learned how to swim when someone took her out in the
lake and threw her off the boat. I said, 'Mom, they weren't trying
to teach you how to swim - Paula Poundstone.
Bigamy is having one wife or husband too many. Monogamy is the same
- Oscar Wilde
Marriage is a great institution, but I'm not ready for an
institution yet - Mae West
Once the trust goes out of a relationship, it’s really no fun lying
to them anymore – Norm in Cheers.
A family vacation is when you go away with the people you need to
get away from – Edward E Neuman, Mad magazine.
Love is the triumph of imagination over intelligence.
Marriage means commitment. Of course, so does insanity.
Marriage is one of the chief causes of divorce.
Always remember: one good turn gets most of the blankets.
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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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