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Investment Indicators - 7 August 2017 |
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Paul Kruger
Author/Editor |
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Because things are the way they are, things will not stay the way they are.
- Bertolt Brecht |
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Distributed to 47,100 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 |
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1Life (L) |
6.770% |
6.700% |
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2 |
Absa (L) |
6.353% |
6.333% |
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3 |
Assupol (G) |
6.290% |
6.270% |
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Company |
This Week |
Last Week |
| 1 |
1Life (L) |
6.770% |
6.700% |
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2 |
Assupol (G) |
6.720% |
6.700% |
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3 |
Discovery (G) |
6.424% |
6.254% |
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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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Causal event charges and TCF |
If the Pension Fund Adjudicator had her way, causal event charges
would be levied very differently, if at all.
In a case reported on in FANews on 3 August 2017, the product
provider, in response to a complaint, submitted that it subscribed
to the principles of Treating Customers Fairly (TCF) and that the
complainant was appropriately informed before, during and after the
time of contracting.
The PFA’s response to this assertion was anything but flattering.
She found that the causal event charge was lawful in terms of
Regulation 5 of the LTIA and within the limits of 30% permitted, and
that the PFA therefore “…has no reason to interfere with the
imposition of such charges as they comply with the stipulated
Regulations in terms of the LTIA.”
Ms Lukhaimane added that, although lawful, the actions of the
respondents could hardly be described as “…being anywhere near the
letter and spirit of the TCF principles.”
“The respondents should actually refrain from quoting TCF
principles when levying causal event charges as the charges are
obscure and cannot be translated into value for members of
retirement annuity funds.”
“That a settlement was reached in terms of the Statement of Intent
does not in any way address the unfairness and absence of value that
often accompanies the levying of causal event charges.”
“This Tribunal has on countless occasions called for the
implementation of the Retail Distribution Review. Although this will
still not remove the obscure charges, it is at least a long overdue
development that will ensure that entities like the respondents
deliver a semblance of what their products promise.”
What does the future hold?
Details on the future treatment of causal event charges are
contained in the latest “Amendments of the Regulations under the
Long-Term Insurance Act, 1998 and Short-Term Insurance Act, 1998”,
published in July 2017. This document was sent to commentators with
a request for further feedback on the proposals by 4 August 2017.
As pointed out above, the current maximum causal event charge that
may be levied is 30% of the actuarial valuation of the fund at the
time of the event.
The new proposals envisage a maximum of 20% on or after
1 January 2018 but before 1 January 2019, with this percentage being
reduced on an annual basis to an eventual maximum of 5% from
1 January 2029 onwards for fund member policies.
The proposals contain a number of general principles for the
calculation of causal event charges, including the stipulation that
“An insurer must, where the actuarial basis provides for a
charge percentage that is less than the maximum prescribed charges,
apply the lesser percentage in calculating causal event charges and
in determining their cumulative effect.”
The word “must” is quite important here. I recall when the first
guidelines were published, the Regulator, rather sarcastically, used
the “may”.
Will this conform to TCF principles?
The PFA, Ms Lukhaimane, viewed the following TCF outcomes as
applicable in this matter:
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Customers are given clear information and are kept appropriately
informed before, during and after the time of contracting;
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Customers do not face unreasonable post-sale barriers to change
products or switch providers.
Anyone but an actuary (and a good one at that) who has ever tried to
establish how causal event penalties are calculated, failed
dismally. In fact, most were told outright that it is so
complicated, they will not understand it, and will therefore not be
provided with the calculations.
Concerning the second principle, there can be no doubt that
exorbitant causal event charges are used as a stick to dissuade
clients from moving their funds to another provider, which is
obviously in direct contrast to the desired outcome.
If TCF is already part and parcel of the desired outcomes, as we are
often informed by the Regulator, one has to ask if phasing in
changes to the maximum causal event charges over ten years is really
in the best interest of clients.
After all, this is about them in the first place, not so? |
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THE OLD MUTUAL
MAXIMISED INTEREST FUND (LIFE)
A low cost fund with stable returns that aims to consistently outperform
money market and other short term assets.
The performance target is a market-related return with reference to
movements in the 3-month JIBAR interest rate. The current interest rate
on the fund is 8.81% p.a. net of a Management Fee.
This fund is only available for investment via the Old Mutual Invest Tax
Free Plan, and this offers a great advantage since all investment
return, which includes interest, are tax free.
Click here for the
Fund Fact Sheet
Visit www.taxfreesignup.co.za for more details.
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| Your Practice Made Perfect |
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Moonstone Regulatory Update Workshops 2017 |
Please note: this is NOT
regulatory examination training.
In the financial services industry in South Africa, the only certainty
is change. A number of regulatory changes with significant impact on the
industry are in the pipeline.
Moonstone Compliance is pleased to announce that we will hosting another
round of our very popular regulatory update workshops during
September 2017.
As our regular attendees have come to expect, we will once again share
what you need to know in a practical and understandable manner to allow
you to make informed decisions on how the proposed changes will impact
you and your business.
The presenters, Billy Seyffert and Alan Holton, will cover the
following:
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A brief update on the RDR
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The proposed changes to the Long- and Short-term Insurance Regulations
and the impact on remuneration
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The proposed changes to the Policy Holder Protection Rules with a
focus on replacement business
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The Financial Intelligence Centre Amendment Act and how it impacts
Accountable Institutions
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The future of Fit and Proper and what will be expected of
intermediaries
The workshops are scheduled as follows:
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Town |
Venue |
Date |
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Port
Elizabeth |
PE
Golf Club |
05/09/2017 |
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East
London |
EL Golf Club |
06/09/2017 |
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Cape
Town |
The River Club |
11/09/2017 |
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Johannesburg |
Houghton Golf Club |
19/09/2017 |
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Pretoria |
Diep in die Berg |
20/09/2017 |
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Durban |
Coastlands Hotel Umhlanga |
21/09/2017 |
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Bloemfontein |
Kopano Nokeng |
27/09/2017 |
Cost
Moonstone Compliance clients: R650 per person (excl VAT).
Other attendees: R1 000 per person (excl VAT).
Click here to register.
Please read the
Registration Guidelines if you need help. |
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Employer Duties under POPIA
By Claire Gaul/Joani van Vuuren of
Webber Wentzel |
Much has been written about the statutory obligations that are to be
imposed on financial service providers in respect of their clients in
terms of the Protection of Personal Information Act, 4 of 2013 ("POPIA").
What may be less familiar are the obligations POPI will place on
employers in relation to the collection and processing of information
pertaining to their employees.
In summary
POPIA establishes a framework which will require responsible parties to
process personal information in accordance with eight conditions which
will confer rights on individuals whose information is processed. POPIA
regulates every aspect of the processing of personal information, from
the moment that it is collected to the moment that it is destroyed.
Whilst POPIA was enacted in 2013, all of its provisions have not yet
passed into law. Earlier this year a few limited sections commenced, in
particular those provisions dealing with the establishment of the
regulatory body which will have control over the enforcement of POPIA's
provisions.
The full Act will commence once the regulatory body is fully
operational, which commentators suggest may be towards the end of this
year. Employers will then have a grace period of one year to ensure
compliance with the eight conditions set out in POPI.
Key terms
Before we discuss the eight conditions, it is important to understand
some key terms contained in the legislation.
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Firstly, the term 'personal information' is widely defined and
includes any information which relates to a person including, identity
numbers, race, gender, religion, education, health, income, personal
views, and preferences or opinions.
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POPIA then makes provision for what is called 'special personal
Information' which means a person's religious or philosophical beliefs,
race or ethnic origin, trade union membership, political persuasion,
health, sexual life, biometric information, or criminal behaviour.
Importantly, there is a general prohibition on the processing of special
personal information unless explicit prior consent is obtained (or
unless the employer can establish the existence of one of a number of
limited justifications).
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The term 'processing' includes the collection, receipt, storage,
modification, distribution or destruction of information.
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POPIA defines the term' responsible party' (on whom the statutory
obligations rest) to include any public or private body which processes
personal information.
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Finally, the term 'information officer' means the CEO or equivalent
officer or any person duly authorised by that officer for purposes of
POPI. Every responsible party must appoint an information officer to
ensure compliance with the provisions of POPI and the officer must be
registered with the registrar.
Click here to download the full article, including the eight conditions
for processing personal information, referred to above. |
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Are you saving enough for retirement?
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If you want to look forward to your golden years, then you need your
money to work for you while you’re still working, says Allan Gray’s
Jeanette Marais.
Click here to download the PDF document to share with your clients. |
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Regulatory Examinations |
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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 47000
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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Financial Advisors:
Odinfin, Irene, Pretoria - We are looking for insurance sales agents
to join our successful team.
Read More
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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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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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