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Investment Indicators - 21 August 2017 |
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Paul Kruger
Author/Editor |
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Don't spend time beating on a wall, hoping to transform it into a door
– Dr. Laura Schlessinger |
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Distributed to 48,669 subscribers.
To advertise with us
click here |
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What if you could focus on doing what you love - looking after your
clients?
Leading Independent Financial Advisory (IFA) practices are using GTC’s
Strategic Partner solution to:
- increase time with clients
- increase earnings
- reduce costs
Shouldn’t you too?
Our staff and systems deliver exceptional service, increasing revenues
and saving costs and time for you, enabling you to build value for
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With offices nationally, we are well-placed to help you.
Call us to discuss a strategic partnership.
t. +27 (0) 10 597 6858
e. info@gtc.co.za
w.
www.gtc.co.za
An authorised Financial Services Provider FSP no. 731. |
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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) |
6.730% |
6.800% |
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2 |
Absa (L) |
6.311% |
6.385% |
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3 |
Assupol (G) |
6.250% |
6.320% |
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Company |
This Week |
Last Week |
| 1 |
1Life (L) |
6.730% |
6.800% |
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2 |
Assupol (G) |
6.680% |
6.760% |
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Absa (L) |
6.311% |
6.385% |
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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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POPI challenges for the financial services industry
By Elizabeth de Stadler, Compliance Online |
The Protection of Personal Information Act (POPI) applies to all
industries, but some industries will be more affected than others,
with financial services being one of them. Why? Firstly, FSPs
collect very sensitive information. Secondly, when an FSP’s security
fails, the breach can have dire consequences for customers. Lastly,
the Information Regulator has indicated that financial services will
be a focus area initially, as 85% of the complaints already reported
concern financial services providers.
A real-life example
Want to see a real life example of what can happen when things
go wrong at an FSP?
Here is an excellent blog about the risk
management failures at Wells Fargo, which led to a leak of
personal identifiable information of over 50000 customer
records. |
However, in my opinion, information security is not the biggest
issue for FSPs. Sure, it is important, but it doesn’t really change
business as usual. There are two issues which will have far larger
repercussions:
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It will be very difficult post-POPI to buy and sell leads and
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The rules about direct marketing are changing.
Buying and selling leads
The practice of buying and selling leads is an established practice
in the financial services industry. POPI doesn’t make it illegal,
but it will be very difficult to do so in future. The main problem
is that prospective customers will have to be informed that their
information will be shared with third parties. We know, because we
tested it, that consumers care deeply about whom their information
will be shared with and do not trust companies that share their
information.
Direct marketing
The primary reason why a business will purchase leads is for direct
marketing or ‘cold calling’. POPI contains new rules on direct
marketing which would make it compulsory to obtain a person’s
consent before their details are used for direct marketing. This
will definitely apply to sms and e-mail. Whether it applies to
telemarketing is unclear. I am of the view that it doesn’t, but
there are attorneys who disagree with me.
The Information Regulator indicated that this consent will have to
be requested in the form of an ‘opt in’. The consent must be
voluntary, informed and specific. So, no “default” consents or
statements such us ‘by giving us your personal information you
consent to us processing it as we deem fit’. It would have to be
something like:
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I consent to my information being sold to other FSPs |
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I consent to direct marketing |
I don’t know many people who would consent to a company profiting
from sharing their personal information. This means that FSPs will
have to find ways to convince customers that the buying and selling
of their information is in their interest and that they want to
receive direct marketing.
Want to read more about this topic? The UK Information
Commissioner’s Office, who enforces legislation which is very
similar to POPI, has written a direct marketing code of conduct. Our
Information Regulator is visiting the ICO, so this Code is as close
as we can get to a crystal ball.
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Training and awareness is a large component of any POPI
compliance campaign. Or, in the absence of a campaign, it is a
good start. Why? Training raises awareness, exposes risk and
changes behaviour. More so than with many other pieces of
legislation, the risks created by POPI can often be addressed
through small adjustments in behaviour, rather than wholesale
changes to a business’ structure or services. |
About Elizabeth
Elizabeth is a POPI subject matter expert at
Compliance Online. She is also the founding director
of Novation Consulting (Pty) Ltd. |
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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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Can Appeal Board overrule FSB decision? |
The recent Willbrink Outsources CC decision by the FSB Appeal Board
assessed a rather novel approach to overturn a FSB decision.
The appeal was in respect of the Registrar’s decision to withdraw the
appellant’s licence as he did not successfully complete his RE1 and RE5,
and therefore did not meet the Fit & Proper requirements.
After allowing time to correct the contravention, the Registrar withdrew
the appellant’s licence on 29 November 2016 as the issue had still not
been corrected.
The FSP contracted with another Key Individual in March 2017, and
requested the Appeal Board to consider a more lenient sanction, such as
a reasonable fine, in view of the fact that the non-compliance had now
been rectified.
The Appeal Board notes that no evidence was placed before the Registrar
as to what attempts, if any, were made between March 2016, when the
appellant was presumably informed of the Registrar's intent to withdraw
the authorization, and the actual withdrawal.
“The Registrar is obliged, in terms of Section 8(1) of the FAIS Act, to
ensure that FSPs and their representatives are fully compliant with the
provisions of the FAIS Act and other relevant legislation before
authorization can be granted to operate in the industry. Furthermore, a
key individual may not act as such unless an application by that
individual to act as a key individual has been approved by the
Registrar. Accordingly, the Registrar withdrew the licence. It is on
this basis that the Panel cannot find reason to interfere with the
Registrar's decision. Hence the appeal must the appeal must fail.”
“The Appellant’s recourse is therefore to approach the office of the
Registrar and submit an application for a new licence, motivating its
compliance with the prescribed requirements.” |
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POPI Awareness Training
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Moonstone Business School of Excellence (MBSE), in collaboration with
Compliance Online, now offer a nine-module online training course for
businesses that will be required to comply with the requirements of the
Protection of Personal Information Act (POPI).
Content
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Module 1 provides an overview of the rationale for, and aims of, the
Protection of Personal Information Act (POPI) and sets out who and what
POPI applies to.
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Module 2 explains what is meant by personal information and special
personal information and the rules for processing special personal
information and information of children.
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Module 3 explains what is meant by "processing" and gives an overview
of the types of processing activities that are excluded from the
provisions of POPI.
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Module 4 explains the first requirement of POPI for the lawful
processing of personal information: that processing must be done for
clearly defined and limited purposes.
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Module 5 discusses the need for transparency about the reasons for
collecting personal information and its intended uses.
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Module 6 explains authorised processing of personal information.
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Module 7 POPI explains what accurate processing of personal
information entails.
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Module 8 discusses secure processing of personal information.
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Module 9 explains the powers of the authorities by whom POPI is
enforced.
Cost
The cost per student is R855 inclusive of VAT. Bulk registration can be
done for groups of ten or more, and bulk discount for groups of 25 or
more.
Industry bodies wishing to negotiate special rates for their members can
contact Elaine Davies of MBSE on 0877026429 or via email to
Elaine@mbse.ac.za.
Click here for more detail on the course content.
Click here to register. |
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Moonstone Regulatory Update Workshops 2017
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Please note: this is NOT regulatory examination (RE 1 and RE5) training.
A number of regulatory amendments with significant impact on the
industry are in an advanced stage of completion and implementation.
These include fit and proper requirements, remuneration issues, FICA and
RDR.
We will share what you need to know in a practical and understandable
manner to allow you to make informed decisions on how the proposed
changes are likely to impact you and your business.
The workshops are scheduled for September, and will be presented in
seven venues nationally.
Click here to register. |
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FAIS Notice on PI Cover
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The FSB’s FAIS Notice 110 of 2017, published on 17 August 2017, drew
the following query from a reader:
Pray old wise guru of all matters regulatory, for whom art this
proclamation?
I chose to ignore the reference to “old” from someone who is a full
4 months and 5 days older than me.
This notice is merely an extension of the exemption granted in
2012 to licence holders in Category 1.1 and 1.19 ONLY from having to
obtain PI cover and/or Fidelity Cover. This BN was due to expire on
21 August 2017.
An alert colleague made enquiries about this some two
months ago.
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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 – Answers to questions on REs and
preparation material
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 48000
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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Compliance Officer
under Supervision:
Moonstone Compliance, Johannesburg - The role will provide a
practical internship, during which the applicant will receive on the job
training and mentorship in the provision of outsourced compliance and
risk management services to clients in the financial services industry.
Read More
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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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In Lighter Wyn |
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Good luck, Mr. Gorsky |
I checked this story on Snopes and, yes, it is a hoax, but one should
never allow the truth to spoil a good story.
When Apollo Mission Astronaut Neil Armstrong first walked on the
moon, he not only gave his famous “One small step for man; one giant
leap for mankind” statement, but followed it by several remarks,
including the usual COM traffic between him, the other astronauts,
and Mission Control. Before he re-entered the lander, he made the
enigmatic remark “Good luck, Mr. Gorsky.”
Many people at NASA thought it was a casual remark concerning some
rival Soviet Cosmonaut. However, upon checking, they found there was
no Gorsky in either the Russian or American space programs.
Over the years, many people have questioned him as to what the “Good
luck, Mr. Gorsky” statement meant. On July 5, in Tampa Bay, FL,
while answering questions following a speech, a reporter brought up
the 26- year-old question to Armstrong. He finally responded. It
seems that Mr. Gorsky had died and so Armstrong felt he could answer
the question.
When he was a kid, Neil was playing baseball with his brother in the
backyard. His brother hit a fly ball which landed in front of his
neighbors’ bedroom window. The neighbors were Mr. and Mrs. Gorsky.As
he leaned down to pick up the ball, he heard Mrs. Gorsky shouting at
Mr. Gorsky, in response to a rather suggestive request: “You want
what? You’ll get that when the kid next door walks on the moon!”
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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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