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Investment Indicators - 16 October 2017 |
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Paul Kruger
Author/Editor |
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Friday the 13th is still better than Monday the whatever
– Bill Murray |
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Distributed to 49,600 subscribers.
To advertise with us
click here |
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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) |
6.780% |
6.840% |
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2 |
Absa (L) |
6.648% |
6.715% |
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3 |
Assupol (G) |
6.120% |
6.190% |
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Company |
This Week |
Last Week |
| 1 |
1Life (L) |
6.780% |
6.840% |
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2 |
Absa (L) |
6.648% |
6.715% |
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3 |
Assupol (G) |
6.550% |
6.630% |
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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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Enforcement under Twin Peaks
A fairer dispensation for all? |
The second issue of the FSB’s Twin Peaks newsletter contains four
sections, one of which discusses the issue of enforcement, where we
experienced problems in the past, in understanding particularly how
some of the administrative penalties were arrived at.
In the past, critics complained that regulators were unable to
adequately reign in or punish law breakers. In cases where they did,
the process took too long.
“To date, the FSB has followed a hybrid internal/ external
enforcement model. In instances where the FSB finds that a penalty
is the appropriate sanction, it refers the decisions to the
Enforcement Committee. Although this Committee is made up of
external, objective experts, it is still “inside” the FSB, in the
sense that it reports to the Board of the FSB, and so has no
independent legal personality.”
“The Twin Peaks model will follow a similar hybrid approach, while
introducing new instruments to give regulators more room to
apprehend transgressors.”
My learned friend and Moonstone associate, Alan Holton, highlighted
a number of provisions in the FSR Act which may be considered as
grounds for appeal in the event that someone wants to challenge
administrative actions. We will discuss this in more detail on
Thursday.
Did I hear a collective sigh out there that the focus will shift
from the low hanging fruit, who had to bear the brunt of
enforcement, to the major instigators of the unfair outcomes for
clients?
Financial Services Tribunal
Although the Financial Sector Conduct Authority (FSCA) follows an
internal enforcement model, it has also established the Financial
Services Tribunal, which fulfils the role of independent arbiter to
challenge administrative actions (i.e. actions that are taken
internally by the authorities in terms of the legislation,
regulations and rules).
While the authorities are entitled to take administrative actions on
its own, all administrative actions can be appealed to the Tribunal
and reviewed by the courts.
If the future Prudential Authority or FSCA detects a breach of a
financial sector law – including breaches of a prudential or conduct
standard – it faces a range of decisions.
The authority can impose administrative penalties, or institute
criminal prosecutions in relation to the offences in terms of the
Financial Sector Regulation (FSR) Act or a financial sector law.
Alternatively, the authority can choose to remedy the situation,
either by issuing directives, declaring practices as undesirable,
applying to the court for appropriate orders, or entering into
Enforceable Undertakings. The aim of this remediation is to rectify
the breach and ensure it does not recur.
An Enforceable Undertaking provides the authority with broad
remedial powers under an agreement with those who break the law.
Enforceable Undertakings typically involve a number of detailed
steps, which the transgressor contractually commits to follow to
correct a flaw in a process or system used by the financial
institution, and/or pay compensation to affected customers.
Debarment Orders
This highly contentious action will also undergo substantial change.
Authorities can use Debarment Orders when they wish to protect
certain groups; or financial customers generally, from certain
individuals. The authority must first determine that a person has:
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Contravened a financial sector law, a regulator’s directive or an
Enforceable Undertaking;
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Attempted, conspired with or aided, abetted, induced, incited,
instigated, instructed or commanded, counselled or procured another
person to contravene a financial sector law;
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Contravened or failed to comply with a law of a foreign country
that corresponds to a financial sector law.
The authority may then make an order debarring the person for a
specified period from:
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Providing financial products or services, providing a specified
category or sub-category of financial product or service, or
providing a financial product or service to a specified category or
sub-category of financial customer;
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Acting as a key person or representative of a financial
institution;
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Being involved in managing a financial product or service
provider;
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Being involved in providing a specified financial product or
service.
If the authority is satisfied that a person has contravened, or has
failed to comply with, a provision of a financial sector law, the
authority may impose an administrative penalty in respect of the
contravention.
Those who used the current debarment process for nefarious purposes
need to realise that those days are over. In fact, you could face
serious repercussions if you are found out. |
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| Your Practice Made Perfect |
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Twin Peaks Newsletter 2 |
This issue of the newsletter focuses on the phasing in of the Twin Peaks
regulation model, with the aim of highlighting some of the changes or
amendments that the new regulatory system will introduce.
The four articles discuss:
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Understanding the Financial Sector Regulation Act
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Licensing under Twin Peaks
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Enforcement and
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Twin Peaks is now a reality
Supervision under the Financial Sector Conduct Authority intends to be
more judgement-based, aligned to the company’s model and strategy, and
lead to early intervention based on assessment of conduct risk, rather
than reacting to crystallised issues.
Click here to download Twin Peaks Newsletter 2. |
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Twin Peaks approach to licencing
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The Financial Sector Conduct Authority (FSCA) envisages a shift from the
current sectoral licensing model to a more centralised, activity-based
licensing one.
This shift, however, will only take place in the second phase of
implementation of the Twin Peaks model. Until then, the licensing of
entities will continue to take place under the existing financial sector
laws.
Towards an activity-based licensing model
In the second phase of Twin Peaks implementation, the proposed Conduct
of Financial Institutions (CoFI) Bill, which is currently being drafted,
will provide the framework for licensing based on activities.
According to the current proposals, financial institutions will, in the
second phase, be required to apply for a licence from the FSCA to render
a financial service in respect of specific, defined activities they
perform – as opposed to under different sectoral laws. The CoFI Bill
will define all of these activities in a single, overarching law.
All new applicants, irrespective of their size and complexity of
business (from small financial advice practices to large financial
services groups), will be subjected to a thorough licensing process.
Licensing is a critical component in the regulatory framework and serves
a key function in the supervision value chain. It facilitates and
provides an entry point for all applicants before they are allowed to
conduct any business.
It is important to note that the principle of proportionality will
apply, to ensure that there is no “one-size-fits-all” licensing
approach. Instead, the approach and requirements will be proportionate
to the risks underlying the businesses activities of different entities.
This will ensure that the licensing requirements do not pose any
unnecessary barriers to entry into the financial services sector. |
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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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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 49000
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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Internal Broker:
Picara, Dunkeld, Johannesburg - If you are fully FAIS compliant and
registered with the FSB for a minimum of 3 years with professional
endemnity insurance experience, then
Read More
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Wealth Management
Consultant:
Rockfin, Cape Town - As an independent Financial Advisor your role
will be to work closely with clients in their medium- to long-term
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driven profession. Please only apply if you have the required insurance
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Read More
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Wealth Management
Consultant:
Rockfin, Sandton - We are looking for Financial Advisors to provide
private wealth management and financial planning services to individual
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Read More
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Manager:
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In Lighter Wyn |
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Gender Disparity |
Wife's Diary
Tonight I thought my husband was acting weird. We had made plans to
meet at a nice restaurant for dinner. I was shopping with my friends
all day long so I thought he was upset at the fact that I was a bit
late, but he made no comment on it. Conversation wasn't flowing so I
suggested that we go somewhere quiet so we could talk. He agreed,
but he didn't say much.
I asked him what was wrong. He said, 'Nothing.' I asked him if it
was my fault that he was upset. He said he wasn't upset, that it had
nothing to do with me, and not to worry about it. On the way home I
told him that I loved him. He smiled slightly and kept driving. I
can't explain his behaviour. I don't know why he didn't say, 'I love
you, too.'
When we got home I felt as if I had lost him completely, as if he
wanted to be somewhere else and have nothing to do with me anymore.
He just sat there quietly and watched TV. He continued to seem
distant and absent. Finally, with silence all around us, I decided
to go to bed. About 15 minutes later he came to bed but I still felt
that he was distracted and his thoughts were somewhere else. He fell
asleep, I cried. I don't know what to do. I'm sure that his thoughts
are with someone else. My life is a disaster.
Husband's Diary
A one-foot putt - who the hell misses a one-foot putt?
Getting our own back
I shared this with my youngest daughter this weekend who responded: Did
you have to teach me to eat that well?
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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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