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Investment Indicators - 13 November 2017 |
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Paul Kruger
Author/Editor |
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Always imitate the behaviour of the winners when you lose
– Anonymous (Now who would gain from this insight, I wonder?) |
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Distributed to 48,817 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) |
7.540% |
7.490% |
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2 |
Absa (L) |
7.451% |
7.389% |
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3 |
Assupol (G) |
6.980% |
6.900% |
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Company |
This Week |
Last Week |
| 1 |
1Life (L) |
7.540% |
7.490% |
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2 |
Absa (L) |
7.451% |
7.389% |
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3 |
Assupol (G) |
7.420% |
7.330% |
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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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Draft Determination on Equivalence of Reward |
Perceived disparities between remuneration for tied agents and
independent advisers have been a bone of contention for ages. The
Registrar also expressed concerns about the possibility of using
remuneration, other than commission, to create “…opportunities for
inappropriate regulatory arbitrage in favour of tied advice and
distribution models.”
Proposal RR: Equivalence of reward to be reviewed, published
in the 2014 Retail Distribution Review, proposed certain measures to
be implemented, subject to further consultation.
The FSB did however highlight that, despite this deferral, it
remained concerned that a number of current practices in relation to
tied adviser remuneration give rise to inappropriate distortions in
the advice market, posing risk of unintended levels of migration
from independent to tied models. Accordingly, the FSB advised that,
as an interim measure pending full implementation of Proposal RR, it
intended to clarify certain practices it regarded as inconsistent
with the principle of equivalence of reward, using mechanisms
provided for in Part 3 of the Regulations to the Long-term Insurance
Act, 1998.
This draft determination is the outcome of the above process.
Key provisions of the determination
Against the background outlined above, the determination sets out
which forms of remuneration or consideration the Registrar regards
as not being substantially in accordance with the provisions of Part
3A of the Regulations to the Long-term Insurance Act, and
accordingly as not being compliant with the principle of Equivalence
of Reward.
The determination identifies two specific forms of remuneration or
consideration that would enable an insurer to provide its
representatives with potentially significant financial advantages
that it is not able to provide to independent intermediaries.
Accordingly, such arrangements are clearly not substantially aligned
with the provisions of Part 3A and not in compliance with the
principle of Equivalence of Reward, These arrangements are:
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The provision to a representative of various forms of credit or
access to credit on terms that are more favourable than those
available on an arms' length basis; and
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Arrangements whereby an insurer in effect "buys the
representative's book of business" from that representative when the
representative's intermediary agreement with the insurer comes to an
end. The policyholders making up such a "book" are already customers
of the insurer concerned by virtue of its agency relationship with
the representative, and the insurer is already obliged to ensure
appropriate ongoing service to such policyholders, regardless of
whether or not the intermediary agreement with the representative
remains in place. Accordingly, the rationale for the insurer
remunerating the representative for retaining access to its own
customers is unclear.
In addition to addressing the above specific remuneration
arrangements, the determination includes a more general limitation
providing, in effect, that remuneration arrangements where more than
15% of a representative's overall remuneration comprises benefits
that are not generally provided to all of the insurer's
representatives (or all representatives of a particular type), do
not comply with the principle of equivalence of reward.
This provision is intended to address other remuneration
arrangements (over and above those specifically identified above)
through which insurers could provide benefits to selected
representatives that it would not be permitted to offer to
independent intermediaries. The provision also seeks to ensure a
reasonable degree of equivalence with the requirement in Part 3A
that an independent intermediary may only be remunerated through
"commission in monetary form", while recognising that Part 3A
contemplates that a representative may be remunerated "in cash or in
kind".
The provision seeks to clarify that, in order for remuneration “in
kind" to be consistent with the principle of equivalence of reward,
it should largely comprise benefits typically available to the
insurer's representatives generally in the normal course of their
employment / tied agency relationship with the insurer, rather than
including a significant proportion of non-standard benefits that are
available only to selected representatives.
The determination contains additional provisions confirming that
non-compliance with the principle of equivalence of reward extends,
in summary, to arrangements that:
Lastly, the determination sets out the effective date of its
application, including the extent to which it applies to
arrangements entered into before the effective date.
Dates and deadlines
The deadline for industry input is 11 December 2017, and the
proposed effective date is 1 January 2018.
One senses that there will a few changes to proposed leave dates
in December.
Click here to download
Draft Board Notice 181 of 2017. |
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| Your Practice Made Perfect |
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Prohibition of Inducement and Acceptance of Gratification |
The Registrar of Pension Funds published, for comment, a draft Directive
to determine conditions in respect of inducements and acceptance of
gratification to ensure compliance with and to prevent contraventions of
the objectives of a board as determined in terms of section 7C of the
Pension Funds Act.
The purpose of the Directive is to determine conditions to be imposed by
the Registrar in order to combat and prevent bribery and corrupt conduct
by board members, principal officers, deputy principal officers,
auditors, valuators, administrators or service providers to a retirement
fund. Any such involvement will have a bearing on such persons’ fitness
and propriety to hold office.
Gratification is defined as:
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money, whether in cash or otherwise;
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any donation, gift, loan, fee, reward, valuable security, property or
interest in property of any description, whether movable or immovable,
or any other similar advantage;
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the avoidance of a loss, liability, penalty, forfeiture, punishment
or other disadvantage;
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any office, status, honour, employment, contract of employment or
services, any agreement to give employment or render services in any
capacity and residential or holiday accommodation;
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any payment, release, discharge or liquidation of any loan,
obligation or other liability, whether in whole or in part;
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any forbearance to demand any money or money’s worth or valuable
thing;
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any other service or favour or advantage of any description,
including protection from any penalty or disability incurred or
apprehended or from any action or proceedings of a disciplinary, civil
or criminal nature, whether or not already instituted, and includes the
exercise or the forbearance from the exercise of any right or any
official power or duty;
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any right or privilege;
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any real or pretended aid, vote, consent, influence or abstention
from voting; or
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any valuable consideration or benefit of any kind, including any
discount, commission, rebate, bonus, deduction or percentage.
Click here to download the
Draft Directive. |
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Principal Executive Officer Occupational Qualification
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People in the retirement funding environment can, for the first time
ever, obtain a qualification equal to a university degree, at a fraction
of the cost of a degree.
Principal Executive Officers are the drivers of retirement funds in
Southern Africa.
Given the important role they play within the governance structure of a
retirement fund, including the proper performance of the board of
trustees, it is surprising that, up to now, very little was available in
the form of a duly recognised NQF level 7 qualification for those
performing this function, or those aspiring towards it.
The newly developed Professional Principal Executive Officer
Qualification is the first and currently only occupational qualification
which provides recognition of competence in learners who wish to
formalise their education and experience with a view to enhancing their
career prospects. This includes trustees and a wide variety of other
employee benefits functionaries.
The Professional Principal Executive Officer Qualification is offered by
Moonstone Business School of Excellence, (MBSE), in collaboration with
Batseta, the professional body for the retirement funding profession.
MBSE is a leading provider of professional training interventions in the
financial services industry, and duly accredited by the relevant
education quality control structures.
Who Should Enrol?
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Current Principal Officers, trustees and retirement fund
functionaries.
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People working in a claims or employee benefits and compensation
environment who have access to a retirement fund.
Contact details
For more information, contact
Frans-Petrus Zeelie via email or telephonically at 087 702 6429, or
view our
brochure. |
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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
DOFA - Do's and Don'ts
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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Junior Short Term
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JFA Short term Brokers, Milnerton, Cape Town - Are you bilingual,
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In Lighter Wyn |
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Father Incognito |
Two priests decided to go to Hawaii on vacation.
They were determined to make this a real vacation by not wearing
anything that would identify them as clergy. As soon as the plane
landed they headed for a store and bought some really outrageous
shorts, shirts, sandals, and sunglasses.
The next morning they went to the beach dressed in their 'tourist'
garb. They were sitting on beach chairs, enjoying a drink, the
sunshine and the scenery when a 'drop dead gorgeous' blonde
sans bikini top
came walking straight towards them.
They couldn't help but stare.
As the blonde passed them she smiled and said, 'Good Morning, Father
~ Good Morning, Father,' nodding and addressing each of them
individually, then she passed on by.
They were both stunned. How in the world did she know they were
priests?
So the next day, they went back to the store and bought even more
outrageous outfits. Once again, in their new attire, they settled
down in their chairs to enjoy the sunshine.
After a little while, the same gorgeous blonde came walking
towards them. Again she nodded at each of them and said - 'Good
morning, Father ~ Good morning, Father,' and started to walk away.
One of the priests couldn't stand it any longer and said, 'Just a
minute, young lady.'
'Yes, Father?'
'We are priests and proud of it, but I have to know, how in the
world did you know we are priests, dressed as we are?'
She replied, 'Father, it's me, Sister Kathleen.'
Never lie to a rabbi
At Friday night services, Morris went to his friend Irving and said,
"Irving, I need a favour. I'm sleeping with the rabbi's wife. Can
you hold him in temple for an hour after services for me?"
Irving was not very fond of the idea, but being Morris' lifelong
friend, he reluctantly agreed.
After services, he struck up a conversation with the rabbi asking
him all sorts of stupid questions in an effort to keep him occupied.
The wise rabbi eventually became suspicious and asked, "Irving what
are you really up to with all this?"
Irving, filled with feelings of guilt and remorse, confessed to the
rabbi, "I'm sorry Rabbi, my friend Morris is sleeping with your wife
right now and asked me to keep you occupied."
The rabbi smiled, and putting a brotherly hand on Irving's shoulder,
said: "Irving I think you'd better hurry home—my wife died two years
ago!" |
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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
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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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