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Investment Indicators - 11 December 2017 |
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Paul Kruger
Author/Editor |
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The excellence of a gift lies in its appropriateness rather than in its
value
– Charles Dudley Warner |
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Distributed to 49,121 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
succession.
With offices nationally, we are well-placed to help you.
Call us to discuss a strategic partnership.
t. +27 (0) 10 597 6831
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) |
7.540% |
7.540% |
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2 |
Clientéle Life (L) |
7.450% |
7.250% |
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3 |
Absa (L) |
7.443% |
7.448% |
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Company |
This Week |
Last Week |
| 1 |
Clientéle Life (L) |
7.550% |
7.350% |
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2 |
1Life (L) |
7.540% |
7.540% |
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3 |
Assupol (G) |
7.480% |
7.470% |
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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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Compliance is an ongoing requirement |
The importance of having systems in place to ensure compliance was
illustrated this week in a notice from the FSB Enforcement
Committee.
Rule 5.1(a)(i) of the PPR Rules require that a registered entity
should only do business with duly authorised FSPs. This should not
only be ascertained at the contract stage, but on a continuous
basis.
Below is an extract from the FSB notice on a case which illustrates
what can happen if you don’t.
On 28 October 2010, AVBOB entered into an intermediary agreement
with Mr T Nyadombo in respect of which Mr Nyadombo undertook to
render services as intermediary in respect of, inter alia, a savings
product that was underwritten by AVBOB.
On 10 December 2014 Mr Nyadombo’s authorization to render services
as an intermediary in respect of certain financial products, which
included savings products, was withdrawn by the FSB.
From 11 December 2014 until April 2016 Mr Nyadombo continued to
render services as intermediary for and on behalf of AVBOB with
regard to the savings product that was underwritten by AVBOB, whilst
he was not authorised to render financial services in respect of
this product. AVBOB therefore contravened Rule 5.1(a)(i) of the PPR
Rules.
As aggravating factors the Registrar considered, amongst other
factors, that AVBOB failed to demonstrate sound insurance principles
and practice in the interests of the policyholders and that AVBOB
was not aware of the license changes on Mr Nyadombo’s FSP license
until the contravention was brought to its attention by the staff of
the Registrar’s office. In mitigation the Registrar took into
account, amongst other factors, that AVBOB accepted responsibility
for the contravention, co-operated with the Registrar’s
investigation and the subsequent enforcement action, and undertook
to implement measures to prevent similar contraventions from
recurring.
Consequently, the Registrar agreed to a penalty of R100 000, which
penalty was imposed by the Enforcement Committee on AVBOB on 1 December 2017.
The report does not state whether action was also taken against Mr
Nyadombo for submitting business whilst not authorised to do so. |
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Discovery Invest fixed annuity offer
Discovery Invest is commemorating its first decade with a Fixed
Retirement Income Plan that offers an additional 10% income for the
first three years. The offer is only valid until 31 March 2018. The 10%
is an addition to the annuity income amount, after allowing for annual
escalations and before deducting tax.
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Single-life annuities: the additional income stops after three years,
or on death (if within the first three years).
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Joint-life annuities: the additional income will only be applied to
the current amount in payment and stops after three years, or if both
annuitants die within the first three years.
Nothing contained herein should be construed as financial advice and
is meant for information purposes only.
Discovery Life Investment Services (Pty) Ltd branded as Discovery Invest
is an authorised financial services provider. Registration number
2007/005969/07.
Product Rules and Terms and Conditions Apply.
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| Your Practice Made Perfect |
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Regulatory Examinations Pass Mark |
A candidate recently wrote to protest against what she considers to be
the very high pass mark for the regulatory exams compared to others in
the industry, and suggested it be lowered to 50%. The FSB responded as
follows:
Firstly, it is important to understand the purpose of the examinations.
The examinations were introduced because key individuals and
representatives did not have the required knowledge and understanding of
the legislation required to protect consumers. From the time that the
examinations were introduced in 2010 to date, the FSB has seen a
significant improvement in the compliance of FSPs, key individuals and
representatives with the relevant FAIS Act and the sub-ordinate
legislation – which clearly shows that if people know better, they do
better.
The examinations are therefore achieving the desired outcome – if there
is better compliance with the legislation then there will also be better
outcomes for consumers.
Our research has shown that people failing the regulatory examinations,
in most instances, are not preparing correctly for the examinations.
Most people don’t even know what they will be tested on in the
examination, despite the FSB making a roadmap available that clearly
shows what information the questions in the exam will test. Therefore,
the content of what you will be tested on is clearly mapped out. There
are no other examinations in any other institution (for example a
university) where you will be told exactly what questions to expect in
your exam.
If you prepare in accordance with the roadmap provided, and you make
sure that you study the relevant information (which is also provided in
a separate training manual developed by INSETA) then you should not have
any problem passing the exam. The difficulty level of the exam is at a
Grade 12 / NQF 4 level.
The original pass mark was 70%, which was subsequently reduced to
65/66%. Please remember that this is a professional exam.
The purpose of the FAIS legislation is to protect consumers against
persons giving them poor financial advice. Thus, if a representative
only has 40% of the knowledge required to ensure that he/she performs
her legal duties in accordance with the FAIS Act, then he/she is not
properly equipped to render financial services.
Please also note that the examination bodies operate under very strict
service level agreements with the FSB. They make the rules, and we apply
them strictly in accordance with their instructions. |
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Proposed closure of Pension Funds
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The Registrar of Pension Funds published Notice 4 of 2017 which gave
notice of its intention to cancel a substantial number of funds in
response to applications from fund administrators.
Any person aggrieved by the intended cancellation is invited to submit
objections to the proposed cancellation.
The original deadline for submission of objections was extended to 28 February 2018.
The list of proposed funds can be viewed
here.
Readers may remember that the FSB also developed an
Unclaimed Retirement
Benefit Search Engine which is more than handy for anyone wishing to
make sure they are not inadvertently affected negatively by the
cancellation of a pension fund.
If you or your clients want to check whether you are affected, or can
uncover an unexpected Christmas present, be my guest. We do not charge
tracing fees. |
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Regulatory Examinations |
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2018 Schedules updated |
Please note: Registration cut-off is 11 working days before date of exam.
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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
Underwriter:
JFA Short Term Brokers, Milnerton - We require a bilingual
underwriter with RE5 and NQF 4 qualification.
Read More
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Personal Assistant and
Administrator of investments, life insurance and Medical Aids:
Vesto Capital, Moorreesburg - We are looking for a qualified,
experienced and well groomed lady to commence employment on 8 January
2018.
Read More
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Short Term Claims
Administrator:
The Insurance Center, Westville, Durban - The successful applicant
must be experienced, work unsupervised and be competent to negotiate
claims settlements at the highest level.
Read More
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Financial Sales Consultant:
Quest Staffing Solutions, Cape Town - You will provide qualified financial advice directly to clients and
therefore a minimum of 6 months Outbound Call Centre sales experiences or 12
months face to face financial sales, with a RE qualification will be required.
Read More
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Group Compliance
Practitioner:
LegalWise, Gauteng - You will play a key role in assisting the Group
Compliance Manager to enhance and maintain the compliance strategies and
processes, as well as a culture of ethics and compliance, across the
Group.
Read More
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In Lighter Wyn |
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Memory test for old toppies and new word |
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One for the old toppies
Can you guess the name of the song? Here’s a clue: The band’s name
was America. Call Doctor Google. We’ll publish the answer in
Wednesday’s Moonstone Monitor in the unlikely event that you do not
get it.
And, finally, this word sums up how most of us feel:
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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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