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Investment Indicators - 15 January 2018 |
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Paul Kruger
Author/Editor |
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We live in a moment of history where change is so speeded up that we begin
to see the present only when it is already disappearing – R D Laing |
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Distributed to 49,020 subscribers.
To advertise with us
click here |
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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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Clientéle Life (L) |
6.900% |
6.900% |
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2 |
1Life (L) |
6.880% |
6.820% |
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3 |
Absa (L) |
6.753% |
6.686% |
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Company |
This Week |
Last Week |
| 1 |
Clientéle Life (L) |
7.000% |
7.000% |
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2 |
1Life (L) |
6.880% |
6.820% |
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3 |
Assupol (G) |
6.860% |
6.710% |
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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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Regulatory Impact of Product Training under new Fit and
Proper |
The Financial Services Board subcontracted the beleaguered KPMG to do
an impact assessment on the proposed amendments related to the Fit
and Proper requirements, as published in the Draft fit and proper
requirements (2016).
In particular, the study focused on the proposed changes to the
second level Regulatory Examinations (REs) and the Continuous
Professional Development (CPD) requirements.
The introduction to the findings of the assessment provides a
very neat summary of what the new Fit and Proper requirements, and
specifically insofar as training is concerned, will entail.
The actual published details, most of which come into effect on
1 April 2018, differ slightly from those on which this assessment
was conducted.
The current reality
At present, FSPs, KIs and Representatives are required to write and
pass the relevant level REs. There are a maximum number of four
examinations which make up the first level REs that deal with the
regulatory framework applicable to FSPs, i.e. the provisions of the
FAIS Act (2002) and the Financial Intelligence Centre Act
of 2001 (FICA).
In addition, the FAIS Act (2002) legislation refers to
second level REs, which were earmarked to be more product
specific and would focus on the categories and subcategories in
which the FSP, KI and Representative is authorised to render
financial services. However, the Registrar extended a general
exemption relating to the second level REs in June 2013 applicable
to all FSPs, KIs and Representatives by means of the General
Exemption from the Second Level REs requirements (2013). At
present, the FAIS Act (2002) does legislate that FSPs ensure
that training for KIs and Representatives regarding products are in
place.
Proposed product knowledge requirements
The new Fit and Proper legislation refers to the replacement of the
26 product specific second level REs with class of business training
and product specific training, known jointly as product training.
Accredited providers, which are accredited by the relevant Skills
Education Training Authorities (SETA) according to Quality Council
for Trades and Occupations (QCTO) criteria, must provide class of
business training.
In contrast, anyone may provide product specific training, but these
are likely to be product suppliers who have the necessary
information and expertise. Furthermore, FSPs are responsible for
recording all class of business and product specific training
(provided both internally and externally) in their competence
register, along with other competency requirements.
New Continuous Professional Development requirements
A number of changes were made to the last published discussion
document:
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(1) |
Subject to subsection (2) below, the fit and proper
requirements relating to CPD apply to all FSPs, key
individuals and representatives. |
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(2) |
The fit and proper requirements relating to CPD
contained in this Chapter do not apply to |
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a) |
a Category I FSP, its key individuals and
representatives that are authorised, approved or
appointed only to render financial services or manage or
oversee financial services in respect of the financial
products: Long-term Insurance subcategory A and/or
Friendly Society Benefits; and |
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b) |
a representative of a Category I FSP that is appointed
to only: |
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i. |
render a financial service in respect of a Tier 2
financial product; and/or |
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ii. |
render an intermediary service in respect of a Tier 1
financial product. |
Summary of cost analysis results
For the product
knowledge requirements, KPMG compared two scenarios: second
level REs versus the combined cost of product training and
CPD. It found that, under the new dispensation, the cost
impact would be significantly reduced.
In terms of CPD requirements the study found that the cost
of the proposed CPD requirements would be substantially less
than the present value costs of the current CPD programme.
This is difficult to understand, given the limited scope of
CPD, currently, as opposed to when it impacts on the whole
industry.
Potential risks and possible mitigation strategies
It is evident that there are still many unknown factors
which can impact on the real outcomes. Under the heading
“Understanding the nature of outcome based regulation and
its success factors”, the assessment states:
The proposed changes introduce new roles for market players.
The FSB’s role is more information provision and credibility
related while industry players have a higher degree of
autonomy. In light of this, concepts such as class of
business training as well as the related
definition of ‘assessment’ require clarification and
discussion.
A major concern is the narrow scope of the KPMG impact study in
that it was not tasked with assessing the impact of the
level of service provided to the lower end of the market in
terms of the exemptions provided advisers working in that
market.
Whilst it is so that the industry will have a larger degree
of autonomy, there is also the danger of problems being
identified only after the damage had been done. Of
particular concern here is the introduction of “execution of
sales” which will rely
on the untested content of script written by the FSP.
Another major concern is the ever increasing workload on the
industry, and particularly smaller FSPs who find their
sustainability increasingly under pressure due to the demand
of complying with regulatory obligations.
Please click here to download the
Class of Business and Product Specific Training and the
CPD Requirements. |
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Fixed annuities protect you against volatility
A guaranteed or fixed income annuity offers clients protection against
the risks of longevity and volatile investment returns. As Discovery
Invest marks its 10th birthday, Discovery clients can
actively maximise their retirement income by taking out a Fixed
Retirement Income Plan with an additional 10% income for the first three
years. This offer is available until 31 March 2018. The 10% is an
addition to the annuity income amount, after allowing for annual
escalations and before deducting tax. After three years, the annuity
income will return to the quoted income annuity amount before deducting
tax.
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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New Fit and Proper Regulations and the Regulatory Exams |
The long anticipated amended
“Determination of Fit and Proper Requirements for Financial Services
Providers, 2017” was finally printed in December last year.
The following requirements are applicable in terms of the regulatory
examinations:
The competence requirements relating to regulatory examinations
contained in this Part -
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(a) |
subject to paragraph (b),
apply to all FSPs, key individuals and representatives; |
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(b) |
do not apply to - |
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(i) |
a Category I FSP, its key
individuals and representatives that are authorised,
approved or appointed only to render financial services
or manage or oversee financial services in respect of
the financial products: Long-term Insurance
subcategory A and/or Friendly Society Benefits; and |
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(ii) |
a representative of a
Category I FSP that is appointed only to - |
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(aa) |
perform the execution
of sales in respect of a Tier 1 financial product
provided that the requirements in section 22(b)(ii) are
complied with; and/or |
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(bb) |
render financial services
in respect of a Tier 2 financial product. |
The amended determination comes into effect on 1 April 2018, with
the following exceptions:
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Section in Notice |
Effective Date |
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Section 13(3) - FSP recording obligations and
(5) – establishment of a competence register. |
1 May 2018 |
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Section 29(1)(a) – Class of Business training |
1 August 2018 |
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Section 29(1)(b) – Product Specific training |
1 May 2018 |
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Section 29(2) – KI class of business training |
1 August 2018 |
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Section 31 – 34 – Continuous Professional
development |
1 June 2018 |
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Section 38 – Automated advice requirements |
1 May 2018 |
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Sections 44(1) and (2): 45: 48 and 49 -Financial
soundness, but only insofar as it relates to a
juristic representative |
1 March 2019 |
Regulatory Exam Study Material
The amended requirements will have a substantial impact on
the content of the study material for the REs.
The FSB plans to
provide more specific guidance on the impact of the changes
to the Fit and Proper Requirements, and specifically on the
deadline by when the amended requirements are to be
incorporated in the regulatory exam questions.
Candidates who are currently preparing to write the exams
should consider the possible implications of such changes,
and endeavour to write the exams before it becomes
effective.
Candidates are advised to carefully consider the above and
to only write the REs once they are absolutely ready.
Click here for a copy of the
Determination of Fit and Proper Requirements for Financial
Services Providers, 2017. |
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Professional Principal Executive Officer Qualification
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Registration is now open for candidates who want to enrol for the
first intake on 26 February 2018.
The Professional Principal Executive Officer Qualification is a
much-needed stimulus for the professionalisation of the role of the
Principal Officer which has historically been unstructured and
undefined. It will also support the very important transformation
imperative as it enables learners to obtain a qualification which
may have been inaccessible to working individuals, as well as those
unable to satisfy traditional Higher Education access criteria.
Moonstone Business School of Excellence (MBSE) is the first duly
accredited training provider to offer this qualification.
Given the very important role played by Principal Executive Officers
within the governance structure of a retirement fund, 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.
This occupational qualification will form the apex of the retirement
functionary learning path and will be linked to the Principal Officer
Association (POA) professional designations.
Who should register?
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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.
Successful learners will be linked to the professional designations
offered by Batseta, the professional body for the profession. The
learning pathway will include the Retirement Fund Trustee qualification.
Registration
You are welcome to speak to Frans Petrus Zeelie at 086 122 3774 who will
gladly assist.
To register, click
here, then on
Enrol today and finally on the
Professional Principal Executive Officer button.
For more information, please click
here. You can also email us on at
learning@mbse.ac.za. |
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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 20 000 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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Insurance Field Sales
Reps:
Quantum Invest, Nationwide - We are looking for field Reps
nationwide. RE5 qualification is recommended. We offer a
competitive commission structure.
Read More
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Financial Advisor:
Kaizen Solutions, Gauteng - We are currently recruiting an unlimited
number of individuals aged 25 to 35 who are sales driven, motivated,
ethical and dedicated.
Read More
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Senior Credit Controller:
CIA Building Insurance, Bedfordview, is currently looking for an
experienced credit controller to join our finance team.
Read More
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Short Term Insurance
Underwriter:
JFA Shortterm Brokers CC, Milnerton, Cape Town -
If you have a minimum of 3 years experience and, live in the vicinity of
the brokerage, then
Read More
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In Lighter Wyn |
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Bitcoin - Monkey Business? |
The following is a simple explanation of
Bitcoin, as outlined by a professor in Israel.
Up until now, I had no understanding of how Bitcoins worked nor who
would accept them.
The professor provides a simple example that will clarify the topic
for you if, like me, you didn’t really understand the concept.
A lot of monkeys lived near a village.
One day a merchant came to the village to buy these monkeys.
He announced that he will buy the monkeys @ $100 each.
The villagers thought that the man was mad.
How can somebody buy stray monkeys at $100 each?
Still, some people caught some monkeys and gave it to this merchant
and he gave $100 for each monkey.
This news spread like wildfire and people caught monkeys and sold it
to the merchant.
After a few days, the merchant announced that he will buy monkeys @
$200 each.
The lazy villagers also ran around to catch the remaining monkeys!
They sold the remaining monkeys @ $200 each.
Then the merchant announced that he will buy monkeys @ $500 each!
The villagers start to lose sleep! They caught six or seven monkeys,
which was all that was left and got $500 each.
The villagers were waiting anxiously for the next announcement.
Then the merchant announced that he is going home for a week. And
when he returns, he will buy monkeys @ $1000 each!
He asked his employee to take care of the monkeys he bought. He
alone was taking care of all the monkeys in a cage.
The merchant went home.
The villagers were very sad as there were no more monkeys left for
them to sell it at $1000 each.
Then the employee told them that he will sell some monkeys @ $700
each - secretly.
This news spread like fire. Since the merchant buys monkey @$1000
each, there is a $300 profit for each monkey.
The next day, villagers formed a queue near the monkey cage.
The employee sold all the monkeys at $700 each. The rich bought
monkeys in big lots. The poor borrowed money from money lenders and
also bought monkeys!
The villagers took care of their monkeys and waited for the merchant
to return.
But nobody came! Then they ran to the employee, but he had already
left too!
The villagers then realized that they have bought the useless stray
monkeys @ $700 each and were unable to sell them!
Bitcoin will be the next monkey business. It will make a lot of
people bankrupt and a few people filthy rich.
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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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