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Investment Indicators - 29 January 2018 |
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Paul Kruger
Author/Editor |
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Quality begins on the inside, then works its way outside – Bob Moawad |
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Distributed to 50,025 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?
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Strategic Partner solution to:
- increase time with clients
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e. info@gtc.co.za
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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 |
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 |
1 |
Clientéle Life (L) |
6.910% |
6.760% |
2 |
1Life (L) |
6.880% |
6.710% |
3 |
Absa (L) |
6.754% |
6.576% |
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Company |
This Week |
Last Week |
1 |
Clientéle Life (L) |
7.010% |
6.860% |
2 |
1Life (L) |
6.880% |
6.710% |
3 |
Assupol (G) |
6.850% |
6.680% |
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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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Continuous Professional Development
Important considerations before you proceed
By Alan Holton |
In a nutshell
In terms of Section 32 of Board Notice 194 of 2017 (Determination of
Fit and Proper Requirements for Financial Services Providers, 2017),
every sole proprietor, key individual and representative must comply
with the minimum Continuous Professional Development (CPD)
requirements set out in Sections 31 to 34 of the Board Notice (see
link below). Section 33 sets out the minimum number of hours of CPD
activity required in each CPD cycle. A CPD cycle is defined and
means a period of 12 months commencing on 1 June of every year and
ending 31 May of the following year.
Who is exempted?
The CPD requirements do not apply to Category I FSPs, key
individuals and representatives that are authorised, approved or
appointed only to render financial services or manage or oversee
financial services in respect of Long-term Insurance sub-category A
and/or Friendly Society Benefits. In addition, the CPD requirements
do not apply to any representative of a Category I FSP that is
appointed to render a financial service only in respect of a Tier 2
financial product and/or render an intermediary service in respect
of a Tier 1 financial product. (For details of Tier 1 and Tier 2
Financial Products, please refer to Annexure 3 of Board Notice 194
of 2017).
What is CPD?
The term “CPD activity” is defined and means, inter alia, an
activity that is accredited by a Professional Body but excludes any
activity performed towards a qualification or product specific
training.
The term “professional body” is also defined, and means a body
recognised by the SAQA as a professional body for purposes of the
National Qualifications Framework Act, 2008.
In brief, this all means that, commencing on 1 June 2018, all FSPs,
FSPs (sole proprietors) key individuals and representatives (other
than those that have been exempted by the provisions of Section
31(2)) must begin their CPD training and must complete the minimum
number of hours before 31 May 2019. (See Section 33 of the Board
Notice for details of the hours required).
Specific obligations on each FSP
In terms of Section 32(2) every FSP must establish and maintain
policies and procedures on CPD that include details of how the FSP,
key individual and representative will maintain knowledge and skills
that are appropriate for their activities and responsibilities,
update their knowledge and skills and develop new knowledge and
skills to assist with their current functions and responsibilities
or functions contemplated in the future.
These policies and procedures must include training plans for each
CPD cycle to ensure that CPD is relevant and appropriate for the
authorisation, approval and appointment of the FSP, key individual
and representative, must addresses any identified needs, knowledge
and skills gaps and must continually seek to improve the
professional standards and practices of the FSP, its key individuals
and representatives.
Beware the Ides of May
Each person who undertakes a CPD activity must be able to show that,
in choosing the activity, these issues were considered and found to
be present to some extent in the activity.
There are two cautionary notes to be considered by FSPs, key
individuals and representatives before undertaking any CPD activity
on offer:
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Has the entity that offers the activity been accredited by a
Professional Body? If not, the activity is worthless from a CPD
point of view. Standing to be corrected, the only Professional
Bodies that seem able, at this stage, to accredit any activity that
may be appropriate to the financial services universe, are the
Compliance Institute of South Africa, the Financial Planning
Institute of Southern Africa, the Institute of Risk Management South
Africa and the Insurance Institute of South Africa.
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Does the activity satisfy one or more of the following the
criteria (see Section 32(1)(c)):
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Is the activity relevant to the functions and role of the person
in question?
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Does the activity contribute to the skill, knowledge, expertise
and professional and ethical standards of that person?
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Does the activity address any identified needs or gaps in the
technical knowledge of the individual who has chosen the activity?
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Does the activity address any identified needs or gaps in his or
her generic knowledge and understanding of the environment in which
the financial service is rendered or managed or overseen?
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Does the activity address the individuals’ knowledge and
understanding of applicable laws?
This short summary does not deal with the CPD record keeping
requirements and all FSPs are encouraged to read
Sections 31 to 34
of the Board Notice insofar as CPD activities are concerned. It is
important to bear in mind that the Conduct of Business Return that
will replace the annual Compliance Report (probably in 2019) will
almost certainly ask for proof that all CPD requirements have been
met – both by individuals concerned and by the FSP itself.
Alan Holton is an independent compliance officer who consults to Moonstone
Compliance on a regular basis. |
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Discovery Invest offers clients 10% additional income for three years
Discovery Invest is offering clients 10% income in addition to their
quoted annuity income amount on the Discovery Fixed Retirement Income
Plan, before tax, for the first three years of their policy. This
in-retirement product allows clients to select their guarantee period,
such as 10 years. Clients can select for their annuity payments to
continue to be paid to their surviving spouse upon their death, if this
occurs before the end of the guarantee period.
Discovery Invest can only provide the additional income on all new
investments taken out before Saturday, 31 March 2018.
Disclaimer:
This article is meant only as information and should not be taken as
financial advice. For tailored financial advice, please contact your
financial adviser.
Discovery Life Investment Services Pty (Ltd): Registration number
2007/005969/07, branded as Discovery Invest, is an authorised financial
services provider. All life assurance products are underwritten by
Discovery Life Ltd. Registration number: 1966/003901/06. An authorised
financial service provider and registered credit provider, NCA Reg No.
NCRCP3555.
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Your Practice Made Perfect |
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New Binder Fee Regulations Bring Consistency |
An article in Moneyweb titled New insurance rules offer more protection,
less bias discusses the introduction of a binder remuneration cap of 9%
in amendments to the long- and short-term insurance regulations which
became effective on 1 January 2018.
“Binder holders are third parties, who act as “front faces” for insurers
and perform specific functions related to any type of policy. Per the
respective Long-term and Short-term Insurance Acts, binder holders may
perform the following functions on behalf of insurers:
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Enter into, vary or renew a long/short-term policy (excluding a
long/short-term reinsurance policy)
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Determine the wording of a long/short-term policy
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Determine premiums under a long/short-term policy
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Determine the value of policy benefits under a long/short-term
policy
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Settle claims under a long/short-term policy
The amended regulations mean binder holders, authorised to give advice
under the Financial Advisory and Intermediary Services (Fais) Act, may
receive a maximum of 9% in remuneration. The fee comprises 3.5% for
entering into, varying or renewing policies, which may be increased to
5% should the aforementioned functions include determining policy
wordings, premiums or benefits. A provision of 4% is made for settling
claims, while binder holders who simply determine wordings, premiums or
benefits are not entitled to a fee.”
Moonstone Compliance and Risk Management notes that
that the binder fee caps referred to above apply to those Non-Mandated
Intermediaries (NMIs) authorised for advice, or those NMIs who are
associates of NMIs who are authorised for advice.
For all other binder holders (UMAs and NMIS not
authorised for advice), the following stipulations from Regulation 5.7
applies:
(1) When remuneration is provided by or on behalf of an insurer to any
person for rendering a binder function:
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such remuneration must be reasonable and commensurate with the
actual cost of performing the binder function, taking into account the
nature of the function and the resources, skills and competencies
reasonably required to perform it;
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the payment of such remuneration must not result in the person being
remunerated more than once for performing a similar function on behalf
of the insurer and/or policyholder;
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any actual or potential conflicts between the interests of
policyholders and the interests of the person receiving the remuneration
must be effectively mitigated; and
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the payment of such remuneration must not impede the delivery of
fair outcomes to policyholders.
Click here to read the full Moneyweb article. |
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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 087 702 6429 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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Important Regulatory
Exam Information |
In terms of our mandate from the FSB, we are not allowed to
promote or endorse any training service provider, hence I am
unable to disclose details of the author of the very important
information below.
After nearly three years of public and corporate-wide
consultation, the revised and updated Fit and Proper
Requirements were published on 15 December 2017, with variable
implementation dates. This included a thorough review of the
Qualifying Criteria (content requirements) upon which the
Regulatory Exams for key Individuals (RE1) and Representatives
(RE5) are based.
There are still 16 Tasks or sections for the RE1 exam and 8 for
the RE5 exam, but there are a significant number of new
Qualifying Criteria and of course the updated FICA legislation
is now incorporated, where applicable.
This has led to important changes to the Regulatory Exam
requirements and therefore, of course the Regulatory Exams, the
study material and bank of MCQ questions.
Common sense suggests that taking the exams before 1 April 2018
will be wise and I do recommend and encourage those who need to
complete these exams to do so sooner rather than later i.e.
before 1 April 2018.
With the benefit of hindsight we can also suggest that you
leave yourself sufficient time to rewrite in the event that you
not pass at the first attempt. Seats are filling up very fast,
so please make sure you register in time.
Contact details
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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Compliance Research &
Developer:
Moonstone Compliance, Stellenbosch - The successful applicant will
work closely with the R&D Manager and will be registered as a compliance
officer under supervision with the FSB.
Read More
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Senior Regulatory
Compliance Manager:
Clientèle Limited Group, Johannesburg - The successful incumbent
will be responsible for proactively and constructively assisting the
Clientèle Group in managing its responsibility to comply with all
relevant regulatory requirements and minimise compliance risks.
Read More
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Commercial
Underwriter:
HIC Underwriting Managers, Bedfordview - Join our dynamic team if
you are Fais compliant with 120 credits and 5 years of experience.
Read More
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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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An honest Ponzi scheme and unintended consequences of Western Cape drought |
At last! An honest Ponzi scheme
Thanks, Jeff Corbett
http://ponzicoin.co/home.html
Nuwe Afrikaanse uitdrukking Die 2018 leerplan vir
Afrikaans Huistaal bevat ‘n wysiging vir leerders in die Wes-Kaap.
Die uitdrukking “Drink soos ‘n vis” sal voortaan hier lui: “Drink
soos ‘n hert in dorre streke.”
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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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