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Investment Indicators - 5 February 2018
In This Week's Newsletter
Rates Review
Investment Rates
Money Market Funds
Top 3 Rates
 
From the Crow's Nest
Discovery Invest - Get 10% additional income for three years
 
Your Practice Made Perfect
Guidelines for appointment of representatives – Broad Fit and Proper directives including insolvency
2017 Moonstone Compliance Report Workshop – Registration closes this coming Friday, 9 February
Regulatory Exam Preparation Material – New Fit and Proper regulations to be included for those writing after 29 March 2018
 
Regulatory Examinations
Updated 2018 schedules
Frequently Asked Questions
 
Careers Platform
Are you hiring? Advertise your position on Moonstone’s Career Platform
Featured Positions
 
In Lighter Wyn
Russian Humour
Paul Kruger 2016-10-31
Paul Kruger Author/Editor
 
 
 
 

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If you plan for one year, plant rice. If you plan for ten years, plant trees. If you plan for 100 years, educate mankind – Chinese proverb
 
Please connect with us: www.moonstone.co.za pkruger@moonstoneinfo.com or 021 883 8000

 
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GTC banner 2018-02-05 V3
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
Rates Review
Top 3 rates
 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.
 R 100 000
 
 
 
     
  Company This Week Last Week
1 Clientéle Life (L) 7.000% 6.910%
2 1Life (L) 6.950% 6.880%
3 Absa (L) 6.828% 6.754%
     
 R 1 000 000
     
     
  Company This Week Last Week
1 Clientéle Life (L) 7.100% 7.010%
2 1Life (L) 6.950% 6.880%
3 Assupol (G) 6.840% 6.850%
     
 2. Money Market Funds
  Company This Week Last Week
1 Cadiz 8.080% 7.960%
2 Allan Gray 7.890% 7.900%
3 Prudential 7.810% 8.040%
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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Discovery Invest: Get 10% additional income for three years
Anniversaries are occasions to look back and give thanks for the journey that has brought us so far. A tenth anniversary is traditionally celebrated with gifts of tin or aluminium, but Discovery Invest has a gift of much better value to offer clients this year!

In celebration of our 10-year anniversary, we’ve created a Fixed Income Retirement Plan offer that increases clients’ retirement income by an additional 10% for the first three years.

How the offer works

The Fixed Retirement Income Plan provides clients with an income for life. This offer gives them the benefit of 10% additional income for the first three years. This is in addition to the quoted annuity income amount, before tax, and will be applied for the first three years of the policy. For single-life annuities, the 10% additional income will stop after three years or when the client dies. For joint-life annuities, the 10% additional income will only be applied to the current amount in payment and will stop after three years or when both annuitants have died.

Discovery Invest can only provide the additional income on new investments taken out before Saturday, 31 March 2018.

Case study: the Fixed Retirement Income Plan in action

Janet, aged 55, invests R1 million into a Fixed Retirement Income Plan for herself and her 54-year old husband.
  • Janet chooses an annuity with a 10 year guarantee term, 0% escalation rate and a 25% reduction on first death.

  • Her quoted annuity amount before tax is R7 800 per month.

  • The current offer will increase her annuity rate by 10%.

  • Her gross monthly annuity income amount before tax with the additional income is equal to R8 580 (= R7 800 x 110%).

  • She receives this higher income amount of R8 580 every month for the next three years.

Why you should consider a fixed or guaranteed annuity
 
When a client retires, they have two annuity options available to them – a living annuity and a guaranteed or fixed income annuity. The living annuity allows them to vary the amounts they drawdown each year – limited to a value between 2.5% and 17.5%. However, investors must exercise financial discipline in order to optimise the longevity of their retirement savings.

According to the Association for Savings and Investment South Africa (ASISA), the average living annuity drawdown rate increased from 6.44% in 2015 to 6.62% in 2016*. This highlights the impact on the sustainability and longevity of retirement capital for retirees. For example, if a client retires at age 65, starts drawing income at 6.62% and increases their drawdown each year in order to keep pace with inflation, they will reach the maximum income withdrawal of 17.5% within 18 years of retirement.

A guaranteed or fixed income annuity, on the other hand, provides clients with a specific income over a specified period, offering them protection against the risks of longevity and volatile investment returns. If they choose a Fixed Retirement Income Plan from Discovery Invest, they can select your guarantee period, such as 10 years. This means that if the clients die before the period is up, the annuity payments will continue to be paid to their surviving spouse until the end of the guarantee period.

* The ASISA Living Annuity Survey for 2017 will only be released in the second half of 2018, and will be available on the ASISA website (www.asisa.org.za)

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
Your Practice
F & P Guidelines for appointment of representatives
The new Fit and Proper regulations provide a wide range of prescriptions which FSPs should consider when appointing new representatives. It also has a potential bearing on current appointees who may be unrehabilitated insolvents.

Section 40 states:
 
(1) An FSP must ensure that where it appoints a person as a representative -
  (a) the person -
    (i) is not declared insolvent or provisionally insolvent;
    (ii) is not under liquidation, provisional liquidation or business rescue; and
    (iii) is not subject to any pending proceedings which may lead to an outcome referred to in subparagraph (i) to (ii;
  (b) the person, in the case of a juristic representative, has sufficient operational ability and financial resources to perform the activities for which it is appointed as a representative; and
  (c) such appointment does not -
    (i) materially increase any risk to the FSP or to the fair treatment of its clients;
    (ii) materially impair the quality of the governance framework of the FSP, including the FSP's ability to manage its risks and meet its legal and regulatory obligations;
    (iii) compromise the fair treatment of or continuous and satisfactory service to clients;
    (iv) prevent the FSP from acting in the best interests of its clients; or
    (v) result in key decision-making responsibilities being removed from the FSP.
(2) An FSP must ensure that any remuneration or fee paid in respect of an activity or function for which a person is appointed as a representative -
  (a) is reasonable and commensurate with the actual function or activity; and
  (b) is not structured in a manner that may increase the risk of unfair treatment of clients.
(3) An FSP must develop appropriate contingency plans to ensure the continued function of the FSP's business and continued service to its clients in the event that the appointment of the representative is terminated or becomes ineffective.
(4) An FSP may not permit a representative to outsource or sub-delegate any activity or part thereof relating to the rendering of financial services that that representative performs on behalf of the FSP.

 Current Appointees

As the regulations become effective from 1 April 2018, it will impact on people currently appointed and to whom (1)(a) above may apply. In our view, such persons will have to apply to the Registrar for an exemption. Please approach your compliance officer for assistance.

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2017 Moonstone Compliance Report Workshop

Register here

Moonstone’s annual compliance report workshops for Cat I FSPs without a Compliance Officer will be held on the dates indicated below. The workshop will guide you through the completion and submittal of your 2017 Compliance Report for the period 1 January 2017 to 31 December 2017 which must be submitted prior to 28 February 2018.

Workshops will be hosted in the morning (09H30) at the following venues:
Durban Thursday
15 February
(Westville: Pharos House -
Moonstone Exam Centre)
Cape Town Tuesday
20 February
(Pinelands: Pinewood Park -
Moonstone Exam Centre)
Johannesburg Wednesday
21 February
(Sandton: Sinosteel Plaza -
Moonstone Exam Centre)
Live Webinar Thursday
22 February
 

Those attending the face-to-face workshops will be provided with a paper copy of the Compliance Report. Should you wish to submit it electronically, you are welcome to do so, provided you have your own internet access.

An exciting new development is the presentation of a Live Webinar on Thursday 22 February for those unable to attend the live workshops. For the webinar it is imperative that you have adequate internet connectivity as this will directly determine the quality of your experience of the on-line event.

Cost

There is no charge for Protector clients, but registration must be done via the Moonstone website.
Cost to non-Protector clients is R750 (excl. VAT) for the face-to-face workshops and R450 (excl. VAT) for the live webinar session.

A very important item on the agenda is a discussion on the new Fit & Proper requirements such as Class of Business Training, Product Specific Training, Continuous Professional Development as well as those pertaining to your Operational Ability. This information is of critical importance for your business and becomes effective from 1 April 2018.

Please email Grant if you have any registration queries.

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Regulatory Exam Preparation Material
The new Fit and Proper requirements will form part of the regulatory exam question data bank from 1 April 2018. It appears at this stage that the current study material may not be ready by then.

This means that those who register to write after 29 March 2018 will have to study the new Determination of Fit and Proper requirements, and note the changes from what appears in the pre-April 2018 study material.

It makes sense that those able and ready to write prior to 1 April 2018 should do so.

If you are registered to write after 1 April, and wish to move your exam date back to February or March, you can do so without penalties, provided that we have space at the venue of your choice. Please phone our call centre to make sure you understand the full implications.

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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Regulatory Examinations
Regulatory exams banner
2018 Schedules updated

Please note
: Registration cut-off is 11 working days before date of exam.
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Frequently Asked Regulatory Exam Questions
1. What exam must I write?
Both the RE 5 and RE  are Level One exams. RE 5 is for Representatives and RE1 for Key Individuals. The RE 3 exam is for licence category II candidates.
2. How much does it cost?
The FSB determines the fee. Currently it costs R1163 per exam, also in the case of a re-write.
3. What preparation material is available?
Fully updated resources are available for those requiring access to the legislation applicable to the regulatory examinations:
  Please make sure that you first read the FSB’s Preparation Guide to make sure you follow the right process in preparing. Page seven includes a recent amendment to guide candidates in studying in the correct manner.
  Click on the following highlighted sections to download the relevant updated Inseta learning material for key individuals, RE 1, and representatives, RE 5.
  LexisNexis provides a “Legislation Handbook” together with a “Preparation Guide” containing the qualifying criteria, with a link to the relevant legislation.
  The Juta FAIS Pocket Statutes also contains a CD with a comprehensive list of updated supplementary legislative material for reference purposes. Please click here to order this from our online shop.
  The FSB’s telematics broadcast on the RE 1 and RE 5 provides a good introduction and overview, and can also be ordered online in:
    DVD format or on a
USB memory stick
MP4 direct download - 2 Gb
4. Where can I write? Go to: http://www.faisexam.co.za/show_venues
5. What dates are available?
Go to: http://www.faisexam.co.za/view_schedule
6. What training is available?
As an Exam body we are not allowed to recommend companies that offer face-to-face Regulatory exam classes. You can try Google for someone in your area. Bear in mind that this exam tests your knowledge about the laws applicable to the provision of financial advice and intermediary services. The questions are based on very specific qualifying criteria set out in the FSB preparation guide. Any training that does not have this as a basis will not prepare you properly for the exam. Do your own research and don’t just accept what others say.
7. Where can I buy old question papers?
There are no genuine “old question papers” available. Be very careful when buying such preparation aids as some of those on offer are not in line with the high standard prevailing in the actual exams and often lead to a false sense of knowledge which is sadly exposed when confronted by the actual exam. Follow the guidelines provided in the FSB Preparation Guide and you are far more likely to achieve success.

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
Are you hiring? Advertise your position on Moonstone’s Career Platform
Careers Platform Packages

•   The Moonstone website - www.moonstone.co.za - enjoys an average of 20 000 visits and approximately 39 000 page views per month.
Moonstone boasts an exclusive newsletter mailing list of over 49000 dedicated financial decision makers who receive 2 newsletters per week.
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.


Advertise


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Featured Positions
  • Jnr Compliance Administrator: Saxo Capital Markets (Pty) Ltd, Sandton - Seeking Jnr Compliance Administrator to assist internal Head of Legal & Compliance in conjunction with external Compliance Officer. Read More

  • 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

  • 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

  • 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

  • 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

  • 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

  • Senior Credit Controller: CIA Building Insurance, Bedfordview, is currently looking for an experienced credit controller to join our finance team. Read More

  • 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
In Lighter Wyn
Russian Humour
I know it sounds like a contradiction in terms and, yes, they’re old, but good humour never ages badly.

A reader sent me a video clip of Ronald Reagan telling some Russian jokes. My shorthand is non-existent, so I searched the internet for more, and came upon these ones:

The Armenian Radio or "Radio Yerevan" jokes have the format, "ask us whatever you want, we will answer you whatever we want". They supply snappy or ambiguous answers to questions on politics, commodities, the economy or other subjects that were taboo during the Communist era. Questions and answers from this fictitious radio station are known even outside Russia.

Q: What's the difference between a capitalist fairy tale and a Marxist fairy tale?
A: A capitalist fairy tale begins, "Once upon a time, there was...." A Marxist fairy tale begins, "Some day, there will be...."

Q: Is it true that there is freedom of speech in the Soviet Union, just like in the USA?
A: In principle, yes. In the USA, you can stand in front of the White House in Washington, DC, and yell, "Down with Reagan!", and you will not be punished. Equally, you can also stand in Red Square in Moscow and yell, "Down with Reagan!", and you will not be punished.

Q: Is there a difference between the Constitutions of the USA and USSR? Both of them guarantee freedom of speech?
A: Yes, but the Constitution of the USA also guarantees freedom after the speech.

Q: Is it true that the Soviet Union is the most progressive country in the world?
A: Of course! Life was already better yesterday than it's going to be tomorrow!

And finally, a slightly less dated Russian joke:

Mikhail Gorbachev and his wife were on the train returning to Russia following a state visit to East Germany. After they'd been travelling a short while, his wife asked him: "Where are we now, Mikhail dear?" He put his hand out of the window and said: "We're still in Germany, dear." Several hours later, his wife asked him again: "Where are we now?" He put his hand out of the window and replied: "In Poland." Some time later, his wife asked again: "Where are we now?" Gorbachev put his hand out of the window and said: "We're back in Russia." His wife was curious; she asked: "How do you know where we are just by putting your hand out of the window?" He replied: "When I put my hand out in Germany, the people kissed it. When I put my hand out in Poland, they spat on it. And when I put my hand out in Russia, they stole my watch."

Proteas vs Indians

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