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.
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Janet chooses an annuity with a 10 year guarantee term, 0%
escalation rate and a 25% reduction on first death.
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Her quoted annuity amount before tax is R7 800 per month.
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The current offer will increase her annuity rate by 10%.
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Her gross monthly annuity income amount before tax with the
additional income is equal to R8 580 (= R7 800 x 110%).
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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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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 - |
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(a) |
the person - |
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(i) |
is not declared insolvent or provisionally insolvent; |
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(ii) |
is not under liquidation, provisional liquidation or business
rescue; and |
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(iii) |
is not subject to any pending proceedings which may lead to an
outcome referred to in subparagraph (i) to (ii; |
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(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 |
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(c) |
such appointment does not - |
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(i) |
materially increase any risk to the FSP or to the fair treatment of
its clients; |
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(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; |
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(iii) |
compromise the fair treatment of or continuous and satisfactory
service to clients; |
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(iv) |
prevent the FSP from acting in the best interests of its clients;
or |
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(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 - |
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(a) |
is reasonable and commensurate with the actual function or activity;
and |
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(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
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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 |
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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
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There is no charge for Protector clients, but
registration
must be done via the Moonstone
website. |
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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
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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 |
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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.
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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.
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3. |
What preparation material is available?
Fully updated resources are available for those requiring access to the
legislation applicable to the regulatory examinations:
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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. |
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Click on the following highlighted sections to download the relevant
updated Inseta learning material for key individuals,
RE 1, and
representatives,
RE 5. |
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LexisNexis provides a “Legislation Handbook” together with a
“Preparation Guide” containing the qualifying criteria, with a link to
the relevant legislation. |
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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. |
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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: |
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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
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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. |
• |
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. |
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Featured Positions |
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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
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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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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."
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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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Services and products advertised by external product suppliers in
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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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