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Investment Indicators - 12 February 2018 |
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Paul Kruger
Author/Editor |
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Ability will never catch up with the demand for it – Malcom S Forbes |
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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?
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 |
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) |
7.000% |
7.000% |
2 |
1Life (L) |
6.900% |
6.950% |
3 |
Absa (L) |
6.775% |
6.828% |
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Company |
This Week |
Last Week |
1 |
Clientéle Life (L) |
7.100% |
7.100% |
2 |
1Life (L) |
6.900% |
6.950% |
2 |
Assupol (G) |
6.900% |
6.840% |
3 |
Absa (L) |
6.775% |
6.828% |
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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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Your One-Stop Fit and Proper Solution |
The long awaited
announcement of the new Determination of Fit and Proper requirements
has certainly put the cat amongst the pigeons. A lot of businesses
need to re-schedule their planning in view of the content of this
important document.
Apart from redefining how honesty, integrity and good standing will
be gauged, it also formalised the replacement of what was termed the
Level 2 Regulatory Exams and Continuous Professional Development (CPD)
which was expected to kick in from around 2012/2013.
As the prominent provider of Level 1 REs, we were geared to assist
students down the road after completion of the Level 1 REs. When it
became clear that the originally envisaged format would not
materialise, we redeployed our resources towards what we expected to
happen, and which culminated in what is contained in Board Notice
194 of 2017.
What will the impact be?
The grandfathering clause for experienced advisers and exemption of
certain sections of the industry means that the Class of Business
(COB) Training requirement will focus more on new entrants and those
currently working under supervision.
Whereas CPD was in the past regarded as being on the backburner
after completion of the Level 2 REs, it has suddenly leapfrogged
into prominence, with an effective date of 1 June 2018.
This will very specifically impact on those people who benefitted
from the grandfathering provisions in terms of COB, as they will now
need to earn the required CPD points for the period starting
1 June 2018 and ending 31 May 2019.
What does Moonstone offer?
A lot more than just top class training, that’s for sure.
The F & P requirements determined 9 classes of business. Those who
are licenced for more than one class of business will have to attend
Class of Business training for each one.
At Moonstone we are also in the process of obtaining approval for a
whole range of CPD activities that will add relevant knowledge and
skills to your team, allowing you to plan intelligently to meet the
deadline requirements as per your specific business model.
But wait, that’s not all
Possibly the biggest challenge for most employers will be to keep
track of what is happening, and making sure that you plan ahead to
ensure deadlines, both in terms of COB and CPD. Moonstone is in the
final stages of field testing a “Fit and Proper Tracking Tool” to
empower our clients to stay on track as far as these requirements
are concerned, amidst so many other bureaucratic demands on time and
resources.
Watch this space
Please keep the above in mind when planning your approach to the
obligations contained in Board Notice 194. Moonstone may just
provide you with the best early Christmas present in 2018.
Click here for a more detailed
Powerpoint presentation on Class of Business training. |
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Avoid uncertainty in retirement with a guaranteed annuity
A 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. The Discovery Invest Fixed
Income Retirement Plan offer increases clients’ retirement income by an
additional 10% for the first three years of their policy. This is in
addition to their quoted annuity income amount, and before tax.
This offer is only available for new investments taken out before
Saturday, 31 March 2018.
Discovery Life Investment Services Pty (Ltd): Registration number
2007/005969/07, branded as Discovery Invest, is an authorised financial
services provider.
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Your Practice Made Perfect |
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Further Panel Beating to Debt Relief Bill likely
by Gerrit Viviers |
Following our article published on 7 December 2017, dealing with the
Draft National Credit Amendment Bill, 2018 (the Bill), the Portfolio
Committee on Trade and Industry held their public hearings on
30, 31 January and 2 February 2018, where various stakeholders within
the credit industry presented their submissions to the committee
members.
According to a media statement by the National Assembly’s Trade and
Industry Committee, “There was general agreement around the need
to address over-indebtedness and assist lower-income consumers to
escape debt traps. However, there were widely divergent positions
on how to achieve this. A number of key points were raised and largely
constructive recommendations made in this regard.”
Some of these “divergent positions” identified by the
stakeholders, included, among others that:
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By amending section 3(g) relating to one of the purposes of the
National Credit Act, 34 of 2005 (“NCA”), which requires the NCA
“addressing and preventing over-indebtedness of consumers, and providing
mechanisms for resolving over-indebtedness based on the principle of
satisfaction by the consumer of all responsible financial obligations”
and by adding the sentence “where the consumer’s financial
situation so allows, or may so allow in the foreseeable future”
may likely result in consumers deliberately absconding from their
obligations to repay their loans, which is the cornerstone of a healthy
credit industry;
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The proposed extinguishing of debt raises the concerns about the
constitutionality of the Bill in terms of the deprivation and
expropriation of property in terms of section 25 of the Constitution of
the Republic of South Africa, 108 of 1996 (the “Constitution”). A credit
agreement or the right to collect on credit is seen as ‘property’ for
this purpose and the Constitution specifically protect a property
owner’s rights to be protected against the deprivation thereof, except
in terms of the law of general application and that no law may permit
arbitrary deprivation of property. Deprivation can be loosely defined as
the “effect on a person’s property when the state uses their police
power to limit the use of that property, without compensation”. The
Constitution goes further to state that where the property is
expropriated in terms of the law of general application, it must be for
a public purpose or in the public interest and it is subject to
compensation. According to an article by Business Day, the Treasury
already indicated that it will seek the opinion of a Senior Counsel to
assess the constitutionality of the Bill in respect of the deprivation
of credit provider property.
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Credit providers may not be in a position to assess whether a previous
credit agreement entered into with another credit provider, was reckless
in that they will have no knowledge of the other credit provider’s
application process and whether the consumer had a general understanding
of his or her rights and obligations under the proposed credit
agreement.
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Insurers may decline to develop and offer the ‘mandatory credit life
insurance’ products envisaged by the Bill where the credit agreement
exceeds six months and the principal debt is R50 000 or less. This
credit life insurance may not be commercially viable, given the credit
life insurance regulations limitation of R4.50 per R1 000 for unsecured
debt, that may result in the targeted consumer group being excluded.
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Consumers are already protected against the collection of prescribed
debt, where they can raise it as a defence in civil proceedings and
there was no need to criminalise these practices.
From the public hearings and the nature of the concerns raised by the
stakeholders, it is clear that the Bill requires some panel beating
before it can be promulgated into law. The legislator will need to find
a balance between protecting the rights of consumers and credit
providers alike, while still adhering to the protection afforded by the
Constitution.
Gerrit Viviers is Moonstone’s NCA Specialist who renders NCA
compliance services to its clients and prospective clients. Please
contact him on 021 883 8000 or by email to
gviviers@moonstonecompliance.co.za. |
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Professional Principal Executive Officer Qualification: Have you
registered?
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Registration is still open this week for candidates who want to enrol
for the first intake on 26 February 2018.
Moonstone Business School of Excellence (MBSE) is the only duly
accredited training provider to offer this NQF level 7 qualification
which equates to a bachelor’s degree.
The Professional Principal Executive Officer Qualification is the first
occupational qualification which provides recognition of competence in
learners who wish to formalise their education and experience with a
view to enhancing their career prospects. This includes trustees and a
wide variety of other employee benefits functionaries.
Registration and more information
You are welcome to speak to Frans Petrus Zeelie at 087 702 6429 who will
gladly assist.
To register,
click here,
select the
Qualifications
button and click on The Professional Principal Executive Officer
button.
To find out more about this NQF level 7 qualification, please
click here. |
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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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Regulatory Exam Preparation Material |
The new Determination of Fit and Proper Requirements (BN 194
of 2017) come into effect on 1 April 2018.
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The new Fit and Proper requirements will form part of the
regulatory exam question data bank from 1 April 2018.
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This means that those who register to write after
29 March 2018 will have to study the new Determination of Fit
and Proper requirements as it appears at this stage that the
updated study material may not be available by 1 April 2018.
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IMPORTANT: The standard cancelation clause will apply
to all registrations for the regulatory examinations. Candidates
who wish to re-schedule their examinations should take careful
cognisance of the FSB’s cancelation clause.
We are expecting the last batch of the LexisNexis preparation
material this week. Please watch
this space to check whether we have received it yet, and to
order. We will also publish an update in Thursday’s Moonstone
Monitor.
Frequently Asked RE Questions
– Answers to questions on REs and preparation material
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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Client Service
Administrator:
Southwood Financial Planning, Tokai, Western Cape - An FPI approved,
professional practice, based in Tokai, is looking for a client service
administrator.
Read More
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Experienced Short Term
Underwriter:
The Insurance Center, Westville, KZN - Vacancy for an experienced
short term commercial and domestic underwriter.
Read More
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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
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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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In Lighter Wyn |
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It's dry, very dry... |
Hobson's Choice?
Caught in the Act
Droë
Humor
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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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