|
To Subscribe please click
here |
 |
|
Investment Indicators - 11 June 2018 |
|
|
"But you have to do what you dream of doing even while you're afraid."
- Arianna Huffington |
| |
|
|
Distributed to 51,842 subscribers.
To advertise with us
click here |
|
| |
 |
| Rates Review |
 |
|
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. |
|
|
|
|
|
 |
|
|
|
| |
Company |
This Week |
Last Week |
| 1 |
Clientéle Life (L) |
7.220% |
6.950% |
|
2 |
1Life (L) |
7.210% |
6.970% |
|
3 |
Absa (L) |
7.100% |
6.848% |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Company |
This Week |
Last Week |
| 1 |
Discovery (G) |
7.344% |
7.124% |
|
2 |
Clientéle Life (L) |
7.320% |
7.050% |
|
3 |
Assupol (G) |
7.280% |
6.950% |
|
|
|
|
|
|
2. Money Market Funds |
|
|
|
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. |
|
|
|
|
|
 |
|
From the Crow's Nest |
 |
|
Minister of Finance on FSCA |
Mr Nhlanhla Nene, the honourable Minister of Finance, commented as
follows during the launch of the Financial Sector Conduct Authority
on 04/06/2018.
“We gather today two months after the official birth of the
Financial Sector Conduct Authority (FSCA) and its twin, the
Prudential Authority (PA). The birth of the FSCA and the PA marks
the beginning of a new era for financial sector regulation in South
Africa where things will be done differently, drawing from the
lessons of the past and driving the best outcomes for our country
and those who live in it.”
“The financial sector touches almost each and every South African.
It is therefore vital that there is strong oversight of the
financial sector.”
“South Africa’s financial sector is well-capitalised and stable.
That’s why it weathered the 2008 global financial crisis. However,
it is common knowledge that the financial sector can do much more to
serve the needs of South Africans better. The financial sector can
better serve the needs of South Africans by making:
-
Financial products less complex, if not just plain simple;
-
Fee structures simple to understand so that customers can assess
the real value and the total cost of the products and services they
are buying;
-
Products and services appropriate to the needs of customers and
therefore provide real benefits to customers; and
-
The financial sector safer for customers by weeding out the
unscrupulous characters who siphon off the monies of customers and
other beneficiaries.”
TCF and Retail Distribution Review
“…treating customers fairly must stop being a term that the
financial sector makes reference to. It must become part of the
financial sector’s culture. It is now the responsibility of the FSCA
to ensure that the fair treatment of customers does become second
nature to the financial sector.”
“The other project underway is the development of the regulatory
framework for how financial products and services are distributed to
consumers. The delivery of financial products and services has huge
impact on the fair treatment of consumers. There is also the issue
of unclaimed benefits, in particular ensuring that this issue is
addressed in consistent and effective manner.
Retail Banks and Financial Markets Reviews
The FSCA will also regulate the conduct of retail banks and payment
services. In this regard, National Treasury has commissioned a
diagnostic study into the retail banking sector. The recommendations
from this exercise will inform the development of a comprehensive
strategy for regulating retail banks and addressing identified poor
customer outcomes.
The FSCA also has a mandate to ensure the efficiency and integrity
of financial markets. To better address financial market abuses, a
comprehensive Financial Markets Review is already underway under the
leadership of former Senior Deputy Governor of the South African
Reserve Bank, James Cross.
Consumer education
The third pillar of the FSCA mandate is consumer education to raise
the levels of financial literacy. This will support the work of the
National Consumer Financial Education Committee chaired by the
National Treasury. One initiative in this regard is South Africa’s
first MoneySmartWeek planned for October this year.
FSCA going forward
While the FSCA will build on the momentum created by the FSB, its
operations will be a significant break from the past, with a more
intensive and intrusive approach to regulation and supervision. Work
is also underway to harmonize market conduct legislation. Once
passed into law, the Conduct of Financial Institutions Bill will
entrench principles of fair customer outcomes across the sector.
The FSCA will mark its six-month anniversary with the release of its
regulatory strategy, setting out in detail its approach over the
next three years. The FSCA will need to develop close working
relationships with other regulators in the financial sector like the
Prudential Authority and National Credit Regulator.
A transitional management committee is responsible for implementing
the necessary transitional requirements, until the Commissioner and
Deputy Commissioners are appointed.
“In conclusion, we need a financial sector that serves all South
Africans, and not just a privileged few. The FSCA has a big role to
play in this regard. The FSCA’s success must surely be measured by
how well it helps bring about a financial sector that not only
protects customers, but meets the needs of all South Africans,
specifically lower income groups, rural households, and small
businesses.”
Four months from now we’ll see the new regulatory recipe,
according to the minister, and over the following three years, the
baking of the pudding. The proof, as the saying goes will, however,
lie in the eating. |
|
|
|
|
|
 |
| Your Practice Made Perfect |
 |
|
Retirement benefits counselling |
The Government’s default regulations under the Pension Fund Act require
that retirement funds provide their members with access to counselling
regarding their fund options. But what does this mean for the industry?
According to Jaco Pretorius, CEO of Ensimini Financial Services, this is
a step in the right direction. “For some time now we have been
advocating that more needs to be done to improve access to information
and financial services and to enhance the level of transparency in the
retirement savings industry. While it has been easy for the retirement
savings industry to blame consumer apathy for poor consumer decisions,
it is often more likely the result of lack of access to relevant and
unbiased information,” Jaco comments.
In
a press release he notes that the vast majority of members of South
African retirement funds do not have access to proper financial advice,
as the current financial advisory framework is driven by large product
providers and their remuneration structures are heavily tilted towards
commission-based sales.
In the latest
Sanlam Benchmark Survey David Gluckman, Head: Special Projects at
Sanlam Employee Benefits notes:
“A worthy objective, we can surely all agree. But will this objective be
achieved, or will retirement funds simply concentrate their efforts
between now and 1 March 2019 on ensuring compliance with the letter of
the law but without going that extra mile to yield maximum benefi t for
ordinary members?
To put this another way, unless retirement outcomes for members are
measurably improved as a consequence of changes that must be made within
the next 9 months, the legislation would not have achieved its
objectives. This is about a paradigm shift for the retirement fund
industry.”
If product houses follow the same approach as they do in respect of
section 14 transfers, the focus will remain on safeguarding assets under
management, rather than on what is beneficial for the client. To expect
a salaried adviser to bite the hand that feeds it is surely wishful
thinking. |
|
|
|
|
|
 |
| |
|
CMS concludes Guideline Framework
|
The Council for Medical Schemes has, in conjunction with the FCB,
National Treasury and the National Department of Health, concluded the
Guideline framework for the exemption of providers of indemnity products
that are conducting the business of a medical scheme, from certain
provisions of the Medical schemes act, 131 of 1991.
What does this mean?
Insurers and their respective financial service providers who were
granted Stage 2 Exemption are, accordingly, required to submit
information relating to the exemption conditions on the Demarcation
Exemption System.
The deadline for submission of the exemption condition information is by
the close of business on Friday, 29 June 2018.
Click here to read the detail as contained in Circular 25 from the
Council for Medical Schemes. |
|
|
|
| |
 |
| |
|
FICA Awareness
Opportunity
|
The Financial Intelligence Centre recently published a document titled
“Typologies”.
To my great disappointment, it was not about hilarious typing errors,
but about rather more serious matters.
The booklet provides insight into some of the methods criminals use to
abuse the financial system. Nine case studies illustrate different types
of criminal activities and demonstrate how the FIC’s financial
intelligence reports are pivotal in helping to solve a crime or secure a
prosecution.
It really makes for interesting reading. Just one piece of advice:
Please read the list of Acronyms/Abbreviations on page 2 before you
proceed, or, like me, you will be so intent on trying to understand what
“LEAs” are that you’ll miss the point of the article.
Apart from being an interesting read, it also contributes to your
efforts towards FICA awareness, so be sure to share it with your staff
and print a copy to leave in your file of evidence to demonstrate your
compliance.
Click here to download a
PDF copy. |
|
|
|
|
Regulatory Examinations |
 |
|
RE Deadline 30 June 2018 |
|
Unfortunately, time is now running out for those who are
compelled to pass the level 1
RE 5 for representatives by 30 June 2018.
-
Remember that bookings close about two weeks before the
actual exam, for logistical reasons.
-
In order to write before the DOFA deadline (last exam in
June on the 29th), candidates should register by 14 June 2018.
-
IMPORTANT: It is the responsibility of the candidate to
make sure that he/she is registered for the correct
examination, date, time and venue.
|
|
|
|
| |
|
How to prepare for the REs |
The FSCA strongly recommends the use of its
Preparation Guide to prepare for the exams. As you are aware Inseta
has advised that its study material contains errata. We therefore
recommend that this is only used for easier understanding of the
knowledge required, while the FSCA Preparation Guide and related
legislation should be the basis for learning.
The FSCA Preparation Guide recommends the following approach
|
STEP |
ACTIVITY |
DESCRIPTION |
|
1 |
Refer to the
mapping document for the exam you are planning
to write. |
This is the map of
the tasks/criteria that will be assessed in your
exam, and it contains a reference to the
relevant legislation that you are required to
study in order to understand the task /
criteria. Appendix A in the Preparation Guide |
|
2 |
Look at the number
of criteria for each task. |
These are the
knowledge and skill components you require to be
able to perform.
RE 1 has 16 tasks that will be tested
RE 5 has 8 tasks that will be tested
If you have studied all the criteria for every
task, then you would be properly prepared to
write the RE 1 or RE 5 – whichever exam applies to
you. |
|
3 |
To prepare for the
exam, you must spend time each day and study the
legislation and supporting training material.
One should systematically select one criteria at
a time. |
Group the criteria
together in groups of 3 or 4 and allocate study
hours per day to prepare. The total number of
hours will individually differ due to ones
circumstances. At least 2 hours per day is the
suggested number of hours. |
|
4 |
To start, read the
task, and then the first criteria. Then refer to
the legislation for these criteria, and read the
legislation referred to. |
It is important to
first read the legislation so that you can see
what terms are used and how the legislation is
structured. |
|
5 |
Now refer to the
additional support or training material and study
the section in the training material dealing
with those particular criteria. |
The support
material explains the particular concepts in
simple language so that it is easier to
understand what the legislation is actually
saying and what it means. |
|
6 |
Then go back to the
legislation itself, and read it again.
Where there are discrepancies, ALWAYS regard the
legislation as being correct. |
Now that you have
gained a better understanding of what the
legislation is about, you may find reading the
legislation again will make more sense to you if
you didn’t understand it the first time around. |
An alternative that you may want to consider is the
LexisNexis Legislation Handbook for RE 1 (key individual)
and RE 5 (representative) exams.
The 5th edition of the Handbook has just been
released and provides the latest legislation specified as
relevant to the regulatory exams RE 1 and 5.
The Handbook has been divided into 5 sections with shaded
tabs on the side for easy access:
-
TAB A: FAIS Act and Regulations
-
TAB B: Code of Conduct
-
TAB C: Fit and Proper
-
TAB D: General Acts, Board Notices and Guidance Notes
-
TAB E: FIC Act, Regulations and Guidance Notes
The Handbook together with its Preparation Guides provides a
good source to study for the exams. Click here to download
the LexisNexis Preparation Guide for
RE 1 and
RE 5.
The LexisNexis Legislation Handbook has now been updated with all
the new legislation effective from 1 April 2018.
Click here to order your copy from our Advisor Store. |
|
|
|
| |
|
2018 Schedules updated |
Please note: Registration cut-off is 11 working days before date of exam.
|
|
|
|
|
Careers Platform
|
|
Are you hiring? Advertise your position on Moonstone’s Career Platform
|
| • |
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 51000
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. |
|
|
|
|
| |
|
Featured Positions |
-
2 x Marketing
Assistants:
HIC Underwriting Managers Pty Ltd, Bedfordview - We are looking for
two assistants to manage the relationship between the Portfolio Manager
and Broker. Must be able to work under pressure and be deadline driven.
Read More
-
Claims Administrator:
Cooke Fuller Garrun, Kloof, KZN - The ideal candidate should have at
least 5 years experience in Commercial and Personal claims and must be
FAIS qualified.
Read More
-
Para-Planner:
Carrick Wealth, Johannesburg, Durban and Cape Town - The
Para-planner will be responsible for researching and analysing products
to present recommendations to clients based on a thorough financial
planning process.
Read More
-
Financial Advisor:
Universal Life Brokers, Randburg - Candidates must have at least 5
years experience in the long term insurance industry and in possession
of a NQF5 qualification in financial planning.
Read More
|
|
|
|
|
In Lighter Wyn |
 |
|
Baie dankie |
I would be failing in my duty if I did not share this Whatsapp I
received on Sunday:
Dear England
Thank you for a wonderful weekend.
Kindest regards
South Africa.
Words of wisdom from Winston
And finally, a lesson so well displayed by the Springboks on Saturday:
|
|
|
|
|
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. |
|
|
©2015 Moonstone. All rights reserved. |
| |
