|
To Subscribe please click
here |
 |
|
Moonstone Monitor - 10 August 2017 |
|
|
 |
|
Paul Kruger
Author/Editor |
| |
|
|
| |
|
|
 |
|
|
|
The really frightening thing about middle age is that you know you'll grow
out of it – Doris Day |
| |
|
|
Distributed to 47 148 subscribers.
To advertise with us
click here |
|
| |
|
From the Crow's Nest |
|
|
Have Ye no Shame? |
The audacity of criminals appear to increase in leaps and bounds, as
witnessed by a case study published in the Short-term Ombud’s latest annual
report.
The complainant approached the office of the Ombudsman for assistance following
the rejection of a claim submitted to the insurer for the theft of a motor
vehicle on 6 July 2016. The vehicle was placed on cover on 1 June 2016 for an
insured sum of R509 900.
During the validation of the claim, the complainant submitted that he purchased
a used vehicle in May 2016 for the total price of R495 000. According to the
complainant, the parties agreed that he would make an initial cash payment of
R190 000 in May with the balance consisting of a further cash payment upon the
delivery of the vehicle in December. The vehicle was registered in the
complainant’s name on 13 May 2016 after he paid R190 000 to the seller. The
complainant was in possession of the registration certificate and attended to
the deregistration of the motor vehicle after the theft.
The assessor appointed by the insurer to validate the claim discovered
discrepancies in the registration of the vehicle. He found that the vehicle had
originally been registered in the name of a vehicle rental company. The vehicle
was subsequently registered to Salvage Management Disposal and then to Zurich
Insurance.
Upon further investigation, the assessor found that the vehicle had been written
off following a motor vehicle accident on 13 July 2015. A Natis audit trail
revealed that the vehicle was deregistered and demolished on 17 September 2015.
The vehicle salvage was purchased by a used spares proprietor and stripped for
spare parts. The vehicle salvage was inspected by the assessor who confirmed
from the chassis and VIN numbers that it was in fact the same vehicle on cover.
At this stage, the insurer could not rule out the possibility that the insured
vehicle had been cloned or did not exist. The assessor’s report, including the Natis audit and photographs of the vehicle salvage were provided to the
Ombudsman for consideration.
The insurer required the complainant to submit proof of purchase of the motor
vehicle in light of the assessment findings. The complainant was not able to
provide any proof that he paid the amount of R190 000 to the seller, or that he
owned an Audi motor vehicle that would have formed the balance of the payment.
The complainant also failed to submit an agreement of sale or any service
related documentation in respect of the vehicle. The contact details of the
seller were also not available. The insurer raised suspicion about the fact that
the seller could not be located even though the complainant still owed her the
balance of the purchase price.
The insurer rejected the complainant’s claim on two grounds:
-
The complainant did not furnish true and complete information when submitting
the claim. The general conditions of the policy provide that if the insured
gives false information, wrong descriptions or fails to inform the insurer of
any relevant information, the insured will not enjoy cover under the relevant
section of the policy. The insurer argued that the complainant did not provide
true and complete information regarding the purchase of the vehicle and the
circumstances under which the vehicle was purchased. In considering this
rejection reason, the Ombudsman held that the insurer had not established
sufficient facts upon which to argue that the complainant had submitted false
information.
-
The complainant failed to supply proof of ownership of the vehicle he was
claiming for. This provision is set out under the general conditions of the
policy relating to claims.
The Ombudsman upheld the insurer’s decision to reject the claim on the ground
that the complainant failed to supply proof of ownership of the vehicle he was
claiming for.
One shudders to think that this person had the audacity to lay a complaint
with the Ombud after being caught out. The insurance industry must spend a
fortune every year to prevent crime, and this is paid by honest clients via
increased premiums.
One can only hope that cases like these are reported to the police for
investigation and prosecution. Perhaps a “name-and-shame” list of convicted
fraudsters will act as a deterrent. |
|
|
|
| |
 |
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 6858
e. info@gtc.co.za
w.
www.gtc.co.za
An authorised Financial Services Provider FSP no. 731. |
|
|
Your Practice Made Perfect |
|
|
Moonstone Regulatory Update Workshops 2017 |
Please note: this is NOT
regulatory examination training.
Our popular workshops will be held in seven centres across the country.
The following topics will be covered by industry experts:
-
A brief update on the RDR
-
The proposed changes to the Long- and Short-term Insurance Regulations
and the impact on remuneration
-
The proposed changes to the Policy Holder Protection Rules with a
focus on replacement business
-
The Financial Intelligence Centre Amendment Act and how it impacts
Accountable Institutions
-
The future of Fit and Proper and what will be expected of
intermediaries
Click here to register.
Please read the
Registration Guidelines if you need help.
CPD Points
Attendees who wish to apply for CPD points with their
industry bodies can request a certificate of attendance
after the event. This document will contain the required
information for such application.
|
|
|
|
|
|
 |
| |
|
Pick the right Ombud
|
This case reminds me of a Dennis the Menace cartoon where he walks up to
his dad and says: “Pick a card – any card.” Dad picks a card and Dennis
says: “No, not that card.”
It is amazing how two Ombuds can have such divergent views on the same
matter.
We have often in the past expressed concern with the Ombud’s 20/20
vision in hindsight, particularly when it comes to disclosure of
material terms. In most instances where it was the word of the client
against that of the adviser, the benefit of the doubt went the way of
the client, despite documentary proof to the contrary.
This same issue arose in a case mentioned in the latest Short-term
Ombud’s annual report.
Background
This was a classic case of a seller being swindled out of his vehicle by
means of false proofs of payment and intimidation, the end result of
which was the handing over of the vehicle and the registration
documentation. The true facts were only discovered the next day.
In his complaint to the Ombud, the insured, Mr. G, submitted that he did
not receive the policy wording from the insurer and that he was unaware
of the relevant terms and conditions. Further, he argued that his broker
did not do enough to ensure that he was aware of the policy terms and
conditions.
The insurer asserted that Mr. G’s broker had indicated that the policy
wording was furnished to Mr. G via registered post at the inception of
the policy. The insurer also attached a welcome letter where it was
stated that cover provided was subject to certain exclusions which
should be perused by the insured. Proof that the documents had been sent
by registered post was provided to this office by the insurer. A record
of advice was also furnished from the insurer indicating that Mr. G was
informed of important information contained in the policy including the
policy exclusions.
The Ombud found that as the policy excludes theft under false pretences,
there was no cover for this loss. The Ombud also found that there was
sufficient evidence to prove that the policy wording was provided to Mr.
G’s broker and that Mr. G’s broker advised that the policy terms and
conditions were explained to Mr. G.
Consequently, the Ombudsman found that the insurer’s rejection of the
claim could not be faulted and the rejection was upheld.
To misquote Dennis the Menace: “Pick an Ombud, any Ombud. No, not that
Ombud.” |
|
|
|
| |
|
| |
Final Credit Life Insurance Regulations Now Effective
Gerrit Viviers
|
On 27 July 2017, we published an article in which we reminded all
providers of credit life insurance, that the final credit life insurance
regulations published under Government Gazette Notice No 103, in the
Government Gazette No 40606 of 2017 (Regulations) will come into effect
on 10 August 2017.
Credit providers need to ensure that its current practices relating to
credit life insurance are aligned with the Regulations.
Please
click
here to download the Regulations.
Moonstone recently employed a NCA Specialist to render NCA compliance
services (including NCR registrations) to its clients. Should you have
any queries, please contact Gerrit Viviers on 021 883 8000 or by email
to
gviviers@moonstonecompliance.co.za. |
|
|
|
| |
Technologically Speaking
Moonstone Information Refinery |
|
Hire Top Next-Gen Advisors to Address Next-Gen Issues
Align your hiring and technology strategies to grow your firm |
This article by Eric Clarke was published on the ThinkAdvisor
website.
The changing face of business often means we have to learn new
skills or branch into new opportunities that may be uncomfortable.
For many advisory firms, the looming challenge on the horizon is
modernizing their offices.
If bringing your practice into the 21st century seems like a
daunting task, try hiring recent graduates with financial planning
degrees as technology evangelists to help with the transition.
Challenge them to utilize technology in a way that meaningfully
differentiates your value proposition, integrates with other
technologies for improved efficiency, and provides your firm the
platform of the future to scale with your continued success.
Here are a few best practices that can guide how you work with
younger advisors to help address next-gen issues.
Click here to read the full article.
Suitebox Media contact
Neil Summers, Sales Manager, Moonstone Business Services
Mobile: +27729088994
Email:
neil@suitebox.com
About SuiteBox
SuiteBox transforms customer engagement with intuitive video,
document collaboration, selective recording and real-time digital
signing, helping you accelerate and close business using the full
power of mobile and desktop devices. It is able to be fully white
labelled and seamlessly integrated with a client’s core CRM or
banking platform. SuiteBox is available via monthly subscription, is
delivered via the cloud and requires no technical expertise to use.
Visit www.suitebox.com
for more information.
|
|
|
|
|
Regulatory Examinations
|
|
|
|
| |
|
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 |
| 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. |
|
|
|
|
|
Careers Platform
|
|
Are you hiring? Advertise your position on Moonstone’s Career Platform
|
| • |
The Moonstone website -
www.moonstone.co.za
- enjoys an average of 15 000 visits and approximately 39 000 page views per month. |
| • |
Moonstone boasts an exclusive newsletter mailing list of over 46000
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:
Investment, Risk, Healthcare, Banking, Retirement, and Insurance. |
|
|
|
|
| |
|
Featured Positions |
-
Financial Advisors:
Odinfin, Irene, Pretoria - We are looking for insurance sales agents
to join our successful team.
Read More
-
Wealth Management
Consultant:
Rockfin Wealth Management, Sandton - If you have the required
insurance sales experience for this client facing, sales and targets
driven profession, then
Read More
-
Senior Client Liaison Officer:
Vunani Fund Managers, Newlands, Cape Town - VFM is looking for a
suitably qualified EE candidate with an accounting diploma or degree.
Read More
|
|
|
|
|
In Lighter Wyn |
 |
|
Consumerism gone too far? |
|
|
|
|
|
|
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. |
