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Moonstone Monitor - 17 August 2017 |
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Paul Kruger
Author/Editor |
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I must govern the clock, not be governed by it – Golda Meir |
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Distributed to 48,561 subscribers.
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From the Crow's Nest |
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Fairness in Justice |
In a recent decision concerning a Sharemax investment, the FSB Appeal
Board said that section 20(3) of the FAIS Act requires the FAIS Ombud to
consider complaints in a procedurally fair, informal, economical and expeditious
manner, and by what is equitable in all circumstances. Failure to afford a party
an opportunity to respond was “inequitable”.
This was repeated in the Mogadima case, published on 2 August 2017. The Appeal
Board disagreed with the Ombud’s finding that there was a relationship between
the two respondents which led to the complainant’s loss and upheld the appeal.
Background
The client effected a loan for R120 000 and was convinced by a representative
from Go Direct to invest R70 000, purportedly with ACM Gold and Forex. The funds
were, however, paid into the account of Go Direct, and never paid over to ACM
Gold. This transaction took place on 18 November 2012.
The client eventually laid a complaint against both Go Direct and ACM Gold.
Whilst the latter cooperated fully with the Ombud, Go Direct did not bother to
respond.
The Ombud found against Go Direct “in absentia”, stating that they had no
intention of making the investment, or paying the client’s money over to ACM.
She also found against ACM Gold, on the grounds that it allowed Go Direct to
provide services on their behalf, which made them equally liable. This assertion
was made on the strength of an “Introducer Broker Agreement”.
The only snag, as pointed out by the Appeal Board, is that this agreement was
only signed on 22 April 2013, five months after the investment was made.
Appeal Board Decision
ACM Gold applied for leave to appeal on 25 August 2016, but this was refused by
the Ombud, citing a set of reasons for her decision. The Appeal Board then
granted leave to appeal.
“The chairman of the Board noted a disconnect between the Ombud’s reasons in the
(first) ruling and the Ombud’s reasons in response to ACM Gold’s application for
leave to appeal.”
It appears that the Ombud first pursued the matter with Go Direct, but when they
did not respond, she “…reverted to corresponding with ACM Gold.”
“During argument, it transpired that the core of the appeal lies in the manner
in which the Ombud arrived at the conclusion that ACM Gold had a relationship
with Go Direct prior to the date on which the IB agreement was signed.”
In arriving at her determination, the Ombud only referred to three earlier
letters, and appears to have ignored the last dated 25 April 2016 in which ACM Gold reiterated the fact that their agreement with Go Direct only started 5
months after the investment, something which the Ombud failed to discuss with
ACM Gold, as she should have done under rule 6(3) of Rules of Proceedings of the
Office of the Ombud.
“Failure to afford a party, in this case ACM Gold, an opportunity to respond was
inequitable.”
“Similarly in CS Brokers CC and Others this Board expressed its displeasure
regarding the Ombud’s reluctance to implement appropriate procedures to deal
with complaints.”
In her response to the request for leave to appeal, the Ombud states: “All this
time, since September 2011, they (ACM Gold) were still doing business with
frauds at Go direct.”
The Board notes in this regard: “Despite diligent search (sic), nothing in the
record shows any evidence of any dealings between ACM Gold and Go Direct,
especially in relation to the date September 2011.”
In the Prigge appeal the Board said: “Matters like this (there are other
instances) add fuel to the allegation that the Ombud is biased against financial
service providers and sees her role as champion of disappointed clients. The Act
requires her to deal with complaints impartially (section 20(4)) and whether or
not she does so, depends on the facts of each case.”
This case appears to add more fuel to those allegations.
What is clear from this case is that one should not hesitate to appeal if you
are sure of your case, and have the right people to assist you.
Click here to download the Mogadima Appeal Board decision. |
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Your Practice Made Perfect |
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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:
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A brief update on the RDR
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The proposed changes to the Long- and Short-term Insurance Regulations
and the impact on remuneration
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The proposed changes to the Policy Holder Protection Rules with a
focus on replacement business
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The Financial Intelligence Centre Amendment Act and how it impacts
Accountable Institutions
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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.
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Insurance Apprentice Deadline nearing fast
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Do you fancy flying to London (business class nogal) for a week to visit
Lloyds of London, with R20 000 spending money from Masifunde Training
Centre and an Inseta bursary worth R75 000?
If this sounds enticing, read on.
Entries for The Insurance Apprentice 2018 close on 31 August, two weeks
from now.
Don’t wait until the last minute to apply. If we haven’t convinced you
yet, we remind you that in addition to promoting and recognising talent,
the exposure provided by The Insurance Apprentice is immeasurable.
If you are younger than 35, have been in the short term insurance
industry (any part of it) for four or more years, and you preferably
hold some form of short term insurance studies or qualification, then
this is just for you.
Visit
http://theinsuranceapprentice.co.za, fill out your
application form and submit it. Please make sure you read about the
process before you enter and remember to send us your application before
31 August 2017.
After this date, the top thirty candidates will be identified, with
regional rounds in October.
After these elimination rounds, in Johannesburg, Cape Town and Durban,
eight apprentices for series four of The Insurance Apprentice will be
revealed mid-November. Filming will take place from 7 to 12 January 2018. The series will be aired early 2018 via the FAnews and The
Insurance Apprentice websites, YouTube and Facebook.
Go on, what have you got to lose? |
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Unclaimed Retirement Benefit Search Engine
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The Financial Services Board made this facility available on its website
this week.
I was obviously curious about whether the Kruger millions were not
possibly hidden in a pension fund somewhere and promptly did a check.
Unfortunately, Oom Paul had more names than me. I was also not employed
by someone I had forgotten about, either.
An enquirer, which could be a person enquiring in respect of him/herself
or on behalf of somebody else, completes certain data fields such as
name, surname, contact number or e-mail address.
“This search engine has been established to enable persons to do an
enquiry free of charge and may not be used by entities or persons to do
tracing on behalf of persons for a fee.”
Also sprach Zarathustra…
Click here to download the instructions which also contain the link to
the search engine. |
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Technologically Speaking
Moonstone Information Refinery |
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Christmas arrives early this year |
Tony de Wijn of Softbyte Computers cc in Durban recently wrote:
Please feel free to offer your members this "demo" version of
WinTax2017. All personal tax assessment calculations work and
reports can be viewed on the screen, but PRINT buttons have been
disabled. The demo program offers access to over 40 accredited video
tax lectures. This is perfect for all those wrestling with SARS's
assessments at the moment. The demo version will expire at the end
of October by which time everyone will have finished doing their tax
assessments anyway.
The demo program can be downloaded from our web site
http://www.softbyte.co.za
WinTax2017 is program that retails for R1,995.00 so this free
version is a gift from heaven.
Thanks, Tony.
About SuiteBox
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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.
Suitebox Media contact
Neil Summers, Sales Manager, Moonstone Business Services
Mobile: +27729088994
Email:
neil@suitebox.com
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Regulatory Examinations
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Frequently Asked Regulatory Exam
Questions |
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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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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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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 |
| 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. |
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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 15 000 visits and approximately 39 000 page views per month. |
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Moonstone boasts an exclusive newsletter mailing list of over 48000
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:
Investment, Risk, Healthcare, Banking, Retirement, and Insurance. |
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Featured Positions |
-
Compliance Officer
under Supervision:
Moonstone Compliance, Johannesburg - The role will provide a
practical internship, during which the applicant will receive on the job
training and mentorship in the provision of outsourced compliance and
risk management services to clients in the financial services industry.
Read More
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Financial Advisors:
Odinfin, Irene, Pretoria - We are looking for insurance sales agents
to join our successful team.
Read More
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In Lighter Wyn |
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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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