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Moonstone Monitor - 13 December 2017 |
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If the only tool you have is a hammer, you tend to see every problem as a
nail – Abraham Maslow |
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Distributed to 49,052 subscribers.
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From the Crow's Nest |
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FICA Update |
FAIS Newsletter 25 from the FSB is dedicated to the Financial
Intelligence Centre Act and, more specifically, to substantial changes which
came into effect in June and October.
The amendments are designed to bring South Africa’s Anti-Money Laundering and
Countering Financing of Terrorism (AML/CFT) legislative framework in line
with Standards set out by the Financial Action Task Force (FATF) and
international best practices. The amendments are also intended to augment South
Africa’s position in combating money laundering and terrorist financing, and
strengthen its capacity to prevent financial crimes and to discipline such
crimes.
Commencement of the FIC Act
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The first provisions of the FIC Act commenced on 13 June 2017. These
provisions did not require changes to ML/TF Control Regulations, Exemptions or
internal processes and systems of accountable institutions to enable compliance
with the FIC Act. The provisions dealt mainly with dissolving the CMLAC,
information sharing, consultation arrangements with stakeholders, concerns
relating to inspection powers and warrants, and improvement of the appeal
process.
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The bulk of the provisions came into effect on 2 October 2017. These
provisions required changes to ML/TF Control Regulations and withdrawal of
Exemptions, as well as training of staff and major changes to processes and
systems used by accountable institutions.
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The commencement date of the remaining provisions relating to the freezing of
assets in terms of the United Nations Security Council Resolutions on targeted
financial sanctions will still be determined.
Status of Exemptions and ML/TF Control Regulations
The FIC Act is now a principles-based piece of legislation. It sets out broad
obligations for accountable institutions, but leaves the methods of meeting
those obligations to be decided by the accountable institutions. This implies
that accountable institutions should determine the most appropriate means to
implement the provisions of the FIC Act.
Previously, accountable institutions relied on Exemptions and other information
that was prescribed in the ML/TF Control Regulations. The Exemptions were
withdrawn and the ML/TF Control Regulations amended to make way for a risk-based
approach.
A risk-based approach provides accountable institutions with the flexibility to
use a range of mechanisms towards implementation of the FIC Act and encourages
accountable institutions to explore innovative ways of offering financial
services to their broader client-base. It must be noted that accountable
institutions may continue to be guided by the contents of some of the withdrawn
Exemptions in the implementation of their compliance approaches.
Training Obligations (section 43) – The accountable institution is
required to provide its employees with ongoing training to enable them to comply
with the FIC Act and the RMCP and to discharge the specific responsibilities
assigned to them. Please note that accountable institutions with no employees
are also subject to ongoing training.
MBSE Online FICA Training Updated
Moonstone Business School of Excellence worked very hard to align their online
training modules with these amendments and confirmed on Friday that the updated
training is now available. Moonstone Compliance clients get gratis access to the
training.
In order to apply for the FICA Online training, click on the relevant link below:
Click here to download
FAIS Newsletter 25 from the FSB to read all about the new FICA. |
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Your Practice Made Perfect |
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Festive season greetings |
Our humour section features a slightly more politically correct edition
of the same. This is more from the heart.
This year, which is speeding to an end, has arguably been the busiest in
my 40 years in the industry. The latest batch of legislative changes
envisaged for the next six months is a clear indication of the
applicability of the Bachman–Turner Overdrive song:
You ain’t seen nothing yet.
From all of us at Moonstone, a hearty thank you to all our clients,
subscribers and supporters for your regular input, reflections and
complaints which helped us stay in touch with your reality out there.
I used to say to my daughters, on their way out to a night on the town:
“Enjoy, and behave yourselves”, to which the standard retort was: “Make up
your mind, Pa.”
Please enjoy the festive season responsibly, and rest well. Despite so
many distractions, it is still the prime time of year for family and
friends. Enjoy it to the hilt. |
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Alcohol abuse and how it affects your insurance
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This article, first published in News24, is obligatory reading for
all your clients as we head into the festive (aka as excessive drinking)
season for many.
It discusses the impact on your short- and long-term insurance, both
from an immediate and longer term perspective.
If each of you can only convince one person to refrain from drinking and
driving, it means that nearly 60 000 people will not transgress the law.
Just imagine the impact on the carnage on our roads every year at this
time.
It’s the festive season and the year-end parties are mounting up. But be
careful not to over- indulge – because not only is drunk driving against
the law but if you’re involved in an accident your insurance probably
won’t pay out. What’s more, alcohol abuse also impacts on long-term
insurance cover, such as life policies. Let’s look at how over-
indulging affects your insurance.
Car insurance
No payouts
When you drive under the influence, you’re committing an offence and
your insurance company is under no obligation to honour your claim. Even
If you’re just fractionally over the legal alcohol limit and you drive
your car and are in an accident, your insurance company doesn’t have to
pay out your claims. Even if the accident wasn’t your fault.
This also applies to third-party insurance, says Dawie Loots of MUA
Insurance Acceptances. Although you’re insured for damage to the other
person’s car, your insurance isn’t obliged to pay out.
You might have to pay for the repairs to your own vehicle and be held
liable for the damage to the other vehicle. You might also have to pay
legal costs and both parties’ medical expenses.
Higher premiums
The insurer might agree to pay your claim, but can still increase your
monthly premium because you’ve become more risky to insure as a result
of the drunk-driving incident.
Cancellation: If you’re convicted of drunk driving, your insurer could
cancel your vehicle insurance, Loots says. In that case you might
struggle to get vehicle cover elsewhere.
Know this
The insurer isn’t responsible for conducting the blood test to check if
the legal alcohol limit has been exceeded. The police are in charge of
blood tests, and refusing to take the test is a criminal offence.
You can't rely on a Road Accident Fund payout; this fund can also
decline to pay out in the case of a drunk-driving accident.
Life insurance
If the policyholder dies while driving a vehicle under the influence of
alcohol or drugs, he was driving illegally. Again the life assurer has
no obligation to honour claims and then the policyholder’s beneficiaries
won’t get a payout.
But there must be a direct connection between the alcohol or drug
consumption and the accident, and it has to be the fault of the insured.
alcohol or drug dependence or already has a liver disease, the insurer
can request liver function tests, liver biopsies, scans and other tests
to determine the damage to their liver.
The premium applied will depend on whether the tests show any damage and
the extent of it. If you have severe liver damage your application for
cover might be rejected, or you might get cover with death due to
alcohol-related illness excluded.
Higher Premiums
Heavy drinkers also pay higher premiums for life insurance. The reason
for this is that they’re more at risk health-wise than people who drink
less.
When you take out a life policy the insurer will want to know how much
you drink currently and used to drink in the past. Dr Thabani Nkwanyana,
medical officer at Liberty Life, says drinking six or more units of
alcohol a day is regarded as risky alcohol consumption, according to
standards prescribed by the World Health Organisation (WHO). For
example, just 75ml red wine equals one unit.
Risk is assessed on an individual basis and your premium is determined
accordingly. Nkwanyana says if a person has a history of providing
incorrect or incomplete information when you apply for insurance is
referred to as non-disclosure or misrepresentation.
It’s one of the most common reasons why claims are rejected. Statistics
of the Association for Saving and Investment South Africa show that life
assurers last year turned down claims worth R332 million, with 55,3%
having been rejected due to non-disclosure.
Full disclosure is when you provide all the information asked for on the
application form concerning your lifestyle, state of health and the
medical histories of you and your close family. When a person doesn’t
disclose a health condition, they’re insured on an incorrect risk
profile.
Click here to read the article online on News24 and share with your
clients. |
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Regulatory Examinations
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2018 RE Schedules updated |
Please note: Registration cut-off is 11 working days before date of exam. |
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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
MP4 direct download - 2 Gb |
| 4. |
Where can I write?
Go to:
http://www.faisexam.co.za/show_venues |
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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 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:
Investment, Risk, Healthcare, Banking, Retirement, and Insurance. |
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Featured Positions |
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Junior Short Term
Underwriter:
JFA Short Term Brokers, Milnerton - We require a bilingual
underwriter with RE5 and NQF 4 qualification.
Read More
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Personal Assistant and
Administrator of investments, life insurance and Medical Aids:
Vesto Capital, Moorreesburg - We are looking for a qualified,
experienced and well groomed lady to commence employment on 8 January
2018.
Read More
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Short Term Claims
Administrator:
The Insurance Center, Westville, Durban - The successful applicant
must be experienced, work unsupervised and be competent to negotiate
claims settlements at the highest level.
Read More
-
Financial Sales Consultant:
Quest Staffing Solutions, Cape Town - You will provide qualified financial advice directly to clients and
therefore a minimum of 6 months Outbound Call Centre sales experiences or 12
months face to face financial sales, with a RE qualification will be required.
Read More
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Group Compliance
Practitioner:
LegalWise, Gauteng - You will play a key role in assisting the Group
Compliance Manager to enhance and maintain the compliance strategies and
processes, as well as a culture of ethics and compliance, across the
Group.
Read More
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In Lighter Wyn |
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Answer to Quiz and Politically correct greetings |
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Answer to Monday’s Pic Quiz
The answer, of course, was
A horse with no name. Listen to it while reading the rest below.
Politically correct festive greetings
Please accept, with no obligation, implied or implicit, our best
wishes for an environmentally conscious, socially responsible, low
stress, non-addictive, gender neutral celebration of the winter
solstice holiday, practiced within the most enjoyable traditions of
the religious persuasion of your choice, or secular practices of
your choice, with respect for the religious/secular persuasions
and/or traditions of others, or their choice not to practice
religious or secular traditions at all.
In addition, please also accept our best wishes for a fiscally
successful, personally fulfilling and medically uncomplicated
recognition of the onset of the generally accepted calendar year
2018, but not without due respect for the calendars of choice of
other cultures whose contributions to society have helped make this
country great (not to imply that this country is necessarily greater
than any other country or area of choice), and without regard to the
race, creed, colour, age, physical ability, religious faith or
gender orientation of the wishers.
This wish is limited to the customary and usual good tidings for a
period of one year, or until the issuance of a subsequent holiday
greeting, whichever comes first. ‘Holiday’ is not intended to, nor
shall it be considered, limited to the usual Judeo-Christian
celebrations or observances, or to such activities of any organized
or ad hoc religious community, group, individual or belief (or lack
thereof).
Note: By accepting this greeting, you are accepting these terms.
This greeting is subject to clarification or withdrawal, and is
revocable at the sole discretion of the wisher at any time, for any
reason or for no reason at all.
This greeting is freely transferable with no alteration to the
original greeting. This greeting implies no promise by the wisher
actually to implement any of the wishes for the wisher her/himself
or others, or responsibility for the consequences which may arise
from the implementation or non-implementation of it.
This greeting is void where prohibited by law.
From me and the team, on a more personal note, best wishes for a
joyous and safe holiday season. Thank you for your support,
encouragement, advice and indulgence during one of the most hectic
years in the industry ever. Please take care out there.
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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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