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Moonstone Monitor -  8 March 2018
In This Week's Newsletter
 
From the Crow's Nest
Record Keeping Relief? – Can you use a product provider’s facilities for safe-keeping of client records?
 
Your Practice Made Perfect
New Debt Counselling Fees – NCR publishes circular on amended fees effective from 1 April
Proposed Amendments to Policyholder Protection Rules – Long- and Short-term proposals require feedback by 13 April
Santam survey amongst car owners – Drivers love their cars, but not sure of extent of cover
 
Technologically Speaking
Technology to ease Compliance Burden – Electronic process ensures accurate record of events
 
Regulatory Examinations
Schedules for 2018
FSB Regulatory Exam Update – Bookings close on 13 March for exams on 29 March, but some venues already full
 
Careers Platform
Are you hiring? Advertise your position on Moonstone’s Career Platform
Featured Positions
 
In Lighter Wyn
Grammatically yours…
Paul Kruger 2017-08-03
Paul Kruger Author/Editor
 
 
 
 

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From the Crow's Nest
From the Crow's Nest
Record Keeping Relief?
Some product providers have created facilities for advisers to upload documents on-line. This is then stored in a secure environment by the provider.

John, a Moonstone Protector client recently raised an interesting compliance question in this regard.

I have started uploading document directly to XYZ. In the past I used to send the documents via email and then store the email.

This new process is faster and saves me having to store all these documents, which is a huge relief for a one person business.

Can I outsource the keeping of records to XYZ for the required 5 years?
If permitted, must I disclose this in next year’s conduct of business report?

Our willing and able compliance consultant responded:

The new Fit & Proper requirements provide the following with regards to recordkeeping:

A FSP must at all times have:

adequate storage and filing systems for the safe-keeping of records, business communications and correspondence;
systems and procedures that are adequate to safeguard the security, integrity and confidentiality of information, including:
  electronic data security and internal and external cybersecurity;
  physical security of assets and records;
  system application testing;
  back-up and disaster recovery plans and procedures for systems and electronic data

You may however outsource this function to a third party, provided the following requirements are met:

A FSP, where it outsources a function or activity must -
 
ensure that the person to whom the function or activity has been outsourced -
  has the ability, capacity, and any authorisation required by law to perform the outsourced functions, services or activities reliably and professionally;
  is able to carry out the outsourced services effectively, to which end the FSP must establish methods for assessing the standard of performance of that person;
have a written contract that governs the outsource arrangement and which clearly provides for all material aspects of the outsourcing arrangement, including:
  addressing the rights, responsibilities, and service-level requirements of all parties;
  providing for access by the FSP and the Registrar to the person's business and information in respect of the outsourced function or activity;
  addressing sub-outsourcing; and
  addressing confidentiality, privacy and the security of information of the FSP and clients of the FSP
properly supervise the carrying out of the outsourced functions, and adequately manage the risks associated with the outsourcing, including any risks to the FSP's clients;
take appropriate action if it appears that the person may not be carrying out the functions effectively and in compliance with applicable laws and regulatory requirements;
retain the necessary expertise to supervise the outsourced functions effectively and manage the risks associated with the outsourcing;
be able to terminate the arrangement for outsourcing where necessary without detriment to the continuity and quality of its provision of financial services to clients;
establish, implement and maintain a contingency plan for disaster recovery and periodic testing of backup facilities;
have effective access to data related to the outsourced activities, including any data relating to the FSP's clients, as well as to the business premises of the person; and ensure that the outsourcing arrangement does not
  compromise the fair treatment of or continuous and satisfactory service to the FSP's clients; or
  result in key decision making responsibilities being removed from the FSP.

In other words, you may “outsource” this function to XYZ, but I doubt whether they will enter into a Service Level Agreement that provides specifically for record-keeping.

A further question that comes to mind is whether you will have access to those records should your contract with the provider be terminated?

I would therefore advise you to continue keeping your own records and to regard the XYZ facility as an additional back-up system.

John responded:

Thank you for your comprehensive response. I will maintain the records in question to comply with the specific wording of the regulations. In reality, however, it is an unnecessary task as they are all on the XYZ main frame which is far more secure than any I could create and is always accessible by me or the client.

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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
Your Practice Made Perfect
Your Practice
New Debt Counselling Fees
The National Credit Regulator recently published a circular and guideline in respect of the new fees that debt counsellors may charge consumers during the debt review process.

The new fees are effective from 1 April 2018 and do not apply retrospectively.

The NCR also advised that compliance with the fee structure will be monitored.

Please click here to download a copy of the circular on the new debt counsellor fees.

Please click here to download a copy of the debt counselling fee guidelines 2018.

Moonstone employed an NCA Specialist to render NCA compliance services to its clients and prospective clients. Should you have any queries, please contact Gerrit Viviers on 021 883 8000 or by email to gviviers@moonstonecompliance.co.za.
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Proposed Amendments to Policyholder Protection Rules
The FSB published proposed amendments to the Policyholder Protection Rules (“PPRs”) made under the Long-term Insurance Act, 1998 and the Short-term Insurance, 1998, respectively, for public comment. The proposed amendments form part of Tranche 2.

The proposed amendments to the PPRs are necessary to
  • align the PPRs with the Insurance Act, 2017 (Act No.18 of 2017) (“Insurance Act”);

  • provide for certain conduct of business related requirements that will be repealed from the LTIA and the STIA through Schedule 1 to the Insurance Act, once the latter Act commences, as these conduct requirements are better placed in subordinate legislation; and

  • provide for microinsurance product standards by giving effect to the National Treasury’s Microinsurance Policy Document released in July 2011.


Comments are due by 13 April 2018.

It is expected that the proposed amendments to the PPRs will come into operation on 1 July 2018 to coincide with the expected commencement date of the Insurance Act and Prudential Standards to be made under that Act.

All the documentation is available on the Treasury website.
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SA drivers love their cars
A national client survey by Santam revealed interesting and surprising attitudes of drivers towards their vehicles, including emotional attachment and feelings of despondency if dispossessed of their much-loved cars.
  • 64% “very or extremely attached’” to their vehicle

  • 4 in 10 have named their ‘wheels’

  • 37% “unable to function” without their car

  • However, 45% do not know the current monetary value of their vehicle

The survey further showed that when asked whether they knew the current monetary value of their vehicle, nearly half (45%) did not know this amount, even though the majority (58%) of the participants had read their insurance policy in the last six months. An impressive 81% of respondents were aware of what their insurance covers.

However, when it came to the settlement car owners would be willing to receive if their vehicle was stolen, nearly half (48%) expected the full amount for which the vehicle was insured. Other settlement amounts that drivers would be willing to receive were “the market value the car was insured for (29%) and “a similar ‘replacement vehicle’” (23%).
 
Click here to download the full Santam media release on the survey.
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Technologically Speaking
Suitebox 2017-06-29
Moonstone Information Refinery
 
Technology eases Compliance Burden
by Janine Geldenhuys
Schalk Malan, CEO of BrightRock, recently shared five of the major developments that are set to change the insurance industry as we know it. According to Schalk the rise of blockchain, personalised/precision medicine, the continuing rise of big data, multi-channel engagement and the Internet of Things (IoT) are technological advances that the industry will have to embrace in order to reduce costs, and provide tailor-made solutions.

This is in line with technology trends that are shaping the financial industry globally. Forrester, one of the most influential research firms in the world pointed out that the old way of doing business will put companies at risk and that digital transformation and the power of technology need to be embraced.

But how does an adviser still stay compliant in such a techno world or does technology actually assist and ensure that compliance obligations are met and risk mitigated?

According to Neil Summers, Sales Manager at Moonstone, fintech solutions such as SuiteBox does not only provide advisers with viable and flexible alternatives to the more traditional ways of working - technology also drives greater compliance efficiency in the financial services environment.

“SuiteBox enables advisers to hold online video meetings with clients and has the ability to review and sign-off on documents with a legally recognised digital signature. It saves all interactions and therefore provides you with a secure record of interactions to provide an audit trail for regulatory compliance,” says Summers.

““It therefore not only assists the adviser to place the client in the best position to make an informed decision, but also serves as evidence in the event of complaints or disputes,“ he concludes.

Talk to us about Suitebox today and get connected!

SuiteBox is a secure web based digital interaction service that transforms customer engagement for professionals with intuitive video, document collaboration, screen sharing, selective recording and real-time digital signing. This functionality helps organisations accelerate and close business using the full power of mobile and desktop devices. The Suitebox service can be fully white labelled and seamlessly integrated with numerous CRM platforms. It’s available via monthly subscription, is delivered via the cloud and requires no technical expertise to use. For more information go to www.suitebox.com.

Janine Geldenhuys is a communication officer at Moonstone Information Refinery.
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Regulatory Examinations
Regulatory exams banner
2018 RE Schedules updated

Please note
: Registration cut-off is 11 working days before date of exam.
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FSB Regulatory Exam Update
Final closing date for March

Please note that you only have until Tuesday, 13 March, to register should you wish to write on 29 March. As most venues are either fully booked, or nearly so, please book at your earliest convenience. After the 29th, amended questions as a result of the new Fit and Proper regulations will be included in the question databank. See article below on this.

FSB Fee Increase from 10 March

The increased fee of R1 226 per regulatory exam was published in the Government Gazette on 9 February and becomes effective, technically, on 10 March. This will apply to all future bookings, for exams as well as rewrites, from Monday, 11 March 2018.

Regulatory Exam Changes

The amended requirements contained in the 2017 Determination of Fit and Proper Requirements will have a substantial impact on the content of the study material for the REs.

The FSB’s FAIS Information Circular 1/2018 confirms a number of matters we discussed since the publication of the new Fit and Proper Determination, which comes into effect from 1 April 2018.

Certain questions in the RE 1 (key individuals) and RE 5 (representatives) will change to align with the new regulations.

Current Version of RE 1 and RE 5

Persons already registered to write the regulatory examination BEFORE or on 29 March 2018, will still write the current version of the regulatory examination (without the updated questions included).

The last date for registration to write on 29 March 2018 is close of business on 13 March 2018.

Updated Version of the RE 1 and RE 5

Persons who registered to write the regulatory examination ON or AFTER Tuesday, 3 April 2018 are obliged to write the new version of the regulatory examination, which will contain the updated questions. It is very important for these candidates to ensure that they use updated preparation material that is aligned with the qualifying criteria in Annexure Four of Board Notice 194 of 2018.

Study Material

The updated FSB Preparation Guide for RE 1 and RE 5, together with the relevant legislation, and the relevant Training Manuals from BANKSETA/INSETA may not be available at the time that the updated RE 1 and RE 5 roll out on 3 April 2018 in which case candidates will have to incorporate BN 194 of 2017 in their study material.
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Featured Positions
  • Broker Consultant: CIA - Commercial & Industrial Acceptances Pty Ltd, Gauteng, East Rand and Vaal Triangle - We are looking for an excellent communicator to represent CIA to our brokers. Read More

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  • Senior Client Liaison Officer: Vunani Fund Managers (Pty)LTD - We are a fund management company looking for a suitably qualified EE candidate. Read More

  • Short Term Insurance Representative: JFA Shortterm Insurance Brokers, Milnerton, Cape Town - If you have at least 3 years of experience and preferably live in the vicinity of the brokerage then Read More

  • 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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In Lighter Wyn
In Lighter Wyn
Grammatically yours...

For all you English gurus out there

"A mother beat up her daughter because she was drunk."
Who was drunk, the mother or the daughter?

Eat some more...

Grammar 01

Grammar 02

Grammar 03

Grammar 04

Grammar 05

 

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