To Subscribe please click here

Moonstone logo
Moonstone Monitor -  15 March 2018
In This Week's Newsletter
 
From the Crow's Nest
Audenberg Appeal Decision – Not everyone agrees about the FAIS Ombud fulfilling her mandate
 
Your Practice Made Perfect
Money Laundering Examples - The Financial Intelligence Centre published case studies to assist detection and prevention
Crime Tracker Statistics - Bryte Insurance measures long-term crime statistics based on insurance claims
Class of Business Training registration opens today – Are your obliged to do this? See our quick checklist
 
Technologically Speaking
Patrick Cairns discusses the possibility that you may be replaced by a machine in a Moneyweb article
 
Regulatory Examinations
Schedules for 2018
FSB Regulatory Exam Update
 
Careers Platform
Are you hiring? Advertise your position on Moonstone’s Career Platform
Featured Positions
 
In Lighter Wyn
Reports of Mark Twain’s quip about his death are greatly misquoted...
Paul Kruger 2017-08-03
Paul Kruger Author/Editor
 
 
 
 

SuiteBox vertical banner 2017-01-12
Be faithful in small things, because it is in them that your strength lies
– Mother Teresa
 
Please connect with us: www.moonstone.co.za
pkruger@moonstoneinfo.com or 021 883 8000
 
Facebook   Twitter   LinkedIn   YouTube  
Distributed to 51,295 subscribers.

To advertise with us
click here

 
From the Crow's Nest
From the Crow's Nest
Audenberg Appeal against FAIS Ombud
The FSB Appeal Board recently published its decision at a hearing held on 27 February 2018.

The appeal was dismissed, but not before the Board expressed some very concerning comments on the office of the Ombud’s handling of the case.

What is its mandate?

Under the heading “Risk management”, the latest FAIS Ombud annual report notes:

“The FAIS Ombud reports to the Board of the Financial Services Board. In discharging its oversight responsibility… the Board adopts a combined assurance approach with the over-riding purpose of assuring its stakeholders about the effectiveness of governance systems and instilling confidence in the delivery of business value.
The FAIS Ombud’s strategic goals are prioritised in the following manner:
  1. to resolve complaints in a fair, expeditious, and economical manner;

  2. to achieve operational excellence; and

  3. to engage with stakeholders.


These goals are monitored and progress reported quarterly to performance information consolidation structures…

The Audenberg case

In the light of the above it is interesting to note the views of the FSB Appeal Board on some of the decisions made by the FAIS Ombud in this case.
  • “This is not the first instance where the Appeal Board had to point to the failure of natural justice in the office of the Ombud and about the unjustifiable delays in processing matters. Failure of the office of the Ombud to comply with its statutory duties may in an appropriate case lead to the setting aside of a determination to the detriment of complainants.”

  • “It is unfortunate that this Board has to revisit this issue but the facts of the case require it.”

  • “In this matter the Ombud failed to deal with the matter expeditiously or in a procedurally fair manner.”

  • “As to expedition, the complaint was lodged on 28 April 2010. In response, the appellants addressed the issues raised on 29 July 2010. They followed this up with further letters, the last being of 5 May 2011. The first action by the Ombud was on 8 January 2014…”

  • “The first problem with the letter is that the issues in the Sharemax matter had nothing to do with the issues in this case. The excuse was accordingly not a valid excuse.”

  • “The second problem is that the Ombud did not inform the appellants that the matter was still pending and the appellant had good reason to assume that the matter had died a natural death.”

  • “The same happened with the next letter from the Ombud of 19 May 2015. Once again, the appellants were kept in the dark.”

  • “The first intimation the appellants had that the matter was alive was after a silence of four years — on 24 June 2015, when the Ombud wrote to the appellants. The appellants provided the facts requested on 6 July 2015 and on 15 September 2016 the determination was made.”

  • “To add insult to injury, it took the Ombud ten months to deal with the application for leave to appeal.”

  • “That brings us to the question of procedural fairness. It is apparent that the Ombud must have been in telephonic or other contact with the complainant shortly before the determination. The new allegations of the complainant were not put to the appellants and do in any event not appear from the record. This amounts to a basic denial of justice. Some of the information unilaterally obtained found its way into the determination.”

  • “In respect of the appellants' suggestion' (it was in fact an allegation) that City Capital was back on track, the Ombud said that this was not supported by documentation and that the allegation was irresponsible. The Ombud relied on the fact that the company had been liquidated during 2009. The problem with the Ombud's findings in this respect (para 67) is that the Ombud failed to have regard to the fact that the company was for a while under provisional liquidation and has long since been trading. The Ombud simply failed to follow up or test the information that came from the appellants, creating the impression that whatever a complainant says must be true and what the FSP says must be untrue.


A similar comment was made as far back as October 2015 when the retired judge who chairs the Appeal 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…”

What should be of concern to those accountable for the office of the Ombud operating within its mandate is that very few of the Ombud’s decisions are taken on appeal. Who knows how many other cases, not appealed, suffered a fate similar to what is outlined above, and in previous scathing comments by the Appeal Board. By far the majority of complaints are resolved by means of settlements, and very few are reported on.

Some of the comments above were made as far back as October 2015, and one has to ask whether this was addressed by those who monitor the actions of the Ombud.

The fact that this office, as a dispute resolution mechanism, operates in a less formal manner, requires more stringent supervision, not less.

Click here to download the Audenberg case.
Top of Page
 
GTC banner 2018-03-15 600 x 800
Your Practice Made Perfect
Your Practice
Money Laundering Examples
The Financial Intelligence Centre recently published a number of case studies to assist readers in identifying potential criminal financial activity, to illustrate how criminal incidents can occur and how criminals operate.

The ten topics include the use of duplicate payments, creating fraudulent companies, stolen student loans, environmental crimes and trust account abuse.

Please click here to download. You are obviously welcome to share it with your clients as well.
Top of Page
 
Go4 banner 2018-03-08
 
Crime Tracker Statistics
Bryte Insurance, a business risk specialist, released its latest crime tracker statistics for the third quarter of 2017. Bryte’s Crime Tracker is an indicator of long-term crime trends in South Africa as captured by insurance claims.

A report in BusinessTech notes a decline in crime against businesses, but an increase in robbery, particularly cash in transit heists.

Click here to read the article.
Top of Page
 
MBSE banner
 
Class of Business Training registration opens today
Moonstone Business School of Excellence (MBSE) will provide training in all nine modules stipulated in the Latest Determination of Fit and Proper requirements.

Quick checklist – who should attend Class of Business training?
  • All FSPs, Key Individuals and Representatives appointed after 1 April 2018.

  • FSPs, Key Individuals and Representatives who seek authorisation, approval or appointment for new financial product categories after 1 April 2018.

  • Representatives working under supervision as at 1 April 2018, or appointed under supervision after 1 April 2018.

  • Certain exemptions apply, depending on the type of business one does, and how it is conducted. Please contact your compliance officer if in doubt.


Register today!
Top of Page
 
SuiteBox horizontal banner 2017-01-12

Technologically Speaking
Suitebox 2017-06-29
Moonstone Information Refinery
 
Will your financial advisor be replaced by a machine?
In a recent article in Moneyweb, Patrick Cairns addresses the question of how advisors should stay relevant in a digital world. He shares how there is still a human side to digital engagement; one that is absolutely critical to the success of any customer engagement strategy.

According to Albert Cucco, the chief client solution officer at fintech provider Objectway, there is an “argument for a hybrid approach, where the digital only experience and face-to-face experience will meet in a service that will address the needs of the customer in depth but still with the advisor as the central point in the service.”

Click here to read the article Will your financial advisor be replaced by a machine? on the Moneyweb website.
Top of Page
Regulatory Examinations
Regulatory exams banner
2018 RE Schedules updated

Please note
: Registration cut-off is 11 working days before date of exam.
Top of Page
 
Study Material Update
The amended requirements contained in the 2017 Determination of Fit and Proper Requirements will impact on the content of the study material for the REs.

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 2017.

We received confirmation from Inseta that their adjusted study material will be available before or on 1 April 2018.

Frequently asked Questions

Please click here to access a list of questions and answers, including information on what exams to write, the cost thereof, study material, training and a lot more.
Top of Page
Careers Platform
Are you hiring? Advertise your position on Moonstone’s Career Platform
Careers Platform Packages

•   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: Investment, Risk, Healthcare, Banking, Retirement, and Insurance.


Advertise


Top of Page
 
Featured Positions
  • Personal Lines Sales/Underwriter: Venshaw Insurance Administrators, Bellville, Western Cape - We are looking for a candidate with 2 years' experience, RE5 and NQF4 (150 credits). Read More

  • Short Term Insurance Representative: External Marketer/Service: Venshaw Insurance Administrators, Bellville, Western Cape - The candidate should be Xhosa speaking, and have completed RE5 and NQF4 (150 credits). Read More

  • Short Term Insurance Representative: Claims Consultant: Venshaw Insurance Administrators, Bellville, Western Cape - The candidate should be Xhosa speaking, and have completed RE5 and NQF4 (150 credits). Read More

  • 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

  • Financial Advisor/Planner: KDO Group Johannesburg - The role involves selling of Hollard MyLifeandMore products to mainly government employees and private clients. Read More

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

Top of Page
In Lighter Wyn
In Lighter Wyn
Reports of Mark Twain’s quip about his death are greatly misquoted...
I recently had a number of enquiries about my perceived departure from the financial services industry. That is a story for another day, except to say that I used this phrase quite often in response to such questions.

Mark Twain was in London in 1897 as part of a speaking tour around the world. He had considerable debt in the US and hoped to earn enough money to pay it off.

While he was in London, a rumour started that he was seriously ill. This was followed by a rumour that he was dead. The story goes that an American newspaper printed Twain's obituary. Supposedly after that, when asked about all this by a reporter, Twain said:

The reports of my death are greatly exaggerated.

Here is a copy of the actual document:

Mark Twain's quip about his death
 

You can click here to read the full story: Reports of Mark Twain’s quip about his death are greatly misquoted...
Top of Page


Reach over 50000 subscribers banner

 

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.