To Subscribe please click here

Moonstone logo
Moonstone Monitor -  22 March 2018
In This Week's Newsletter
 
From the Crow's Nest
Do what I say – New complaints management framework and the new Ombuds schemes
 
Your Practice Made Perfect
Government has raised the VAT rate - How will it impact short term insurance policy?
Class of business – Introducing Short-term Insurance – Personal lines
 
Technologically Speaking
Impact of POPI Act - How will it affect direct and digital marketers
 
Regulatory Examinations
Schedules for 2018
FSB Regulatory Exam Update - What will be significantly impacted by Board Notice 194
 
Careers Platform
Are you hiring? Moonstone offers biggest industry platform for employers
Featured Positions
 
In Lighter Wyn
For the peace of all mankind
Paul Kruger 2017-08-03
Paul Kruger Author/Editor
 
 
 
 

SuiteBox vertical banner 2017-01-12
“The brave man is not he who does not feel afraid, but he who conquers that fear.” – Nelson Mandela, Long Walk to Freedom
 
Please connect with us: www.moonstone.co.za
pkruger@moonstoneinfo.com or 021 883 8000
 
Facebook   Twitter   LinkedIn   YouTube  
Distributed to 51,182 subscribers.

To advertise with us
click here

 
From the Crow's Nest
From the Crow's Nest
Do what I say
Complaints handling is set to become a major measure of your commitment to the fair treatment of clients, or TCF as it has become known.

The final proposals for implementation of changes to the General Code of Conduct reiterate this. There is now an official definition of what a complaint is:

"complaint" means an expression of dissatisfaction by a person to a provider or, to the knowledge of the provider, to the provider's service supplier relating to a financial product or financial service provided or offered by that provider which indicates or alleges, regardless of whether such an expression of dissatisfaction is submitted together with or in relation to a client query, that -
  1. the provider or its service supplier has contravened or failed to comply with an agreement, a law, a rule, or a code of conduct which is binding on the provider or to which it subscribes;

  2. the provider or its service supplier's maladministration or wilful or negligent action or failure to act, has caused the person harm, prejudice, distress or substantial inconvenience; or

  3. the provider or its service supplier has treated the person unfairly;


If you thought that having to act with “…due care and diligence…" was an opaque command, read this one again. Similarly the definition of a “complainant” allows for a very wide interpretation.

When the new code kicks in, you will be required to establish a complaints management framework, or hopefully adapt your current one, to very specific requirements, including record keeping which allows for monitoring and analysis and reporting complaints information as part of your market conduct report.

The proposed effective date is 1 January 2019.

Regulatory complaints handling

The latest FAIS Ombud Annual Report shows that new complaints received by the office increased to 10 846 from 9 891 in the previous year. Of these, 3 794 complaints (over 34%) were dismissed, 4 639 complaints (over 42%) were referred, and 592 complaints (over 5%) were settled. In addition, 1 821 complaints (over 16%) were carried over to the 2017/18 financial year.

This was achieved by 72 staff members. Personnel costs came to R29 264 029, an increase of 19.3% on 2015/16.

Of the total complaints received by the office of the FAIS Ombud, 8 433 (77.8%) were either dismissed or referred elsewhere. This must have had a huge influence on the ability of the office to fulfil its primary duty.

New Ombud structure

The current Financial Services Ombuds Schemes Council will be replaced by a full-time Ombud Council, headed by a Chief Ombud. The Ombud Council will establish a single point of entry into the ombud system which should see a huge improvement in productivity and speed up complaints resolution considerably.

The jury is still out about the exact structure, and three models are currently under consideration.

The discussion paper notes:

The Ombud Council is anticipated to be established alongside the Prudential Authority and Financial Sector Conduct Authority in 2018, and provisions relating to the ombuds system implemented thereafter.

Further steps identified:
  1. An updated review of the overall functioning and outputs of the ombud system is needed, looking to identify performance indicators and test each ombud and the system against these. A diagnostic into the functioning of South Africa’s ombuds system will be undertaken in 2018.

  2. Best-of-breed standards for all ombud schemes should be proposed, as part of the new Ombud Council’s work programme. These requirements will be issued as Ombud Rules by the Ombud Council. The Council should consider the processes and procedures that should be standardised, like complaints and referral practices, investigation powers, feedback times and methods, adjudication approaches, reporting, as well as the appropriate balance between principles- and rules-based standards. The findings of the diagnostic will be important in this regard.

  3. In 3-5 years a review of the impact of interventions should assess whether further corrective action is necessary, including through structural reform.


Consumer education

The discussion document gives no indication of plans to do something proactive with the information gleaned from a central database of complaints. The fact that more than a third of the complaints received by the FAIS Ombud were dismissed clearly points to an opportunity for consumer education.

It will be expected of FSPs to learn from complaints and take corrective action to prevent recurring problems. If the same does not apply to the various Ombuds, it might be viewed as a case of “Do what I say, not as I do.”
Top of Page
 
GTC banner 2018-03-15 600 x 800
Your Practice Made Perfect
Your Practice
How will the VAT increase impact short term insurance policies?
The recent announcement of the change in the Value Added Tax rate from 14% to 15% effective 1 April 2018 did not leave much time for companies across different industries to amend their systems to accurately implement the VAT rate increase from that date.

Some of the industries that will be most affected by the change are the financial services sector and the insurance industry. Yusuf Bodiat of Lion of Africa recently reported in FANews that “not only will all companies need to update their systems, they will also need to train staff, communicate to customers and ensure nothing slips through the cracks, all in a very short space of time.”

In his article Yusuf highlights some of the complications that the industry faces and questions if all the implications were considered.

Some of the examples of the simpler complications that he mentions:
  • If a policy is written at 14% and subsequently cancelled (at 15%), how much is the refunded amount? One would think it would be at 14%, but what if there were additions/endorsements to the cover before or after 1 April 2018?

  • If a policy is incepted and the cash is received by a broker in March 2018 and paid over to the insured in April 2018 (within 15 days), does the insurer have sufficient information at the end of March to capture the transaction accurately?

Top of Page
 
Go4 banner 2018-03-08
 
Class of business – More about Short-term Insurance – Personal lines
In terms of Board Notice 194 of 2017, class of business (COB) training forms a compulsory part of the competence requirements for FSPs, Key Individuals and Representatives.

The product categories that an FSP can be licensed for have been divided into 9 broad classes, each with its own subclasses. For example, Short-term Insurance Personal Lines is a class of business with subclasses that include: Accident and health policies; Liability policies; Miscellaneous policies; Motor policies; Property policies; Transportation policies and Short-term reinsurance policies.

What will the training cover?

Learners will be provided with a core knowledge and understanding of characteristics, terms and features of products for individual (non-commercial) clients in the short-term insurance personal lines class of business, including typical fee structures, charges and other costs and risks associated with investing, purchasing or transacting in these products. In addition to this, the module provides knowledge of legislation impacting on short-term insurance personal lines products. The module will also provide learners with the skill to assess the appropriateness of products within the short-term insurance class of business for specific individual client needs.

More information

If you require more information please contact Veronica Grobler via email or on 087 702 6429.

For information on Corporate Packages, please contact Sheila Olckers via email or on 021 883 8000.

Register today!
Top of Page
 
MBSE banner

Technologically Speaking
Suitebox 2017-06-29
Moonstone Information Refinery
 
Impact of POPI act on direct and digital marketers
The Protection of Personal Information (PoPI) Act regulations were published last year in September and will come into effect during 2018. Will it be a good thing, will it over-complicate targeting the consumer, and will it over-regulate the South African business industry?

At the recent held IAB Digital Summit Elizabeth De Stadler, founding director of consumer and data protection consultancy Novation Consulting, shared how the POPI Act will affect direct marketers.
Top of Page
 
SuiteBox horizontal banner 2017-01-12
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
 
FSB Regulatory Exam update - What will be significantly impacted by Board Notice 194
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.

The following areas in the new Task and Criteria will be significantly impacted by Board Notice 194 of 2017. Please note there may also be individual questions in other specific areas that can be impacted, but when all questions are reviewed this will be indicated in the prep guide.
 
Regulatory Examination Task Criteria
RE1 Task 3 Criteria 1 - 3
  Task 4 Criteria 1 – 15
  Task 5 Criteria 1 - 11
  Task 13 Criteria 1 - 2
  Task 15 Criteria 1 - 5
RE5 Task 8 Criteria 3 & 8

We also 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
For the peace of all mankind
Mrs. Ravioli comes to visit her son Anthony for dinner.

Peace of all mankind 1
 

He lives with a female roommate, Maria.
 

Peace of all mankind 2
 

During the course of the meal, his mother couldn't help but notice how pretty Anthony's roommate is.

Over the course of the evening, while watching the two interact, she started to wonder if there was more between Anthony and his roommate than meet the eye.

Reading his mom's thoughts, Anthony volunteered, "I know what you must be thinking, but I assure you, Maria and I are just roommates.''

About a week later, Maria came to Anthony saying, "Ever since your mother came to dinner, I've been unable to find the silver sugar bowl. You don't suppose she took it, do you?"

"Well, I doubt it, but I'll email her, just to be sure." So he sat down and wrote an email:

Dear Mama,
I'm not saying that you "did" take the sugar bowl from my house; I'm not saying that you "did not" take it. But the fact remains that it has been missing ever since you were here for dinner.
Your Loving Son,
Anthony

A few days later, Anthony received a response email from his Mama which read:

Dear son,
I'm not saying that you "do" sleep with Maria, and I'm not saying that you "do not" sleep with her. But the fact remains that if she was sleeping in her OWN bed, she would have found the sugar bowl by now.
Your Loving Mama

Moral:
Never Bulla Shita you Mama.
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.