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Moonstone Monitor - 31 May 2018 |
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"Everything you can imagine is real." - Pablo Picasso |
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Distributed to 51,930 subscribers.
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From the Crow's Nest |
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Interesting ST Ombud Case Studies |
The latest Ombud’s Briefcase, published by the Office of the Short-term
Ombud (OSTI), contains two unusual cases well worth noting.
Driving under the affluence of incohol
Andy Capp coined this phrase when accosted by a cop, saying: “I am not under
the affluence of incohol, though many thinkle peep I am.”
Mr X submitted a dispute to OSTI following the insurer’s rejection of a claim on
the grounds that Mr X had been driving whilst under the influence of alcohol.
Mr X conceded that he had consumed alcohol prior to the accident, but that he
had stopped consuming alcohol at 8:30pm. The accident occurred at approximately
2am the following morning.
In rejecting the claim the insurer relied on a toxicology report which
calculated Mr X’s blood alcohol concentration as 0.033grams/100ml, at the time
of the accident. The insurer rejected the claim on the basis of its policy
provisions which excluded liability where the driver was under the influence of
alcohol or whilst his blood alcohol level exceeded the legal limit, which is
0.05grams/100ml.
The insurer argued that although Mr X’s alcohol concentration, according to the
toxicology report, was not over the legal limit, the claim was nevertheless
rejected as Mr X was under the influence of alcohol.
The OSTI referred the insurer to a case where the court held that the demeanour
of an insured driver at the time of an accident may constitute sufficient
evidence to make a prima facie finding that the insured driver was under the
influence of alcohol at the time and that this was the cause of the accident. It
held further that as no blood/breathalyser tests were conducted, the insurer
could rely on circumstantial evidence in substantiation of its rejection of the
claim. Independent witness statements describing the insured’s demeanour, the
insured’s whereabouts prior to the accident, the amount of alcohol consumed
prior to the loss, the manner in which the insured drove the vehicle and the
manner in which the accident took place could assist the insurer in discharging
its onus.
In the present matter, the only evidence relied on by the insurer was Mr X’s
version, with regard to the amount of alcohol he had consumed the day prior to
the loss and the toxicology report. The toxicology report, which corroborated Mr
X’s version, did not enable the insurer to discharge its onus as set out in the
Swart case, as the toxicology report indicated that his blood alcohol level was
below the legal limit. Further, the insurer had presented no circumstantial
evidence indicating that Mr X was under the influence of alcohol. As the insurer
had failed to discharge its onus in establishing that Mr X was under the
influence of alcohol at the time of the accident, OSTI recommended that the
claim be settled, which the insurer agreed to do.
Loss as a result of mechanical breakdown
Mr H was driving his vehicle on a road with rough terrain when the engine of the
vehicle seized. The insured was of the view that a stone had hit the vehicle
from underneath, dislodging a water pipe in the engine, which was then damaged
by the fan belt, resulting in the loss of coolant and the engine seizing.
The accident reconstruction specialist appointed by the insurer advised that the
damage to the high-pressure hose was not consistent with it being damaged by a
stone. He advised that in his opinion, the hose had been severed as a result of
contact with the V- belt/ V- belt pulley as a result of it not being secured
properly in the clips provided.
The insurer submitted that there was no evidence of the insured vehicle having
suffered impact damage and that Mr H had therefore failed to bring the claim
within the ambit of the policy. The insurer further submitted that it was under
no obligation to prove a version of how the damage was caused so as to bring the
claim within the ambit of the policy, as this was the obligation of Mr H, which
he had failed to discharge.
The OSTI argued that the fact that the insured vehicle came to a standstill
whilst being driven, and that damage to the engine ensued, was sufficient to
discharge the onus on Mr H.
It was also of the view that the insurer, given the detailed findings of the
reconstruction specialist, failed to show that the only conclusion to draw was
that the damage to the vehicle was one of a mechanical breakdown due to “wear
and tear”.
In the circumstances, OSTI recommended that the insurer settle the claim. The
insurer agreed to comply with the recommendation.
For a more detailed explanation of the two cases,
click here. |
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Your Practice Made Perfect |
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CPD cycle kicks in on 1 June |
With the CPD cycle that kicks in tomorrow it’s important to familiarise
ourselves again with the basics of CPD as it is a regulatory
requirement.
Yes, the fit and proper requirements relating to CPD apply to all FSPs,
key individuals and representatives except the following:
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a Category I FSP, its key individuals and
representatives that are authorised, approved or
appointed only to render financial services or manage or
oversee financial services in respect Long-term
Insurance subcategory A and/or Friendly Society
Benefits; |
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a representative of a Category I FSP that is appointed
to only – |
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render a financial service in respect of a Tier 2
financial product; and/or |
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render an intermediary service in respect of a Tier 1
financial product, including “execution of sales”. |
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The position regarding representatives working under
supervision is yet to be clarified. The proposed
amendments to the “supervision” Board Notice (BN 104 of
2008) is likely to be distributed for comment by the
industry soon. |
We suggest that you study the
relevant section of the 2017 Fit and Proper Determination again
to assess the impact on your business and what is required
of you as well as our recent article “The
Essentials of CPD” to refresh your memory.
Moonstone has also compiled a
CPD FAQ to answer most of your questions.
How to earn CPD hours with Moonstone
Moonstone offers online training, workshops and publications
that will earn you CPD hours.
Click here to read more. |
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Upcoming deadlines
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Financial statements
All registered FSPs with a financial year end of 28 February 2018 are
required to submit their financial statements to the FSCA by
30 June 2018 in the prescribed manner.
Click here to access the
FSCA webpage containing full details.
Product Specific training
These requirements came into effect on 1 May 2018, and the deadline for
completion is 31 July for reps under supervision as at 1 April, or
appointed during April. (Section 52(7) of the new fit and proper
regulations)
Continuous Professional Development
Tomorrow is the start of the new CPD cycle that will run for the next 12
months. From 1 June every year to 31 May of the following year
all FSPs must participate in CPD activities that are accredited by a
Professional Body, as well as allocated an hour value or a part thereof
by that Professional Body and is verifiable.
Click here to view what CPD activities Moonstone offer as well as to
find answers to questions you might have.
Regulatory Exams
Representatives with DOFA between 30/06/2015 – 31/12/2015 and 01/01/2016
– 29/06/2016 need to successfully complete the Regulatory Exams by
30 June 2018. The last date for registration is 14 June for the
final exams on 29 June. As these dates are fully booked early on, we
suggest that you book today to ensure a seat. |
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Delay in publishing of Medical Schemes Bill
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The Health Ministry has announced that the Medical Schemes Amendment
Bill will not be published for public comment yet as the Cabinet needs
to approve the National Health Insurance (NHI) Bill first. The amended
Bill that proposes uniform tariffs for healthcare providers in South
Africa, as well as a proposed prohibition of members being charged
co-payments now has to wait for the approval of the NHI Bill as the two
Bills are “twinned” and would be published in the gazette together.
According to health minister Aaron Motsoaledi, the earliest it could do
so would be at its next meeting on 6 June.
To real the full BusinessLIVE report,
click here. |
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Technologically Speaking
Moonstone Information Refinery
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How to leverage technology to connect with your client |
It’s a fact; digital and technology are around us and in order to stay
ahead of the game we need to embrace it. All over the internet you
will find articles on tips how to make digital part of your business
strategy and ultimately your marketing plans. I even read an article
the other day that stated that “technology is do-or-die for
financial advisors”.
Yes, I do agree that technology is disrupting almost every area of
our business, from the back office to client engagement and advisors
will need to finds ways to meet the needs of the technology-enabled
consumer. But as Abby Schneiderman noted in a recent article in
Investment News, “Technology isn't the magic wand for financial
advisers as new technology alone will not build their business.”
Click here to read the article where she points out how to
leverage technology to better connect with your clients.
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Regulatory Examinations
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RE Deadline 30
June 2018 |
The table below indicates who has to successfully complete the
Regulatory Exams by 30 June 2018.
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Representatives’ DOFA |
RE 5 Deadline |
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30/06/2015 – 31/12/2015 |
30/06/2018 |
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01/01/2016 – 29/06/2016 |
30/06/2018 |
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30/06/2016 – 31/12/2016 |
30/06/2019 |
DOFA refers to your date of first appointment. For instance,
if you were appointed on 1 September 2015, you actually have
two years and nine months in which to pass the RE 5 for
representatives.
Unfortunately, time is now running out for those who are
compelled to pass in less than one month.
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Remember that bookings close about two weeks before the
actual exam, for logistical reasons.
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In order to write before the DOFA deadline (last exam in
June on the 29th), candidates should register by 14 June 2018.
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IMPORTANT: It is the responsibility of the candidate to
make sure that he/she is registered for the correct
examination, date, time and venue.
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How to prepare for the REs |
The FSCA strongly recommends the use of its
Preparation Guide to prepare for the exams. As you are aware Inseta
has advised that its study material contains errata. We therefore
recommend that this is only used for easier understanding of the
knowledge required, while the FSCA Preparation Guide and related
legislation should be the basis for learning.
The FSCA Preparation Guide recommends the following approach
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STEP |
ACTIVITY |
DESCRIPTION |
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1 |
Refer to the
mapping document for the exam you are planning
to write. |
This is the map of
the tasks/criteria that will be assessed in your
exam, and it contains a reference to the
relevant legislation that you are required to
study in order to understand the task /
criteria. Appendix A in the Preparation Guide |
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Look at the number
of criteria for each task. |
These are the
knowledge and skill components you require to be
able to perform.
RE 1 has 16 tasks that will be tested
RE 5 has 8 tasks that will be tested
If you have studied all the criteria for every
task, then you would be properly prepared to
write the RE 1 or RE 5 – whichever exam applies to
you. |
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To prepare for the
exam, you must spend time each day and study the
legislation and supporting training material.
One should systematically select one criteria at
a time. |
Group the criteria
together in groups of 3 or 4 and allocate study
hours per day to prepare. The total number of
hours will individually differ due to ones
circumstances. At least 2 hours per day is the
suggested number of hours. |
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4 |
To start, read the
task, and then the first criteria. Then refer to
the legislation for these criteria, and read the
legislation referred to. |
It is important to
first read the legislation so that you can see
what terms are used and how the legislation is
structured. |
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5 |
Now refer to the
additional support or training material and study
the section in the training material dealing
with those particular criteria. |
The support
material explains the particular concepts in
simple language so that it is easier to
understand what the legislation is actually
saying and what it means. |
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6 |
Then go back to the
legislation itself, and read it again.
NB The
questions are based on the actual legislation,
NOT external training material. |
Now that you have
gained a better understanding of what the
legislation is about, you may find reading the
legislation again will make more sense to you if
you didn’t understand it the first time around. |
An alternative that you may want to consider is the
LexisNexis Legislation Handbook for RE 1 (key individual)
and RE 5 (representative) exams.
The 5th edition of the Handbook has just been
released and provides the latest legislation specified as
relevant to the regulatory exams RE 1 and 5.
The Handbook has been divided into 5 sections with shaded
tabs on the side for easy access:
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TAB A: FAIS Act and Regulations
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TAB B: Code of Conduct
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TAB C: Fit and Proper
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TAB D: General Acts, Board Notices and Guidance Notes
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TAB E: FIC Act, Regulations and Guidance Notes
The Handbook together with its Preparation Guides provides a
good source to study for the exams. Click here to download
the LexisNexis Preparation Guide for
RE 1 and
RE 5.
Click here to order the updated LexisNexis
Legislation Handbook from our Advisor Store. |
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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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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 20 000 visits and approximately 39 000 page views per month. |
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Moonstone boasts an exclusive newsletter mailing list of over 51000
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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2 x Marketing
Assistants:
HIC Underwriting Managers Pty Ltd, Bedfordview - We are looking for
two assistants to manage the relationship between the Portfolio Manager
and Broker. Must be able to work under pressure and be deadline driven.
Read More
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Claims Administrator:
Cooke Fuller Garrun, Kloof, KZN - The ideal candidate should have at
least 5 years experience in Commercial and Personal claims and must be
FAIS qualified.
Read More
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Para-Planner:
Carrick Wealth, Johannesburg, Durban and Cape Town - The
Para-planner will be responsible for researching and analysing products
to present recommendations to clients based on a thorough financial
planning process.
Read More
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Financial Advisor:
Universal Life Brokers, Randburg - Candidates must have at least 5
years experience in the long term insurance industry and in possession
of a NQF5 qualification in financial planning.
Read More
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Experienced Financial
Advisers:
Centered Financial Solutions Pretoria / Centurion - Top franchise
with the most comprehensive product range that included risk,
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Read More
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In Lighter Wyn |
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New words for the dictionary over a glass of wine |
These fit so well they should be in the dictionary…
ADULT:
A person who has stopped growing at both ends and is now growing
in the middle.
BEAUTY PARLOR:
A place where women curl up and dye.
CANNIBAL:
Someone who is fed up with people.
CHICKENS:
The only animals you eat before they are born and after they are
dead.
COMMITTEE:
A body that keeps minutes and wastes
hours.
DUST:
Mud with the juice squeezed out.
EGOTIST:
Someone who is usually me-deep in conversation.
HANDKERCHIEF:
Cold Storage.
INFLATION:
Cutting money in half without damaging the paper.
MOSQUITO:
An insect that makes you like flies better.
RAISIN:
Grape with sunburn.
SECRET:
Something you tell to one person at a time.
SKELETON:
A bunch of bones with the person scraped off.
TOOTHACHE:
The pain that drives you to extraction.
TOMORROW:
One of the greatest labour saving devices of today.
YAWN:
An honest opinion openly expressed.
And
WRINKLES:
Something other people have, similar to my character lines.
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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
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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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