New advertising standards

Chapter 4 of the proposed new Policyholder Protection rules contains details regarding advertising standards. Some of the more interesting ones, which relate to enquiries we often receive from readers, are included below. Unwanted direct marketing An insurer or any person acting on its behalf must afford a policyholder to whom it markets a policy through […]

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FAIS Ombud to Challenge Appeal Board Rulings

According to an article published in Personal Finance on Saturday, the FAIS Ombud intends appealing against certain findings by the FSB Appeal Board. “Late last year, the Appeal Board of the financial services regulator, the Financial Services Board (FSB), issued rulings against two of the ombud’s determinations, based on interpretations of the law that, she […]

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Virtual Meeting Rooms

The Oosthuysen determination, published in December 2016, and discussed above, yet again highlights the importance of accurate record keeping, and the need to consider using technology to cover our backs from clients suffering from selective memory loss. It appears that it is not only in rugby that the Kiwis are leading the way. A lot of […]

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Fee Adjustments

Bad news and good news – Both the FSB and the Council for Medical Schemes have published fee increases. FSB Fees The previous notice was published on 24 March 2015, and signed by the then Minister of Finance, the honourable NM Nene. So much water has flowed into the ocean since then. Some of the more common […]

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Slim vang sy baas

This Afrikaans saying is very apt with regards to a recent Ombud determination in which, for once, the adviser was not held liable for a client’s loss. During January 2012, two complaints were filed with the Ombud’s office against the respondent. The complaints arose from investments made by complainant in a Sharemax syndication. The basis […]

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Remuneration for Investment Product Advice

This is possibly the biggest bone of contention for advisers in the investment space. In the FSB’s RDR Update published in December 2016, the following information was conveyed: Commission on investment products As indicated in our December 2015 General Status Update, the intention is to implement the prohibition on investment product commission in two steps, namely by […]

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Investment Failure was not Reasonably Foreseeable

The FSB’s Appeal Board came to an interesting decision in the last case published in 2016. This was an appeal against two previous decisions against a FSP by the FAIS Ombud in a case involving an investment in the ill-fated Edwafin Bond Debentures scheme. It is important to note that the Appeal Board is obliged […]

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DA Reacts to Demarcation Regulations

In a media release on the matter, the Democratic Alliance states: This poorly conceived decision demonstrates just how ideologically constrained the Ministers have become when it comes to ensuring that poor South Africans have access to quality health care across the country. The party intends requesting that a full regulatory impact assessment be conducted as […]

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He said She said…

In December, the FAIS Ombud released no less than eight determinations. In a strange turn of events, one case was actually referred to the courts as the Ombud was unable to determine whether the client’s version of events was in fact true. This hinged on the fact that the client had made seven previous syndication […]

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Conduct of Business Reforms in 2017

At the conclusion of the Insurance Regulatory Seminar last year, Mr. Jonathan Dixon, Deputy Registrar of Insurance at the FSB, indicated that 2017 will be a year of substantial change. The huge amount of information published as late as 28 December 2016 confirms this. Over the last few years, a number of regulatory reform initiatives, focussed on […]

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