Author Archive | Alan Holton


Legally sanctioned, but morally justifiable?

“There is something that has been bugging me since 2004”, writes Andró Griessel on the Netwerk24 website, “and that is the so-called early termination charges  on contractual savings plans.” (My translation) Griessel states that, despite numerous complaints about this to the Pension Funds Adjudicator, the Long-term Ombud and the various appeal resources, not one complaint […]

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Complaints Management Framework

Complaints Management Framework – Effective date for full implementation

The General Code of Conduct was significantly amended in June 2020. This is particularly true of Section 17 which requires the establishment of a complaints management framework. Most of the new requirements had to be implemented by 27 December 2020. These changes included the actual establishment of the framework the allocation of responsibilities for effective […]

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Amendments to FICA – Proposals will affect FSPs and motor dealers

On 19 June 2020 the Minister of Finance published Government Notice 684 in GG 43347 which contained a number of proposed amendments to the Schedules to Financial Intelligence Centre Act. Interestingly, short-term (non-life) insurers have not been included as Accountable Institutions. One of the amendments is of particular importance to financial services providers and another is of […]

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Did Reserve Bank cause Sharemax implosion?

– Interesting high court judgment This rather sensational headline greeted readers of the Star newspaper on December 14, 2018. But does this reflect the real findings of the KZN High Court? A careful reading of this very important judgement is highly recommended to anyone who is still involved with Sharemax disputes as it does not provide any […]

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Fairness in Debarment Procedures

In a recent (5 October 2018) matter heard before the Financial Services Tribunal, the applicant, Ms X, applied for a reconsideration of a decision taken by the respondent, Y (the FSP). The FSP had taken the decision to debar the applicant based on the recommendation of the chairperson who presided at the debarment hearing. The […]

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Financial Soundness of Representatives

The new Determination of Fit and Proper Requirements for Financial Services Providers, 2017 (Board Notice 194 of 2017) sets out a number of new requirements relating to the financial soundness requirement of representatives. Natural Persons The financial soundness requirements set out in Chapter 6 of the Board Notice do not apply to any representative who […]

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Professional Indemnity Insurance and exclusions

A recent decision of the High Court in Bloemfontein where an FSP was found to have been negligent in advising a client to invest in the Sharemax scheme, is a “must read” for all FSPs. Clear and explicit, the judgement sets out unequivocally just what the duties and responsibilities of a financial advisor comprise. There […]

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