SCA: Retirement fund agreement for municipal staff is illegal
The majority finds the accreditation mechanism effectively coerced funds to amend their rules or risk losing employer contributions – undermining trustees’ fiduciary duties under the PFA.
Author: Mark Bechard
Trustees now have ‘clear guidance’ on dependency and benefit allocations
Dependency is assessed at the member’s date of death, and trustees must conduct active investigations and apply a principled equitable allocation process.
Tribunal sets aside debarment of rep who failed a polygraph test
Polygraph testing alone cannot establish dishonest conduct; where the circumstantial evidence is weak or contradictory, debarment is a disproportionate sanction.
Apex court clarifies timing of dependency test for death benefit payouts
The Constitutional Court rules that whether someone qualifies as a dependant must be determined as at the date of a retirement fund member’s death, not when the fund decides how to distribute the benefit.
Funds must fully verify dependency before allocating a death benefit
The Constitutional Court finds that a fund relied on unverified, one-sided information and failed to establish the extent of factual dependency.
Tribunal dismisses N-e-FG executives’ ‘restorative justice offer’
In exchange for their admissions, they sought to substitute their debarments with an undertaking to repay R470m in client losses.
Advisers ‘could charge more’ for the value they deliver
International comparisons suggest there’s scope for local advisers to lift fees above 0.5% of AUM, says Mark Polson of UK consultancy The Lang Cat.
New Sygnia fund offers crypto exposure in a life insurance structure
The Life Bitcoin Plus Fund uses a ‘portable alpha’ strategy to generate returns beyond the performance of the iShares Bitcoin Trust ETF.
Close corporation liability: participation in gross abuse, not mere membership, is key
The Supreme Court of Appeal confirms that a member’s ownership stake alone does not trigger personal liability for a close corporation’s debts.
FSCA can serve penalty notices electronically on foreign respondents
As a result of the declarator, the High Court ordered the Tribunal to revisit its decision regarding the R50m fine imposed on Viceroy Research.
Government opposes taking full ownership of the Reserve Bank
Treasury cautions that the forced acquisition of two million private SARB shares could breach bilateral treaties and unsettle investor confidence.
Non-life complaints resolved in favour of policyholders at 16.5%
Lead Ombud Edite Teixeira-Mckinon warns against drawing hasty conclusions about complaints stats without factoring in claims volumes and policy counts.
CMS will issue a new circular on appointment of healthcare brokers
A significant ruling by the Appeal Board rendered the processes outlined in the circulars published in 2022 invalid.
FICA compliance: FSP turns a R500k sanction into a learning curve
The owner of MIKA Finansiële Dienste shares four key takeaways after successfully remediating the deficiencies in its RMCP.
FAIS Ombud finds broker negligent for failing to update client’s contact details
The material change from a co-policyholder to a sole policyholder should have alerted the FSP of the need to review the policy.
RAF loses another medical scheme member liability case
The High Court, endorsing the minority judgment’s view, rules the Fund must pay the medical expenses covered by Discovery Health.
Beefed-up SARS might stave off R20bn in tax increases in 2026
An inflation-linked rise in the general fuel levy will in no way be sufficient to plug the revenue hole left by scrapping the two VAT increases.
