Commission on Orphan Policies – Part II
Tony, a reader in Durban, was one of several people who responded to an article on this subject in the Moonstone Monitor of 24 July 2014: The issue of commission on orphan policies […]
Compliance and Legislation
Commission on Orphan Policies
What happens to the commission of intermediaries who resign, or whose contracts with product providers are cancelled? The latest FAIS Ombud newsletter contains an example which throws some light on the subject. Ombud […]
Fourth Ombud Ruling on RVA Fund
The office of the FAIS Ombud published its fourth determination against a financial advisor on Friday. In essence, it found that, in four all instances, the losses suffered by investors resulted from clients […]
Proposed Amendments to Insurance Binder Regulations
The National Treasury (NT) and Financial Services Board (FSB) requested public comment for the proposed amendments to Insurance Binder Regulations issued under the Short-term and Long-term Insurance Acts published in Government Gazette No. […]
Update on Retirement Reform Proposals
A recently published article on SA Government Online addresses public concerns “…fuelled by rumours that Government will take away people’s hard-earned pensions and prevent them from accessing their funds.” “These rumours are based […]
Credit Insurance under the spotlight
National Treasury and the Financial Services Board (FSB) published a document titled “Technical Report on the Consumer Credit Insurance Market in South Africa”. It called for comment by 30 September 2014 on proposals to address […]
FAIS Ombud Rules on RVAF Investment
The reasons for the sad ending to the Relative Value Arbitrage Fund, for both investors and advisors, are evident from this, the first determination by the Ombud on the Herman Pretorius saga. A […]
Draft Demarcation Regulations
Proposed amendments to the definition of a “business of a medical scheme” The publication of the Second Draft Demarcation Regulations follows the enactment of the Financial Services Laws General Amendment Act, No. 45 of […]
Duty to Disclose Material Terms
On Tuesday we discussed what happens when material changes occur in a client’s health between the time of applying for life cover and acceptance of the risk by the insurer. My colleague Julian […]
When does cover commence?
The latest newsletter from the Long-term Ombud contains two cases where claims were repudiated as a result of a health condition manifesting between the date of application and acceptance of the risk. Non-disclosure […]
Short-Term Ombud Annual Report
There can be little doubt that there is a steady increase in the efficiency of this champion for the fair treatment of consumers. The figures listed below come directly from the Ombud’s report: […]
Intermediary Relationships after RDR
The eagerly awaited discussion document on the review of retail distribution, expected this month, has a long history. The triangular association – whereby the intermediary provides advice to the policyholder but is incentivised […]
Retail Distribution Review: Activity-based Remuneration
We commented on this very relevant topic last week. More detailed information has since come to hand. We will use this over the next few weeks to discuss what will possibly be contained […]
TCF in your practice
The FSB published guides for small FSPs and asset managers on the practical impact of treating customers fairly (TCF) on their businesses. The harsh reality of TCF is, of course, that you could […]
Proposed Exemption from New Legislation
Alan Holton, an independent compliance practitioner and associate of Moonstone, recently shared the following information regarding amendments to the Financial Services Laws General Amendment Act of 2013. Financial Services Board Act 1990 and […]
TCF and Causal Event Charges
The Pension Fund Adjudicator (PFA) recently ruled on an investor’s complaint regarding the excessive causal event charges. The PFA found in favour of the product house, but was rather scathing in her comments […]
PFA Ruling on Fund Returns
It is standard practice that Ombuds do not rule on what investors may deem to be unsatisfactory returns. This ruling is interesting for two reasons: The complainant alleged that excessive fees caused the […]
