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Archive | Compliance and Legislation

New Sars conditions on buying an annuity at retirement

New Sars conditions on buying an annuity at retirement

The SA Revenue Service (Sars) has issued Binding General Ruling 58, which sets out the approvals by the Sars Commissioner when purchasing an annuity at retirement. This follows the withdrawal of General Notice 18. BGR 58 provides that an annuity must be compulsory, non-commutable, payable for and based on the lifetime of the retiring member […]

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Tribunal dismisses another complaint involving Liberty Property Portfolio’s capital reduction

Tribunal dismisses another complaint involving Liberty Property Portfolio’s capital reduction

The Financial Services Tribunal has dismissed another complaint by a policyholder whose retirement savings were hit – six months before his retirement date – by the Liberty Lifestyle Retirement Annuity Fund’s decision to cut his capital value by 20% and reduce his interim bonus rate from 6.25% to 5.5% a year from March 2020. (See […]

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‘Consumer champion’ Clark Gardiner fined for breaching NCA

‘Consumer champion’ Clark Gardner fined for breaching NCA

The National Consumer Tribunal (NCT) has fined Clark Gardner, the chief executive of Summit Financial Partners, R500 000 after finding him guilty of contravening the National Credit Act (NCA). Gardner has something of a reputation as a consumer champion, having taken on companies such as Capitec and Lewis on behalf of indebted consumers. Summit was […]

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Collection costs don’t include legal fees, Supreme Court of Appeal rules

Collection costs don’t include legal fees, Supreme Court of Appeal rules

The Supreme Court of Appeal (SCA) has clarified that the collection costs incurred by a credit provider to enforce a credit agreement do not include legal fees. The appeal was brought by Bayport Securitization and the Law Society of South Africa against a judgment of the Western Cape High Court in favour of the University […]

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‘Aggressive living annuity option is not in the public interest’

‘Aggressive living annuity option is not in the public interest’

The “default” annuity regulations were introduced to encourage the preservation of pension benefits and not to enable retirement funds to duplicate the investments offered by the financial services industry. This was the finding of the Financial Services Tribunal when it dismissed an application brought by the KZN Municipal Pension Fund against the FSCA. The fund […]

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Pension fund trustees have a wide discretion when distributing a benefit

Pension fund trustees have a wide discretion when distributing a benefit

Pension fund trustees often have a difficult task in determining who is a dependant – and how much of a death benefit should be allocated to each dependant – when a fund member had different partners and stepchildren, particularly in the absence of a formal divorce settlement. The issue of trustees’ discretion when allocating a […]

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