The review focused on 4 main areas: Compliance of binder agreements with regulatory requirements Governance and oversight of binder arrangements Reporting systems and access to information; and Binder fees paid to non-mandated intermediaries […]
The Buthelezi determination by the FAIS Ombud, signed on 12 January 2016, highlights again the need for accurate record keeping and the dangers inherent in not completing an application form fully whilst at the client. […]
The current provisions in the FAIS Act, 2002 and the procedures that have been adopted and applied by FSPs, and to some extent by the FSB, regarding the debarment of representatives have led, […]
The proposals concerning competency requirements under the new Fit and Proper regulations, published in December 2015, include the following: Experience It is proposed that, in order for a person to be approved as a […]
The tax harmonisation reforms of retirement funds will be implemented from 1 March 2016. What are the changes that will come into effect on 1 March 2016? “The Taxation Laws Amendment Act, 2013 will come into effect […]
The recently published status update on phase 1 of the RDR proposals provided insight into the Regulator’s thinking after receiving feedback from the industry on two proposals contained in the original RDR discussion […]
The “Guidelines on Proceedings of the Appeal Board” was replaced with a new document titled, “Practice Directions and Guidelines issued by the Chairperson of the Appeal Board”. Some of the important aspects, appearing […]
The FSB approved the first collective investment schemes in hedge funds after announcing its concern a few months ago that it had not received any applications from such schemes. The new schemes, one […]
Older readers may well remember this as the title of a great song by English folk rock band, Lindisfarne, on their Dingly Dell album. One line in the song reads: So the next […]
There appears to be different views between certain Ombuds on the obligations of various parties in disclosing material terms which are required to assist a client in making an informed decision. It also […]
The Registrar published a draft notice setting out conditions for investments in hedge funds by Pension Funds. Despite the declaration of a hedge fund as a collective investment scheme, any investment by a […]
I was reading through an earlier Ombud determination when I came across the following: Third respondent goes on to state that the Second respondent met with the clients personally to re-allocate the clients’ […]
The original RDR Proposal on replacements provided that “…long-term insurers would be prohibited from paying any form of commission or fee to an intermediary in respect of the replacement of life risk policies. […]
The term “regulatory instrument” appears in the Financial Sector Regulation Act and includes, inter alia, a prudential standard, a conduct standard and a joint standard. These regulatory instruments form part of the Financial […]
The FSB published its Retail Distribution Review (RDR) discussion document, which contained a total of 55 specific regulatory proposals, in November 2014. A subset of 14 RDR proposals was identified for implementation in “Phase […]
The RDR feedback provided at the FSB Insurance seminar elaborated on conflicts of interest which may impact on an adviser’s objectivity. The following three were discussed: Binders and outsourcing – stricter conflict controls […]
A comprehensive update on the Retail Distribution Review will be published in the next two weeks. A glimpse into what this will entail was presented at the FSB Insurance Regulatory Seminar in Cape […]
