Archive | Industry News

FSB and Ombud levies announced

The proposed increase in levies is between 8% and 10%. The announcement from the FSB, prior to it being gazetted, also contains guidelines for those who intend leaving the industry. My colleague, Paull Lawrence, has once again compiled a levy calculator to help you check your obligation. This will be made available as soon as […]

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Credits and Competence

RE Credits Over the last two weeks we received a number of enquiries from readers regarding the regulatory exams and credits. How many credits do I need to to qualify to write the REs? Do I get any credits for writing the REs? Where can I obtain extra credits? The following is a brief history […]

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Protecting clients against themselves

This past weekend’s Personal Finance saw a lot of cover given to the dilemma of retirees outliving their retirement savings, particularly those making use of living annuities. Old Mutual launched a new Retirement Safety Income Plan (Safety Plan), which aims to ease the dilemma that clients often face in choosing between a Living Annuity or […]

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Compliance Report 2012: Shark scare for Sole Prop

A Moonstone Protector client received a notification from the FSB regarding the submission of his annual compliance report. The following sentence concerned him, and he contacted us: “In terms of the provisions of Section 17(4) of the Act read together with Board Notice 89 of 2012, all authorised Category I Financial Services Providers (“FSP’s”) with […]

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Unsustainable Growth a major concern

The latest GrayIssue from Allan Gray contains some sobering thoughts on a ticking time bomb that the government appears to be ignoring in their quest to stay in power. For some time we have been concerned about the sustainability and unbalanced nature of consumption growth in South Africa. I don’t believe you can consume, spend […]

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Income – consider the risk/return trade-off

Investors looking for income should consider the risk/return trade-off. All investments aim to generate a return, but there is a corresponding level of risk that impacts the return. Many investors rely on being able to draw an income from their capital lump sum, whether immediately or for a potential future income. John Kinsley, MD of […]

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FSB Directive on Outsourcing of Business

The purpose of this directive is to “…direct long-term and short-term insurers (‘insurers’) to comply with the requirements set out in this Directive when outsourcing an aspect of their long-term and short-term insurance business (‘insurance business’) to another person.” The Directive sets out the general and overarching requirements that an insurer must comply with when […]

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Submission of Compliance Reports

FSB FAIS Circular 5: Submission of Compliance Reports and Financial Statements This document contains important information about compulsory returns every FSP should take notice of. The non-submission of financial statements and compliance reports are the chief reasons for FSP licences being suspended. To prevent this from happening to you, we recommend that you download and […]

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Avoid Unrealistic Client Expectations

It may be small consolation for local advisors, but a recent survey in Australia found that nine out of eleven risk profiling tools were found to be inadequate in terms of their regulator’s standards. An article by FinaMetrica cofounder Paul Resnik in the March issue of MoneyMarketing discusses the ‘five proofs’ which ensure consistently suitable […]

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The new medical scheme fees tax credit

PwC South Africa publishes a monthly journal providing informed commentary on current developments in the tax arena, both locally and internationally. The April edition contains an informative article on the new treatment of medical expenses from a tax perspective. This is something that affects most of us, and with the time for completing tax returns […]

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