Archive | Industry News

The real effect of Dividend Withholding Tax

The 30 April 2012 edition of GrayIssue, published by Allan Gray, removes a lot of the myths and hysteria surrounding the tax changes on dividends. The new Dividend Withholding Tax (DWT) replaced Secondary Tax on Companies (STC) on 1 April 2012. Investors are understandably concerned about the long-term impact of this tax and the real […]

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REs: A waste of time, or empowerment tool?

Shortly after the Investment Indicators went out on Monday, I received calls from two readers about different matters. During our conversations, both echoed the same sentiments: Preparing for these exams did not add an iota of value to my business, other than a massive administrative schlep. I suspect I can hear a massive grunt of […]

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Future Income Loss to FSB

We received a fair amount of all kinds of calculations, based on the FSB statistics. One that differed from the rest considered the financial impact on the FSB’s income, should the pass rate reflected in the statistics be applied to the total numbers. Angus writes as follows: A closer look at the results of the […]

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Transgressions Never Retire

A retired financial advisor received quite a shock when he was ordered to refund a client to the tune of R460 000, as well as interest at 15.5% dating back from 2005. We copy below extracts from the actual determination. Those who would like to read the whole determination can click here. This case is […]

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The FAIS Ombud and Jaws

The worldwide outcry when a surfer in Australia or South Africa is attacked by a shark, never ceases to amaze and amuse me – the outcry, please note, not the attack. Whether this is still the aftermath of the sixties horror movie Jaws, is hard to tell, but the media and the public have a […]

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How many actuaries a product doth make?

Last week, Gareth Stokes of FAnews ran an interesting article on product development. The article, entitled Distribution* is make or break for life insurers, addressed the issue of product development. A few quotes sets the background to the article. One section caught my eye: “…Michael Porter, an actuary at RGA, posed a series of questions […]

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As-And-When Commission as the cure for miss-selling

The FSB invited input from 5 representative bodies on a proposed discussion document on “intermediary services and related remuneration.” In today’s article, we focus on one aspect: the considerations concerning risk business, including short-term and life assurance. The following questions form part of a more exhaustive list: Do stakeholders agree that a shift towards an […]

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What should the priority be: the sickness, or the symptom?

The Financial Services Board is currently looking at the second level of priorities in terms of the provision of financial advice and intermediary services to consumers of financial products. It called for “…contributions from industry associations on possible refinements to the definition of intermediary services in the current insurance laws and reforms to related remuneration […]

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Exams around the corner

Compliance report workshop for category I FSPs without a compliance officer. Compliance Reports for these FSPs cover the period 1 January 2011 until 31 December 2011 and need to be submitted ELECTRONICALLY to the FSB before 28 FEBRUARY 2012. The workshop will be a telematics broadcast to various centres around the country, so there should […]

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