TCF & Retail Distribution Review Update
A Draft “Market Conduct Framework” was published in December for comment. It contains the latest thinking by the Regulator on a number of key issues. The following is a synopsis of the rationale […]
Industry News
Exemption date Extended
FAIS Notice 36 of 2014, which was published in May last year, exempted FSPs and representatives from complying with the following requirement in the FAIS Act: “A person may not render financial services […]
Tax Deductibility of Income Protection Policy Premiums
The FSB’s Information Letter 4 of 2014 discusses changes to the tax deductibility of income protection policies in view of changes announced in the Taxation Laws Amendment Act which became effective on 12 December 2013. […]
Binder Agreements and Fees under RDR
The FSB’s views of the current landscape of the industry are contained in Section 2 of the retail distribution review discussion document, and are broken up in sector specific sections. Binder agreements and […]
Advice Gap Broadens in the UK
It is difficult to understand how the UK Regulator managed to misinterpret the possible reaction to its implementation of Fees for Commission. A report in the Telegraph comments on a survey conducted by […]
Update on Sign-on Bonuses
The swift reaction by the FSB to finalise this matter needs to be commended, particularly if one takes into account that the process, which was announced on 1 September, included consultation with the industry. […]
Conflicting Accounts Regarding Cambist
According to Moneyweb, some firms with close ties to Cambist are experiencing problems. A month ago, OneLaw indicated that it would be offering voluntary severance packages to staff who wanted to leave. Earlier […]
Causal Event Charges and the RDR
A vast number of interpretive articles were published on the retail distribution review discussion paper since its publication. Unfortunately, a number of these added to the confusion, rather than provide clarity on this […]
A costly Oversight
A recent determination by the Ombud highlights a number of important issues when it comes to an advisor’s obligations towards clients. The complainant enjoyed comprehensive cover with Zurich Insurance. On 8 April 2013, he requested […]
Equivalence of reward to be reviewed
The Retail Distribution Review (RDR) sees unequal benefits accruing to certain distribution channels as a problem requiring change. The current Regulations applicable to the Long-term Insurance Act provide that the Registrar may determine […]
Prioritising RDR Proposals
The FSB proposes to implement the RDR proposals in three broad phases: Phase 1: Changes to be effected within the existing regulatory framework, using existing subordinate legislative and administrative powers. These changes will […]
Financial Planning under RDR
Contrary to what many appear to think, the Retail Distribution Review is not about abolishing commission and forcing brokers to negotiate fees directly with clients. It is in fact a far wider process […]
RDR and Short-Term Insurance
The discussion on the retail distribution review conducted by the FSB provides for the following proposals specifically as it relates to the short-term industry: Remuneration for selling and servicing short-term insurance policies It […]
Retail Distribution Review Discussion Paper
While the general expectation is that this document’s sole intention is to replace commission with fees, it is far more encompassing than that. We publish below some of the aspects contained in the […]
Personal Service Provider Tax Status
It is that time of year when a very annoying, yet compulsory, questionnaire is being circulated. SARS needs confirmation about your personal service provider status, and each product house that you have contracted […]
Disclosure Obligations
The current media spat between attorneys Ronald Bobroff and Partners and Discovery Health has a much wider bearing on the industry than just that of the healthcare environment. In essence, the law firm […]
Moneyweb Focus on Unsecured Lending Practices
The platform which offers investors a guaranteed annual return of 19.5% was the subject of a number of articles published in Moneyweb recently. The article titled, Are Cambist’s contracts genuine, points out that […]
