Ithala resumes operations – but still can’t take deposits
Ithala has been cleared to resume core operations – excluding deposit-taking – while legal battles over its liquidation and frozen R2.47bn in deposits continue.
Industry News
Bundled credit insurance ruled unlawful for consumers who can’t claim
Selling credit life insurance with retrenchment and disability cover to pensioners and disabled persons – who cannot meet the claim requirements – breaches the National Credit Act.
Old Mutual’s new CEO will bring decades of financial sector experience to the role
Jurie Strydom, whose résumé includes leadership roles at Sanlam and Regent Insurance, will work alongside outgoing CEO Iain Williamson.
Equity targets spark fears of ‘unjust’ penalties for employers
The DA’s court challenge to the Employment Equity Amendment Act highlights not only constitutional questions but also the risk that inflexible sectoral targets and under-resourced bureaucracy will penalise even deserving employers.
Three-quarters of withdrawals in the new tax year are repeat claims
Many fund members are tapping into their savings components as soon as the tax window opens, data from the Actuarial Society indicates.
High Court orders Ramaphosa to disclose NHI signing record
The President must produce the full record of his decision-making when assenting to the NHI Bill after the court rejected arguments that such records fall outside judicial review.
Bank held liable for R2.1 million paid to fraudulent ‘executor’
A High Court ruling notes procedural failures at Standard Bank’s deceased estates department – highlighting that banks must verify and act only on valid letters of executorship.
FSCA investigating banks’ transaction fees
The Authority has found wide discrepancies in charges for similar services across banks, says Godongwana.
Dual‐citizenship ban ruled unconstitutional after 30 years
The Constitutional Court declares invalid the section of the South African Citizenship Act that automatically revoked citizenship upon acquisition of another nationality.
‘Little appetite’ for shift from asset-based charges and commission
The Adviser Barometer, based on the responses of nearly 600 financial advisers on the Allan Gray platform, sheds light on what’s driving fee structures, technology investments and client-engagement strategies in South Africa’s advice industry.
High Court slams SARB over R200m block on Steinhoff successor’s funds
Judge finds the Reserve Bank acted without evidence or legal basis in freezing funds Ibex needed to repay offshore creditors.
R2bn Ithala guarantee sparks row over fiscal risk to KZN
The Minister of Finance’s bailout plan for Ithala’s retail depositors has drawn sharp criticism from KZN’s Finance MEC Francois Rodgers, who warns the deal’s fine print could leave the province footing a hefty bill.
Constitutionality of the minister’s power to amend tax rates remains untested
UCT tax lecturer Ben Cronin argues that by allowing the minister to amend the income tax rates by announcement in the Budget, Parliament has overstepped its competence, eroding the doctrine that places legislative authority firmly in its hands.
Accountability still lacking as corruption persists in South Africa
South Africa’s score on the global Corruption Perceptions Index remains at a decade-low, reflecting persistent governance failures.
Tight-lipped Treasury braces for tough Budget to plug R75bn shortfall
Finance Minister Enoch Godongwana won’t reveal where the spending cuts or savings will come from but says South Africa must “do more with less”.
Coalition politics hampered Budget consensus, says Godongwana
South Africa’s credibility among investors and ratings agencies will depend on whether the government meets the fiscal targets it has set, says Treasury.
Link between size of household investments and financial advice
The research also finds that South Africans turn to advisers primarily in times of uncertainty or when faced with a personal crisis.
