Tag Archives | General Code of Conduct


Client Confidentiality

Client Confidentiality when transferring business A recent Moneyweb article highlighted the importance of treating client information with great circumspection. A product house included personal client information in court documentation in an urgent application. The article pointed out that these documents are available to the public, and could have been used for the wrong purposes. Fortunately, […]

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Do what I say

Complaints handling is set to become a major measure of your commitment to the fair treatment of clients, or TCF as it has become known. The final proposals for implementation of changes to the General Code of Conduct reiterate this. There is now an official definition of what a complaint is: “complaint” means an expression […]

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To fee, or not to fee?

The right to charge additional fees, and particularly “admin” fees, has long been a bone of contention, particularly in the short-term industry where it is particularly prevalent. The latest draft General Code of Conduct (GCoC), which closed for industry input yesterday, contains three new paragraphs which aims to provide clarity on this thorny issue. 3A. […]

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Sign-on bonus and other Penalties

Section 3A of the General Code of Conduct came into operation on 4 December 2014. It decreed that “… No person may offer or provide a sign-on bonus to any person, other than a new entrant, as an incentive to become a Category I provider that is authorised or appointed to give advice.” Two transgressions linked to […]

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POPI and the General Code of Conduct

An article in FAIS Newsletter 20 titled Bulk transfers by FSPs and Insurers contains a section under the sub-heading: Protection of Personal Information Act: Furthermore the FSPs are required to comply with Protection of Personal Information (“POPI”) Act, which demands identifying Personal Information and taking reasonable measures to protect the data. This will likely reduce […]

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Commission on Orphan Policies – Part II

Tony, a reader in Durban, was one of several people who responded to an article on this subject in the Moonstone Monitor of 24 July 2014: The issue of commission on orphan policies has been the bugbear of many hard-working intermediaries for many years. Notwithstanding the fact that the case quoted seemed to infer that […]

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Commission on Orphan Policies

What happens to the commission of intermediaries who resign, or whose contracts with product providers are cancelled? The latest FAIS Ombud newsletter contains an example which throws some light on the subject. Ombud Case study: Are You Getting What You Paid For? This Office has, in the past few years, experienced an increase in the […]

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Duty to Disclose Material Terms

On Tuesday we discussed what happens when material changes occur in a client’s health between the time of applying for life cover and acceptance of the risk by the insurer. My colleague Julian Lavagna, godfather of the Moonstone Protector Service for one-person businesses, kindly provided an article he shared with his clients some time ago […]

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Compliance Monitoring

This topic is covered in FAIS Newsletter 16, published on 13 December 2013. It is of particular importance to FSPs who tend to think that complying with the FAIS Act and the General Code of Conduct is all that is required to run a compliant practice. Based upon the types of queries received, as well […]

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