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APPEAL BOARD AND POWERS OF THE REGISTRAR TO DEBAR ?>

APPEAL BOARD AND POWERS OF THE REGISTRAR TO DEBAR

The decision in the Hlumbane case by the Appeal Board of the FSB provides very interesting information about the Board’s powers in terms of decisions made by the Registrar of Financial Services Providers, particularly its discretionary powers.The appeal stems from a decision by the Registrar to debar the appellant for three years. The appellant was found guilty of having paid a former employee of the examination authority an amount of R1 000 in return for a pass result for the RE1…

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FINANCE: Retail Distribution Review Delay Favourable for Investors ?>

FINANCE: Retail Distribution Review Delay Favourable for Investors

BASED ON the experience of the UK, the implementation of the Retail Distribution Review (RDR) in South Africa will substantially change the way investors get and pay for advice and financial products. Whilst the UK experience resulted in the creation of an advice gap, with many advisers leaving the industry due to higher costs and responsibilities, “it also ushered in a new era of greater professionalism,” says Gavin Smith, head of Africa at independent financial advisory firm deVere Acuma. “Many…

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Opposition urges ANC MPs to stop protecting Zuma ?>

Opposition urges ANC MPs to stop protecting Zuma

President Jacob Zuma’s fitness to lead the country will be debated in Parliament later this month. CAPE TOWN – President Jacob Zuma’s fitness to lead the country will be debated in Parliament on 18 April. National Assembly Speaker Baleka Mbete has granted opposition requests for a special sitting of Parliament to debate a motion of no confidence in him. African National Congress (ANC) Members of Parliament (MPs) last year voted down two motions of no confidence in Zuma. This latest…

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Implementing RDR Phase 1 ?>

Implementing RDR Phase 1

True to form, a huge amount of proposed legislative changes were published towards the end of last year. Formal consultation on the draft regulatory instruments to be used to give effect to Phase 1 has commenced, and other instruments were published for comment in December 2016, with more to follow early in 2017. Amendments to the following regulatory instruments are proposed: The General Code of Conduct Proposal OO: Product supplier commission prohibited on replacement life risk policies. This entails that new…

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PoPI compliance means more than data management and backup solutions ?>

PoPI compliance means more than data management and backup solutions

The legislative need to safeguard personal client information has had the effect of making businesses aware of their data. When faced with the choice of hefty punitive fines or implementing backup and recovery solutions to protect data, the only logical thing for businesses to do is take the Protection of Personal Information Act (PoPI) seriously. However, compliance with this piece of legislation requires more than just ensuring that data is backed up and recoverable. Although this is a crucial element…

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POPI: Reinforcing the value of digital ethics? ?>

POPI: Reinforcing the value of digital ethics?

Much has been made about the introduction of the Protection of Personal Information Act (or POPI) in terms of how it will potentially limit the rate at which the local cloud computing and managed services markets is growing. Companies have also pushed back in terms of how the act will affect their internal systems and processes. Given that there is arguably already a trust equation in place between modern consumers and the digital businesses they interact with, businesses should not…

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Adviser and Advice Differentiation ?>

Adviser and Advice Differentiation

The December 2016 Retail Distribution Review update provides clarity on matters which appeared slightly confusing in earlier proposals. The Regulator did away with the “multi-tied” category of adviser – in future, you are either tied or independent, although the formal title is yet to be determined. The proposals to distinguish between various types of advice, including simplified advice and non-advice sales execution, is still in its infant shoes, but needs serious consideration to ensure that it does not achieve the…

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