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| Moonstone News Briefs |
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We have been tasked with testing the questions we are drawing up for the Regulatory Exams next year, and are now able to involve a larger audience than anticipated. See below details of the venues, dates and required attendees.
If you are keen to take a test run before the event proper, this is your chance. Please complete the application form available on our website. Click above on "Services" then "Training" and follow the instructions. To make planning easier for you we have made provision for you to elect a specific date.
Preferably we require a minimum of 30 candidates per session, so make sure you get in on the action.
The good news is that you cannot fail this one!
These trials are very important to ensure fairness once the exams start, so please help us to help you.
Cape Town
16 Oct 09 - Cat I / Key Individuals
23 Oct 09 - Cat I / Key Individuals
23 Oct 09 - Representatives
30 Oct 09 - Cat I / Key Individuals
6 Nov 09 - Cat I / Key Individuals
13 Nov 09 - Funeral / Cat I / Key Individuals
Pretoria
22 Oct 09 – Representatives/ KI's / All Categories
26 Nov 09 – Linked Investment Service Providers / Cat III / Key Individuals
26 Nov 09 - Inv / Cat II / Key Individuals
Johannesburg
29 Oct 09 – Cat I / Key Individuals
29 Oct 09 - Representatives
19 Nov 09 - Linked Investment Service Providers / Cat III / Key Individuals
19 Nov 09- Inv / Cat II / Key Individuals
Durban
12 Nov 09 - Cat I / Key Individuals
East London
20 Nov 09 – Funeral / Cat I / Key Individuals
Please click here to download the application form.
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| PI Cover requirements amended |
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Board Notice 123 of 2009 has just been published, replacing the previous Board Notice 37 of 2009 which has been repealed. The new requirements for PI and Fidelity Insurance Cover are now as follows (please take special note of the new effective dates as well as the different provisions for fidelity cover where client funds are received or held):
1. CATEGORY I AND IV FSP’s who do not receive or hold clients’ financial products or funds, must have suitable guarantees or professional indemnity cover of a minimum amount of R1 million in place with effect from 21 September 2010.
2. CATEGORY I AND IV FSP’s who receive or hold clients’ financial products or funds must have suitable guarantees or suitable professional indemnity and fidelity insurance cover of a minumim amount of R 1 million in place with effect from 21 September 2010.
3. CATEGORY II FSP’s who do not receive or hold clients’ financial products or funds must have suitable guarantees or professional indemnity cover of a minimum amount of R1 million in place with effect from 21 March 2010.
4. CATEGORY II , IIA and III FSP’s who receive or hold clients’ financial products or funds must have suitable guarantees or professional indemnity and fidelity cover of a minimum amount of R 5 million respectively in place with effect from 21 March 2010.
5. CATEGORY IIA FSP’s who do not receive or hold clients’ financial products or funds must have suitable guarantees or professional indemnity cover of a minimum amount of R 5 million in place with effect from 21 March 2010.
6. Any new applicants for FSP licences must comply with the appropriate requirements as detailed above, within 6 weeks from date of authorization.
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| Focus on Pension Fund Trustees |
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Trustees should be paid and need specialised training to help them fulfil their corporate governance roles and live up to pension fund members' expectations, an industry expert has said.
"I think training is absolutely essential," said retirement fund leader for PricewaterhouseCoopers (PWC) Gert Kapp. "Trustees need to have specialised skills to make a contribution on a technical level in an environment that is becoming increasingly legislated and regulated."
The Pension Fund Act requires at least 50% of a board of trustees to be elected by employees who are members of the fund, while the other half may be elected by the employer. Employees who act as trustees may sometimes lack the expertise to fulfil their role competently.
Trustees need to deal with funding levels; they have to match assets with liabilities and make investment decisions among other tasks.
"I think training is the function of the fund and that the employer can make a valuable contribution towards the training of trustees," said Kapp.
The largest challenge for trustees is living up to member expectations in a time of economic crisis, as well as regulatory changes and corporate governance challenges in view of the King report (which tables regulations for the financial sector).
Because of increased responsibilities and a heavier workload, Kapp said it has to be debated whether trustees should be paid.
PWC is conducting a trustee remuneration survey to establish a best practice guide. Kapp said the group hopes to make a case for trustee remuneration, and to have a benchmark for pay levels.
"I don't think you should do it for free. You have to know the Pension Fund Act and the latest developments in the industry while also preparing for meetings," said Kapp.
Changes in the Pension Funds Act have resulted in an increased personal risk associated with the job. According to Kapp, potential legal implications for trustees are on the increase and they should receive a level of compensation for this.
International trends have shown that at least one trustee on a board receives payment; non-independent trustees are only remunerated if they are pensioners.
In South Africa only independent trustees are paid if the board decides to do so.
"Perhaps funds should start increasing the payments to trustees to ensure that their role is taken more seriously and that more people aspire to becoming skilled trustees," said Kapp.
- Fin24.com
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| Claims deadline for Life Offices |
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Financial intermediaries are positive about the proposed changes to the rules protecting long-term policyholders.
These changes include a proposal that a 90-day limit be imposed on life-assurance companies for deciding whether they will reject or contest claims. This will apply to, inter alia, the rules covering claims for death, disability and dreaded-disease benefits.
Gavin Came, chief executive of Sasfin Wealth and director of the Financial Intermediaries Association (FIA), says the proposals are favourable for clients.
"They will curb undue delay in paying out claims. This is particularly important for clients and their families, because such claims are generally lodged during times of stress."
The purpose of the amendments is to ensure that policyholders are advised in good time when a claim is rejected or contested, and to oblige assurers to make quicker decisions. This outcome must be clear within three months.
According to Came, the non-disclosure of certain facts by the insured is one of the main reasons why claims are rejected by long-term assurers.
"If someone, for instance, takes out life insurance knowing full well that he has a dreaded disease like cancer, and fails to disclose that in the application, the insurer can reject the claim if the person dies or is declared incapacitated."
The amendments also propose that policyholders be informed about the assistance available to them for resolving disputes. Policyholders should then have no less than six months after the expiry of the 90-day period following the lodging of a claim to submit their proposals to the assurer.
- Sake24.com
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