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Moonstone Newsletter: Investment Indicators - 12 January 2015
Paul Kruger
Paul Kruger
Editor in Chief
In this Edition
1. Stock Broking and Derivatives Businesses Merge with GTC
Rates Review
2. Secured Investment Rates
3. From the Crow's Nest:
    a. More Effective Regulation Envisaged
    b. Second Draft of the Financial Sector Regulation Bill
    c. Market Conduct Policy Framework
4. Advertise in the Moonstone Newsletter
Your Practice Made Perfect

5. New Framework for Insurers
6. Moonstone RDR Workshops
7. 2014 Compliance Report Workshop
8. Preparation Material
9. Moonstone Careers Platform
10. The Lighter Side: Politicians in Perspective
"The greatest danger to our future is apathy." Jane Goodall
Please connect with us:
[email protected] or 021 883 8000
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FPi 0.5 CPD Points
Stock Broking and Derivatives Businesses Merge with GTC
1. Stock Broking and Derivatives Businesses Merge with GTC
GTC, one of the country's leading financial advisory businesses for more than 23 years, has purchased a majority shareholding in each of Brockhouse Cooper SA and Bolus & Bolus. Brockhouse Cooper SA will be renamed as GTC Securities whilst Bolus & Bolus will become GTC Derivatives creating key stock broking specialisations within the GTC Group. The merger will see GTC's assets under management increase to R26 billion.

"We're delighted to have these businesses join our organisation," says Gary Mockler, GTC's Group CEO. "The two trading businesses form an integral part of our expansion plans."

GTC provides services to over 2500 private clients; and 85 000 retirement fund members, managed through a range of 300 company retirement funds.
Full Article
Rates Review
Secured Investment Rates
2. Secured Investment Rates
Please note that (G) indicates a Guaranteed and (L) a Linked product. In order to understand the difference between guaranteed and linked rates, kindly click here for an explanation.
 R 100 000
  Company This Week Last Week
1 Clientéle Life (G) 6.350% 6.400%
2 Nedgroup Life (L) 6.037% 6.393%
3 Discovery (G) 6.025% 6.332%
 R 100 000
  Company This Week Last Week
1 Clientéle Life (G) 6.850% 6.800%
2 Momentum (G) 6.640% 6.950%
3 ABSA (L) 6.619% 6.972%
 R 100 000
  Company This Week Last Week
1 Symmetry 6.720% 5.840%
2 PSG 6.610% 6.410%
3 Allan Gray 6.480% 6.340%
Please bear in mind that our figures, though based on the actual quotations that you also use, are for information purposes only, and can never replace the official quotation from the product house. In terms of the guarantees, you are requested to clarify the exact extent of such guarantees with the product house prior to advising clients.
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From the Crow's Nest
3. From the Crow's Nest
a. More Effective Regulation Envisaged

National Treasury publishes a revised draft of the Financial Sector Regulation (FSR) Bill for public comment. The revised Bill takes into account comments received on the first draft, published in December 2013, as well as input from stakeholder engagements with members of the public and various government departments.

It also released a discussion document "Treating Customers Fairly in the Financial Sector: A Market Conduct Policy Framework for South Africa", which is the first attempt to develop a comprehensive framework for how the market conduct regulator will operate, in order to ensure that financial institutions treat their customers fairly.

b. Second Draft of the Financial Sector Regulation Bill
The Financial Sector Regulation Bill gives effect to the government decision in 2011 to shift to a Twin Peaks model of financial sector regulation for South Africa.

Key changes have been made to the second draft Bill in order to:
•   Improve its legal enforceability. In particular many definitions have been reconsidered and additional areas have been added to improve legal application;
Provide both authorities with powers in addition to the existing institution-specific laws so they are able to supervise and enforce financial sector laws and regulations in pursuit of their objectives;
Empower both authorities to issue standards for financial institutions to follow;
Clarify the role of other financial sector regulators under Twin Peaks. The role of the National Credit Regulator (NCR) was not explicitly explained in the first draft. Numerous stakeholders noted that as a key player, their role should be clarified. This has been done through explicit coordination and cooperation requirements;
Better align the governance arrangements for the new regulatory agencies, including clarifying the institutional form of the Prudential Authority, which will operate within the Reserve Bank;
Align the Reserve Bank powers for systemic oversight with its mandate for financial stability, provide greater clarity about these powers and how they may be used to fulfil this mandate;
Introduce a legal framework for regulating and supervising financial groups, from both a prudential and a conduct perspective; and
Strengthen the Ombuds system by creating a stronger central coordinating role for the Financial Services Ombuds Council.

The revised third version of the Bill is expected to be published for tabling in Parliament before the end of June 2015.

c. Market Conduct Policy Framework

A discussion document titled: "Treating Customers Fairly in the Financial Sector: A Market Conduct Policy Framework for South Africa" proposes a comprehensive framework for how the market conduct regulator will operate, in order to ensure that financial institutions treat their customers fairly.

The market conduct policy framework forms part of the Twin Peaks reform process, proposing a regulatory and supervisory framework for the new Financial Sector Conduct Authority (FSCA).

To better protect customers, the financial sector must be held to higher standards than generic consumer protection, and standards must be applied consistently across the sector.

As proposed in the policy documents, the various pieces of market conduct legislation applicable to the financial sector will be consolidated. The law will also empower the FSCA to supervise institutions more intensively, and take strict corrective actions against financial institutions based on the breach of principles in addition to monitoring compliance with rules.

The market conduct framework document also sets out proposals to support improved market conduct by better empowering financial customers. This includes improving the ombuds system so customers can easily and effectively lodge disputes against financial institutions, and refining financial education initiatives.

Public workshops will be held as follows:
Johannesburg: Wednesday, 28 January 2015
Pretoria: Friday, 30 January 2015
Cape Town: First week of February (tbc)

Interested parties should please contact [email protected] to register.
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Advertise in the Moonstone Newsletter
4. Advertise in the Moonstone Newsletter
Moonstone's newsletter database comprises 34 000 subscribers, representing by far the most extensive range of industry representatives, both from a product and regional perspective.
Advertise your company, products, services or workshops with us and enjoy by far the widest exposure available in the financial services industry.

Our standing as a reliable source of accurate information adds an implied endorsement, which compels us to be selective about which products and services we place in our newsletters.
Advertise with Us
Your Practice Made Perfect
New Framework for Insurers
5. New Framework for Insurers
Legalbrief Today published an article on 7 January setting out details of the Governance and Risk Management Framework for insurers which come into effect on 1 April 2015.

"...the purpose of the prescribed framework is to ensure the prudent management and oversight of all insurance business and to adequately protect the interests of policyholders. It is to be adopted, implemented and documented by all insurers 'proportionate to the nature, scale and complexity' of the business and risks of each institution concerned."

"...the gazetted document specifies and expands upon a range of issues to be addressed in each insurer-specific framework. At the very least, that framework should: deal with the composition, governance and structure of the board of directors; and include strategies, policies and procedures for identifying, assessing, monitoring, managing, and reporting 'all reasonably foreseeable current and emerging material risks to which the insurer may be exposed'. The requirements for 'effective internal controls' spelled out in the document appear not to be mandatory for all insurers."

"...the gazetted framework was developed in response to provisions in the amended sections 12(1) of the 1998 Long-term and Short-term Insurance Acts. Where practicalities require the progressive application of a specific section of the prescribed framework, the Registrar may exempt one insurer, insurers generally or particular kinds/types of insurers from that section for a specified period subject to certain conditions."

Please download Board Notice 158 of 2014, which deals with this matter.
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Moonstone RDR Workshops
6. Moonstone RDR Workshops
The proposals contained in the Retail Distribution Review discussion paper envisages some of the most drastic changes to the retail financial services industry since the implementation of FAIS. The 55 proposals contained therein will impact on every role player currently involved in the provision of retail financial products.

Moonstone Compliance would like to invite you to attend our workshops on the RDR where we will discuss the general principles of the RDR proposals, and also unpack the most significant proposals to map the potential impact on the different role players in the retail financial services chain. This is an important business discussion which you cannot afford to miss.

We will:
•  Identify the most significant proposals
•  Consider potential impact on operational requirements and revenue streams
•  Discuss ownership structures
•  Consider the future of current distribution models
•  Share our concerns and proposed comments

Click here for more information and to book your seat.
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2014 Compliance Report Workshop
7. 2014 Compliance Report Workshop
FSPs not obliged to appoint a compliance officer need to submit their 2014 Compliance Reports by the end of February 2015. We invite all those affected to pre-book their seats at this popular annual event. Attendees will be assisted with the timely completion and submission of their reports. Seats are limited, so don't delay registration.

Book Now

Workshops will be hosted around the country at 8 different venues via:

Telematic Satellite Broadcast
Friday, 6 February 2015: 10h00 - 12h30
Stellenbosch; Bloemfontein; Port Elizabeth; George

Face to Face Workshops
Cape Town Monday, 2 February 2015 10h00 - 12h30
Johannesburg Wednesday, 4 February 2015 10h00 - 12h30
Pretoria Thursday, 5 February 2015 10h00 - 12h30
Durban Tuesday 17 Feb 2015 13h30 - 16h00

NB: Registration starts 30 minutes prior to workshop.

•  Registration
•  Welcome and Logistics
•  Completing the 2014 Compliance Report (1)
•  Break & Refreshments
•  Completing the 2014 Compliance Report (2)
•  Questions and Closing

Why attend?
•   This workshop will guide you through the completion of the 2014 Compliance Report.
You will be provided with a paper copy of the compliance report for ease of reference. You are welcome to submit your return electronically, provided you have your own internet access.
There will be ample opportunity to submit your queries online to the studio presenters during the Telematic broadcast and directly in the Face-to-Face workshops.

Moonstone Protector clients attend at no charge.
Non-members: R550 ex. VAT

We look forward to hosting you.
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Preparation Material
8. Preparation Material
Fully updated resources are available for those requiring access to the legislation applicable to the regulatory examinations:
•   Click on the following highlighted sections to download the relevant updated Inseta learning material for key individuals, RE 1, and representatives, RE 5.
LexisNexis provides a "Legislation Handbook" together with a "Preparation Guide" containing the qualifying criteria, with a link to the relevant legislation.
The Juta FAIS Pocket Statutes also contains a CD with a comprehensive list of updated supplementary legislative material for reference purposes.
The DVD of the FSB's telematics broadcast on the RE 1 and RE 5 provides a good introduction and overview, and can also be ordered online.
Please make sure that you first read the FSB's Preparation Guide to make sure you follow the right process in preparing. Page seven includes a recent amendment to guide candidates in studying in the correct manner.

RE Schedules, Venues and Registration
•  English Examinations 2015
•  Afrikaanse Eksamens 2015
•  Exams in the UK 2015
•  Registration Page
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Moonstone Careers Platform
9. Moonstone Careers Platform
Why advertise on Moonstone Careers Platform?
•   The Moonstone website - - enjoys an average of 15 000 visits and approximately 39 000 page views per month.
Moonstone boasts an exclusive newsletter mailing list of over 34 000 dedicated financial decision makers who receive 2 newsletters per week.
Our audience is relevant and industry specific: individual and corporate advisors and brokers in the following financial sectors: iInvestment, Risk, Healthcare, Banking, Retirement, and Insurance.
Website Placement: R350 ex. VAT per placement for 30 days
Website AND Newsletter Placement: R650 ex. VAT per placement for 30 days


Featured Positions
Financial Planner & Risk Specialist
Warwick Wealth is looking for a financial planning and risk specialist in each of our regional sales offices in Cape Town, Johannesburg and Port Elizabeth.
About Position

Compliance Manager: Durban
The Compliance Manager is required to ensure ongoing implementation and maintenance of the company's overall compliance program, as well as to assist management in discharging its responsibility to comply with statutory and regulatory requirements, with an emphasis on insurance legislation.
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The Lighter Side
10. The Lighter Side: Politicians in Perspective
"Politics is the gentle art of getting votes from the poor and campaign funds from the rich, by promising to protect each from the other." Oscar Ameringer, 'the Mark Twain of American Socialism'

"I offered my opponents a deal: "If they stop telling lies about me, I will stop telling the truth about them"." Adlai Stevenson, campaign speech, 1952

"A politician is a fellow who will lay down your life for his country." Texas Guinan, 19th century American businessman

"I have come to the conclusion that politics is too serious a matter to be left to the politicians." Charles de Gaulle, French General and politician

"Instead of giving a politician the keys to the city, it might be better to change the locks." Doug Larson, English middle-distance runner

"We hang petty thieves and appoint the bigger thieves to public office." Aesop

"Those who are too smart to engage in politics are punished by being governed by those who are dumber." Plato

"When I was a boy I was told that anybody could become PM; I'm beginning to believe it." Irving Stone

"Politicians are people who, when they see light at the end of the tunnel, go out and buy some more tunnel." John Quinton, American actor / writer
Thanks David Melvill.
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