Legislative Changes and Developments
More changes mooted for auditors’ code of conduct
Proposed amendments to the international code of ethics for professional accountants have been released in the form of an exposure draft for comment by 26 June 2019, CompliNEWS contributor Pam Saxby reports. This is noting that the Independent Regulatory Board for Auditors has adopted the international code and that, once ...
FSCA releases draft conduct standard on minimum skills & training requirements for board members of pension funds
The Financial Sector Conduct Authority (FSCA) has released a new draft conduct standard on the minimum skills & training required for board members of pension funds, for public comment.
Interested persons are encouraged to make written submissions on the Standard to the Authority, using the comments template, on or before 4 ...
Most B-BBEE ownership registration applications fall short
Most broad-based black economic empowerment (B-BBEE ) transactions involving trusts, ‘broad-based ownership schemes’ and employee share ownership programmes submitted to the B-BBEE Commission for registration have fallen short of meeting the requirements concerned (Engineering News). This is according to a statement from the commission yet to be posted on its website ...
Carbon Tax Act in force from 1 June 2019
Financial Matters Amendment Act gazetted
News from the Regulators
Medical schemes regulator launches investigation into allegations of racial profiling by medical aid claims
The Council for Medical Schemes (CMS) has launched an investigation into allegations of racial profiling against black and Indian private medical practitioners.
The medical practitioners, all members of the National Health Care Professionals Association (NHCPA) have alleged that they were being unfairly treated and their claims withheld by medical aid ...
FAIS Notice updates lists of qualifications recognised for FSPs, KIs and reps
The Financial Sector Conduct Authority (FSCA) has published FSCA FAIS Notice 36 of 2019. The following lists of qualifications are recognised in terms of s 24 of the Determination of Fit and Proper Requirements for Financial Services Providers, 2017.
- List 1 - Qualifications recognised for Category I FSPs
- List 2 - Specified subject ...
FSCA releases new FSCA Bulletin for Quarter 4, 2018/19
The Financial Sector Conduct Authority (FSCA) has published its latest FSCA Bulletin for Quarter 4, 2018/19. Packed with interesting articles and key insights, this edition shines the spotlight on the Conduct of Financial Institutions Bill (COFI) and the FSCA's new conduct approach. Highlights
- A FinTech take on the ...
Consumer financial education is good for business – FSCA-OECD Conference in Cape Town
FSCA Communication 1 of 2019 (FAIS) on scripted Execution of Sales
FSCA fines Charles Winshaw R10,000 for representative failings
According to the order issued by the enforcement division of the Financial Sector Conduct Authority (FSCA), Charles Winshaw transgressed s 13(1)(b)(i) of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act), in that he acted as a representative of an authorised FSP, but failed ...
FAIS Ombud determination involving Nchukana-African Compass Funeral Services and another
By Shamaa Sheik
The following matter was heard in the office of the FAIS Ombud on 22 March 2019:
- Sipho Nchukana (Complainant) and African Compass Funeral Services (1st Respondent) and Cebisile Mfado (2nd Respondent) [collectively referred to as Respondents unless otherwise stated] – case number: FSOS 00238/17-18/ WC 2 ...
Appointment of Ms Lelané Bezuidenhout as CEO of FPI effective 1 June 2019
FPI (Financial Planning Institute)
The Financial Planning Institute of Southern Africa (FPI) has announced the appointment of Ms Lelané Bezuidenhout CFP® as Chief Executive Officer with effect from 1 June 2019.
Lelané started her career in the Financial Sector in 1999 when she joined one of the major insurance companies ...
Testing the digital banking waters
Central bankers have always been protective of the currencies they keep. Stability is a top priority, which has made them rather cautious about solutions that threaten that position. Yet, lately, they’ve thrown that caution to the wind as more regulators actively start experimenting with the idea of cryptocurrencies ...
Ponzi case in court
A pensioner and former police officer who was allegedly defrauded of R400 000 of his pension money was the first witness to take the stand in the multi-million rand Ponzi trial against siblings Mervyn Dennis and Mary-Anne Peter, notes IOL. The trial finally proceeded in the Pinetown Magistrate’s Court on ...
International conduct learnings
Rob Everett, CE, FMA (New Zealand)
'I spent last week in Sydney at IOSCO meetings (the global standards-setter for securities regulators) and the annual ASIC conference. As well as debating best practice for securities regulation, it was a great opportunity to learn more about how our regulatory counterparts in ...
New financial advice regime in New Zealand
On 9 May 2019, the New Zealand Minister of Commerce and Consumer Affairs approved the new Code of Conduct for Financial Advice Services, which comes into force at the start of the new regime. The Code is made up of nine standards in two parts. There are five standards in ...
FCA wins High Court case against unauthorised forex firm
A financial services firm in the UK that received at least £1m (R18 million) from investors but only used a small amount of it for trading has been held to have carried out an unauthorised investment scheme, notes Professional Adviser.
The High Court in London declared Xcore Capital Ltd and ...
Over £27 million reported lost to crypto and forex investment scams in the UK
When does conduct spill over into financial advice?
What conduct constitutes financial advice and what would amount to negligent financial advice? So asks Christine Rodrigues, a partner at Hogan Lovells South Africa, in a recent commentary in FA News.
In Atwealth (Pty) Ltd & others v Kernick & others (28 March 2019), the Supreme Court of Appeal ...
Conduct of Financial Institutions (COFI) Bill looming large
As the CPD cycle in May 2019 draws tom a close, one is getting a clearer picture about the new approach that the Financial Sector Conduct Authority (FSCA) and National Treasury (Treasury) want to take when it comes to the conduct of the financial services industry, notes FA News. It notes ...
Quick Tip: foreign professional bodies & SA CPD activities: exemption provisions
A breath of fresh air! Albeit a bit late!
The South African Financial Services Authority (FSCA), has published what I will call a 'conditional' exemption from continuous professional development (CPD) requirements for members of foreign professional bodies. This is NOT a blanket exemption. It is however, an exemption ...
What happens when managers misbehave?
Drawing up job descriptions
By Lee Rossini
Most financial advice businesses start off small, usually with the founder playing the role of owner, manager and financial adviser. However, as the business grows, planning and implementing organisational structures becomes more of a priority as the need for specialised positions and departments arises. The organisational chart ...