Legislative Changes and Developments
FSCA releases RDR status update and various discussion papers
The Financial Sector Conduct Authority (FSCA) has released several papers relating to Retail Distribution Review (RDR). The FSCA’s predecessor, the Financial Services Board, published its RDR discussion document (initial RDR document) in November 2014, proposing a number of wide-ranging reforms to the regulatory framework for financial advice and the distribution ...
Comment sought on FIC compliance communications
The Financial Intelligence Centre (FIC) released two draft compliance communications last month for comment by 20 January 2020, CompliNEWS contributor Pam Saxby reports. According to an accompanying media statement, the draft communication on accessing information submitted to the FIC explains the process to be followed by any other supervisory body ...
More labour law amendments in force
Sections 1 to 7 of the Labour Laws Amendment Act 10 of 2018, came into effect on 1 January 2020 by presidential proclamation – affecting sections 1 (definitions), 25 (maternity leave), 27 (family responsibility), 49 (variation by agreement) and 83 (persons deemed employees) of the Basic Conditions of Employment Act ...
NHI Bill funding entity proposals sound – Department
Latest tax amendment Acts gazetted
News from the Regulators
Update on public warning regarding Karatbars International GmbH
On 11 November 2019 the FSCA issued a warning regarding Karatbars International GmbH not being registered as an authorised Financial Services Provider. The company (based in Germany) has subsequently made representations to the FSCA indicating that it markets two products in South Africa, one being the sale of gold bullion ...
FSCA provisionally withdraws the licence of Exclusive Life Financial Services
The FSCA received information that Exclusive Life Financial Services (Pty) Ltd (Exclusive Life) is materially contravening its licensing conditions in that it is purported to be promoting a product that is not lawfully authorized. Furthermore there are allegations that some investors who have invested money in the scheme have not ...
FSCA releases a raft of Notices before the holiday season
The Financial Sector Conduct Authority (FSCA) released the following new Notices on 19 December 2019:
FSCA publishes draft general exemptions for independent intermediaries and imposes 24 January 2020 deadline for comments
FSCA publishes draft Exemption Notice proposing exemption for short-term insurers that offer transport policies from PPR
NPO anti-money-laundering guidelines published
Prudential Authority and FSCA release new application for a licence to conduct insurance business in South Africa
SA banks fined over money-laundering control weaknesses
The Reserve Bank has imposed administrative sanctions on five banks and directed them to take remedial actions. The five are Standard Bank SA, GroBank (formerly SA Bank of Athens), Ubank, Bank of China (Johannesburg branch) and HBZ Bank, says a Fin24 report. The SARB said it found weaknesses in each ...
Shoprite fined R1m for reckless lending
Legalbrief Today Issue 4854
Shoprite has been fined R1m by the National Consumer Tribunal for breaching the National Credit Act after it was found to have lent recklessly to vulnerable consumers. The judgment was handed down in the Gauteng High Court (Pretoria) in December and publicised on 14 January 2020 by the ...
FST case summary involving Mlombo and Standard Bank Financial Consultancy and another
By Shamaa Sheik
The following matter was heard in the Financial Services Tribunal on 9 December 2019:
- Mlombo (Applicant); and Standard Bank Financial Consultancy (1st Respondent) and Kennedy Mateyo NO (2nd Respondent) – case number: FSP30/2019
*for the purposes of this summary references to 'the respondent' refers to the ...
Adviser category, remuneration proposals out for comment
Input is sought by 31 March 2020 on a discussion paper proposing ‘a previously mooted variation of the two-tier model’ for categorising financial advisers, reports CompliNEWS contributor Pam Saxby. Released in December 2019, but only recently posted on the Financial Sector Conduct Authority (FSCA) website, the document updates stakeholders and ...
Survé companies censured over late audited statements
Legalbrief Today Issue 4847
AYO Technology Solutions and its parent company African Equity Empowerment Investments (AEEI), both controlled by Independent Media boss Iqbal Survé, have been censured by the JSE for not publishing audited financial statements within four months of their financial year-end. A Business Day report points out listed ...
WhatsApp scam alert
Scammers are separating helpful South Africans from their money in what appears to be a wave of fraud that relies on hijacking WhatsApp accounts – and then simply asking for money. Business Insider reports that they first take control of a victim's phone number, usually by porting the number ...
Medical insurers poised to take on CMS
Judge dismisses sacked Deloitte partner's challenge
Legalbrief Today Issue 4849
A partner at Big Four accountancy firm Deloitte who was sacked for alleged bullying and large expenses claims has been ordered to pay £125 000 in legal costs for a one-day trial, after his challenge to the dismissal failed. According to a Law Gazette report, David ...
UK brings major anti-money laundering reforms
Legalbrief Today Issue 4850
Major changes to UK anti-money laundering and counter terrorist financing regulations will begin to take effect from 10 January. An Out-Law.com report notes that the Money Laundering and Terrorist Financing (Amendment) Regulations 2019 (the MLR 2019), which were laid before Parliament shortly before Christmas, implement ...
UK's FCA becomes AML and CTF supervisor of UK cryptoasset activities
The Financial Conduct Authority (FCA) in the UK is now the anti-money laundering and counter terrorist financing (AML/CTF) supervisor for businesses carrying out certain cryptoasset activities under the amended Money Laundering, Terrorist Financing and Transfer of Funds Regulations 2017 (MLRs).
Any UK business conducting specific cryptoasset activities falls within ...
Selling a business
By Lee Rossini
Once you have made the decision to sell a business, it is to your advantage to ensure that it is a planned rather than a forced sale. Timing is critical to getting the best deal possible; this means managing the business in a manner that it is ...