EDITOR’S NOTE – TEMBISA MARELE
The month of July saw South Africa and the world, witness riots in South Africa that were cited as the worst since the advent of democracy in the country.
According to the S&P Global Ratings’ report released on July 26, it is estimated that the unrest will likely shave approximately 0.7 percent off headline GDP growth in 2021; hit private consumption; and slow the pace of economic recovery.
THE FSCA’S UPDATE ON UNCLAIMED BENEFITS
The FSCA recently held a media roundtable to give an update on regulatory developments in the Retirement Funds environment. The Divisional Executive of Retirement Funds, Mr Olano Makhubela and his team proceeded to cover a myriad of topics such as the impact of Covid-19 on retirement funds; curatorships and statutory management; sustainable financing; fund governance enhancement and Directive 8; unclaimed benefits and the Central Unclaimed Benefits Fund. Of particular interest during the session was the update on unclaimed benefits.
CURATORSHIP, STATUTORY MANAGEMENT AND FEES
Since 2017, the Financial Sector Conduct Authority (FSCA) has within the retirement funds space, placed approximately four funds under curatorship. Some of the curators were appointed in terms of section 5(10) of the Financial Institutions (Protection of Funds) Act, 2001 (“FI Act”), which is by agreement with the retirement fund and without the intervention of a court.
UNPACKING HOW DEBARMENTS ARE CARRIED OUT BY THE FSCA
The Financial Advisory and Intermediaries department at the FSCA is responsible for supervising the business conduct of entities licensed to provide financial advice; and entities authorised for product sales and execution on a non-advice basis, where the entity is not is not authorised for the actual issue of the products concerned. This team follows a risk-based classification informed by the different adviser competency requirements being implemented through amendments to the FAIS fit and proper standards.
THE FSCA FINES VICEROY RESEARCH AND ITS PARTNERS FOR PUBLISHING FALSE AND MISLEADING STATEMENTS ABOUT CAPITEC BANK HOLDINGS LTD
The Financial Sector Conduct Authority (FSCA) recently held a media round table discussion where they announced the imposition of an administrative penalty of fifty million Rand (R50 million) in terms of section 167(1)(a) of the Financial Sector Regulation Act 9 of 2017, on the partnership known as Viceroy Research and its partners, Mr Aiden Lau, Mr Fraser John Perring and Mr Gabriel Bernarde (the Respondents).
ADVANCING THE FINANCIAL INCLUSION OF WOMEN IN SOUTH AFRICA
Despite bold, increased, and concerted action on the part of policy makers, regulators and other stakeholders in the financial services sector, the barriers that hinder the full financial inclusion of women are still prevalent. These barriers leave women disproportionately affected and discriminated against because of their gender, despite their resourcefulness and talent. Understanding these barriers is the key to removing them and advancing the financial inclusion of women.
THE FSCA COMPLIES WITH THE PROTECTION OF INFORMATION ACT NO.4 OF 2013
We live in a digital led world where the use and access to information is merely a click away. This also applies to the distribution and access to personal information. Technology has enabled the simplicity of processing personal information in more ways than we could previously imagine.
FINANCIAL SERVICES PROVIDERS REMAIN RESPONSIBLE FOR COMPLIANCE WITH THE FIC ACT EVEN WHEN OUTSOURCING
CERTAIN OBLIGATIONS TO THIRD PARTY SERVICE PROVIDERS
Financial Services Providers are accountable institutions as listed in schedule 1 of the Financial Intelligence Centre (the FIC Act) Act 38 of 2001 and as such, have specific obligations to fulfil. The following sets out the high-level obligations and highlight the outsourcing possibilities.
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