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Steering you through the complexities of financial calculations

The much anticipated Financial Calculations and Worksheets by Marius Botha and Lood La Grange will be available mid December 2012. Includes step-by-step guidance on every type of calculation, with worked examples and A4 worksheets as well as all relevant rates, tables and formulae.

Authors: Marius Botha, Lood La Grange ISBN: 9780409077797 Price: R360.24 incl. VAT and delivery

To order your copy or for more information


Call 031 268 3521 and quote this reference number: RS245/12 Visit our website:

The Financial Planner Telephone: 086 1000 FPI (374) Tsholofelo Dihutso, CPRP Communications and Events Specialist (011) 470 6050 Postal address: PO box 6493, Weltevredenpark, 1715 Street Address: Palms Office Court, Block A, Ground Floor, Kudu Avenue Allen’s Nek, Gauteng, South Africa Membership Queries Published by COSA media Advertising: Michael Kaufmann 021 555 3577 Michelle Baker

Fpi magazine, published by COSA Media, a division of COSA Communications (Pty) Ltd.

Opinions expressed in this publication are those of the authors and do not necessarily reflect those of this journal, its editor or its publishers, COSA Communications. The mention of specific products in articles or advertisements does not imply that they are endorsed or recommended by this journal or its publishers in preference to others of a similar nature, which are not mentioned or advertised. While every effort is made to ensure accuracy of editorial content, the publishers do not accept responsibility for omissions, errors or any consequences that may arise therefrom. Reliance on any information contained in this publication is at your own risk. The publishers make no representations or warranties, express or implied, as to the correctness or suitability of the information contained and/or the products advertised in this publication. The publishers shall not be liable for any damages or loss, howsoever arising, incurred by readers of this publication or any other person/s. The publishers disclaim all responsibility and liability for any damages, including pure economic loss and any consequential damages, resulting from the use of any service or product advertised in this publication. Readers of this publication indemnify and hold harmless the publishers of this magazine, its officers, employees and servants for any demand, action, application or other proceedings made by any third party and arising out of or in connection with the use of any services and/or pro-ducts or the reliance of any information contained in this publication.

Contents Letter from the fpi | 04


a vision to create value: FPI IN 2013 | 06 TCF VS Fais |12


cash shortfalls in deceased estates |18


responsible investing: more than just returns | 24 future of life insurance industry is changing | 32

20 Sections:














Practice Management




The Financial Planner


Letter from the FPI


recently sat in on a medical aid presentation to a large group of artisans employed at a Johannesburg Security Exchange (JSE) listed company. At this meeting a representative from the medical aid scheme explained the concept of a medical savings account. He mentioned that the money, in the medical savings account, was in fact the member’s and if they were to leave the medical aid, the remainder of the money in the savings account would be paid out to them. This piece of information caused much excitement among some in the audience. The possibility of pocketing the money seemed alluring, despite the fact that in order for them to access the funds they would need to leave the employ of their current employer without retaining their current medical aid. It did not cross their minds that in order for them to access this money there would have to be a significant change in their lives, a change that would not necessarily be beneficial to them, namely the loss of their employment. The scene that played out in front of me highlighted the relationship that most South Africans have with money. Money is seen as a resource meant for consumption. If you have it, it should be spent, and at no point is the future taken into consideration. The unhealthy association South Africans have with money can further be evidenced by the poor preservation rates we have in this country. Retirement funding money is often squandered on short-term endeavours instead of looking at the long-term


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benefit and impact the money will have on one’s life. Very often South Africans are left destitute in their latter years due to their lack of foresight. This aspect has not gone unnoticed by government and as a result it has released a series of discussion papers which fall under the ‘Strengthening Retirement Savings’ initiative. The Financial Planning Institute (FPI) has made extensive commentary on these papers, which all members should have had sight of, prior to the submissions being sent to National Treasury. The FPI has identified a need for basic financial literacy education among South Africans. This needs to be done across all age groups: prior to entering the workforce; while employed; and at retirement. Once we have a society that is by and large financially literate, then there will be greater demand for financial planning, because now the importance of planning for the future will be understood. We hope that the MYMONEY123 project will help close the financial literacy gap. The FPI has also catered for people who see the need for financial planning, but cannot afford a financial planner, by introducing the Financial Planning Week Initiative among others. It is my hope that those people I observed in that boardroom, listening to a presentation on their medical aid options, will one day have the foresight to make an informed decision regarding their money and that they will choose to forego the short-term gain in favour of their long-term plan. I realise that this will happen only with the assistance of people like you and I and therefore I implore you to please heed the FPI’s call for volunteers to assist with their various consumer initiatives. “Concern for man and his fate must always form the chief interest of all technical endeavours… Never forget this in the midst of your diagrams and equations.” ~ Albert Einstein I wish you all a blessed festive season and a prosperous new year.

Carla Letchman

Technical Research Analyst, FPI

A vision to create value:

FPI in 2013 Godfrey Nti, CEO

We caught up with Godfrey Nti, Anthony Campher and Almo Lubowski, who are spearheading the Financial Planning Institute’s initiatives in 2013. They told us about the exciting changes, as well as some of the challenges, that lie on the horizon for the institute and its members.


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odfrey, 2012 has been a significant year for the FPI, with the launch of an enhanced strategy and its recent recognition as a SAQA-approved professional body. How does the institute plan to build on what it has achieved in 2012 next year? 2012 was a truly significant year for FPI. We launched an enhanced strategy, which has at its core the repositioning of the CFPÂŽ professional mark as a mark of excellence; the repositioning of the FPI as the bona fide professional body; and a new focus on consumer as well as technical advocacy. Since the launch we have already seen a number of successes: FPI was approved by the South African Qualifications Authority (SAQA) as a professional body; a new Memorandum of Incorporation, into which we built major professional body tenets, was unanimously approved by members at a special general meeting; and a new push towards consumer advocacy meant a very successful Financial Planning Week across the country, reaching out to thousands of consumers. Implementation remains the most difficult part of rolling out strategy. However, we go into 2013 with much vigour, a clear and common vision of the journey ahead and buoyed by the momentum gained from our achievements in 2012. We plan on doubling our marketing and communication spend in 2013. This will enable us to expand our consumer advocacy effort, which is already well underway. We are also doubling the budget for technical advocacy, which will permit us to commission more research and hire more consultants as

well as staff. Finally, we plan on starting the all-important journey of creating a unique FPI experience, which will double members’ benefits and re-engineer the current ones to ensure that they are better suited to our members. What do you expect will be its biggest challenges and how is it preparing for these? Since the launch of the new strategy, we have made a concerted effort to communicate its salient points to members, especially the implication of becoming a bona fide professional body. Optimistically, we hope that the message has been well understood and that all our members are now ready to embark on this journey with us. Realistically, there is much work to be done in terms of getting full understanding and buy-in, especially when members start noticing the policy implications of the FPI acting strictly as a professional body. For example, what proportion of members have internalised FPI’s primary mission to serve the public? How many members understand that FPI’s core business of being a professional body with public interest responsibilities is not necessarily in tandem with that of a membership or trade association? If we find ourselves in a situation where we have to choose between the public interest and the interest of members, assuming that the interests are different, we will go with what is in the public interest. This is only one example and many others abound. Our main challenge in 2013 is to continue selling the policy implications of the new strategy to members and other stakeholder communities. Another challenge we expect to encounter in 2013 rests with our recent decision, after much consideration, to phase out the RFP™ and AFP™ designations over a period of six years. This was obviously a difficult decision but certainly the right one. The main challenge will be that of encouraging the affected members to take up the various options that we have put in place to make it easier for them to progress to the FSA™ or CFP® designation within the time frame. The current Treating Customers Fairly (TCF) discussions represent an opportunity but could also be a threat, depending on the relative strength of the stakeholders taking part in moving the TCF framework forward. While FPI has expressed support for the broad TCF outcomes, we know that the devil will be in the detail. We need to be careful to ensure that the output of this discussion is balanced regulation and not biased against financial planners and advisors. There have recently been musings in the regulatory and policymaking community on advisor remuneration, relative to the perceived value-add to clients. This issue may come to the fore as early as 2013. Readers would recall that the issue of advisor remuneration featured strongly in National Treasury’s policy paper on

‘A safer financial sector to serve South Africa better’, which was published in 2010. The financial planning and advice community needs to adequately prepare to defend and objectively demonstrate the value of advice. It is a mistake to assume that advisors add value relative to their remuneration; we need to be able to demonstrate this fact. This task will require some deep introspection, research, advocacy and calls for all industry bodies representing advisors to work together. We are not expecting any major issues with regard to Level 2 Regulatory Examinations, given that most FPI members will be exempt from writing these exams by virtue of the designations that they hold. However, for the industry as a whole this remains a major challenge. What are some of the highlights that members can look forward to in 2013? In line with FPI’s renewed vision of ‘Professional financial planning for all’, it is of

utmost importance that, in order to be taken seriously, the financial planning profession demonstrates relevance and accessibility to the broader South African population. As such, we plan on dramatically extending our consumer outreach efforts in 2013 to educate South Africans about the benefits of professional financial planning, as well as the important role that CFP® professionals can play in their lives. In order to demonstrate accessibility, we will continue to request that our members give of their time and expertise in support of the pro bono initiatives that FPI will be creating. Pro bono financial planning is a very important arsenal in our strategy in terms of building public trust in the profession and promoting financial planning, and we plan to significantly expand our pro bono programme in 2013. We also plan on expanding our technical advocacy programme, to ensure that FPI becomes a reliable voice, giving trusted input on policy papers, as well as laying out its own policy positions on issues affecting financial

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planning and advice. In order to achieve this, we have doubled our advocacy budget, which will permit us to set up a focused research function within FPI and hire more consultants and staff. Membership growth and retention will receive much attention. As we embark on consumer and technical advocacy in a bid to have financial planning recognised by consumers, government and industry as a distinct profession, it is important that we are able to grow the base of expert practitioners who can service the newly created market. To achieve this, we have


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designed a number of programmes that we will be rolling out, such as student outreach programmes and employer outreach programmes. As we work on growing the number of FPI members, we intend to double our effort in the area of membership retention. This will happen through a number of membership retention initiatives such as doubling of member benefits, organising focused workshops, creating a member tool box made of easy-to-implement tools for members, and member-to-member engagement opportunities.

As CEO of the FPI, what excites you when you look forward to 2013? A focused board, united around a common strategy. My team and I are very proud of our stewardship of the institute over the last few years. Better days are yet to come. A message for your readers? I’d like to thank our members for their continued support, as well as our volunteers, without whom none of these objectives will come to fruition. I’d also like to thank the board for its leadership and commitment to take the FPI forward.

Anthony Campher, CFP® - Head of Business Development and Membership Services Increasing the status of CFP ® professionals has been an important item on the FPI’s agenda in 2012. How will this drive be carried over into 2013? We will continue to inform the public of our high certification standards and ethical conduct. Through various pro bono initiatives, consumers will be the given the opportunity to experience that CFP® professionals do things differently and that they act only in the interest of their clients. What do you predict will be the single biggest challenge facing CFP ® professionals next year? Finding time to deal with the increased consumer demand for their services. CFP® professionals must believe that they are far more competent than the average advisor out there, using it to their advantage and conveying this message in a confident manner to consumers. They should not compete with those who meet only the minimum standards. The public must know what the difference between financial planning and advice is and what the benefits are of a financial plan developed by a CFP® professional. The FPI office will do a lot in this regard.

The FPI’s Financial Planning Week in November this year sought to enhance consumer awareness, which is one of the main initiatives in the new FPI strategy. How will this be realised in 2013? This year we had financial planning exhibitions in five major centres over a two-day period. We had just under 150 participating practices across the country, which opened their doors to the public for free consultations. We ran a number of consumer clinics where consumers were taken through the MYMONEY123 programme. The week was a huge success. The focus of the week was to inform the public on what professional financial planning is, what the benefits of it is and why a CFP® professional should be the one developing their financial plan. We will have a different approach to this event in 2013. Financial planning practices will have more opportunities to educate, inform and promote themselves. The ‘Consult a CFP® Professional’ Campaign will be bigger and we will target at least 300 participating practices in all the provinces. There will be consumer clinics in at least 100 towns in all provinces and we will target a specific audience for next year’s event. I’m not going to disclose the detail at this stage but it is going to be very exciting and we will launch it well before Financial Planning Week, which will run from 23 to 30 November 2013. What new initiatives can members expect from your department? A new initiative called Community

Development will be introduced in 2013. The aim is to create opportunities for professional financial planners to learn from the experts and each other. It is different from Continuous Professional Development (CPD) and the aim is not to raise competency levels. However, we will continue to do address the knowledge, skills and ability needs of our members by offering specialised CPD events on all the components of financial planning. A number of new consumer awareness initiatives will be introduced throughout the year. This will remain one of our main focus areas for the next three years. More pro bono initiatives will be introduced and members will have opportunities to give back to different segments in the community. There will be opportunities to work with students, the general public and we will have a specific focus on retirees. The Financial Planner of the Year competition will be bigger than ever. We will use the six months leading up to the announcement of the winner to create awareness around the value of professional financial planning to consumers. Everybody who goes through to the second round will get publicity, which will be carried through to the final round. The winner will receive more prizes than ever before; it will be worth entering. We will launch the Practice of the Year Award in 2013 and the winner will be announced at the FPI Annual Convention in 2014.

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Almo Lubowski, CFP® Head of Technical and Advocacy Services The financial services industry has been hard hit with regulation over the past year, the reality of which will no doubt be felt in 2013. How does the FPI plan to protect members’ interests by engaging policy makers, regulators and industry bodies next year? We will be ahead of the curve in being the thought leader of the direction that policy makers and regulators should be taking. This is the most valuable way in which we can serve our members, the financial planning profession and consumers. We will become more proactive rather than reactive next year. This will be supported by strong research initiatives, which will be used for engagement with stakeholders. As the financial planning profession evolves, continuous professional development is a reality facing advisors. What will the FPI be offering its members in the way of ensuring professional competence? As the technical and advocacy department, we will be providing the right level of


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technical expertise into Continuous Professional Development (CPD). CPD events can reach only so many people on the ground. We will be utilising many more forms to keep members up to speed in the area of competence. The FPI website will become a central resource area for members, providing best practice templates and tool boxes that members can use in their practices. We will also be providing technical direction to CPD events. How do you expect advisors will be particularly stretched next year? We believe that it is time that advisors and planners really start approaching the profession as a long-term business. This means time and resources need to be put to good use in building sustainable business models and practices. The sun is setting on thinking short term with quick gains. Advisors and planners

need to think about where their businesses will be in five to 10 years. This will take a whole rethink and rework of their business. It involves best practice, Treating Customers Fairly (TFC), ongoing learning, client engagement and so forth. FPI would like to assist and hold members’ hands in this journey. What new initiatives will your department embark on in the way of development of new tools and resources for members? These tools and resources will be part of our CPD initiatives, but also a valueadd to members, assisting them to build great businesses. However, before we can do this we need to establish what members need and want. In this light, much research will be done of our membership base to establish what they need from FPI in the various areas of practice.

“... it is time that advisors and planners really start approaching the profession as a longterm business.”

Almo Lubowski, CFP® FPSA(TM), head of technical and advocacy services at The Financial Planning Institute of Southern Africa (FPI)

TCF vs FAIS If you have made FAIS a part of your business and processes, then TCF won’t be a massive adjustment – Part 1

Treating Customers Fairly (TCF) is becoming more than just a murmur in the industry. Product providers have taken a bit more of an active approach and I think rightly so, as I am of the opinion that it is the product providers who have more reason for concern in the TCF framework. As far as advisors are concerned, I think the FAIS Act is more comprehensive than initially thought. Due to the Regulatory Exams, advisors are more familiar with the obligations imposed by FAIS. In this vein, the Level 1 Regulatory Exams have been a good thing for the industry and consumers alike. So perhaps it is prudent to very briefly compare the six TCF outcomes with existing obligations that advisors have in terms of FAIS. The first three are discussed here in part one.

Outcome 1 – Customers are confident that they are dealing with firms where the fair treatment of customers is central to the firm culture. It has been said that this outcome will be the most difficult to implement in organisations as it requires a culture change. It is argued that FAIS is primarily rules based. However, Section 16 of the FAIS Act dictates that financial services providers must act honestly and fairly, with due skill, care and diligence, in the interests of clients and the integrity of the financial services industry. Furthermore, they must act with circumspection and treat clients fairly in a situation of conflicting interests.


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Section 2 of the General Code of Conduct (the Code) goes on to reiterate these points, stating that a provider must at all times render financial services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the financial services industry. By the looks of it, FAIS is certainly not only rules based as the above sections do expound some general principles that financial service providers must bear in mind in all their actions.

Outcome 2 – Products and services marketed and sold in the retail market are designed to meet the needs of identified customer groups and are targeted accordingly. Although this outcome appears to be aimed at product providers when they are designing products, advisors can’t sidestep this outcome. They are the ones who will provide the advice on the product directly to clients, and furthermore in many respects FAIS does not allow for any sidestepping. Section 8 of the Code obliges an advisor to gather as much information from the client as is possible and thereafter conduct a financial needs analysis before making any recommendations. Section 9 of the Code then ensures that a detailed record of advice is kept about the recommendations that were in fact made based on the analysis conducted. This includes all products considered and which were eventually implemented.

Client Engagement Outcome 3 – Customers are provided with clear information and kept appropriately informed before, during and after point of sale. This outcome is often referred to as the disclosure outcome. Undeniably disclosure has become a huge element in consumer fairness. The FAIS Code of Conduct has a large amount of principles-based provisions that advisors must adhere to. Information provided to a client must be factually correct, in plain language, must be adequate and appropriate in relation to the assumed level of knowledge of the particular client, and be in writing if so requested by the client. The client must also be informed of all relevant monetary obligations, which includes fees and charges to the product supplier and commissions and/or fees that will be paid to the financial advisor or intermediary. Furthermore advisors must, in writing, disclose any conflict of interest and what has been done to mitigate such a conflict, any possible ownership interests or otherwise financial interests or the general

nature of a specific relationship that may give rise to a conflict of interest in the circumstances. An advisor is then also required to establish and maintain systems and procedures that ensure that any communication, verbal or written, is recorded appropriately, retrievable and safe from destruction.

“An advisor is then also required to establish and maintain systems and procedures that ensure that any communication.� It is quite evident that the principles and stringent requirements of the FAIS Act, if applied adequately by an advisor would ensure fair outcomes. The remaining three outcomes and how they compare to the FAIS Act will be discussed in part two.

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Attitude is the deciding factor in determining your client’s happiness in retirement. I can hear all the financial planners out there saying, “Nonsense, what about money?” Granted if you have no food on your table or no roof over your head, you will not have a happy retirement. However, suppose your client has enough money to meet their basic needs, then I would argue that the key to your client’s happiness in retirement will be their attitude. After all money can buy you luxurious holidays and a nice house but money alone cannot put a smile on your face and spring in your step as you greet each new day.

financial planner you have the ability to put the financial structures into place to make this dream a reality.

But, you may argue, I am a financial advisor and not a psychologist. A financial advisor’s job is to look after people’s money and to grow their wealth, not to counsel them and help them improve their attitude. Well, yes and no.

Unfortunately a client’s attitude is not quantifiable nor is it tangible. But never doubt that it exists and that it has a very real impact on their behaviour. It would therefore be wise to spend a few minutes, after first meeting a new client or upon revisiting an existing client, to examine their attitude. Attitude is the driving force behind much human behaviour, both good and bad.

Today more and more financial planners are assuming the role of a financial life planner. They are helping to guide their clients through major life decisions in much the same way as a life coach would. However, financial advisors are no ordinary life coaches; they have a superpower ... the power that comes from having in-depth knowledge of their client’s financial standing. This enables financial planners to help clients make realistic, life-changing choices in a well-informed, financially savvy way. For example, a client may dream of taking a year’s sabbatical to live in the French countryside, as a


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Good financial planners have realised that you cannot separate a client’s life from their money. In fact, for a financial plan to be truly successful you need to ensure it not only puts money into your client’s life, but put life into your client’s money.

Think about the client who constantly overspends in an attempt to fill their days with an activity. Or the client whose negativity has reached the point of apathy and they sit at home each day instead of going out there and meeting people or perhaps travelling overseas

Client Engagement

“Attitude is the driving force behind much human behaviour, both good and bad.”

to see their child whom they miss dreadfully. Their attitude towards life governs their actions and how they choose to spend their money. If you don’t understand your client’s attitude, your financial plan will never be as impactful as it can be, no matter how good it is.

“Unfortunately a client’s attitude is not quantifiable nor is it tangible. But never doubt that it exists and that it has a very real impact on their behaviour. It would therefore be wise to spend a few minutes, after first meeting a new client or upon revisiting an existing client, to examine their attitude.” Age brings negativity Many people develop an increasingly negative attitude towards life as they get older. This is obviously a generalisation but it is a common development seen worldwide by financial planners. The character of a grumpy old man or woman has become a stereotype in many movies or TV shows.

Once you have accepted that a positive attitude is crucial to your client’s successful retirement, the next question is: “How can I change my client’s negative attitude?” The simple answer is you can’t. What you can do is make them aware of their current attitude and how it is impacting negatively on their life. You can then give them practical solutions to change their attitude.

These are little deeds that can have a profound effect on your client’s life. Not only will these actions feed their soul, but they will also give their life a purpose and direction, something that is crucial for a positive attitude towards retirement.

Actions to create a positive attitude The simplest of these is to recommend they start a gratitude journal. It is basically a vehicle by which your client can take a step back and look objectively at their life and identify what they have to be grateful for that day or that week. All too often, we get bogged down by all the negativity around us and forget to appreciate simple things like a loyal dog who greets us with enthusiasm each day or bumping into an old friend at the supermarket. The point of keeping a daily journal is a powerful exercise that, if done regularly, cannot but help to improve your client’s attitude towards life. Sometimes as we get older, we lose the idealism of our youth and are inclined to feel powerless and hopeless in the face of the social problems facing not only South Africa, but the whole world. Trying to solve the problems of the world is too great a task for anyone, but it is well within our capabilities to start with our immediate community. For example, if your client despairs about the state of education in South Africa, they could contact their local school and offer to spend a couple of hours a month reading to the children or helping them with homework. Likewise if the constant stream of beggars at their car window upsets them they could offer to help at a local soup kitchen. As Mahatma Gandhi famously said, “Be the change that you wish to see in the world.”

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A positive attitude can add seven-and-a-half years to your life If your client looks forward to ageing with the same enthusiasm with which they anticipate root canals, they may consider making an attitude adjustment after you tell them about the following study. The 2002 Ohio Longitudinal Study of Ageing and Retirement revealed that older people with a more positive attitude towards old age lived seven-and-a-half years longer than their negative counterparts. That’s right; you can live longer by simply changing your attitude. The study involved 660 adults aged 50 and older from an Ohio community who participated in a communitybased survey. The researchers measured participant’s attitude toward ageing and longevity, as well as the following: • A  ge, gender, race, and socioeconomic status (years of education and occupational status). • Functional health (what the person is physically able to do). • Self-rated health (is your health improving, declining, or remaining about the same?). • Loneliness.


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The participant’s attitude toward ageing was measured with the Attitude Towards Own Ageing sub-scale, which measured whether or not subjects agreed or disagreed with statements such as: • T hings keep getting worse as I get older. • I have as much pep as I did last year. • As you get older, you are less useful. • I am as happy now as I was when I was younger. • As I get older, things are (better, worse, or the same) as I thought they would be. The study showed that many people still associate ageing with frailty, decrepitude and disability. And many people confused ageing with diseases. Unfortunately, it seemed that some people began internalising these less than positive views years before actually ageing. Their negative experience of old age then becomes a selffulfilling prophecy. The good news is that the stereotypes about ageing seems to be changing as research demonstrates that growing older does not necessarily mean growing sicker or less vital.

Attitude and ageing Look around and you will see the role spirit and attitude play in relationship to the concept

of being old. I know some 75-year-olds who act like they are 35. I also know some 40-year-olds who act like they are 80. I bet you too know people like this. They are living examples of the impact that our attitude and spirit has in separating those who are ageing from those who are old. Remember, by changing your client’s attitude you can change their experience of retirement. And who knows you might even end up changing your own attitude which will no doubt improve your own life experience.

“However, suppose your client has enough money to meet their basic needs, then I would argue that the key to your client’s happiness in retirement will be their attitude.”

employee benefits

Pension funds set to increase private equity investment Pension funds may soon generate higher returns for their members, as regulatory amendments open the way for them to invest more heavily in private equity. Amendments to the International Financial Reporting Standards (IFRS) 10 consolidated financial statements will open the way for South African pension funds to broaden their investment horizons into potentially higher performing instruments within the private equity sphere, says professional services firm Deloitte. These amendments will take effect from 1 January 2013 and further amendments will be effective from 1 January 2014, although early adoption is an option.

The original IFRS 10 accounting standard set out rules for the presentation and preparation of consolidated financial statements for entities that control one or more other entities. However, due to the diversified nature of their investments, private equity companies found it difficult to reflect the value of their investments in controlled entities using this standard. They were therefore required, when seeking potential investors from the pensions sector, to not take control of the entities they invested in, explains Dinesh Munu, a partner at Deloitte and head of funds and asset management with the firm’s financial services team. “The newly amended IFRS 10 standard removes this stumbling block. As long as the definition of an investment entity is met, the requirement to consolidate financial statements is no longer required,” he notes. In addition, the amount of available funds that pension funds are entitled to invest into a hedge fund or private equity fund has increased from 2.5 percent to 10 percent. “The way has opened for South African pension funds to openly and meaningfully invest in private equity,” says Munu. “Pension fund spend in private equity can be expected to expand considerably as the IFRS change and Financial Services Board (FSB) regulations have made these investments considerably easier to undertake. Another

positive is that the FSB has informed private equity funds that if they wish to attract pension fund monies, they will have to abide by the FSB rules and IFRS regulations,” he continues. “Many private equity funds, because of the IFRS 10 issues, were not preparing their financial statements to IFRS standards. They were simply using other frameworks that did not require the consolidation of the statements.” But the way is now open for these companies to adopt the new standard and meet further FSB requirements, including compliance with IFRS; compilation of audited annual financial statements; and compliance with section 13B requirements. Dinesh says that one major local private equity company has announced its intention to begin the process of doubling its investment platform, which is good news for pension funds. “The advantage of this class of investment for pension funds is that they could increase their returns for members by identifying and making use of the additional skills sets available within the private equity sphere,” he says. “The nature of private equity investments in predominantly unlisted entities means that over periods of about five to six years, by correctly identifying opportunities in partnership with private equity funds, pension funds could look forward to generating higher returns for members than those made by other investment streams.”

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Cash shortfalls in deceased estates Graham McPherson, FPSAŠ, ViceChairperson of the FISA Council, and Managing Member of Zentrust.

Cash shortfalls are to blame for the most delays in the administration of deceased estates. Understanding how cash shortfalls arise will help individuals understand the issues at play and allow them to take corrective action to prevent similar delays arising on their death.

Some causes leading to cash shortfalls are the following:

There is an outstanding bond over the fixed property being transferred to the heir. To transfer the property, the bond needs to be cancelled or a substitution of debtor put in place to allow the transfer to proceed. Most financial institutions do not favour substitution of debtor for the bond, and the application to do so is in any event almost as challenging as applying for a new bond. The heir may not be employed and may not be eligible for a bond. This can lead to significant delay and complex inter-family loans to get the matter resolved and the property transferred to the heir. In extreme circumstances, it can lead to the property being sold, if for example there are many and significant creditors who seek repayment.

There are insurance policies that are payable outside the estate to people other than the residuary heir. This is common practice, as insurance can pay out quickly after death, and as there is a misconception that paying the proceeds to a nominated person outside the estate will save on executors’ fees. It can also be good practice, but not if it leaves the estate without cash to settle debts. To alleviate this problem,


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the individual can conduct a simple liquidity analysis on a regular basis and negotiate with the executor that no fees will be recovered on the policy payment to the estate. This should be recorded in the will.

There are insurance policies that do not pay out. Although not frequent, this can happen for many reason such as premiums not kept up to date, incorrect statements made on the application form or during a switching of service provider if not carefully monitored.

People assume that their pension will pay a capital amount to their estate or a person nominated in writing to receive the benefits. Pension fund money does not form part of the estate and the proceeds are regulated by section 37C of the Pension Funds Act. By nominating a beneficiary to your pension, this will not necessarily ensure that the payment will be made to that person. If the deceased is survived by dependants as well as the person they nominated to receive the benefits of the pension fund, the benefits payable will be paid in such proportions as the fund’s board of trustees decides is equitable. The position is slightly different in the case of living annuities, but this is a complex area and needs review

estate planning by an appropriately qualified financial planner. In practice, this means your pension will not necessarily form part of your estate and there may therefore be a cash shortfall.

Unplanned debt.

A quick check list for your client: • • •

There are quite a few costs associated with death that an individual may not take into account when determining if they have enough liquidity (cash to settle debts) on their death. These could be capital gains tax, estate duty, outstanding rates and taxes, the requirement to pay several months of rates in advance to obtain a rates clearance certificate, property transfer costs, executors’ fees and the like. It is good practice to run through these costs and understand them and their impact. For example, have you discussed the costs of administering your estate with your executor? Have you agreed a fee and recorded it in your will?

Release from surety for business debts. It is quite common for people to assume that the business entity, be it a CC or company, is a separate legal entity and the debts due by it are limited to the business itself. Often this is not the case. When providing finance for example for vehicles in use by a business, people often forget that they signed surety in their personal capacity on the debt. On death, the executor is required to obtain release from the suretyship that is in place between the deceased, the company and the finance house.

Transactional debt.

• • •

 nderstand the above implications and U plan ahead. Determine if your credit facilities have credit life cover. If so, what are the costs? If appropriate, ensure that insurance policies are paid into the estate to the extent required. Also discuss the exclusion of executors’ fees on the policy proceeds with your intended executor. Negotiate executors’ fees and record it in your will. Do a liquidity analysis when preparing your will. Understand the implications of signing surety for anyone and the impact it can have on your estate. Be aware of the implications of unpaid rates and outstanding bonds on your fixed property, if you were to die today. Is there sufficient cash in your estate to pay the debt? Can your heir qualify for finance to take it over? When making bequests of money in your will, make sure there will be sufficient cash left over after settling debt, to meet the legacies.

FISA is a non-profit organisation that represents practitioners in the fiduciary industry and sets high minimum standards to protect the public’s interests. Activities of FISA members include but are not restricted to the drafting of wills, administration of trusts, beneficiary funds and estates, tax and financial advice and the management of client funds. FISA has 700 individual members who collectively manage in excess of R250 billion. Membership is open to any professional who meets the membership criteria.

In the current economic environment, there is a growing reliance on using debt to fund living expenses. With credit freely available, there are many estates where the credit cards and overdraft facilities have been exhausted, and require repayment on death. In some cases, there is credit life cover in place, which settles the debt. In this case, the payment is not an asset in the estate, no executors’ fees are payable on the amount received and the debt is fully paid.

Medical and last illness expenses. These can be substantial. Medical aids often pay a majority portion but there are people without medical aid and procedures that exceed medical aid tariffs, leaving unexpected costs to settle. The unintended consequences of the above, if not planned for, can lead to assets being sold to settle debt, at a time which may not be opportune (the asset values may be in a low value cycle like house prices at the moment).

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The metamorphosis of Momen Momentum’s rewards programme, Multiply, went from strength to strength this year. In June 2012, it completed a successful rebranding and recently announced some exciting new partners and benefits that will be added to the programme in 2013 to the benefit of nearly 110 000 members. “At Multiply, we constantly look at who our members are, what their needs are and what products will benefit them most – which is why we recently refreshed our brand. The rebranding with all its design elements and its new identity represents an active brand, a rewards programme that is vibrant and exciting, with wellness underpinning the programme,” comments Kevin Letord (Head: Retail Insurance Marketing). Multiply’s branding metamorphosis called for a makeover of the programme’s online home as well. The aim of the new Multiply website is to create an online platform with optimal functionality, where members can find what they are looking for at the click of a button. Most importantly, the website uses plain and simple language, so it’s easy to navigate and easy to understand. The new site has also been incorporated into the Momentum website, so members looking for more information on other Momentum products will find it easily. Before logging onto the website, visitors and Multiply members will find information on the philosophy of the programme and how it works. After logging in using a unique username and password, Multiply members have access to personalised information about their membership, such as Multiply points earned and status. Very soon, members will be able to see a summary of their savings for the calendar year. Plans are also in place to include a summary of the savings from HealthReturns (Momentum Health members) and Momentum Interactive (Myriad policyholders). The website will also incorporate a new online shopping portal. By visiting, Multiply members will have easy access to all the online shopping partners. They can browse the items on offer, see how much they will pay based on their Multiply status and conveniently place their orders online. The online shopping portal will be competitive with other online shops and even more user-friendly to ensure a great user experience. Part of the new electronic communication is personalised introductory emails that will be sent to all new Multiply members. “The main objective of these emails is to encourage Multiply members to get started on the programme and to ensure they get the most out of it. Customised for single and family members, it explains how to register on the website and navigates them through the programme in ‘bite size chunks’. It gives handy, practical tips on the different ways they can

earn points and improve their status and also reminds them of Multiply’s many health, lifestyle and leisure rewards and explains how to use key partners,” comments Letord. Multiply will also be welcoming a variety of new partners and benefits in January 2013. “Avis Car Rental, the City Lodge Group, TicketPros and Woolworths vouchers will join the programme and Apple, Bryton, Jenna Clifford, HP, Nintendo, Nikon and Samsung will be added to Multiply’s online shopping portal. The Dis-Chem benefit has been enhanced and now gives members up to 25% back (was 16.5%) in Dis-Chem benefit points on their benefit card on selected Dis-Chem branded and nutritional products,” comments Letord. “The addition of these benefits will give Multiply members even more choice and value.” Below is a brief explanation of the new Multiply partners and benefits.

Travel •

Avis Car Rental - Multiply members receive from 15% to 40% discount on Avis car rental in any category, according to their Multiply status.

City Lodge group - Multiply members get from 25% to 45% discount on room rates at Courtyard Hotels, City Lodge Hotels, Town Lodge Hotels and Road Lodge Hotels (standard 10% across all statuses).

Online shopping •

Apple - Multiply members get up to 20% off selected Apple products, up to 15% off iPads and up to 40% off selected Apple approved accessories. The discount depends on their Multiply status.

Bryton - Multiply members can get from 20% to 40% off selected Bryton products. The discount depends on their Multiply status.

Jenna Clifford - Multiply members get from 10% to 20% off selected Jenna Clifford products, depending on their Multiply status.

HP - Multiply members get up to 15% off selected Hewlett Packard notebooks, monitors and mobiles and up to 20% off printers and accessories.

Nikon - Multiply members get from 20% to 40% off selected Nikon products, depending on their Multiply status.

Nintendo - Multiply members get up to 15% off selected Nintendo hardware and up to 40% off selected software and accessories. The discount depends on their Multiply status.

ntum Multiply •

Samsung - Multiply members get up to 15% off selected Samsung notebooks, monitors and mobiles and up to 20% off Samsung printers and accessories.

Woolworths -Through a voucher system, Multiply members get from 5% to 10% discount on purchases at Woolworths, depending on their Multiply status.

Events •

TicketPros - Momentum recently announced that it is the new official single-title sponsor of One Day International (ODI) cricket as well as One Day Domestic (ODD) cricket. By visiting, Multiply members will get four free tickets for the grass embankment (family) area at all ODD matches. In addition to the free tickets, they can save up to 80% on additional grandstand or Castle Corner tickets for ODD matches, depending on their family composition and Multiply status. For tickets to ODI matches, they can save up to 50% on their grass, grandstand or Castle Corner tickets.

In addition, when taking out a new Myriad policy, Multiply members who are non-smokers with a healthy Body Mass Index (BMI) of between 18.5 and 30 will qualify for immediate Silver status. This entitles them to an immediate guaranteed 15% discount on their monthly life insurance premiums. This limited special offer is valid from November 2012 until the end of February 2013. The Multiply Silver status is guaranteed until the end of 2013. “Our new partners, benefits and special offer are just some of that ways we are helping our members on their way to a healthier life and financial wellness,” explains Letord. Multiply is now close to 110 000 members that enjoy its rewards. This milestone would not have been possible without the support from financial advisers. For this reason, Multiply is also offering a commission special where financial advisers can get full commission when selling Multiply to their existing clients. The normal 20% of API will be increased to 85% of API for business loaded during November 2012 until the end of February 2013. This means commission of up to R1 825.80 (including VAT) per contract. “During the past year, Multiply went from strength to strength. We are looking forward to an exciting 2013!” Letord concludes. For more information on Multiply, please visit

Demarcation must protect consumers Michael Settas, managing director of Xelus Specialised Insurance Solutions

Alongside prescribed minimum benefits (PMB) and issues around tariffs, the demarcation debate was a hot topic on the medical front in 2012. And it promises to remain on the table in 2013.

However, Michael Settas, managing director of Xelus Specialised Insurance Solutions, says that following an avalanche of responses to National Treasury after it published the draft demarcation regulations in March 2012, there now seems to be a vacuum of any form of policy direction being taken on the matter. Treasury’s Demarcation Regulations came under heavy fire from the health insurance industry and consumers for being a flawed and overly simplistic approach to separating the business of medical schemes from that of health insurers. “Essentially, the regulators painted all health insurance products with the same brush, ignoring the needs of medical scheme members who would be exposed to the inherent gaps in their medical aid cover if the regulator got its way by doing away with gap cover insurance products,” says Settas. Settas explains that the regulators claim that gap cover products influence the risk pools of medical schemes. “However, it was clear that they had not applied their minds nor understood the dynamics of the relationship between gap cover and medical aid. Gap cover products do not compete with schemes; rather they complement the cover provided by schemes in order to provide an overall solution to consumers,” he says. “Without providing any workable solutions as to how Treasury would address shortfalls faced by medical scheme members, and without any


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measure of public consultation on the matter prior to the publication of the draft regulations, it now seems that National Treasury has retreated to reconvene on the demarcation issue.” Settas hopes that alterations will be gap cover-friendly and says that after it was exposed that the drafting process was not inclusive, Treasury must be mindful of the fact that it will have to engage extensively before reaching any finality on the matter of defining the demarcation boundaries.

“Gap cover products do not compete with schemes; rather they complement the cover provided by schemes in order to provide an overall solution to consumers.” “Treasury’s primary foundation for its argument is that gap cover products caused harm to the medical schemes industry, but it has yet to produce any proof or evidence supporting this allegation,” says Settas. In the interim, representative bodies have called upon National Treasury to appoint an independent commission to undertake a quantitative study that will bring clarity to the

healthcare assertion of harm. Only once such a study has been undertaken, can the claims of harm be adequately and appropriately addressed within the framework of future demarcation regulations. Such a study will also further validate the rationale behind the demarcation regulations, which from inception, says Settas, have regrettably been predicated on idealistic conjecture and misapprehension.

Impact on consumers A predominant concern from the gap cover industry regarding the sentiment behind the draft regulations is the disregard of the impact it will have on consumers. In an ideal world, all consumers would prefer to belong to medical schemes that comprehensively insure them against all their health costs. But the reality is that most medical scheme options are simply not able to provide such cover. Some medical schemes acknowledge that gap cover products provide consumers with affordable and important protection for certain health needs; however, they rightly maintain that health insurance products in general need to be more clearly marketed and sold. Since medical scheme cover is unaffordable to many consumers, certain cheaper health insurance products have emerged that compete directly with schemes. Since schemes are prohibited by the Medical Schemes Act from underwriting their members whereas health insurers are able to charge risk-related premiums or even decline cover, they have a distinct price advantage over medical schemes which could certainly cause harm to the medical schemes industry. Clarity is needed on the matter, providing adequate protection to both medical schemes and health insurers. “While it is acknowledged that the principle of protecting South Africa’s medical scheme sector is desirable, there is misinformation being provided to consumers and stakeholders, in particular regarding gap cover products,” continues Settas. “The published misinformation needs to be clarified in order that robust and fair debate can be undertaken on the merits of the draft Demarcation Regulations and the subsequent impact they will have on consumers. The consultative process going forward must address a viable solution for consumers.”

“Treasury’s primary foundation for its argument is that gap cover products caused harm to the medical schemes industry, but it has yet to produce any proof or evidence supporting this allegation.”

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Responsible investing: more

than just returns Brad Preston, Portfolio Manager, Mergence Investment Managers

Contrary to popular belief, responsible investing may yield more impressive returns and lead to a lower cost of capital. Conceived as investment into companies that embed environmental, social and governance (ESG) factors into their business operations, responsible investing will succeed in South Africa only if investment managers can demonstrate to end investors that socially responsible investing (SRI) funds can outperform their benchmarks and traditional investment funds. An investment manager’s role is to help provide for the future welfare of investors by striving to maximise the returns on their savings and retirement investments. It is important to remember that those savings will be enjoyed by investors within a broader environment. If a member’s retirement fund is invested in companies that have a long-term negative environmental or social impact on the broader society, this could reduce the value of their retirement savings as any such negative impact needs to be seen as an indirect tax on society as a whole.

But how do we invest responsibly and still generate good financial returns? While it is important to incorporate ESG considerations into the investment process in general, investment in specialist socially responsible funds is important for a number of reasons. Firstly, specialist SRI funds may often invest in unlisted securities and a broader


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range of securities than traditional equity or bond funds, thus broadening the universe of investments that a manager can consider. Secondly, SRI funds allow investment into funds that actively seek out and promote businesses that have an explicit positive social impact in the listed universe. For example, the Mergence High Impact Debt Fund invests in unlisted debt securities and as a result is able to invest in businesses that provide education loans, low-cost housing, entrepreneurship, job creation, and the like. It is often difficult to find investments that have a comparable social impact if restricted to the listed universe. Of course a large portion of any pension fund’s assets will be invested in listed securities. However, it is important to measure and target ESG performance in this universe. Specialist ESG funds allow asset owners to explicitly mandate ESG objectives and thus elevate them to the same level of importance as financial return within the fund. This allows asset owners to measure the ESG performance of their investments and to incentivise investment

investments managers to take these objectives seriously. As long as manager performance is measured and mandates are awarded solely on financial performance, managers will favour return considerations. Furthermore, as long as corporate management is primarily incentivised based on shareholder return, this will dominate and drive their decision-making. In order to ensure that the goals of sustainability – with the emphasis on ESG here – are realised, interests need to be aligned throughout the asset management chain, from asset owner to investment manager to corporate management. Accordingly, investment managers’ reporting roles need to be broadened and enhanced. Trustees must monitor ESG performance by demanding the requisite information as part of manager reporting requirements. Again this can be prescribed or mandated within a specialist ESG fund. This will ensure that ESG matters are explicitly incorporated as part of the investment process of investment managers. With the necessary initiative and pressure from asset owners and their asset managers, this in turn will encourage corporate managers to measure and publish environmental, social and governance metrics. An example of how direct ESG-oriented investment has resulted in increased measurement and disclosure of ESG factors is seen in the work of the carbon disclosure project (CDP). The CDP is a global initiative to encourage measurement, disclosure and ultimately reduction of greenhouse gas emissions by listed companies throughout the world. When the CDP launched in SA in 2007, the top 40 largest companies on the JSE were requested to disclose information about their green house gas (GHG) emissions. In the first year, only 27 companies responded to the request. In the 2011 CDP report, 83 of the top 100 South African companies responded, giving South Africa the second-highest response rate globally among the 60 countries participating in the global CDP initiative. This clearly illustrates that the role of an asset owner and investment manager needs to be broader than merely allocating capital among different investment opportunities. Shareholder activism is an important fiduciary role of an investment manager.

Long-term perspective needed It has to be recognised that the average holding period of stocks by institutional investment managers has tended to decline, especially due to short-term performance pressures from investors. This higher level of turnover in portfolios reduces investment manager ability and incentive to engage with company management as active shareholders. If a manager is generally holding a company for a few weeks or months, they are less likely to engage with management on ESG issues. Further, if corporate management presumes or knows you are not going to be around in a month’s time, they are less inclined to act on your ESG recommendations or demands. End investors can have a positive influence in this regard by taking a long-term view on investment managers when placing funds. Managers who understand that their clients will afford them a longer time horizon to generate returns will be more comfortable to take long-term views on the stocks that they invest in, which will in turn incentivise them to play a more active role in the companies that they hold. Investments made on the basis of ESG factors in particular, often need a longer holding period to manifest. The risks and consequences of poor environmental behaviour, exploitative labour practices or weak corporate governance practices, may take years before they manifest in a company’s earnings or share price performance, but when they do the impact can be significant.

“Specialist ESG funds allow asset owners to explicitly mandate ESG objectives and thus elevate them to the same level of importance as financial return within the fund.” Another way to approach the problem of short holding periods is by targeting ESG considerations and active shareholding through low tracking error funds. This means that the funds will have a lower stock turnover and longer holding periods, allowing managers to use their position as shareholders to promote ESG issues. It is a natural reaction for clients to think that they will need to give up some financial return if they are to take ESG issues seriously in their funds. Fortunately, the evidence seems to indicate that this is not necessarily the case. A 2012 report by Deutsche Bank climate change advisors, surveyed over 100 academic studies of sustainable investing from around the world, concludes that ESG factors are correlated with superior risk-adjusted returns and that 100% of the studies showed that companies with high ratings for ESG factors have a lower cost of capital. Furthermore, 89% of the studies examined showed that companies with high ratings for ESG factors exhibit share price outperformance. Contrary to intuition or assumption, this is strong evidence that investors should actually be favouring ESG-focused funds as these funds are exposed to factors that will help them generate superior performance over the long term. While responsible investing is still young and much work needs to be done, there is a strong argument from both a financial and ethical perspective for investors to consider allocating a portion of their investments to products that explicitly target ESG considerations.

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Gear up for the 2013 FPI Financial Planner of the Year Competition “When building your practice, clients need to trust in your ability. The award leads to better quality new business, while anchoring your existing clients, who gain more confidence in you as a result. The award helps to expand your network with industry leaders, too. Learning from them by engaging on various platforms has already been very valuable.” Jan-Carel Botha, CFP®| 2012 FPI Financial Planner of the Year

for the Financial Planning Institute’s 2013 Financial Get ready Planner of the Year Award, the highest accolade a professional financial planner can achieve. This annual award, sponsored by Personal Finance, recognises the top professional financial planner in the industry. With entries officially opening only in January 2013, interested applicants are urged to prepare their portfolio of evidence, consisting of detailed financial plans, now. The competition is open to FPI members and is made up of the following three rounds: Round 1 – Submission of the entry form (to be available in January 2013) together with a portfolio of evidence. The scoring will be based on the content and must include the six-step financial planning process, which will be marked by an independent panel of judges. Round 2 – Panel site visit: the entrant’s business will be assessed on all aspects of compliance, practice management as well as all client documentation and financial planning processes. The financial plans submitted in round 1 will be authenticated during the site visits. Round 3 – Panel interview: finalists will be required to present to a panel on a selected topic and are questioned on a variety of industry trends, topics, technical information and legislative changes. Within each round, applicants are able to demonstrate their talents and abilities to the highest degree to qualify to go through to each and every round. Don’t wait until the entries officially open; get all your documents ready now. Contact FPI’s team at or contact the FPI on (011) 470-6050 for further information.


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How does the exemption of CPD by BN163 of 2012 affect FPI members? The Deputy Registrar of Financial Services Providers, GE Anderson, exempted financial services providers, key individuals and representatives from meeting the Continuous Professional Development (CPD) requirements as set out in the Determination of Fit and Proper Requirements for Financial Services Providers, 2008, until further notice. BN163 of 2012 states everybody is exempted until a date determined by the Registrar. The FPI expects that the CPD requirement will be published in 2013 and that the earliest date that CPD would become reportable to the Financial Services Board (FSB) would be July 2013. This exemption does not have any implication for FPI members. The FSB CPD requirements should not be confused with FPI CPD requirements, and meeting the 65 CPD points is a prerequisite for re-certification and this will not be wavered. The FPI has an obligation to foster a commitment to life-long learning and development among its members. Professional development is a cornerstone and a key component of professionalism.

FPI professional members should thus not in any way stop accumulating CPD points as FPI members are not exempt from the FPI certification requirements and as such will still need to accumulate 65 CPD points by December 2013. FPI is further committed to enable its members to accumulate CPD points through a variety of different CPD activities and platforms. It is for this reason that e-CPD for FPI members was launched earlier in 2012 and FPI is certain that those members who have already earned CPD this way, will agree it is a very convenient route to earn CPD points. The FPI has also approved some publications for CPD points. Look out for the following logo on the cover sheet of magazines and journals indicating the amount of points an FPI member can claim for reading from a specific issue. Furthermore, the FPI Certification Department approved over 200 CPD programmes from various training providers, product houses, financial services providers (FSP) and compliance companies since it started to manage the approval of CPD events at the end of August 2012. A sizable portion of these are advertised under the Events Calendar on the FPI website.

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FPI releases the pro bono paper and promotes financial wellness “The need for effective financial planning information and guidance for all South Africans has never been greater than it is today,” says Godfrey Nti, CEO of the Financial Planning Institute (FPI). He says many people still have the wrong perception that financial planning is the exclusive domain of the wealthy. For our country to achieve the sustainable economic growth and social upliftment it needs, all our citizens need to be equipped with the specific financial knowledge, understanding and tools to transform their current situation and create their own, self-sufficient and financially secure future. This is what the recently released FPI pro bono paper, ‘Skills-based Volunteering: The mark of true professionalism’, addresses. It doesn’t matter whether the ability to create that future requires knowledge of global investment markets or just the basic skills needed to draw up a household budget. What matters is that every person has access to the specific financial knowledge they need to change their lives for the

better. To this end, the FPI is set to embark on a journey of community service or pro bono work which it considers an important component true professionalism. The institute believes professional financial planners have a moral imperative to contribute to the transformation of South African society. This paper explains that professional financial planners, given the financial training and insights, are equipped to not only offer remuneration-based financial planning expertise to those who want to increase or protect the wealth they already possess, but also to offer hope and guidance to those who need to achieve even a small measure of personal financial empowerment. To provide pro bono opportunities for professional financial planners, the FPI has introduced the following key initiatives: •

 YMONEY123 – These basic M financial literacy workshops are aimed at the broader South African community and offer individuals, employees and

members of church or social groups the knowledge and tools they need to have a better understanding of their finances and a basic knowledge of how best to manage them from month to month. Financial planning clinics – This programme will be open to all South African consumers and involves one-on-one consultations with professional financial planners to offer guidance and information about any aspect of the individual’s finances or financial management. Student career days – FPI members have the opportunity to share their passion for financial planning as an equally rewarding profession with high school learners and students, thus helping the profession to compete for talent.

Download a copy of ‘Skills-based Volunteering: The mark of true professionalism’ and read more about the value of giving back and the benefits of pro bono or e-mail

“What matters is that every person has access to the specific financial knowledge they need to change their lives for the better.”


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FPI one of the first to be recognised as a professional body by SAQA

“This move provides a new and important avenue to advocate for the profession at the global level.”

The Financial Planning Institute (FPI) is pleased to announce that at its recent meeting, the board of directors of the South African Qualifications Authority (SAQA) approved FPI’s application for official recognition as an independent voluntary professional body in accordance with the NQF Act 67 of 2008. The SAQA board of directors further approved registration of FPI’s designations on the National Qualifications Framework. FPI is very pleased with this approval, especially because it was successful in its first attempt and also because it is among the first set of professional bodies to be officially recognised. This is definitely an important milestone for the FPI and indeed all other bona fide professional bodies in South Africa that are committed to upholding the highest practice standards in their respective professions. This approval is a culmination of over seven years of advocacy on the part of FPI and many others for official recognition for the professional body model, as well as professional designations, in a similar way that SAQA recognises qualifications.

“This approval by SAQA certainly gives us the mandate to engage the Financial Services Board (FSB) and National Treasury in this respect.” It is also a great ground-breaking moment for the institute, something that was envisioned more than 30 years ago when the then Institute of Life and Pensioners Advisors (ILPA) was constituted. It was FPI’s intention to bring professionalism into the financial services arena and it has always worked tirelessly to gain recognition for financial planning as a distinct profession. The institute further hopes that the rigid recognition process put in place by SAQA will pave the way for regulators and policymakers in the financial services sector to define and set policies for the role of professional bodies in the sector. “This approval by SAQA certainly gives us the mandate to engage the Financial Services Board (FSB) and National Treasury in this respect,” said FPI CEO, Godfrey Nti.

FPSB joins IOSCO’s SRO Consultative Committee, boosting FPI’s effort on the recognition of financial planning The Financial Planning Institute’s status as a standard-bearer for the financial planning profession in South Africa has been bolstered with the announcement that Financial Planning Standards Board (FPSB), the international financial planning standards-setting body to which it is affiliated, has been approved as an affiliate member of the International Organisation of Securities Commissions (IOSCO). IOSCO is an international standards setter for securities markets. Its membership, consisting mainly of statutory regulatory bodies from over 100 jurisdictions around the world, regulates more than 95% of the world’s securities markets. South Africa’s nonbanking financial services industry regulator, Financial Services Board, is a member of IOSCO. The FPI is a founder member of the FPSB which owns the international CERTIFIED FINANCIAL PLANNER® certification programme managed locally by the FPI. One of FPI’s stated objectives is to ensure that financial planning is recognised by policymakers and regulators as a distinct profession and that professional financial planners are widely respected as expert practitioners in the industry. As a SAQArecognised professional body, the institute has been persistently advocating for the recognition of financial planning as a distinct profession to regulators, with the CFP® designation as its symbol of excellence. This move provides a new and important avenue to advocate for the profession at the global level. Through FPSB, FPI looks forward to working collaboratively to shape appropriate regulation, oversight models and standards for the financial planning profession at the global and local levels.

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FPI Financial Planning Week a success The increasing need among South Africans for good financial planning was highlighted once again at this year’s Financial Planning Week. An initiative of the Financial Planning Institute (FPI), it was held from 26 to 30 November and successfully reached out to thousands of South Africans.

sound advice, which enables him to draw up a financial plan that clearly defines present and future needs and opens the gateway to financial freedom,” says Paul Roelofse, CFP® and consumer advocate at the FPI.

2012 marked the third year that the event has taken place. With the aim of reaching out to consumers, CERTIFIED FINANCIAL PLANNER® professionals offered free consultations to enable members of the public to take control of their financial situation.

This year’s campaign saw CFP® professionals opening their practices to the general public for free financial guidance. They were further based in malls across Gauteng, Cape Town and Durban; where shoppers were able to access the financial planning information as well as ask questions that CFP® professionals could provide answers to.

“Each year, the event highlights the growing demand for the man on the street to get

“To get consumers’ attention, we added a little financial flavour this year and had

The Financial Planning Institute of Southern Africa (FPI) has announced the appointment of Ntai Phoofolo, CFP®, to its board of directors, with effect from 29 November 2012.

FPI welcomes Ntai Phoofolo as a new board member


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Phoofolo is an advocate of the High Court of South Africa, who obtained his LLB, LLM (international law) and advanced postgraduate diploma in financial planning from the University of the Free State (UFS). He is a CFP® professional and currently serves as a business development manager at Investment

flash mobs out in full force to promote the activations,” says Godfrey Nti, FPI CEO. “It worked wonderfully and we look forward to making 2013 an even bigger, better campaign to enable financial freedom for as many South Africans as possible. “On behalf of the FPI, I’d like to thank the CFP® professionals who opened their financial planning practices to the public during the Financial Planning Week and to members who volunteered to assist the FPI in manning the stands during the mall activations, offering free and trusted financial guidance to ensure that consumers get the consultation experience, as well as the proper coaching, to kick-start their financial planning.”

Solutions. Phoofolo has previously worked as a legal specialist at Momentum Wealth and specialist legal adviser at Old Mutual. Commenting on his appointment, Phoofolo says he looks forward to working with the board to further the position of the FPI as a leader within the industry. “We are fully confident that Ntai will do exceptionally well during his term of service,” adds Prem Govender, CFP® and chairperson of the FPI.

practice management

Good SLAs vital in current environment Richard Rattue, managing director of Compli-Serve

expectations between the client and the provider, helping define the relationship between the two parties. It is the cornerstone of how the service provider sets and maintains commitments to the client and is essentially a binding contract. An SLA incorporates clearly defined undertakings and deliverables, thus reducing the chances of disappointing a client. Under the FAIS general code, it’s important to ensure that the relationship with the client is documented to an extent that both parties are aware of their duties and obligations to each other. The SLA is a two-way street and allows the provider to set out what they expect from the client, for example, through disclosure, reading the documentation supplied, or by informing the provider on any change in financial circumstances. A good SLA should address the following key aspects:

Not only are advisors facing an ever-mounting barrage of legal and regulatory requirements, they are also experiencing increasingly assertive clients, ready and willing to lodge complaints with the ombudsman. In this environment, having clear service parameters in the form of a properly drawn up service level agreement has become imperative.

• What the provider is promising. • How the provider will deliver on those promises. • Service costs. • How delivery will be measured. • Limitations of use by the consumer of the service. • What happens if the provider fails to deliver as promised. • How the SLA terms may change over time.

Complaints occur when there is an expectation gap and being able to deliver to your clients is a key to success.

The challenge for a smaller financial services provider (FSP) is to get the relationship right between what is promised and the FSP’s resources. An SLA cannot be created in a vacuum and must be designed with the available infrastructure and resources in mind. Obviously, a

A well-prepared service level agreement (SLA) sets out the

relationship exists between what is promised and the costs involved. It is advisable to use a segmented service model. Some clients need higher levels of availability and are willing to pay more. They would have various spheres of service incorporated into the SLA. As the services and offerings of the Financial Services Board change, the SLA may change to reflect the improvement and/or changes. The SLA should be reviewed every six months and updated accordingly, and the customer should be asked to review and approve the changes. Segmenting service offerings with different pricing for different service levels benefits both provider and client, in that the provider widens its target market and the customer pays only for what they need. Key performance indicators come into play when assessing how a quality improvement process can be integrated. By tying a problem resolution process to an SLA, improved customer service satisfaction stays a clear objective. As an SLA links the client requirements to infrastructure requirements, it creates the ability to link service levels to service cost, and as a result profitable pricing can be set. An SLA sets the standards to which the FSP is committed, and as a result a set of common goals can be managed and measured for both parties. Further, consulting a professional to draft an SLA is the best option. When creating an SLA, you must keep the agreement simple and measurable, set realistic goals and keep penalties limited to serious offences.

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Future of life insurance industry is changing The rising demand for insurance products in emerging markets in Africa, Asia, the Middle East and South America has led to almost 50% of insurance industry leaders seeing emerging markets as more important than developed markets to their company’s future, according to a PwC report.

The report, entitled ‘Life Insurance 2020: Competing for a future’, was conducted between 150 life and pension executives. The executives were asked to comment on the effect and likelihood of a series of social, technological, environmental, economic and political situations, as well as setting out their short and medium-term priorities. Victor Muguto, PwC long-term insurance leader for Southern Africa, believes the old adage that insurance is sold, not bought is being challenged. “As customers use the Internet and their own social networks to gain knowledge about the kind of products they need and use technology to determine the affordability and worth of insurance products, life insurers will need to adapt accordingly.” The study supports the nearly 50% of industry leaders who are looking towards emerging markets as life insurance is a shrinking market in some countries such as America, where the number of life policies is lower than it has been for 50 years. The demand for pension products in the emerging markets is likely to catch up with the west as health improves and consumers live longer. As people live longer and government and employer support is withdrawn, there is a need to save more for retirement. Life insurers are likely to make significant changes to their business models over the next 10 years. The cap on financial advisors’ fees in many countries and the planned elimination of commission for advisers in the UK will bring the value policyholders receive from these changes into the spotlight. Furthermore, technology will have an increasing influence over the way in which insurance is purchased in the future, states the report.


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practice management The traditional life and pensions model in which policies are sold through intermediaries receiving a commission from the provider still prevails in China, India and many other South America, Africa, Asia and Middle-East (SAAAME) markets. More than 80% of the executives in the study believe that intermediaries in the future will become less tied to insurers as adviser commissions are withdrawn in some markets and customers seek greater impartiality. This could leave life companies with little direct contact with the customer and put further pressure on margins. The report also found that half of insurance leaders believe that a combination of inflation, rising government debt and economic turmoil threatens the business of smaller insurers, particularly those in western markets. “Insurers, particularly smaller ones in Western markets, need to be brave enough to look beyond the short to mid-term problems facing their businesses and position themselves for the future. That means mapping the potential impact of social, technological, environmental, economic and political change. The amount of information and change out there is overwhelming but getting to grips with what the life insurance sector will look like in 2020 will help define a vision for the future,” says Muguto.

issues. Finding a vision for the future that responds to some of the new macro trends will help demonstrate the value and purpose of insurance and also have a significant impact on how the industry is perceived,” Muguto concludes.

“The effective use of technology by insurers is going to be a crucial factor. Consumers have become accustomed to the ease, intuition and elegance of digital retail interaction and want the same experience from life insurers.”

“The effective use of technology by insurers is going to be a crucial factor. Consumers have become accustomed to the ease, intuition and elegance of digital retail interaction and want the same experience from life insurers. As smartphones and other mobile devices proliferate, customers will increasingly demand to be able to buy what, when and where they want. Insurers need to look at how best they can use technology to assist their customers and consider simplifying products so that customers feel comfortable buying from them. “There is no certainty that existing players will be in the best position in five years’ time; indeed, with technology set to have such an impact, unwieldy legacy systems in many life companies could put them at a competitive disadvantage. There is, however, a great opportunity for life insurers to play a part in resolving current

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practice management

Budgeting for good business Mimi Pienaar, Head of Business Development at Masthead

Your projected cash flow projects your future cash position on a month-by-month basis. Budgeting in this way is vital for small businesses as it can pinpoint any difficulties you might be experiencing. The revenue/sales forecast indicates the monetary value of the services your business thinks it will need to deliver, where it hopes the income will come from and how much money your business still needs to find to meet your targets. It is typically based on a combination of your sales history and how effective you expect your future marketing efforts to be. The expected costs will list where you intend to spend and what you intend to purchase. There are three categories of cost: fixed costs – for expenses such as rent, salaries and financing costs; variable costs – such as telephone costs; and once-off capital costs – for purchases such as computer equipment or premises.

Success should not just be measured by how much money your independent financial advice business makes, but the correlation between your business income and expenditure. The key to determine your level of business success lies in your budget. In a nutshell, a budget is a tool that helps you to effectively manage your money, allocate appropriate resources to projects, monitor performance, meet objectives, improve decision-making and identify problems before they occur. Your budget should indicate your projected cash flow, a revenue/sales forecast and the expected costs for the year ahead. Additional information may be included in your budget, depending on the needs of your business.


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By referring to your budget throughout the year, you can avoid overspending, and you can spend in line with your business goals. Also, by knowing your expenses, you will see how much income your business needs to break even. Your staff members should be aware of how much money is available for their specific contribution to the business. This helps them to understand what your work costs and they can operate and deliver within their allocated budget. Although there are no set rules on how to draw up a budget, it should be comprehensive. The more detail you include, the easier it is to use your budget as a financial management tool. Your budget should contain enough information for you to easily monitor the key drivers of your business, such as revenue, costs and working capital. Set aside enough time to prepare your budget. Involve staff members who have financial responsibilities, as they can provide accurate

estimates or obtain quotes on office expenses, administration and other related costs. By balancing their estimates against your own, you can achieve a realistic budget. Historical information may indicate future sales and costs, so figures from your past year are a useful guide. Also take into account your business plan and any changes in operations or priorities to budget for overheads and other fixed costs. Your forecast will differ to historical data if your marketing plans, resources or the competitive environment has changed. By working out the relationships between the key drivers, you can more accurately budget and forecast figures. For instance, by identifying the relationship between obtaining new business and your variable costs, you can use your revenue/sales forecast to project variable costs. If for instance you note that you can reduce your cost of generating revenue by 10% simply by meeting clients at your office, you can easily work out how much you would save by scheduling 50% more meetings at your office. Using your income and expenditure forecasts, you can also project profits for the next 12 months. This will enable you to analyse your margins and other key ratios such as your return on investment. To use your budget effectively, you will need to frequently review and revise it. This is particularly apt if your business is growing and you intend to move into new areas. Using an up-to-date budget enables you to be flexible, lets you manage your cash flow and identify what needs to be achieved in the next budgeting period. Ideally, the budget year should coincide with the financial year. As a good rule of thumb, allow yourself three months before the next financial year to plan your new budget. This means that if your financial year starts on 1 March, your budget planning should be well underway.


Is severe illness an enrichment benefit? Hesta van der Westhuizen, CFP®, Financial Planner at Consolidated Financial Planning, an FPI Approved Professional Practice™ and Chairperson of the FPI’s Risk Industry Sector Group (ISG).

There is an argument currently being bandied about that to insure a person for the financial consequences of a severe illness or dread disease is not essential and that it could be seen as an enrichment, especially as even a serious illness might not define a person as being disabled, unable to continue working and earning an income.

The beneficiaries of the nearly R1 billion paid in 2011 by the major insurers to sufferers of severe illnesses would probably disagree with anybody claiming it to be an enrichment benefit, with the implication that they did not need the money or that their illnesses did not cause any financial impairment. However, it might be a good idea to argue how severe illness benefits fit into a client’s financial plan and what kind of risks it mitigates which, if not covered, could lead to a person’s financial ruin.

History of severe illness benefits Severe illness or dread disease cover has been around for about 30 years after Dr Marius Barnard developed the benefit in 1983. While starting out as a benefit providing capital in the event a person suffers a heart attack or stroke, contract cancer, become blind or paraplegic, the scope of the benefit has changed substantially. Clients can now select to be covered for only the major illnesses or a range

of minor illnesses (as many as 80), or even for illnesses not yet known. They can decide if they want to have the benefit paid according to the severity of the condition or in full when they suffer one of the major illnesses. Multiple claims – when the client suffers more than one serious illness either related to the original condition or not – is treated in as many different ways as the product providers offering the benefit.

How much severe illness cover is appropriate? Unlike death and disability cover where financial planners have sophisticated analytic tools to determine how much cover a client should have or guidelines such as the 75% rule for income disability cover; this is not the case with severe illness benefits. It therefore seems to be a bit of a thumb suck exercise and could be a factor of affordability. So how does a financial planner determine if the benefit amount proposed is appropriate and will not leave the client under insured (or over insured, in which case it can be seen as an enrichment benefit)? Firstly, one should address the reason for the cover: is this to supplement the client’s medical aid pay-out? Is it to supplement a salary if the client has to take unpaid leave to undergo treatment? Is it to provide income

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for a recovery period when the client would not necessarily qualify for the payment of their income disability or sickness benefit (not defined as disabled, not booked off long enough to qualify for sickness)? Is it to provide capital to enable the client to exercise other lifestyle options if they suffer a heart attack or contract cancer? Is it to provide money to settle liabilities? However, we might question the appropriateness of having a severe illness benefit solely to settle debts if the severe illness would not necessarily leave the client unable to generate an income and thereby able to repay the loan if the client already has sufficient disability cover for this purpose.

“I would argue that if the reason for the severe illness cover is to supplement a client’s medical aid, the appropriate level of cover is probably determined by how much cover is affordable.” Depending on the reason for the cover, a planner should be able to determine a more appropriate benefit amount for severe illness. If the reason is to supplement a medical aid payout, this could again become complicated and might require the financial planner to research the client’s medical aid to be able to determine when the medical aid would not pay for treatment, drugs or procedures normally associated with severe illnesses. A guideline to how much severe illness cover would be appropriate could be seen from the following real life examples: • A  few years ago, Discovery Health refused to pay for an experimental drug treatment called Receptin prescribed for an aggressive form of breast cancer. The cost of the medicine was in the region of R300 000.


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• A  client contracted leukaemia for which a bone marrow transplant was the only option for survival. The medical aid would pay for the procedure, including the search for a suitable candidate, if the search was limited to the close family of the patient. However, this concession falls away if none of the family’s bone marrow is a match and the search has to be extended to unrelated persons on the bone marrow register. In this case the patient’s search for a suitable candidate had to extend internationally as a match could not be found in South Africa. This was at a cost of R550 000. The medical aid also refused to pay for the procedure – a further cost of R750 000.

risk • A  ccording to Momentum, a client contracted rheumatoid arthritis, which would lead to permanent disability, but the progression of the illness could be slowed down by a biological drug called TNF blockers. If slowed, the person could still add a number of productive years to their working life. However, the cost of the drug is about R100 000 a year. • Cancer treatment, although covered in full by most medical aids if the client agrees to be monitored by their wellness programmes, could be as much as R1.2 million. Of course, it does not cover any unpaid leave days the client needs to take for the treatment itself or for recovery. In all of the above, as well as similar examples, the choice very often is between having the money to pay for the illness and death, or at least financial ruin. I would argue that if the reason for the severe illness cover is to supplement a client’s medical aid, the appropriate level of cover is probably determined by how much cover is affordable.

The complexity of product and financial planners’ responsibility to due care Notwithstanding the appropriateness of severe illness cover for a specific client or the appropriate level of cover, another issue affecting financial planners is the complexity of the current products being marketed and the level of responsibility in terms of due care in advising clients it requires of planners. Not only are financial planners, in terms of the FAIS Act, required to know the products they are advising their clients on, but recent determinations and other decisions by the ombud clearly states that a planner is expected to have done a due diligence on the product and product provider.

Although most product providers are paying millions for severe illness claims every year, a worrying statistic is the percentage of claims that is declined, mostly due to ‘severe illness event did not meet definition in contract’. A reason for this might be the complexity of the products or at least the definitions of severe illness events. Most product providers define their severe illness events (especially when based on a severity level pay out) as per the American Medical Association’s definitions of conditions. While it might limit the ambiguity of when they will pay or not, it may require financial planners to act as semi-professional medical experts to be able to explain it in detail to clients.

Most product providers in the last number of years have been paying out more benefits as a result of severe illness claims than disability which confirms that the nature of the risks that could affect clients financially has changed. Medical technologies are also increasingly helping us to recover from conditions that were previously death sentences – but at a price. And it is this price that confirms that severe illness benefits are not an enrichment benefit. We as planners help to mitigate our client’s risk of financial ruin in the case of having their car or household items stolen or damaged. Do we not have an even bigger responsibility to ensure that our clients’ risk of having to make a life or death decision, or a financial healthy or bankrupt one, is mitigated to the smallest degree?

“Medical technologies are also increasingly helping us to recover from conditions that were previously death sentences – but at a price.” In order to reduce the complexity of severe illness benefit cover, the Association for Savings and Investment SA (ASISA) in 2009 developed a disclosure grid – SCIDEP – for the four most common illnesses (heart attack, cancer, stroke and coronary artery bypass grafts) where each product provider must disclose, according to a standardised definition of the illness, what percentage they will pay of the benefit for each of four levels of severity. Although this has simplified the life of the financial planner and reduced the liability to disclose to their clients how much they are covered for the different major illnesses, the responsibility with regard to full disclosure of all the other ‘minor’ illnesses is still there. In addition to the complexity of definitions, the financial planner needs to be able to determine the appropriateness of choosing a core benefit versus a comprehensive one. What if by selecting the core benefit, although less expensive, leaves the client in financial stress because they suffer one of the 80 non-core illnesses? Although, according to product provider’s claims statistics, about 80% of all severe illness claims are either for heart/cardiovascular illnesses or cancer, the financial impact of the other 20% may not be any less severe.

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VAT policies essential to

compliance with tax laws South Africa’s short-term insurance industry is facing a mammoth admin headache after the South African Revenue Service introduced a string of new accounting rules and tax policies, according to Gerard Soverall, head of indirect tax for PwC Gauteng. “The new policies were implemented as part of measures to identify risk and ensure VAT compliance in the short-term insurance industry,” says Gerard Soverall, head of indirect tax for Gauteng. “The accounting policies are designed to ensure that short-term insurers are vigilant with regard to their accounting practices,” says Soverall. SARS recently introduced a supplementary declaration for companies and close corporations (IT4SD) which requires organisations to be cautious with respect to value-added tax (VAT) accounting. The form requires the reconciliation to be accurate within R100 and it has to be completed within 21 days. “For short-term insurers, completion of this return will be an onerous task because of reconciliation difficulties that arise as a result of timing differences with respect to VAT and financial accounting,” says Dorwin Nyaga, PwC senior manager for indirect tax. The move comes in the wake of a recent statement by SARS that businesses are increasingly using sophisticated and complex financial schemes to avoid their tax obligations and minimise the effect of slow economic recovery on profitability. Examples identified by the SARS include businesses utilising domestic loopholes to avoid tax and take advantage of cross-border structuring and transfer pricing.


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Companies’ VAT processes will also be under pressure as they deal with the effects of the current economic uncertainty. “This is likely to lead to increased incidences of VAT fraud, that is the over-claiming of input VAT to improve the cash flow of the business,” says Soverall. SARS recently published a five-year strategic plan for the financial years 2012 to 2017. The plan focuses on tax compliance and internal efficiency. In the light of the emphasis place by SARS on tax compliance, the industry cannot afford to be complacent, warns Soverall. “Businesses will need to rethink how they conduct their tax affairs, more particularly their VAT transactions.” For instance, any transfer pricing adjustments as a result of SARS attacking the transfer price charged between related entities could lead to adjustments to the VAT declaration. Such adjustments could result in interest and penalties being imposed on businesses.

“The new policies were implemented as part of measures to identify risk and ensure VAT compliance in the short-term insurance industry.” In an attempt to increase compliance with VAT and promote uniformity of the tax treatment in the short-term industry, SARS has also issued an insurance guide and is in the process of finalising a class ruling relating to the sector. Based on these draft publications, SARS has provided clarity on the VAT accounting relating to certain transactions, including premiums collected by intermediaries on behalf of an insurer. “Short-term insurers need to get their houses in order and confirm the accuracy of their accounting policies to ensure compliance with the tax legislation,” concludes Soverall.

Available January 2013

Available February 2013 R617 incl. delivery and VAT

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Supporting financial planners at every stage of their development Prescribed textbooks for undergraduate and postgraduate studies in financial planning, the new editions have been extensively updated to take into account: • The Taxation Laws Amendment Bill 34 of 2012 • The Rates and Monetary Amounts and Amendment of Revenue Laws Act 13 of 2012 • The Financial Services General Amendment Bill of 2012 • New examples and insight by our expert team of authors • New case law

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2012/11/09 8:39 AM

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The Financial Planner Issue 27

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