Our collection of customisable benefits covers a wide range of life-changing events, from death and disability to severe illnesses and loss of income. In 2024, we paid out R9.1 billion in claims. Our comprehensive and award-winning* benefits make sure that your clients are financially protected. Through our Shared-value Insurance model, we reward clients for their healthy behaviours, which has resulted in over R13.2 billion in PayBacks paid to clients, with R1.4 billion paid in 2024 alone.
30 JUNE 2025
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WHAT’S INSIDE YOUR
JUNE ISSUE:
TECHNOLOGY
Technology empowers financial advisers with real-time data, efficient portfolio management and personalised client insights. Are you up to speed with everything you need to enhance your business?
Pg 8-13
ALTERNATIVE INVESTMENTS
Diversifying a portfolio with unique opportunities such as infrastructure, private equity, real assets and even cryptocurrency can enhance returns. We explore why these alternative assets deserve a place in modern portfolios.
Cover story + Pg 19-21
Navigating volatility with alternatives
INVESTING IN OUR YOUTH
Youth financial literacy is much lower in South Africa than it is in our global counterparts.
MoneyMarketing looks at the steps some institutions are taking to address the problem.
Pg 24-25
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In a world where volatility seems to be the only constant, Westbrooke Alternative Asset Management is finding opportunity in the chaos. “Last year was particularly quiet for us,” says Dino Zuccollo, Head of Investor Solutions at Westbrooke. “It was incredibly difficult to price risk appropriately.” Fast forward to 2025, and the tide has turned. Westbrooke is now capitalising on a burst of activity, raising what Zuccollo describes as a “really large” UK-based hybrid capital fund in partnership with Rand Merchant Bank, to the tune of £175m. “Suddenly everything we’ve been working toward is happening at once,” he says.
The firm is also making moves in other asset classes, with two UK-based private equity deals in progress, a new private credit fund in the US, and a property opportunity stateside. These initiatives complement their core legacy debt business, which continues to perform steadily.
But what sets Westbrooke apart isn’t just deal flow –it’s philosophy. “We’re not just an asset manager. We’re investors first. We invest our own capital alongside our clients in every deal,” says Zuccollo. “That fundamentally changes how we assess risk and opportunity.”
In an environment rocked by global uncertainty, from pandemics and wars to political upheaval like the Trump presidency, investors are increasingly seeking uncorrelated, resilient assets. “Times of turbulence have reminded clients why having alternative assets in their portfolios is so critical,” Zuccollo explains. “The traditional 60/40 portfolio just doesn’t work anymore. Stocks and bonds are more correlated than ever, and there are fewer listed companies, meaning higher concentration risk.”
For financial advisers navigating this complex landscape, Westbrooke’s integrated model offers a rare advantage. “We offer access to a broad range of private market opportunities – private debt, hybrid capital, real estate and private equity – across SA,
the UK, and the US, all under one roof,” he says. “That kind of streamlined access is invaluable to wealth managers who are being bombarded with products and noise.”
Skin
in the game
“At Westbrooke, there are two rules,” says Zuccollo with a grin. “The first rule is: don’t lose clients’ money. And the second rule? Refer back to rule number one.” This guiding philosophy is more than a clever catchphrase; it’s the backbone of the firm’s approach to capital preservation, client trust, and risk management. When entering a new market, geography or asset class, Westbrooke puts its own capital on the line. For years, they are often the only investor in their ventures, using that time to test the robustness of strategies, partner alignment, and structural integrity – including tax and legal frameworks. “If we’re going to get it wrong, let it be with our money, not our clients’,” Zuccollo explains. “Our reputation is sacrosanct.”
Only after this internal proving ground does Westbrooke open an offering to broader markets and institutional capital. It’s a measured approach rooted in alignment, not just ambition.
Westbrooke’s risk philosophy
“Investing capital globally is an extremely complex task,” says Zuccollo. “In order to do this effectively, we have developed a proprietary risk philosophy and approach over more than two decades. It’s a set of rules and guiding principles, which are now deeply ingrained within our business, that allows us to invest in a capital preservation centric manner, while at the same time extracting asymmetric returns for the level of risk taken. This approach provides our clients with a unique advantage that cannot be found outside of Westbrooke – we call it The Westbrooke Advantage.”
The rise (and rise) of private debt
Among the alternative investments gaining ground is private debt, a core area for Westbrooke. Despite market expectations of a shift back to equities amid falling interest rates and political optimism, the recent landscape has done little to dent the appeal of private credit. “Every time you think private debt is becoming less relevant, it reminds you how important it really is,” says Zuccollo.
Image: Getty Images
Established in 2004, Westbrooke is a multi-asset, multi-strategy manager and advisor of alternative investment funds and co-investment platforms in Private Debt, Hybrid Capital, Real Estate and Private Equity across the UK, USA and South Africa. The Westbrooke Advantage
• Highly experienced professionals with decades of investment experience
• Investment philosophy focused on capital preservation and compounding returns
• Materially invested alongside our clients
• Heritage as a shareholder and operator of assets allows us to
• Demonstrable, multi-decade track record of performance westbrooke.com
In a world where inflation fears and global uncertainty loom large, private debt’s predictability and resilience have made it increasingly attractive. Westbrooke’s flagship private debt fund, Westbrooke Yield Plus, has amassed close to £200m, returning nearly 8% annually, even through periods of heightened volatility.
“It’s done exactly what we said it would do,” Zuccollo notes. “Limited fluctuation, no tariff exposure, and it acts as a modern shock absorber, especially now that traditional bond portfolios don’t behave that way anymore.”
Why alternatives haven’t gone mainstream – yet While alternatives are a staple in many global portfolios, accounting for 15 - 30% of high-networth client allocations in developed markets, the same can’t be said for South Africa. Hedge funds are slowly gaining acceptance, but private market assets, like those offered by Westbrooke, remain far from mainstream. Why the lag?
Zuccollo points to several factors: lack of understanding, unsuitable platform infrastructure, high investment minimums (starting at $100 000 or R1m), and the red tape of exchange control for offshore allocations.
“It’s not just about access. It’s about education,” he says. “Many advisers are still on a journey to truly understand the asset class and its risks.” But the tide is turning. Zuccollo sees a strong trend among wealth advisors toward deeper engagement with alternatives – even if allocations remain limited for now.
“Like anything in life,” Zuccollo says, “if you’re looking for alpha or uncorrelated returns, there will be challenges. But if you understand the strategy, take calculated risks, and demand the right return for those risks, it works.”
He isn’t advocating for abandoning liquidity altogether. “Of course, you need a portion of your portfolio to be accessible. But to have a chunk of your capital tied up – where you can’t just pull it out – forces long-term thinking. And long-term thinking is exactly what’s missing from so many portfolios today.”
What really constitutes an alternative?
Zuccollo takes a pragmatic view. “Alternatives are any investments or risk profiles that fall outside traditional bonds, equities, or cash. So yes, crypto technically qualifies, but in practice, it trades like a highly leveraged risk asset.
EARN YOUR CPD POINTS
It’s not giving you the correlation benefits or diversification that a true alternative should.”
And what about gold? “That’s actually the reverse case. Gold isn’t ‘alternative’ in nature, as it is widely accessed. But its diversification benefits do make it a valuable alternative asset in many portfolios.”
Selectivity is the name of the game Westbrooke’s focus is on providing clients exposure to unlisted private markets, something they’ve historically lacked access to. “The universe of unlisted companies globally is over 850% larger than the listed market. Yet most clients have almost no exposure. That doesn’t make much sense.”
Currently, real estate and private equity are re-emerging as focus areas for Westbrooke. “At the start of the year, pre-tariffs, we saw strong potential there. Lower interest rates and a more buoyant market usually support both sectors. Now, with geopolitics and elections in play, it’s harder to predict trends.
That’s why Westbrooke has been cautious. “We did almost nothing in private equity and real estate for the past few years. This year, we’re re-entering, but carefully. When there’s blood on the streets, that’s often when the best opportunities arise.”
A significant recent initiative is Westbrooke’s new hybrid capital fund, developed in partnership with RMB (Rand Merchant Bank). It’s a sizable effort, aimed at raising £75m in equity, with RMB committing £100m in debt, to deploy in the UK’s corporate lending space. “That’s about R4bn of South African capital going offshore. It’s a major step, and once the raise is complete, we’ll be ready to talk more.”
Partnerships like this matter deeply to Zuccollo, not just for their financial impact, but for what they signal. “They show that South African capital can move intelligently and confidently into sophisticated, global alternative strategies. We want to be at the forefront of that.”
In an era where investors are being asked to think beyond daily market swings and reframe wealth as a long-term legacy, Westbrooke, and voices like Dino Zuccollo’s, are making a strong case for patient, deliberate capital.
“It’s just a mindset shift. But once you make it, you start to see everything differently.” And that could be just what South African investors need most.
The FPI recognises the quality of the content of MoneyMarketing’s June 2025 issue and would like to reward its professional members with 2 verifiable CPD points/hours for reading the publication and gaining knowledge on relevant topics. For more information, visit our website at www.moneymarketing.co.za
ED'S LETTER
In this issue, we shine a spotlight on alternative investments and fixed assets – two areas gaining significant traction as investors seek stability and diversification beyond traditional markets in the volatile times we live in. From private equity and cryptocurrency to infrastructure, these asset classes are no longer on the fringe – they’re fast becoming part of mainstream portfolio strategies.
We also tackle a crucial but sometimes overlooked conversation: critical illness and disability cover. These products are foundational to holistic planning, yet too often they’re undersold. We’ve spoken to industry leaders about how advisers can present these solutions as not just protection tools, but as powerful components of long-term wealth strategies.
And then, of course, there’s technology. AI is no longer a buzzword – it’s here, in our CRMs, our client dashboards, and increasingly in our daily advisory workflows. But what does ‘adviser value’ look like in a world where algorithms can crunch numbers in seconds?
Whether you’re helping clients navigate legacy planning with intelligent platforms or opening up new worlds of investment, your role as a trusted adviser has never been more critical – or more dynamic. As always, we hope this issue informs, challenges and inspires you to keep delivering.
Stay financially savvy,
Sandy Welch Editor, MoneyMarketing
Note: If you subscribe to our MoneyMarketing newsletter, see QR code on the cover, you will receive a special discount off a News24 or Netwerk24 subscription*. *Offer available to new subscribers only.
Shane Watkins Chief Investment Officer, All Weather Capital
How did you get involved in financial services – was it something you always wanted to do?
I did Business Science at UCT, worked for an Anglo-American subsidiary for a year, then went back to UCT to do a CA. Articles with Deloitte and then was fortunate to get a job at Libam as a retail analyst. Back in the 1990s, Libam was one of SA’s premier fund management outfits, and many of the very successful boutique fund managers of today were ex-Libam, such as David Fraser, Clive Nates, Roger Williams, Errol Shear and Patrice Moyal. It was a great team, we learned a lot from each other, and we are all still friends today.
I always wanted to be in fund management, and I think the differentiating factor between success and failure in the industry is the extent of your passion for financial markets. If you do not follow how the US market trades when you get home or check the Asian markets first thing when you wake up, then fund management is probably not for you.
I was also lucky to join Peregrine Capital shortly after Clive Nates and David Fraser founded it. Clive, Dave, Nick van Rensburg and I worked together for quite a long period at Peregrine Capital, and we developed a good methodology for equity research and fund management. In fact, Nick and I work together again as he is our investment strategist, and he is brilliant. Partly because he is very smart but mainly because he is so passionate about financial markets. He eats, sleeps, and breathes financial markets, and so do I.
What was your first meaningful successful investment?
I was the retail analyst at Libam when Sean Summers was first appointed CEO of Pick n Pay. At that time, Pick n Pay was recovering from a debilitating strike and the business was in very bad shape, especially from a staff morale perspective. I met Sean, who at that time was an unknown figure, and got to know him. He developed a strategy that was easy to understand, and he executed it very well. We took a big position at Libam – I think we owned nearly 20% of the company at one point – and we did really well out of that recovery story.
The other story that I remember was my first short trade. There was a company called Officemart. I had heard rumours that they were not trading well, and I decided to go and see a few stores firsthand. I was at the Sandton store and the staff were complaining that salaries had not been paid, so I came back to the office and shorted some shares personally. Shorting was not prevalent back then, and the stockbroker did not even know how to book the trade or how to borrow the shares. Anyway, Officemart went bankrupt, and I had executed my first successful short sale.
"Use a crisis to buy the shares in the best companies with the best management"
What have been your best and worst financial decisions?
In fund management you need to have a ‘growth mindset’. You need to be learning always. And you learn little from success and more from failure, so I’ll rather tell you about my mistakes. Even now I am still learning. In the recent market drawdown in early April, we bought some medium quality shares that were beaten up, but we did not buy the top-quality shares that were not down much. As things ended up, the best shares to be in were the best quality stocks such as Capitec, OUTsurance, Clicks, or PSG. There is such a strong tendency to buy shares that look cheap, but the best strategy I’ve learnt is just buy the best quality, especially the best quality management. Poor management will always find a way to disappoint you. Unfortunately, they are very inventive in that way!
What are the biggest lessons you have learnt as a fund manager?
One of the lessons is that in a crisis we never ever know, at that point, how the issue at hand will be resolved. I have lived through the ’87 crash, the Asian crisis of ’98, the dot. com bubble, the GFC, Nenegate, Brexit, Covid, and more recently the Trump tariffs. In every instance, no one could see how the situation would get resolved. So most big players tend to be on the sidelines doing nothing. But somehow, every time, the situation was
eventually remedied. So do not let the fact that you cannot see how the crisis will be resolved stop you from acting. Be proactive and have a predisposition to use a crisis to buy the shares in the best companies with the best management. And try to avoid buying poor quality companies because they appear cheap. And recognise that you will sometimes be wrong. Adjust your positions quickly. Just try to be wrong for as little time as possible.
What makes a good investment in the current environment?
I think that the SA market has changed over the three decades of my career. There are less true entrepreneurs and less good growth opportunities. If you combine that with the fact that pension funds can now take 45% of their assets offshore, you really have to be selective about what SA company you buy. Very few SA listed companies have a ‘unique selling proposition’. Try to imagine what company a foreign investor coming to SA would want to own, and buy those companies.
What advice would you give young people that want to enter fund management?
Read books on the industry. There are now so many good fund management books available. Watch Bloomberg TV when you go home. Read the FT and the Wall Street Journal. Travel. But I guess the thing you need is passion for financial markets and then you will do all this naturally. It’s not an effort. Make sure your job in financial markets is really your hobby, then it doesn’t feel like hard work. And trade PA (for your own account) – that teaches you that you can only eat what you kill. Trading hones your skills and teaches you how to recognise patterns from past events to assist you to respond better in the future.
The first ZARONIA-linked bond issuance
Standard Bank has issued a listed bond in South Africa using the newly established South African Rand Overnight Index Average (“ZARONIA”) floating interest rate benchmark.
ZARONIA, the designated key successor rate for the Johannesburg Interbank Agreed Rate (JIBAR), is being phased in to address potential weaknesses in the current floating rate setting mechanism. The rate has been in place since 1999 and is based on daily interest rate quotations provided by South Africa’s largest banks. ZARONIA will replace JIBAR, being based on underlying transactions and thus reducing the possibility of rates not reflecting market trading levels.
The transition project, managed by the South African Reserve Bank’s Market Practitioners Group (MPG), aims to shift all JIBAR-linked transactions to alternative reference rates. This initiative mirrors
similar moves in the US and UK to replace benchmarks like LIBOR with more reliable standards. With the JSE and Strate having confirmed their readiness to process and list ZARONIA-linked bonds on 19 May 2025, SBSA successfully issued a 100m three-year bond, priced at ZARONIA plus a margin of 102bps on 21 May 2025.
Zaid Moola, Head of Global Markets at Standard Bank, adds: “Standard Bank is delighted to play a leading role in moving the South African interest rate market into a new era. This new, global standard interest rate regime will present exciting opportunities for our customers.” Since 2018, the MPG has been diligently planning this transition, with several milestones set before
the complete phase-out of JIBAR by the end of 2026. The issuance of ZARONIA-linked bond marks a critical step in developing the ZARONIA market and gaining acceptance for the new interest rate benchmark.
SBSA has been a proactive leader in the ZARONIA initiative, with Paul Burgoyne, Head of Treasury and Money Markets at SBSA, spearheading the MPG Transition Planning and Coordination Workstream. “We are extremely pleased to have opened the new ZARONIA market with this bond issue,” said Burgoyne. “ZARONIA will strengthen the integrity of the South African interest rate market and align us with other leading global benchmarks for currencies, including USD and GBP.”
“The transition project aims to shift all JIBAR-linked transactions to alternative reference rates”
A new era of retail investing
King Alexander Investments, a bold new innovator in the LISP (linked investment service provider) investment platform space, has officially launched with a mission to rewrite the rules of retail investing in South Africa. Built for financial advisers and their clients, King Alexander Investments is simple and transparent but, at its heart, is a unique and very compelling offering.
Founded by seasoned financial services innovator David Lloyd, the investing model was born from a clear conviction: that the retail investing model is fundamentally unfair. “Since day one, these platforms have been too expensive, and investors take on all the risk, regardless of the performance that is delivered. King Alexander Investments changes this as clients now only pay when they are ‘winning’,” says Lloyd.
Backed by the trusted King Price brand, King Alexander Investments is not just another platform in a sea of sameness. It is a reimagined investment platform, offering discretionary managed portfolios, from an entire range of discretionary fund managers, and strips away outdated thinking while putting fairness and performance front and centre.
What makes King Alexander Investments different?
• A fixed rand platform administration fee: Investor families pay a monthly fee of just R100 + VAT in total – not a sliding scale based on the value of their investments – irrespective of the number of family members and investment plans. In real terms, a family with R1m invested between them would typically see a 70%-plus saving.
• Only pay when you are ‘winning’: Investors only pay for asset management and advice fees in the months when their investments grow.
• Built-in protection is automatically included: Investors benefit from 100% initial protection with future gains locked in, and executors’ fees are also covered on death – all at no extra charge. But this unique model does not just benefit investors, it also gives financial advisers a new edge.
“Every adviser has clients who think their platform fees are too high, or who regularly feel let down when their actual returns are disappointing given the fund management costs they pay. Some investors are also reluctant to look at anything other than lower-risk funds, and lose returns as a result,” says Lloyd. “King Alexander Investments has been created to be an adviser’s second platform specifically to accommodate all these types of clients.”
Why trust King Alexander Investments?
Because behind the disruption is deep expertise. Lloyd, a UK-qualified actuary and the original inventor of structured products, has spent more than 30 years in global financial services, leading innovation at companies like American Express and NatWest Markets in the UK, and more recently at Liberty SA. At Liberty, he created the hugely successful R90bn-selling Evolve product, and was behind the award-nominated Stash app. Since then, he developed South Africa’s first Shari’ah-compliant life insurance product, with Capital Legacy, as well as a unique Migrant Worker embedded insurance product for the Unisure Group.
In 2022, Lloyd partnered with King Price founder Gideon Galloway and the King Price team, whose track record of customer-first disruption in the insurance industry complements King Alexander’s ethos. Over the past three years, King Alexander Investments has been built from the ground up, with the support of King Price’s in-house actuarial, legal and compliance teams, and expert external advisers. The model they have created is very simple: a fixed rand fee for administration, only pay for advice and investment management when you are ‘winning’, and 100% protection and executor fee cover on death included with all portfolios.
“We are here to help advisers build value while empowering their clients to invest with more confidence, get better returns, save money on administration, and get a fairer deal,” says Lloyd. “We knew there had to be a better way. And now, it is here.”
By Ferdi Coetzee Masthead Regional Manager: Eastern Cape
TMastering short-term claims handling: A guide for FSPs
he short-term claims process is often where FSPs truly prove their worth.
While selling a policy is relatively straightforward, managing claims effectively – ensuring a smooth and fair claims process –sets competent FSPs apart. Policyholders rely on their FSPs for guidance during losses – and delays, poor communication or inefficiencies can quickly erode trust, leading to reputational damage and regulatory scrutiny.
Regulatory and TCF obligations
Short-term claims handling is classified as an intermediary service under the Financial Advisory and Intermediary Services (FAIS) Act. The Treating Customers Fairly (TCF) principles, embedded in the FAIS General Code of Conduct, ensure that FSPs act in the best interest of their clients. Additionally, the Policyholder Protection Rules (PPRs) under the Short-Term Insurance Act 53 of 1998 reinforce TCF principles by mandating fair treatment throughout the policy lifecycle, particularly during claims processing. Regulators, including the Financial Sector Conduct Authority (FSCA), require FSPs to implement TCF in their claims processes to guarantee efficient service, clear communication and fair resolutions. Compliance with TCF is not merely a compliance aspect; it reflects an FSP’s dedication to ethical business conduct, consumer protection and responsible claims management.
Key TCF principles for claims handling
1. Outcome 3: Clear communication
FSPs must ensure policyholders fully understand their coverage, including exclusions and excesses, to prevent disputes during the claims process. Clients should receive step-by-step guidance on claim submissions, required documentation and expected timelines. Regular updates on claim progress and clear explanations for approvals or rejections are essential to maintaining trust. In cases of rejection, FSPs should educate clients on their rights, including escalation to the National Financial Ombud Scheme South Africa (NFO).
2. Outcome 4: Sound advice All new advice should begin with a comprehensive risk assessment process. Affordability is an important consideration, but it should be addressed after the client has been advised on their overall insurance needs. Clients must understand their full risk exposure – and by focusing on needs-based advice first, FSPs help clients make informed decisions. Inherited policies should be treated as opportunities for fresh, client-centric advice.
FSPs must conduct thorough risk assessments to ensure policies meet evolving client needs. If a policy is found to be lacking, this should be brought to the client’s attention.
3. Outcome 5: Product performance
FSPs must ensure products deliver as promised. High repudiation rates may indicate misaligned advice or vague product terms. Analysing claims data helps identify gaps in communication or advice.
4. Outcome 6: Access to benefits
Claims should be seamless, with minimal admin hurdles. FSPs must help clients understand requirements and provide ongoing support. Tracking claims data enables service improvements and highlights potential bottlenecks.
“FSPs must ensure policyholders fully understand their coverage, including exclusions and excesses”
Common challenges
• Late claim registration: Delays in reporting claims often lead to rejections. FSPs must track loss dates and remind clients to submit claims within the required time frame.
• Incomplete documentation: Missing paperwork prolongs claim processing. FSPs should proactively collect necessary documents at policy inception.
• Claim repudiations: When insurers reject claims due to exclusions or policy misunderstandings, clients become frustrated. Clear policy explanations upfront can manage expectations.
• Uninsured item claims: Clients sometimes attempt to claim for non-covered items, leading to disputes. Transparency about coverage limits is crucial.
• Frequent claims: Excessive claims can make a client uninsurable. Educating clients on the purpose of insurance helps manage expectations.
• Communication gaps: Poor communication causes uncertainty. Regular claim status updates improve trust and reduce client anxiety.
• Dispute resolution issues: Handling rejected claims with transparency and assisting clients with formal complaints can strengthen client relationships.
• Staff inefficiencies: Late submissions and
lack of claim tracking by staff can cause unnecessary delays. Regular training and standardised processes are essential.
Overcoming these challenges
1. Proactive documentation collection
FSPs should collect essential documents at policy inception.
2. Regular claims monitoring
A structured claims diary system helps track outstanding requirements and prevents delays.
A well-maintained record serves as an audit trail and regulatory compliance safeguard.
3. Clear and regular communication
Using platforms like WhatsApp for document submissions and status updates enhances communication efficiency and reduces delays.
4. Leveraging technology for simplification
Digital claim forms accessible via smartphones streamline submissions, reducing paperwork and administrative inefficiencies. Partnering with insurers to integrate online tools accelerates claims processing.
5. Continuous staff training
Ongoing training ensures that staff members remain knowledgeable.
6. Standardised claims handling processes
Developing a standardised claims management system ensures consistency and improves efficiency.
7. Managing client expectations
Setting realistic expectations by under-promising and over-delivering helps maintain trust and minimises dissatisfaction when insurer decisions are unfavourable.
8. Partnering with reputable insurers
FSPs should collaborate with well-established insurance providers known for fair and prompt claims handling to mitigate risks associated with poor service.
Better claims handling means better business
A seamless, efficient claims process benefits both clients and FSPs:
• Higher client retention
• Positive referrals
Operational efficiency
Stronger insurer relationships
Enhanced reputation.
Creating a competitive advantage
Short-term claims handling represents a pivotal touchpoint in client relationships, where trust is reinforced or lost. By proactively addressing challenges, adhering to regulatory standards and leveraging technology, FSPs can turn claims handling into a competitive edge.
By Kobus Barnard CEO Allegiance Consulting (with AI co-pilot ChatGPT)
WThe five lies we tell in financial planning – and why it’s time to rethink the model
e’ve built an entire industry on good intentions, but good intentions don’t always make good advice. For decades, financial planning has been framed by spreadsheets, simulations, product brochures, and risk questionnaires. Yet, most people still don’t feel financially well, and they are not financially well. They still don’t follow their plans. Still don’t believe the advice they receive is truly about them.
That’s not a failure of people. It’s a failure of the model. A model built on a few ideas that, with the benefit of hindsight, and better tools, we can now see weren’t quite right. Let’s take a closer look at five of the biggest myths we still tell ourselves – and why the future of advice demands a different approach.
Lie #2:
A risk questionnaire is enough to identify the investment
Risk profile questionnaires remain common practice. But many are, frankly, glorified mood meters. A client may feel conservative due to market noise, yet need growth to achieve their goals. Another may feel confident and aggressive, but lack the financial buffer to ride out volatility.
Real planning understands that risk is not a score, it’s a balance. A nuanced dance between tolerance, capacity, and the required risk to reach a particular objective.
And here’s the subtle but critical insight: even within a single household, different goals often require entirely different investment approaches. That’s why true goalbased planning must be adaptable, tailored not just to people, but to each dream they hold.
“True financial wellness is not just about accumulation. It’s about alignment.”
Lie #1:
The client knows what they want
When a client walks in and says, “I want a retirement annuity,” we often accept the request at face value. The truth is, most people don’t really know what they want – they know what they feel: the desire for security, freedom, the chance to give their kids a better life, or to pursue dreams they’ve postponed for decades. The product is rarely the point. The underlying motivation is. Financial planning that stops at surface-level product selection risks missing the very heart of what matters. The best advice starts with deeper conversations, uncovering meaning before recommending mechanics.
Lie #3:
A financial plan is a static document
We’ve all seen it: the 40-page plan handed to a client like a roadmap to the future. And then… life happens. Careers shift. Children arrive. Markets turn. Health changes. Suddenly the roadmap looks more like a relic.
What if we treated plans more like live GPS systems? Always recalculating as conditions change. Reacting to detours. Updating in real time. That’s the promise of modern, AI-assisted planning: advice that evolves alongside the client. When planning becomes dynamic, it moves from being an artifact to becoming an ally.
Lie #4:
Tax wrappers don’t change the outcome
Here’s a quiet myth with massive implications: the assumption that financial strategy doesn’t need to reflect the detail of the tax wrapper it’s implemented through.
But when we overlook things like inflow tax,
growth tax, exit tax, asset liquidity constraints, and wrapper-specific features, we risk presenting projections that look good on paper but fall short in practice.
Even the best strategy can be undone by misalignment between intention and implementation. It’s not about making things complicated for the client. It’s about ensuring the complexity is handled – intelligently, elegantly – in the background.
Sophisticated back-end engines are what allow us to present clear, simple and correct guidance on the front end.
Lie #5:
Financial wellness is just about money
This may be the most enduring and limiting belief of all. We’ve spent years refining spreadsheets and portfolios – yet too often, we’ve missed the most important variable: the human being behind the numbers.
True financial wellness is not just about accumulation. It’s about alignment. About helping people use money in service of a life that feels meaningful, balanced and free. When you begin with a client’s values, their passions, and their purpose, the financial plan becomes a life plan. One that they’ll follow, not because they were told to, but because it resonates.
Today, we have tools – AI-driven diagnostics, contextual financial identity models, real-time behaviour engines – that make this not only possible, but scalable.
Financial planning can – and should – be more human than ever before.
So where does that leave us?
The work of financial planning is evolving. Not away from the adviser, but toward a version of the adviser who is more empowered, more supported, and more deeply connected to the people they serve.
The world doesn’t need more financial products. It needs deeper insight. It needs systems that integrate values, behaviours and context – quietly in the background – so the adviser can do what they do best: guide, support and care. If we have the courage to confront these old assumptions, we may discover something remarkable: financial planning is not broken. It’s just ready for the next chapter.
And that chapter starts now.
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The future of financial planning isn’t built on products or projections. It’s built on people. Powered by the platform that sees the person behind the plan.
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Global study reveals trust of AI remains a critical challenge
The Trust, Attitudes and Use of Artificial Intelligence: A global study 2025, led by Professor Nicole Gillespie, Chair of Trust at Melbourne Business School at the University of Melbourne, and Dr Steve Lockey, Research Fellow at Melbourne Business School, in collaboration with KPMG, is the most comprehensive global study into the public’s trust, use and attitudes towards AI.
The study surveyed over 48 000 people across 47 countries between November 2024 and January 2025. It found that although 66% of people are already intentionally using AI with some regularity, less than half of global respondents are willing to trust it (46%). When compared to the last study of 17 countries conducted prior to the release of ChatGPT in 2022, it reveals that people have become less trusting and more worried about AI as adoption has increased.
“The public’s trust of AI technologies and their safe and secure use is central to sustained acceptance and adoption.
“It is without doubt the greatest technology innovation of a generation”
Given the transformative effects of AI on society, work, education, and the economy, bringing the public voice into the conversation has never been more critical,” Nicole Gillespie, Chair of Trust and Professor of Management, Melbourne Business School University of Melbourne.
AI at work
The age of working with AI is here, with three in five (58%) employees intentionally using AI, and a third (31%) using it weekly or daily. This high use is delivering a range of benefits, with most employees reporting increased efficiency, access to information, and innovation. Almost half (48%) say AI has increased revenue-generating activity.
However, AI use at work is also creating complex risks. Almost half of employees admit to using AI in ways that contravene company policies, including uploading sensitive information into free public tools like ChatGPT. Many rely on AI output without checking accuracy (66%) and are making mistakes due to AI (56%). Over half (57%) say they hide their use and present AI-generated work as their own, making these risks harder to manage.
This complacency may stem from weak governance. Only 47% have received AI
training, and just 40% say their workplace has a generative AI policy. It may also reflect pressure – half fear being left behind if they don’t use AI.
“The findings reveal that AI use at work is boosting performance but also introducing risk through complacent and nontransparent use. They highlight the need for strong governance, training, and a culture of responsible, open, and accountable AI use,” adds Gillespie.
AI in society
People want assurance over the AI systems they use, which means AI’s potential can only be fully realised if people trust the systems making or assisting in decisions.
Four in five people report personally experiencing or observing benefits of AI, including reduced time spent on mundane tasks, enhanced personalisation, reduced costs, and improved accessibility. However, four in five are also concerned about risks, and two in five report experiencing negative impacts of AI. These range from a loss of human interaction and cybersecurity risks, through to the proliferation of misinformation and disinformation, inaccurate outcomes, and deskilling. 64% of people are concerned that elections are manipulated by AI-powered bots and AIgenerated content.
70% believe AI regulation is required, yet only 43% believe existing laws and regulation are adequate. There is a clear public demand for international law and regulation, and for industry to partner with government to mitigate these risks. 87% of respondents also want stronger laws to combat AI-generated misinformation and expect media and social media companies to implement stronger fact-checking processes.
“The research reveals a tension where people are experiencing benefits from AI adoption at work and in society, but also a range of negative impacts. This is fuelling a public mandate for stronger regulation and governance of AI, and a growing need for reassurance that AI systems are being used in a safe, secure and responsible way,” continues Gillespie.
KPMG International’s Global Head of AI, David Rowlands, said the report highlighted opportunities for organisations to lead the way in providing greater governance and taking a proactive approach to building trust with employees, customers and regulators.
It is without doubt the greatest technology innovation of a generation, and it is crucial that AI is grounded in trust, given the fast pace at which it continues to advance. Organisations have a clear role to play in ensuring AI is both trustworthy and trusted.
“The findings reaffirm what we’re witnessing across many African markets –an openness to innovation and a readiness to harness AI for real-world impact. Africa is not just adopting AI; it is embracing it with purpose. Citizens and businesses alike are seeing AI as a lever for socio-economic progress, driving efficiency, accessibility and innovation. This higher trust and adoption in emerging economies is a signal that the global AI narrative must be more inclusive, recognising that Africa is not on the sidelines but is in fact helping to lead the way,” says Marshal Luusa, Partner, Technology & Innovation, KPMG in Africa.
Emerging economies lead the way People in emerging economies report higher adoption of AI both at work and for personal purposes, are more trusting and accepting of AI, and feel more optimistic and excited about its use, compared to advanced economies.
They also self-report higher levels of AI literacy (64% vs 46%) and training (50% vs 32%), and importantly, more benefits from AI (82% vs 65%), compared to people in advanced economies. In emerging countries, three in five people trust AI systems, while in advanced countries, only two in five trust them. “The higher adoption and trust of AI in emerging economies is likely due to the greater relative benefits and opportunities AI affords people in these countries, and the increasingly important role these technologies play in economic development,” says Gillespie.
“This report highlights a pivotal moment for Africa in the global AI journey. While trust in AI remains a global challenge, many African nations stand out for their optimism, growing adoption, and recognition of AI’s transformative potential, especially in bridging development gaps in healthcare, education, and financial inclusion. However, increased use must be matched with responsible governance, robust publicprivate partnerships, and regionally relevant AI literacy and regulation. In Africa, we have a unique opportunity to shape an AI future that is not only innovative but also inclusive and trustworthy,” concludes Luusa.
You are not falling behind, but you could lose the race
By Francois du Toit CFP® PROpulsion
The speed of change can feel overwhelming.
You might think you’re lagging when every headline mentions artificial intelligence (AI). The truth is you’re not behind yet. But if you ignore what’s happening now, you might lose later. For financial advisory professionals in South Africa – advisers, planners and short-term brokers – AI isn’t just for tech giants or big companies. It’s already here, quietly making its presence known. The good news? You still have time to learn how it fits into your work.
What AI means for your business
AI is simply a tool. Like any tool, it works well or poorly depending on how you use it. It won’t replace what makes you excellent – your judgement, empathy, experience and client relationships. But it is a helpful assistant that’s changing how we work and serve clients. In your financial advice business, AI can: Write better, faster reports and emails
• Create summaries of lengthy documents
• Draft content for social media and your website
Speed up admin tasks and compliance checks Help with data analysis and client reviews Provide training support for your team.
This is just the start. AI doesn’t need rest, doesn’t forget things, and can learn your style and processes. Used properly, it frees you to focus on valuable client work.
The danger of doing nothing
You might want to wait and see what others do first. You might hope it passes or that someone will create a perfect ‘AI for advisers’ tool you can simply switch on.
The risk? While you stand still, others move forward. Not just younger, tech-savvy professionals – thoughtful advisers of all ages are learning to use AI for smarter, more efficient businesses. They’re not just saving time; they’re gaining an advantage.
Clients will notice who provides faster, clearer, more personal service. They’ll expect more for less. That’s when falling behind becomes losing ground.
You’re still early
AI remains new to many in our industry. Feeling unsure is completely normal. It’s like when email or the internet first appeared – confusing at first, then suddenly essential.
Now is the time to explore and ask questions. You don’t need to master everything at once. Spending a few hours weekly learning tools like ChatGPT, Microsoft Copilot or AI features in software you already use will pay off greatly.
How to begin
Here are simple steps to start your AI journey:
• Get curious – Explore what AI tools exist. Try asking ChatGPT to help draft a client email or summarise an article.
• Start small – Don’t change everything at once. Begin with one task – like writing weekly updates, creating internal guides, or formatting proposals – and test how AI helps.
• Join conversations – Many communities discuss AI in financial services. Attend a webinar or talk to colleagues who are trying it out.
• Stay grounded – AI is powerful but needs your oversight. Always check its work using your professional judgement.
• Include your team – Your staff can benefit from AI too. Let them explore and share what they discover.
Don’t wait for the perfect solution
There will never be a perfect AI tool. The goal isn’t perfection; it’s progress. If you wait for a polished solution made just for South African advisers, you’ll wait too long. Meanwhile, others will have learnt and built better businesses with what’s already available.
Think of AI as a new team member. At first, they’ll need guidance. You’ll need to work out how they fit into your daily tasks. Once you do, they’ll take much off your plate.
Take the first step
We no longer need to become a tech expert or fundi. But we must stay relevant. We must help clients in smarter ways. And we must make our business stronger and future-fit. You’re not behind yet. But if you want to keep up, or better yet, lead, you need to start moving. Not with a mad dash. Just one step, then another. That’s how you succeed in this race.
Stay curious.
Du Toit started PROpulsion, a community for financial planners and advisers to help them grow and succeed. He hosts the weekly PROpulsion LIVE show on YouTube, with over 295 episodes. With 30 years of experience, he invites local and international guests to educate and inform. Committed to using AI and new technology, he aims to make a big impact. For more details, visit www.propulsion.co.za.
By Hymne Landman CEO of Momentum Wealth
IKeeping the human touch in a tech-driven wealth world
n today’s world, technology is no longer just a tool, it’s a game-changer for financial advisers. Yet, while the tools may be new, the heart of wealth management remains timeless: understanding clients, building trust, and delivering value.
Financial advisers can harness fintech to enhance their client value propositions, streamline operations, and accelerate business growth without losing sight of the human touch that defines their profession.
Financial advisers face a trio of perpetual challenges, which include a shortage of time, scalability, and growing their client base. Technology can help, not by replacing the adviser, but by amplifying their impact. This isn’t about relinquishing control but reclaiming time to focus on what truly matters, the client.
Decoding investor behaviour
Data is the new oil. However, raw data, much like crude oil, has limited value – it’s the refining process that unlocks its value. We have been doing just that, using data
science to decode investor behaviour with the aim to improve investment outcomes. Momentum Investments’ annual Sci-Fi report reveals that in 2024, investors on the Momentum Wealth platform destroyed R65m in value from their investment portfolios in a single year, through switches in flexible investments and living annuities. We call the underperformance created by these switches a behaviour tax. In some cases, more than 4% in returns were lost in a single year, a ‘penalty’ for giving in to the ‘switch-itch’ at the wrong moment.
Using technology, we could identify key drivers of switching behaviour, such as investment size and client age, by using machine learning algorithms. From our data we categorise investors into four switching archetypes: the Avoider, the Anxious Investor, the Assertive Investor, and the Market Timer. And each group exhibits distinct switching patterns.
Armed with this knowledge, financial advisers can steer clients away from costly emotional decisions by personalising their
advice and reporting to their clients. The result? Better investment outcomes for clients, stronger trust between the adviser and the client, and a value proposition that stands out in a crowded market.
Technology’s impact doesn’t stop at understanding behaviour. Our Income Illustrator is a tool that transforms retirement planning from guesswork into a more precise data-driven analysis.
The Income Illustrator crunches thousands of simulations in seconds to project potential outcomes under conservative conditions, factoring in asset allocation and long-term economic views. This provides clients with insight into how their retirement savings could play out. It even provides an alternative of pairing a living annuity with Momentum Wealth’s Guaranteed Annuity Portfolio (GAP), to improve income certainty in light of the client’s inheritance preferences. For advisers, this means delivering advice that’s not just informed, but personalised to each client’s priorities.
“Using technology, we could identify key drivers of switching behaviour”
The core remains human Platforms like Momentum Wealth are investing capital into staying ahead of technology trends. But the art of wealth management lies in knowing where to lean on technology and where to step in with human judgement.
In a world where fintech is rewriting the rules, the core of wealth management remains centred around people, trust, and value. Technology doesn’t change that, it is available to strengthen the result.
To learn more about Momentum Wealth, visit our website momentum.co.za.
By Kresantha Pillay Liberty’s Chief Specialist for Risk Products
Why critical illness cover cannot be ignored
One of the most compelling arguments about committing to critical illness cover is that nobody really knows what’s coming their way. Even people with the healthiest lifestyles can find themselves experiencing a life-threatening condition, a situation that often radically alters their way of living.
For an adviser, the starting point would be undertaking a comprehensive financial needs assessment for their clients to identify the appropriate risk benefits.
Liberty’s claim statistics for 2024 show that cancer, heart-related diseases and respiratory disorders remain the top three causes for claims. This has been consistent over the years, and all of these conditions can have serious lifestyle consequences.
Having appropriate cover in place can assist with alleviating some of the financial burdens that come with these diagnoses.
Understanding the depth of cover
Liberty’s Lifestyle Protector cover is designed to protect against a broad range of possible conditions and will pay for claims arising from one of over 150 defined critical illnesses.
This cover offers a lump sum pay-out upon diagnosis, that may be used to cover any unexpected costs incurred in the client’s treatment or recovery, for example.
This forward-looking benefit also includes embedded features, which mean that the cover stays relevant as medical procedures and treatment evolve.
Cover that goes the extra mile Advisers should be aware that something like cancer is never an easy condition to manage. Historically, claimants would simply receive an insurance payout at the beginning of their diagnosis, only to find they need more funds if the disease progresses or persists in some way.
“The starting point would be undertaking a comprehensive financial needs assessment for clients”
Liberty’s Cancer Claim Booster covers cancer progression beyond initial diagnosis and treatment. It pays an additional 25% after stage three or four cancer that progresses despite treatment, or which reoccurs after remission, or results in a 12-month life expectancy or less.
A
critical illness booster
Along with the innovative Cancer Claim Booster, Liberty also offers a Critical Illness Booster, which pays out an additional 25% to 100% for certain long-term conditions that require additional support.
This offers support to clients who may have had a heart transplant, for example, and need something like anti-rejection medication for the rest of their life.
Having cover like this in place alleviates some of the financial burden that may result from a condition that has a life-long impact. Another example would be the loss of a limb, where ongoing treatment for physical and mental outcomes would be required to lead a more normal life.
Early cancer and mild illness cover upgrades
A further cover offering is an upgrade to Liberty’s Extended Option that offers a breadth
of cover for less serious diseases, but which still require some financial assistance. In this case, the cover pays out 10% of the Living Lifestyle sum assured.
Some of the most comprehensive insurance packages available
Another useful benefit is the Child Living Lifestyle benefit in which a child, all the way up to the age of 25, stays covered. This recognises the global trend where children can sometimes spend longer in education to get ahead.
An adviser should always be looking at new ways to offer comprehensive cover with their clients’ evolving needs. Most people will suffer a serious medical condition at some point in their lives, and being ready for this can make an enormous difference to the quality of life they experience.
Why traditional income protection falls short for critical illnesses
Cancer was among the top three reasons for income protection claims across all age groups in 2023, according to the Bidvest Life Claims Report¹. And this is not a short-term trend. Projections show that, by 2030, cases of female breast cancer in South Africa will rise by over 20%, and prostate cancer cases are expected to nearly double².
Melody Cloete, Training Specialist at Bidvest Life, says that this highlights the urgent need for all working South Africans to protect their most valuable asset – their ability to earn an income – during times when they are temporarily unable to work due to illness or disability.
However, traditional income protection has key limitations when it comes to critical illness cover:
• Ability to work: Critical illnesses are often diagnosed long before the illness progresses to the point where clients are deemed medically unable to work. However, under traditional income protection, benefits only start paying out once a client is unable to work. This creates a vulnerable window where clients may still be working – or being expected to work – while undergoing life-altering treatment, potentially at the cost of their recovery. It can also happen that, even with a critical illness diagnosis, clients may never reach a point where they cannot work, but they still need to be able to meet extra financial obligations linked to their treatment and lifestyle changes.
• Intermittent claim periods: Critical illnesses, like cancer, often result in multiple treatment rounds with recovery gaps in between. But traditional income protection benefits are triggered by occupational disability, which means that payments are paused when clients return to work – even briefly – and restart only when they qualify again. This presents two challenges: firstly, clients need to repeatedly supply evidence to claims assessors, instead of focusing on their recovery; and secondly, because the payouts are interrupted, the benefit often ends up being inadequate in terms of covering the lost income.
• Additional monthly costs: A critical illness diagnosis often brings unexpected additional monthly expenses such as lifestyle changes in terms of diet, treatments or medications not covered by medical aid, and travel expenses to and from treatment facilities, etc. In such cases, even 100% of a client’s normal net income provided by income protection will likely not be enough to pay their normal monthly expenses as well as these additional costs.
The answer: Critical Illness (CI) Income
CI Income from Bidvest Life is designed to bridge these gaps. It provides 130% of the insured monthly income through guaranteed monthly payments for up to 12 months after a qualifying diagnosis, regardless of whether a client continues working during treatment. “CI Income not only eliminates repeated administrative burdens, it also ensures uninterrupted support and provides flexibility for real-life recovery needs,” Cloete explains.
CI Income is not a replacement for traditional critical illness lump sum benefits – it complements them. While lump sum benefits provide a once-off payout to cover major expenses such as medical bills or home modifications, CI Income addresses the ongoing, often unexpected, monthly costs that can arise during treatment.
Real client story: Benefit in action
Meet Bidvest Life policyholder Cherine Lombard*, a passionate 28-year-old school science teacher. While renewing her driver’s licence, she noticed vision problems and, after further tests, was diagnosed with melanoma in her right eye – something no young person expects.
Her treatment involved radiation and injections into the melanoma in her right eye every six weeks, which she describes as “traumatic”. In between treatments, she was unable to teach in the classroom and often needed days off to recover. Luckily, she had planned responsibly, and was able to claim on
“Traditional income protection has key limitations when it comes to critical illness cover”
her CI Income and CI Lump Sum benefits. She received 130% of her insured monthly income for 12 months, irrespective of her ability to work, and a CI Lump Sum payout provided a onceoff amount.
“You never know what tomorrow holds, even as a young person. Being covered changed my whole perspective on life. It gave me the freedom and the financial support I needed to get through the past year, and the courage to make big decisions in my life. I was able to resign from my job and move closer to my family in a time when I really needed emotional support,” Lombard says.
“Cherine’s story illustrates how CI Income gives clients more than income protection. It gives them choices,” says Cloete. “When faced with a critical illness, it allows them to focus on their recovery, not on paperwork or how they will make ends meet. That is the true value of CI Income – it supports your clients practically and emotionally when they need it most.”
* Cherine Lombard has been compensated for her endorsement of Bidvest Life. Her views and opinions are based on her personal experiences, and individual opinions may vary. This endorsement should not be constituted as financial advice. Please consult a qualified independent financial adviser for personalised guidance.
Lifestyle diseases are a risk to your workforce – and your business
South African businesses face an increasing but often underestimated challenge –lifestyle diseases. Rising cases of obesity, diabetes, hypertension and heart disease are being driven by poor diet, chronic stress and physical inactivity.
“As businesses look to create healthier, more resilient workforces, prioritising preventive healthcare with integrated health and wellness programmes can help reduce costs and improve employee engagement,” says Thenjiwe Ramorotho, a qualified dietitian and Old Mutual Corporate Strategic Client Executive. “Employers that invest in these initiatives give their employees the resources to proactively manage their health, benefiting both individuals and the organisation.”
Healthier employees, stronger business performance
The financial case for workplace wellness is clear. A study published in the Journal of Occupational and Environmental Medicine found that for every dollar spent on wellness programmes, businesses save nearly three times that amount in productivity gains.
“Wellness benefits are no longer just perks,” says Ramorotho. “The 2024 Remchannel survey reported that 76.14% of employers surveyed have a compulsory healthcare cover requirement, and 49% of these employers also provide their employees with gap cover policies. Businesses that invest in wellbeing see better engagement, higher morale, and are more competitive when attracting talent.”
“Businesses do not have to rely solely on medical aid to provide healthcare benefits”
Prevention is more cost-effective than cure Preventing lifestyle diseases requires a shift in focus toward early intervention and proactive healthcare management. Regular screenings, workplace wellness initiatives, and improved access to healthcare can help ensure that minor health concerns do not escalate into serious conditions.
“Employers can influence employee health more than they realise,” says Ramorotho. “By applying Nudge Theory – a behavioural science approach that subtly encourages better choices – companies can create work environments that promote wellbeing without forcing change.”
How workplace design influences healthier choices
For example, a globally recognised services sector company found that providing free
filtered water stations, while making sugary drinks less accessible, led to increased water consumption and a reduction in sugary beverage intake. Another effective intervention was adjusting workplace layouts to encourage movement – such as placing commonly used equipment like bins and printers farther from workstations or promoting stair use over elevators. These small nudges increased daily physical activity among employees without disrupting productivity.
“Employers can apply these lessons in any work environment, including factories and manufacturing settings, by making simple design changes that promote wellbeing. Even minor adjustments – such as providing shaded rest areas or improving the layout of break spaces – can have a meaningful impact on employee health and workplace morale.”
The role of health insurance in prevention
“Routine health screenings for blood pressure, blood sugar, and cholesterol levels during GP consultations help detect warning signs before they develop into serious medical issues. Regular check-ups also ensure that employees receive the necessary follow-ups, treatment plans, and medication management to keep lifestyle diseases under control,” Ramorotho says.
In South Africa’s challenging economic climate, however, affordability of primary healthcare remains a concern. “Private healthcare costs continue to rise, and medical aid has become increasingly expensive, making it inaccessible to many employees. However, businesses do not have to rely solely on medical aid to provide healthcare benefits,” says Ramorotho.
Health insurance offers a more affordable alternative to medical aid while still providing essential healthcare benefits. With plans starting at R310 - R485 per member per month, employers can provide access to private healthcare without excessive costs.
Old Mutual Corporate and Medihelp announce collaboration
Old Mutual Corporate is collaborating with Medihelp Medical Scheme to offer your clients a healthcare solution that integrates seamlessly into a broader employer wellbeing strategy. This collaboration reflects our shared commitment to relevant, sustainable support – ensuring people are not only well enough to work but well enough to live.
The collaboration draws on Medihelp’s 120-year legacy of healthcare leadership and Old Mutual’s 180-year-old track record in the South African insurance market. Old Mutual is also a leading provider of traditional retirement benefits and group risk cover, aiming to address the complex, intersecting needs of today’s workforce.
Old Mutual Health Solutions health insurance (underwritten and administered by GENRIC Insurance Company Limited, a licensed non-life insurer and an authorised Financial Service Provider (FSP: 43638)) offers businesses access to affordable private healthcare options, covering day-to-day medical needs, hospitalisation for illnesses and accidents, and private emergency services.
Medical insurance and medical aids: What employers need to know Employers should carefully consider the difference between medical insurance and medical aid when selecting healthcare benefits. Medical insurance provides targeted coverage for specific health events, such as accidents, short-term hospitalisation, and general practitioner visits. It does not include Prescribed Minimum Benefits, which are legally required under medical aid. Medical insurance covers defined medical events rather than a full range of treatments, and is more affordable and cost-effective for businesses seeking to provide healthcare benefits while managing expenses.
Ramorotho stresses that healthcare benefits are no longer a “nice-to-have” but a key factor in employee retention and productivity. “Employers who invest in affordable healthcare solutions do more than just support employee wellbeing. They reduce absenteeism, improve workplace morale, and create an environment where employees perform at their best. In a competitive job market, businesses that prioritise employee benefits will attract and retain top talent.”
Visit www.oldmutual.co.za/ healthsolutions to find out more about affordable health solutions for your employees or visit our website to learn how Old Mutual’s integrated health and employee benefits solutions can support your business. www.oldmutual.co.za/ employeebenefits
Thenjiwe Ramorotho
From the fringe to the forefront
By Sandy Welch Editor MoneyMarketing
South African investors are increasingly opening their portfolios to a broader spectrum of assets, including alternatives – a category once viewed as niche, opaque and reserved for institutions. As global trends influence local behaviour, interest in alternative investments is on the rise, with growing emphasis on diversification, risk mitigation and new sources of return.
According to Wade Witbooi, Managing Director at Amplify Investment Partners, the appetite for alternatives locally is starting to mirror developments seen in global markets. “In the global investment landscape, there is increasing interest in alternative asset classes – not purely because they reduce volatility through different pricing mechanisms, but because they offer additional sources of returns,” he says.
Hedge funds gain ground
One segment of the alternatives market gaining traction in South Africa is hedge funds. Amplify, which has deep experience in this space, has witnessed increasing net inflows and greater accessibility for investors.
“We’ve seen a notable shift in the local market. Hedge funds are no longer as elusive as they once seemed,” says Witbooi. “Fee structures and fund formats have evolved, and access via retail-friendly structures has improved. As managers continue to demonstrate value through their investment styles, we expect this trend to persist.”
This evolution is being supported by regulatory changes and technological improvements, which make hedge funds more available on retail platforms. Yet, awareness and education remain barriers.
From boutique to mainstream: A familiar journey
Much like the evolution of boutique managers over the past decade, alternatives are slowly moving from the periphery toward the core of investors’ portfolios. “Ten years ago, boutique asset managers were considered risky or unconventional. Today, many of them are central to investors’ strategies. Alternatives are on a similar path,” notes Witbooi.
He adds that the hesitation from investors isn’t necessarily due to product shortcomings. “It’s about comfort and understanding. Alternatives introduce nuances to portfolio construction, and investors naturally take time to build trust in new ideas.”
Amplify’s approach to alternatives
Amplify Investment Partners has positioned itself as an innovative asset manager focused on bringing high-quality, differentiated
investment opportunities to market. Drawing on the institutional research capabilities of Sanlam Multi Managers, Amplify’s model blends deep industry expertise with a commitment to accessible investing.
“While we focus strongly on hedge funds, our broader mandate includes uncovering and partnering with skilled asset managers across alternative strategies,” says Witbooi. “What sets us apart is our track record of finding, vetting and incubating new and unique investment opportunities, all underpinned by institutionalgrade research and governance.”
“Alternatives are slowly moving from the periphery toward the core of investors’ portfolios”
Bridging the education gap
When asked what still holds investors back from greater adoption of alternatives, Witbooi is clear: “It’s a combination of education, access, and perception.” He explains that while hedge funds are now more accessible through retail structures, investors still often see them as complicated or risky. “That’s where we come in – helping close the gap between product innovation and investor understanding. Alternatives don’t need to be seen as overly complex. They simply need to be explained better and positioned properly within portfolios.”
Volatility and the value of diversification
In today’s volatile markets, the case for including alternatives in a diversified portfolio becomes even more compelling. “Hedge funds don’t require markets to move in one direction to generate returns,” says Witbooi. “They’re driven more by the manager’s view on individual instruments than the broader market. This gives them the potential to perform independently of market swings.”
Alternatives, therefore, can act as a stabilising force. “We’re not saying hedge funds will rescue a portfolio during downturns, but they can help smooth the return profile and reduce overall portfolio risk,” he adds.
Beyond hedge funds: Expanding the opportunity set
“Private market assets often face criticism for being illiquid or less transparent,” explains Witbooi. “But fundamentally, they’re exposed to the same macroeconomic and operational risks as their public counterparts – the key difference lies in their pricing frequency and mechanisms.”
Private markets tend to price assets less frequently – often quarterly – and that can create the illusion of reduced volatility. But Witbooi is quick to clarify that this doesn’t mean they’re inherently safer or risk-free. “Investors need to understand that the risks are there, they’re just presented differently.”
Breaking the illiquidity stigma
One of the biggest misconceptions about alternatives is that they’re all illiquid, overly complex and difficult to access. Witbooi points to hedge funds in South Africa as a success story of how regulation, innovation and education can change that narrative.
“Since hedge fund regulation was introduced in 2015, we’ve seen a rise in liquid retail structures that offer better access. It’s shown that with the right vehicles and investor confidence, alternatives can become much more mainstream,” he says.
Globally, there is a move towards more flexible fund structures – such as evergreen funds and semi-liquid vehicles – that aim to “retailise” access to private markets. These developments could open the door to greater inclusion of alternatives in retirement savings and discretionary portfolios.
The role of financial advisers
When it comes to driving greater uptake of alternatives, financial advisers are a critical link in the chain. But many remain hesitant to move beyond traditional investments, often due to unfamiliarity or perceived complexity.
Witbooi sees this as a major area of opportunity. “Advisers are key to educating clients, building confidence, and making allocation decisions that include alternatives. But they need support, from asset managers like us, from platforms, and from the broader industry.”
Amplify works closely with advisers to provide educational tools, performance analytics, and access to vetted managers and products. “It’s not just about selling a product, it’s about demystifying it and showing how it fits into a broader strategy,” says Witbooi.
A future beyond the familiar
Alternative investments are no longer the exotic outliers of the financial world. As regulatory frameworks mature, access improves, and investors grow more informed, the role of alternatives in balanced portfolios is only set to grow. “We believe alternatives are a critical piece of the future investment puzzle,” says Witbooi. “And we’re committed to helping advisers and investors alike understand how to use them effectively. Not as a silver bullet, but as a valuable part of a diversified strategy.”
Crypto gains a seat at the table
By Sandy Welch Editor MoneyMarketing
In an increasingly dynamic investment landscape, financial advisers in South Africa are being called to deepen their understanding of alternative assets – and cryptocurrency remains at the centre of that evolution.
For years, crypto assets have lived on the fringe of traditional portfolios. Today, however, we’re witnessing the next phase of maturity within the South African retail investment base. According to Christo de Wit, Country Manager at Luno, local interest in crypto remains strong, even when trading volumes take a dip.
Navigating the Trump Effect
Globally, cryptocurrency markets continue to be influenced by macro events and, increasingly, by politics. US President Donald Trump has emerged as an unlikely influencer in the crypto space. His comments can swing not just crypto prices, but entire markets. De Wit describes this phenomenon as ‘the Trump paradox’.
“A few years ago, he was staunchly anticrypto. Now he’s completely flipped, supporting the industry, criticising the SEC’s approach under the Democrats, and even launching his own TrumpCoin and MelaniaCoin. It’s an unpredictable environment, and financial advisers must understand that these shifts influence investor sentiment and regulation in real-time.”
The approval of spot Bitcoin ETFs and the Bitcoin halving last year laid the groundwork for a new growth trajectory. De Wit urges advisers not to overlook the structural shifts already underway, such as the SEC softening its previously combative stance toward digital assets.
Stablecoins: Utility or threat?
The conversation around stablecoins –cryptocurrencies pegged to fiat currencies like the US dollar – has intensified, both in adoption and regulatory scrutiny. “Stablecoins are here to stay,” De Wit affirms. “The utility they offer is significant, especially in regions like Africa, where they’re used as a hedge against inflation and currency devaluation.”
In Africa, USDT (Tether) dominates stablecoin volume, acting as both a trading pair and a store of value in unstable economies. “It allows users to secure their capital in a way that their local currencies might not.” However, De Wit warns that regulation remains patchy. “In South Africa, there’s no clear framework for the issuance and backing of stablecoins. We need clarity on who can issue them, what reserves are required, how those reserves are managed, and what protections are in place.”
While the FSCA now regulates crypto exchanges under the Financial Advisory and Intermediary Services (FAIS) Act, there is still no targeted framework for stablecoins. Initiatives like the IFWG’s stablecoin paper and Project Khokha 2 by the Reserve Bank are promising, but more decisive action is needed to align
with international regulatory efforts and protect investors.
Staking: Making your crypto work harder
One of the fastest-growing trends in crypto investing is staking – a way for investors to earn passive income on their crypto holdings by participating in the maintenance of blockchain networks. “At its core, staking is a method of supporting blockchain security and operations in exchange for a reward,” De Wit explains. “For instance, Ethereum now operates on a proofof-stake model, where investors can lock up their ETH and earn an annual percentage rate, currently just over 3%.”
Over 150 000 Luno customers have created staking wallets, and over R1.5bn has been staked through Luno. ETH is the most popular staked crypto asset, and SOL is the second most popular on Luno. ATOM offers the highest rates of up to 18%. Crypto holders can earn up to 11% per year on their crypto by staking Cosmos (ATOM). Investors who get in early will earn up to 18% until 16 June 2025 through Luno. According to De Wet, this is the highest reward rate offered by a licensed exchange in South Africa.
But staking is not risk-free. “There are slashing risks,” he cautions, referring to penalties that may apply if a validator fails. “We’ve done our due diligence to ensure we only work with validators who have clean track records.”
While institutional uptake of staking is still limited, largely due to lock-up periods and liquidity concerns, De Wit sees growing retail interest as a clear signal that this investment method has legs.
A bridge to mainstream investment
The approval of Bitcoin exchange-traded funds (ETFs) in the US has proven to be a major turning point for the crypto industry. According to De Wit, these ETFs have made crypto “more accessible to people and investors that are familiar with those products”. More importantly, they’ve facilitated a significant influx of institutional capital into crypto markets, fundamentally altering the ecosystem. “That has changed the dynamic of crypto as a whole. It’s become much more linked to the measures that influence traditional finance,” says De Wit. This closer correlation with macroeconomic trends, such as interest rates and inflation, marks a new level of maturity for the asset class. “Crypto is now influenceable by broader economic events. For example, if there’s a large outflow of institutional funds from these ETFs, it affects the price of Bitcoin,” he adds.
SARS is watching
For South African investors, one of the most pressing issues is taxation. The South African Revenue Service (SARS) has intensified its focus
Christo de Wit
on crypto, and De Wit stresses that crypto is fully taxable under South African law. “There should never be a misunderstanding that you can avoid tax by converting capital into crypto,” he warns. “Depending on how the crypto is used, it falls under either capital gains tax or income tax.” His advice to financial advisers: “Ensure your clients declare their holdings and any realised gains or losses. Even losses, such as buying Dogecoin after a viral tweet and losing 50%, can be declared to offset taxable gains.”
More coins, more due diligence
Luno has grown from offering a handful of cryptocurrencies to now listing over 40 assets, and counting. “We’ve scaled our processes and streamlined due diligence, allowing us to add more coins while still being cautious.” The expansion has been driven by increased user demand and a maturing crypto ecosystem.
“We consider multiple factors before listing a coin,” he says. “We look at liquidity, market cap, the underlying blockchain technology, security risks, and real-world utility. Every coin must pass
through a digital asset selection committee.”
While Luno is accelerating the pace of listings, it’s doing so with care. “There are over 20 000 coins out there,” says De Wit, “but not all of them meet our standards and many never will.” With crypto moving from the sidelines into the financial mainstream, advisers can no longer afford to ignore its relevance. Whether helping clients navigate the tax implications or evaluate new investment opportunities, crypto literacy is becoming a crucial part of the modern adviser’s toolkit.
advisers are now allocating up to 5% of client portfolios to crypto as a diversified, higher-risk asset,” explains De Wet.
“Crypto literacy is becoming a crucial part of the modern adviser’s toolkit”
Firmly positioned as an alternative asset What does all this mean for financial advisers? “Crypto now has a seat at the traditional finance table,” De Wit explains. “It’s no longer viewed as a fringe speculation – it’s a serious asset class that can’t be ignored.” However, he says, the knowledge gap among financial advisers remains a hurdle. “But that’s changing. More
For advisers unsure how to approach crypto allocation, bundled products offer a lower-risk entry point. Luno’s Crypto Bundle, for example, tracks a CoinDesk Index and dynamically reallocates according to market performance, with Bitcoin typically making up over 70% of the fund. “Importantly, no meme coins are included,” De Wit says.
He points to how Bitcoin is now frequently mentioned in the same breath as gold and the US dollar. Even if we are still in the early stages, De Wit believes this is the “beginning of mainstream adoption”, and advisers need to ensure they are equipped to guide clients through the space responsibly. “Crypto isn’t going away,” says De Wit. “It’s evolving. And advisers who evolve with it will be in a better position to support their clients in this new era of finance.”
Fixed Income with impact: A blueprint for long-term value
By Sandy Welch Editor MoneyMarketing
As South Africa’s economy continues to navigate a complex web of structural challenges, one corner of the investment universe is offering institutional clients a rare blend of yield, stability, and positive impact: fixed income – specifically, fixed income that funds real-world infrastructure and social transformation.
One asset manager leading the charge is Futuregrowth, a name long associated with pioneering fixed income solutions that do more than just deliver returns. They reshape communities, close infrastructure gaps, and redefine how risk is managed in a volatile landscape.
Fixed income with developmental intent
“Our strength is in developmental fixed income,” says Jason Lightfoot, Senior Portfolio Manager at Futuregrowth. “We apply a very disciplined, impact-driven approach – blending rigorous financial and non-financial analysis to invest in sectors like energy, transport, housing and more.”
At the heart of this strategy is a flexible mandate that allows Futuregrowth to tap
into multiple sources of alpha. Some of their bond portfolios manage traditional interest rate risks while deploying up to 55% of assets into unlisted private debt, giving clients access to higher-yielding opportunities that are less correlated to traditional assets.
The outcome? Diversified, stable performance, with Futuregrowth’s flagship funds consistently outperforming their benchmarks and doing so with purpose.
A legacy of leadership
This year marks 30 years since the launch of Futuregrowth’s Infrastructure & Development Bond Fund – one of the first vehicles in postapartheid South Africa to direct institutional capital into the country’s infrastructure backlog. “The original vision was bold: to prove that developmental investing could deliver marketbeating returns. Many institutional investors were sceptical at the time, but we stayed committed,” Lightfoot recalls.
With R22bn in assets under management, the fund has not only stood the test of time but has become a case study in how sustainablyaligned fixed income can work in practice. “We’ve returned above-inflation returns while supporting critical national initiatives,”
says Lightfoot. “It’s proof that impact and profitability aren’t mutually exclusive.”
Responsible investing at the core
Futuregrowth prefers to frame its strategy as ‘responsible investing’ rather than just ESG. “Sustainability and responsible investing are integrated into every stage of our investment process – from screening to monitoring,” says Lightfoot. This isn’t window-dressing. It’s a full-scale commitment that aligns capital with long-term systemic improvements. “By addressing and improving non-financial aspects on a borrower level ultimately results in long-term sustainability for all stakeholders”.
From an impact perspective, whether in housing, clean energy or transport, “We look at infrastructure investment not just through the lens of financial returns, but as a vehicle for impactful change,” Lightfoot explains. One of the standout examples is the Fund’s exposure to the Futuregrowth Power Debt Fund, which currently has R9,5bn invested across 28 different renewable energy projects under the framework of the Renewable Energy Independent Producer Procurement Programme (REIPPPP), directly supporting South Africa’s transition to a lowcarbon economy.
Jason Lightfoot
The opportunity pipeline Looking ahead, the opportunity set in infrastructure remains vast. South Africa’s infrastructure backlog is estimated to exceed R2tn over the next decade, with sectors like energy (generation & transmission), water, and transport all in urgent need of investment.
“We know government doesn’t have the fiscal capacity to finance much of this on its own. That’s where pension funds and capital markets investors need to step up,” he says. “As an example, transmission infrastructure alone requires around R360 - R370bn to modernise and expand the grid.” He points to REIPPPP as a successful template that attracted billions in funding from both banks and institutional investors – via private debt and private equity. “That model showed what’s possible when key risk mitigating factors are addressed and put in place for capital market and institutional investors,” Lightfoot adds.
“However, these projects don’t come without risks. From regulatory and political uncertainty to project execution challenges, fixed income investors need more than just spreadsheets –they need insight, patience, due diligence and the ability to kick the tires when required.
“We mitigate risk through in-depth due diligence, assessing both financial and nonfinancial aspects and building strong legal protections into agreements,” says Lightfoot. “Our investment team of over 40 professionals who work across listed credit, private debt, interest rate risk management and more. It’s a holistic ecosystem built to manage complexity.”
Private debt vs traditional bonds
According to Lightfoot, private debt and infrastructure debt aren’t replacements for traditional fixed income but rather enhancements. “Where government and corporate bonds provide liquidity and pricing transparency, infrastructure debt offers longdated, stable cashflows and enhanced yield, often with bespoke protections built into the loan structures. It’s about blending the two to get the best of both worlds,” he says.
That means reduced correlation with listed markets, inflation-linked returns and downside protections structured directly into deals, especially crucial in a higher interest rate environment or periods of fiscal strain.
Real impact in action
Lightfoot highlights one standout: a major player in affordable rental housing in Johannesburg. “They’ve transformed underutilised office blocks into quality residential units with gyms,
“We’ve returned aboveinflation returns while supporting critical national initiatives”
co-working areas, and green spaces – all priced affordably,” he says.
Beyond returns, the investment ticks critical sustainability boxes: revitalising key city nodes, enabling closer access to jobs by reducing commute times. “It’s a tangible example of how fixed income can deliver social and economic outcomes without sacrificing performance,” he says.
Advisers and infrastructure exposure
While the fund is not typically distributed through retail financial advisers – being primarily institutional – Lightfoot believes the message for advisers is clear: “Clients need income. But they also need protection. Infrastructure debt offers a solution that delivers on both, and importantly, it’s contributing to solving South Africa’s real economy challenges. That’s a story worth telling.” The fund continues to attract institutional investors through their relationships with consultants and asset aggregators in this space. Education plays a big part in that process.
“The strength of this fund lies in its ability to consistently deliver inflation-beating returns, while simultaneously addressing South Africa’s developmental and sustainability needs,” says Lightfoot. “We are seeing growing interest from clients and consultants looking for resilient, lower-volatility investment solutions that do more than just meet financial metrics.”
The importance of immediate access
Fixed income remains a foundational pillar in any diversified portfolio, particularly for institutional investors looking for consistent, risk-adjusted returns. “However, what’s evolving is the composition of that fixed income sleeve. We’re seeing a clear shift toward incorporating private market assets – and infrastructure debt plays a central role in that,” Lightfoot notes.
The Fund is currently open for new investments, backed by a robust pipeline of infrastructure and developmental asset deals. Lightfoot notes. “We have a large and live pipeline of exciting and diverse opportunities and the team capacity to act swiftly. That means investors can gain exposure to these impactful investments from day one.”
A nod to SA’s future
“We believe in demystifying credit and infrastructure investing,” Lightfoot explains. “Whether it’s through thought leadership, webinars, or in-depth trustee training like our ‘Credit 101’ sessions, we aim to empower consultants and clients alike to understand what makes this asset class unique and necessary.”
Much of Futuregrowth’s fixed income private debt strategy hinges on identifying and structuring high-quality opportunities, deals where the team can negotiate protections, pricing, and terms to ensure security and return. “It’s not just about chasing yield,” Lightfoot says. “We’re structuring in real downside protection, improving governance frameworks and building long-term sustainability. That’s what makes this a long-term, investment play, not a speculative one.
“Ultimately, what we’re doing here isn’t just investing, it’s enabling South Africa’s future. And the fixed income market, through responsibly structured private debt, has a critical role to play in that story.”
Youth financial literacy: A long way to go
In honour of Youth Day on 16 June, MoneyMarketing looks at the state of financial literacy in the youth market, and some of the steps the industry is taking to improve it.
South African youth consistently score below the global average in financial literacy assessments. According to the OECD Programme for International Student Assessment (PISA) results and local studies, many South African youngsters struggle with basic financial concepts such as budgeting, saving, interest rates and debt management, and only a small proportion can correctly answer questions involving compound interest or inflation.
growing trend of financial influencers, but not all offer sound or ethical advice.
Socioeconomic barriers
Many youths come from low-income households where financial education is not understood at home. Without access to bank accounts or digital financial tools, financial concepts can feel irrelevant or inaccessible.
“According to the FSCA Financial Literacy Baseline Survey, 48% of South African adults struggle with basic financial literacy, with women and underserved communities bearing the brunt of this knowledge gap,” says FNB’s Personal Segment CEO, Lytania Johnson.
Major gaps in understanding
Budgeting and saving are often understood at a basic level, but long-term financial planning, credit management and investment knowledge are poorly grasped. Youth often lack awareness of financial risks, insurance and consumer rights in financial services.
Limited formal financial education
Financial education is included in subjects like EMS (Economic and Management Sciences) and Life Orientation, but the depth and quality of content varies widely by school. Many teachers are not adequately trained to deliver personal finance lessons confidently, and there is a lack of consistent curriculum integration across provinces and grades.
Influence of social media and peer pressure
Youth are increasingly influenced by social media, often exposed to misinformation about money, flashy lifestyles or unrealistic investment schemes (eg: ‘get-rich-quick’ scams). There’s a
Promising developments and interventions
Organisations like JA South Africa, FinEduSA, and National Youth Development Agency (NYDA) offer workshops, simulations, and entrepreneurship programmes. The Financial Sector Conduct Authority (FSCA) has launched various financial education campaigns targeting school learners and students. Recent efforts by banks and fintechs (e.g., Capitec, Old Mutual, FNB, Absa) include youth-targeted financial literacy apps, games and school tours. New platforms (like Yoco Learn, Smartbucks, and Stash by Liberty) are gamifying financial education for young people, making it more interactive and engaging.
Difficult economic times
In addition, according to specialist wealth manager Citadel, South Africans are facing a time of unprecedented financial complexity, which is why it is more important than ever to build impactful financial habits early on. Compelling evidence – both global and
local – indicates that life is significantly more expensive for Millennials (Gen Y) than it was for Gen X or Baby Boomers. International research shared by the Journal of Consumer Research shows that Gen Ys are finding it much harder to finance homes and other large expenses than Baby Boomers did in the 1970s. Local research by Ipsos indicates that due to historical inequalities, many South African Millennials do not have the advantage of inherited wealth, making it harder to build financial security.
Citadel Advisory Partners Kirsten Smit and Elelwani Ravele emphasise the need for the younger generations to seek proper financial advice, and to start saving and budgeting from an early age. “We’re in a generation that loves Do it Yourself (DIY) solutions and digital apps,” says Smit. “But talking to a professional adviser is different. Advisers are human, experienced, empathetic, and can help this generation to map out goals and avoid costly mistakes.”
Some of the financial mistakes the youth are more likely to make are “emotional or impulsive financial decisions”, especially where it pertains to big-ticket items. “A car is not an investment; it is a lifestyle choice. Vacations are great, but it is important not to pay for it out of debt or emergency savings,” says Smit.
Some initiatives on the go
To tackle the problem of financial literacy among the youth, FNB recently launched a new online financial education hub, www.fincents. co.za. “We view it as critical for us to open up our capabilities and expertise to empower South Africans from all walks of life with potentially life-changing financial knowledge,” says FNB’s Lytania Johnson.
The website, which is open to all South Africans regardless of which financial institution they bank with, features free registration and access to micro-learning modules, articles, videos, and other content formats to empower users with financial education. It also allows users to download content to allow for learning offline.
“We have tailored the content and information available on the Fincents website to offer users core financial education support. Our team tapped into its experience working in communities across the country and partnered with digital content experts to craft an interactive learning platform that allows users to learn through storytelling, quizzes, and contextual content,” says Dhashni Naidoo, who is a programme manager at FNB Consumer Education.
Fincents takes users through five content pillars and 13 combined themes, ranging from topics such as budgeting, saving, identifying financial scams to managing debt, and retirement planning.
“Ultimately, our aim in this knowledge transfer exercise is not only to improve financial literacy levels but also to positively and sustainably influence attitudes and perceptions about the importance of personal finances,” continues Johnson. The bank also intends to provide content in various South African languages, and to sustainably improve financial literacy levels among users. This first phase of the website is just one of the steps FNB is taking to ensure it further develops its existing consumer education efforts.
Launched in 2013, Standard Bank’s WalletWise is a comprehensive financial education initiative designed to equip individuals with the knowledge and tools necessary to make informed financial decisions. Recognising the unique challenges that young South Africans face, the programme offers tailored content that addresses budgeting, saving, responsible borrowing, and understanding financial products.
WalletWise employs a multifaceted approach to education, utilising digital platforms,
community outreach, and engaging content to reach a broad audience. The initiative’s commitment to accessibility is evident in its provision of materials in nine of South Africa’s official languages, ensuring that language
“South African youth consistently score below the global average in financial literacy assessments”
barriers do not impede learning.
Absa’s flagship ReadyToWork programme is a comprehensive e-learning initiative designed to equip young professionals with essential career skills, with financial literacy being a core component. The platform focuses on money management fundamentals, investment and planning strategies, financial decision-making for long-term career success, building financial discipline, and goal-setting.
How to secure your child’s education in uncertain times
Raising kids has never been simple, but today’s economic landscape is adding extra layers of challenge. Even though interest rates have held steady for a while, families are still feeling the squeeze. From groceries to school supplies, the cost of living keeps climbing.
In the middle of it all, education remains a top priority. Everyone wants to give their children the best possible start in life. But as learning becomes more expensive and public resources strain under pressure, the old approach to education planning no longer fits the times.
Relief now – but pressure later?
When the government scrapped the proposed VAT increase, parents across the country breathed a sigh of relief. In an economy where every cent counts, avoiding another cost hike felt like a win. But that shortterm relief comes with a longer-term cost.
Less tax revenue means tighter government budgets, and education, already under pressure, is feeling it. Thousands of teachers – burnt out, disillusioned, underpaid – are expected to leave the public school system over the next two years, according to recent reports. As classrooms grow more crowded and experienced educators walk away, the impact on learning is significant and deeply worrying. This means more parents are being pushed to shoulder the responsibility – and the cost – of a quality education.
Education costs more than just school fees
Education is about way more than school fees. It’s the transport, the device for digital learning, the school shoes, the sports kits, the aftercare. It’s the extra lessons when things fall behind. And every year, those costs keep rising, even when salaries don’t. At the same time, high
The programme recognises that financial literacy is a critical element of career readiness and professional growth, helping young people manage their resources effectively as they enter the workforce.
Capitec’s MoneyUp Academy is a free, interactive financial education platform designed to make learning about money both fun and rewarding. With a gamified approach, users can earn points, achieve weekly goals, and stand a chance to win vouchers as they progress. Aimed especially at young people, the platform simplifies personal finance through engaging, practical lessons that empower users to build smart money habits, take control of their financial decisions, and confidently shape their financial futures.
In terms of youth literacy, South Africa still has a long way to go, but it’s promising to see the industry looking at ways to close the financial literacy gap among the youth, providing them with the knowledge, skills and confidence needed to make sound financial decisions throughout their lives.
youth unemployment means many families are supporting more than just their kids. Grandparents, siblings, adult children… when everyone’s leaning on one income, saving for school starts feeling near impossible.
Still, many parents are turning to private education or dreaming of university for their kids. Why? Because we all want a bright future for our children. But those dreams come with rising price tags that often outpace inflation. In calmer times, putting aside a little each month might have been enough. Today, it takes a more intentional plan to stay ahead. Life throws curveballs – unexpected bills, job loss, health issues – and suddenly that education fund takes a hit. That’s why education planning today needs structure. You need a strategy that doesn’t just hope for the best – it prepares for the worst and plans for the long haul.
How do you inflation-proof your child’s future?
The answer lies in planning with the future in mind, especially when it comes to inflation. The longer a child’s learning journey, the more those rising costs compound.
Education insurance is one of the smartest tools for this. Futurewise has designed its policies to grow with inflation, so that cover keeps pace with rising fees. Policyholders also get access to its Learning Hub – a powerful value-added platform offering free online academic resources, including tools from leading partners like TopDog Education. These benefits are worth up to R8 000 and help support children throughout their schooling. The savings component, powered by Nedbank, is flexible and invested, to grow funds toward key education goals, with the ability to withdraw when it is needed most.
Education is a long game. The decisions made today will shape the opportunities kids have down the line.
Nomie Nxumalo Executive Head: People and Transformation at Miway
WHow working from home affects insurance
hile remote and hybrid work arrangements have recently started to decline as the return-to-office trend has gained momentum around the globe, many companies continue to embrace these models to attract and retain top talent. The workingfrom-home option does impact how South Africans use their homes and vehicles and must be considered when it comes to protecting these important assets.
Many people embrace the convenience of home offices, but only a few may realise that this work-life-balance choice (or opportunity – as some companies do not allow this) could have significant implications for their insurance policies. Your clients should constantly review their home and car insurance to ensure they remain adequately covered if they opt to work from the comfort of their personal space.
Home insurance implications
The integration of workspaces into personal residences brings about certain dynamics to home usage. Many homeowners have invested in expensive office equipment, increased their reliance on home internet, and even started running businesses from their residences. However, failing to inform insurers about these changes could lead to gaps in coverage or even rejected claims in some cases.
“It’s crucial to declare to your insurer if a portion of your home is being used for business purposes”
Most standard home insurance covers are structured around personal use of the home. Whether you’re running a business or working remotely, it’s crucial to declare to your insurer if a portion of your home is being used for business purposes. Not doing so could result in your claims being declined or certain losses not being covered.”
For instance, home offices often have valuable equipment like computers and printers, as well as back-up supply to routers, which many people installed when loadshedding was at its worst. Other items could include fridges and storage, depending on the business activities. These products may require extra coverage beyond a standard insurance policy and would certainly need to be considered under contents coverage. Additionally, handling sensitive data from home can expose you to cyber threats, yet most home insurance policies do not include cybersecurity.
Car insurance savings for remote workers
The impact of remote work extends beyond home insurance. Fewer commutes and reduced mileage could translate to lower car insurance premiums. Insurers often assess risk based on driving frequency, and people who need to drive to the office less may qualify for reduced premiums. But it’s also important to ensure sufficient coverage for when you are on the move.
Consumers should take the time to chat to their insurer and update their policies to reflect their current lifestyles. Those who do not drive to work daily should check with their insurer to see if they qualify for mileage-based discounts or policy adjustments, and if your personal vehicle is being used for business purposes, such as for deliveries, check in to ensure coverage. As remote working continues to be a prevalent aspect of the South African work culture, it is important for people to proactively assess and update their insurance policies. Understanding the terms and conditions of cover can prevent potential financial setbacks and ensure sustained protection.
Locking in future insurability is key to your clients’ long-term financial protection
By Sean Hanlon BrightRock
It may be obvious, but your clients’ needs change over time. That’s why it’s imperative to get life cover that precisely matches their needs today, but also can change with them over the course of their policy’s duration, as those needs change. But can they change their cover when their needs change without undergoing medical underwriting again?
Most insurers don’t allow clients to buy additional cover without medical underwriting
Many life insurance products prevent clients from buying more cover when their needs change without undergoing medical tests. This is important for most clients as their health deteriorates as they age. They might not be able to get additional cover because they’re no longer insurable, or the new cover they buy could also include exclusions and loadings. As a financial adviser, it’s imperative that you check that your client’s current cover allows them to quickly and effortlessly make changes to their cover when their needs change, like adding children to their policies, increasing cover when they get a promotion and have a larger salary to protect, or if they buy a bigger home and need to increase their debt cover.
Points to consider when advising your client on future insurability options in the market
• When can they make changes: If the client’s cover allows them to make changes, can they get more cover without onerous requirements? It’s essential to understand when clients can buy more cover – does a life event, like a marriage, need to happen before using it, or can they buy more cover at any time?
• What supporting evidence do they need: Do they need to give the insurer proof of any or all these things, or tell them of changes in their circumstances, for example, if their occupation has changed and if they’ve started smoking?
• Do they need to pay an extra premium: Another vital factor to consider when assessing your clients’ future insurability is whether this feature is built into the policy or if they need to pay an extra premium to add a future insurability component.
Securing future insurability with a needs-matched approach
To offer your clients long-term flexibility and relevance, it’s vital to consider a risk solution that also locks in their future insurability. BrightRock’s extra cover buy-up facility allows qualifying clients to change their cover when their needs change without unnecessary barriers or having to do blood tests. This enables them to benefit from the medical underwriting they underwent when they got their cover and helps guarantee their future insurability.
As affordability is also a significant factor when clients are younger, features that enable them to access more life insurance cover in the future will allow them to close the insurance gaps when they can afford it. For instance, a client might be underinsured when they first take out their policy because they can’t afford the full level of cover they need at that time –having a needs-matched policy that allows them to change their cover when their needs and affordability change will allow this client to increase their cover to the level they need.
Best of all, they can do this with a simple email to their financial adviser, without having to do any medical tests as they would with some insurance providers.
Is your finely crafted financial plan a grand masterpiece?
Or will it be let down by traditional life insurance products that don’t match your clients’ needs?
As a highly skilled financial adviser, you know that every financial plan is carefully designed to meet your client’s needs today, and as their life changes. BrightRock’s needs-matched life insurance lets you create a product solution that precisely matches the financial plan you’ve crafted for your client.
For example, we enable your qualifying clients to get more cover when they need it through our cover conversion, extra cover buy-up and yearly secured cover facilities – without medical underwriting*. So they have peace of mind knowing their cover can keep up with their changing needs.
Only with needs-matched life insurance do you have unrivalled flexibility and efficiency, so that your finely crafted financial plan becomes an enduring masterpiece in your client’s hands.
Get the first ever needs-matched life insurance that changes as your life changes.
Dr Jerry Chetty Head of Business Integrity at Santam
FThe ripple effect of rising insurance fraud
rom impersonation and social engineering to leveraging generative AI and large-scale data breaches, insurance fraud has become increasingly organised and technically advanced. Global fraud losses totalled an estimated $1.03tn in 2024, while South African insurers face potential losses of up to R3.5bn
Dr Jerry Chetty, Head of Business Integrity at Santam, says fraudulent claims have a far-reaching knock-on effect. “Insurance fraud is a criminal offence, and those who submit false claims face criminal prosecution and could end up with a criminal conviction against their name. Beyond the legal consequences, however, insurance fraud undermines the integrity of the community, diverts scarce police resources, and impacts the financial health of a critical industry.”
As fraud schemes become more complex, South African insurers have had to adopt stricter claim validation processes. “Legitimate claimants now face longer processing times, more paperwork, and added stress as insurers work to verify the authenticity and quantum of each claim,” explains Dr Chetty.
From a fiduciary standpoint, insurers have a duty to protect the funds entrusted to them by honest policyholders. But with the rising prevalence of fraudulent claims, that responsibility now demands significant investment in technology, analytics, and human capital.
“At Santam, we’re deploying AI and advanced data analytics to detect suspicious trends and behavioural anomalies,” says Dr Chetty. “This includes overlaying transactional data with behavioural patterns. For example, identifying clients who submit multiple claims in a short period or who follow known fraud patterns. We’re also seeing success in flagging anomalies using image recognition and deepfake detection technology.”
The fight against insurance fraud has become a digital arms race. Fraudsters now have access to powerful AI tools – many of which are readily available on the dark web. These tools are used to create synthetic identities, fake images and videos, clone voices, and script convincing phishing and smishing scams.
“Impersonation is one of the fastestgrowing threats we’re seeing,” warns Dr Chetty. “It often begins with a simple phone call or email, but is now bolstered by AI tools capable of replicating writing styles, creating
realistic imagery, and cloning voices. This makes it far more difficult for individuals –and even businesses – to spot red flags.”
Social engineering attacks exploit human behaviour rather than technical vulnerabilities. Criminals use stolen data to craft highly convincing messages or scenarios, coaxing victims into revealing further personal information. This information is then used to commit fraud, often across multiple institutions.
Dr Chetty adds that, in many cases, a data breach will be the first step in a strategically orchestrated string of fraudulent activity. “Once the necessary information has been exfiltrated, identities are synthesised, and claims are submitted using false or manipulated documentation.”
Encouragingly, Dr Chetty notes a shift in public sentiment. “We are seeing a growing intolerance towards insurance fraud, which is crucial to restoring trust in the system. Where it was once seen as victimless, a low-risk, high-reward crime, there is increasing awareness of its seriousness. Submitting a false claim isn’t clever – it’s criminal. Community Police Forums are warning communities about the legal consequences associated with submitting false insurance claims.
“As insurers, we want to pay legitimate claims as quickly and efficiently as possible. But fraud complicates this. More checks mean more time, more resources, and more friction for everyone involved,” he adds.
Due to improving technological advancements, the insurance industry is directly affected by a growing and interconnected web of cyber and financial crime. “As the world shifts towards digital and cashless transactions, we must be equally agile in how we detect, prevent and respond to fraud,” says Dr Chetty.
“Our approach cannot be reactive or piecemeal,” he notes. “We need coordinated, cross-sector collaboration and continuous investment in technology. Most importantly, we must foster a culture of integrity – one where false claims are not just illegal, but socially unacceptable.
“As fraudsters evolve, so too must the insurance industry. By combining behavioural analysis with cutting-edge technology, and by raising awareness among policyholders, we can help safeguard South Africa’s insurance industry – and the honest people it exists to protect,” concludes Dr Chetty.
Mutuality in motion: Reimagining financial services together
By Michele Jennings Chief Executive, glu
Imagine a world where financial services weren’t built to take from people, but to give back. Where every interaction is the beginning of something meaningful – not just a transaction. That’s the world we’re building at glu.
We call it Financial Togetherness™, a peoplefirst philosophy that reimagines financial services through the lens of Mutuality. It’s about not only delivering what people need today but also anticipating what they’ll need tomorrow. It’s about creating products and systems that work for people, and ensuring that the value created is shared.
“We’re taking to the road to meet advisers and partners in different regions”
As advisers, you sit at the centre of this ecosystem. You’re not just distributors; you’re co-creators of a new financial reality. A reality where your clients benefit not just from access to solutions, but from being part of something bigger. A reality where Profit-Share is a builtin mechanism for rewarding participation and loyalty.
Over the next few months, we’re taking to the road to meet advisers and partners in different regions. It’s an opportunity to connect, engage on our shared future and on how we continue to deliver a seamless and efficient experience that moves glu forward. These sessions are a natural extension of our Mutuality mindset – grounded in partnership, powered by collaboration.
We’ll be unpacking our holistic value proposition, product development strategy, underwriting and system efficiencies.
Roadshow
Mutuality in action is about showing up. It’s about listening and building together. If you’re interested in finding out more about our roadshows, email: info@glumutual.co.za
Liberty and Capital Legacy team up
By Sandy Welch Editor MoneyMarketing
Liberty has partnered with South African wills and estates specialist, Capital Legacy, to offer clients comprehensive estate planning. MoneyMarketing’s Editor, Sandy Welch, spoke to Ryan Switala, Head of Simple Life Solutions at Liberty, to unpack the partnership in more detail.
What led Liberty to partner with Capital Legacy?
It started with a clear client need. Many South Africans don’t have valid wills in place, whether due to complexity, cost, or just not getting around to it. At the same time, we saw how businesses like Capital Legacy were disrupting the fiduciary space with a modern, tech-enabled model that resonated with both clients and financial advisers. So, instead of reinventing the wheel, we decided to partner with an expert to bring a simple, fully integrated estate planning solution to market – fast.
Why is this partnership good news for clients?
It removes the barriers that typically prevent people from setting up a will. The solution offers a free will, safe custody, and unlimited amendments – all through a simple and efficient process. Plus, the integration ensures that when the time comes to administer the estate, it’s a smooth and supported experience for the family – something that matters hugely during such a difficult time.
What makes this solution different from traditional fiduciary services?
Three things: ease of use, integration, and insight. First, it’s a tech-driven process that’s been built for simplicity. Second it's an integrated offering, meaning clients can secure cove through the Liberty Legacy Protection Plan to fund the costs of dying, like executor fees, conveyancing fees, or trust costs, without dipping into their life cover. Lastly, the will drafting process itself helps advisers identify other client needs. For example, an unmet business assurance need, additional cover for taxes such as estate duty or an offshore planning need.
And what’s in it for financial advisers?
The integrated platform makes the entire will and estate process seamless. Advisers can initiate the process via Liberty’s Advisor Workbench – our Salesforce-powered platform. From there, they can refer clients, track progress, and make updates easily through the Capital Legacy-built portal.
It creates a simple, low-barrier conversation starter with clients and provides another meaningful touchpoint for annual reviews. Because it’s all digital and integrated, advisers stay involved and informed throughout the client’s journey, even beyond the client’s lifetime.
What kinds of protection plans are available?
There are a wide range of options with different levels of cover to match individual client needs starting with Bronze and moving up different levels right up to Diamond and even an Unlimited Plan. For example, the Gold plan indemnifies up to nearly R1m in fees. We even have a free Core Plan which offers a discount on executor fees. Additional benefits in the premium paying plans include:
• Immediate Liquidity Benefit to help pay for more urgent expenses following death Estate Overheads Protector to cover certain ongoing costs for up to six months in the estate, for example insurance and medical aid Estate Gap Protector, which kicks in if both spouses pass away in close succession and extra funds are required.
It’s surprising how many South Africans don’t have a valid will. Why do you think that is?
Many people see wills as complex or something only the wealthy need. Others might have drafted a will decades ago and haven’t touched it since. Traditional fiduciary models often reinforced this view – executor fees based on estate size, preference for larger estates, etc. That’s why this model changes the game.
Who acts as the executor under this solution?
The solution is end-to-end enabled by Capital Legacy and white-labelled by Liberty. So, Capital Legacy acts as both the executor and administrator of the estate. This integrated model is one of the key reasons the solution works so well – everything ties together, from will creation to the estate being wound up.
Some people worry about transparency in estate processes. How does this solution address that? Transparency is core to the solution. Clients know upfront what they’re paying for and what benefits they’ll receive. Of course, we also offer more traditional options for clients and advisors who prefer that route. This is about broadening access and choice, not replacing existing models.
If someone already has a will with another provider, how easy is it to switch?
Where multiple wills exist, typically the most recent valid will is the one that stands. Our
“The integrated platform makes the entire will and estate process seamless”
solution includes a clause to revoke previous wills. But it would also be best practice to arrange for previous wills to be destroyed to avoid any confusion
Looking ahead, how do you see this offering evolving?
We’ve launched this solution via our Liberty Financial Advisers, and there’s huge potential to engage both new and existing clients. It’s a great opportunity to revisit financial plans and ensure everything is in order. Longer term, we’re considering expanding into different market segments and distribution channels, especially for clients who may not have direct access to a financial adviser. We want this solution to be relevant across the broader South African population.
Why is this partnership good news for clients?
It’s all about accessibility, affordability and simplicity. The partnership addresses the perception that wills are complicated or only necessary for the wealthy. Clients can now get a free will that includes safe custody and unlimited amendments. And if they choose, they can also opt for a more comprehensive estate protection plan at a very reasonable monthly premium. The solution also helps clients avoid the financial pitfalls that often occur during estate administration when things like executor fees, trust setup and fees or other expected 'costs of dying' have not been catered for. Most importantly, it ensures peace of mind for both clients and their families.
What’s the overriding philosophy?
This partnership isn’t just about adding another product, it’s about changing the way South Africans think about and experience estate planning. It’s accessible, digital, affordable and deeply human. And at its core, it’s about making sure families are supported at the most difficult times of their lives.
Ryan Switala
By
John
Kennedy Citadel Director and Regional Head for Cape Town
ALiving by design: Planning for the three phases of retirement
s South Africa’s (SA) population ages and life expectancy increases, retirement is becoming a phased, multi-decade journey that demands thoughtful planning, emotional preparedness, and strategic financial insight, according to specialist wealth manager Citadel
Your children need your independence According to recent research, 43% of SA adults financially support their parents while raising their own families, creating multigenerational financial strain. Kennedy notes that this highlights the importance of retirees needing to be financially independent, not just for their own peace of mind, but for the wellbeing of their families. “Your children need your independence more than they need your money or an inheritance. They want to enjoy their time with you.”
The dual responsibility of the ‘sandwich generation’, which places significant financial and emotional strain on families, often leads to delayed retirement savings, increased debt, and heightened stress levels, says Kennedy. “This is where comprehensive financial planning can be very helpful to navigate these challenges
Rethinking retirement: From a destination to a new beginning
“Retirement today is not an endpoint – it’s a new chapter,” says Kennedy. “It can be the most liberating and rewarding time of your life, but only if it’s approached with intention.” Kennedy says the retirement journey can be viewed in three phases: an active phase, where retirees pursue travel, hobbies or family time; a passive phase, where mobility may decline; and a supported phase, where health or care needs increase. These phases each come with their own distinct financial implications, making a comprehensive, adaptable plan essential.
Planning for these stages is not just about having enough savings but about aligning one’s financial resources with a particular life vision.
“You’ve worked for 30 to 40 years, and spent 60 000 to 80 000 hours crafting your financial life, so retirement is your chance to design how you want to live next. That takes clarity and structure,” says Kennedy.
Balancing spending and legacy: A structured approach to fulfilment
This planning goes hand-in-hand with legacy conversations, with partners, children and advisers, which are financial as well as personal and emotional in nature.
“Legacy doesn’t only begin when life ends,” notes Kennedy, who advises that philanthropy should be viewed as an important aspect of legacy planning. From family support to charitable causes, he encourages structured giving (of time and money) that aligns with personal values, using a holistic approach to ensure longterm impact.
“We encourage individuals to think about legacy while they’re still active – through volunteering, mentoring, or structured giving. This is where professional guidance on how to set up a family office or philanthropic activities can enable a new era of responsible giving by the family. Ultimately, it is about living a life of purpose and making a difference, not just leaving money behind.”
“Retirement today is not an endpoint – it’s a new chapter”
In a society where saving is sometimes prioritised above all else, many retirees are surprised to be encouraged to spend more. “It’s counterintuitive, but in many cases, our role as advisers is to say: you’ve done enough, it’s time to enjoy your money responsibly,” Kennedy explains. Through detailed cashflow planning, retirees can safely spend during each retirement phase while preserving their long-term financial security.
It’s about relationships, not just returns Kennedy emphasises that wealth management in retirement is as much about relationships and trust as it is about financial returns.
“In retirement, the questions become more nuanced. It’s not just about earning –it’s about sustaining, adapting, and making sure that your decisions support both your life and your loved ones,” he says. “You need an adviser not just to crunch numbers, but to be a real sounding board – someone with insight and empathy who can challenge your thinking and walk the journey with you, whatever may happen in your life.”
Expect the unexpected – and start now Kennedy concludes with this insight: “You must live by design, not by default. Expect the unexpected, and put a plan in place that allows you to adapt when life throws curveballs. It is never too late, or too early, to create a retirement that is as fulfilling as it is secure.”
By Jashwin Baijoo Associate Director and Head of Strategic Engagement & Compliance at Tax Consulting SA
As SARS continues to enhance its Compliance Programmes by modernising its systems and integrating artificial intelligence to better identify instances of non-compliance, so too is the revenue collector bolstering the manpower behind its tax debt collections team. In a strategic move, National Treasury has allocated additional funding to SARS’ resourcing initiatives, effectively boosting its operational capacity and reach in outstanding tax revenue collection –introducing ‘Project AmaBillions’.
This increased scrutiny of taxpayer affairs, and intense focus on filling the fiscal pothole, emphasises the importance of taxpayers to stay vigilant. It’s essential that you advise your clients on the importance of ensuring their tax affairs are in order, and referring them to a tax specialist if need be.
War chest distribution
It has been alluded to that the project known as ‘Project AmaBillions’, in the corridors of SARS, is designed to intensify SARS’ tax collection efforts, across several taxpayer segments, and through various procedural channels. If the whispers are true, taxpayers can expect a noticeable uptick in compliance enforcement, audits, and recovery actions being implemented by SARS. While this is a positive indication, and will increase tax revenue collection, it is also a signal to non-compliant taxpayers that SARS’ war on non-compliance rages on, with reinforcements inbound.
The cavalry will arrive
Where an insurmountable tax debt is rightfully due to SARS, including interest and penalties piling on, it must be kept in mind that tax debt relief mechanisms exist to assist the financially constrained taxpayer. In the previous tax year alone, SARS granted relief amounting to R36.5bn through settlements and compromises. These avenues remain open and can be highly beneficial for cash-constrained individuals or businesses.
SARS’ amicable approach to debt relief may come as a shock to taxpayers, especially considering the revenue collector’s strategic objectives which Commissioner Kieswetter has been driving. From these objectives, the most daunting for taxpayers is that of making
non-compliance both hard and costly. When read in conjunction with the laundry list of potential criminal convictions in the tax acts, even the smallest of mistakes may cost taxpayers dearly.
For those unaware of their tax debt, or those under the impression that hiding in the shadows is the correct approach, their downfall may be signalled by a Letter of Final Demand.
Final demands
In recent months, some taxpayers have reported receiving correspondence that appears questionable, including email correspondence indicating a tax liability and providing bank details to make payment. As a rule of thumb, any and all correspondence received from SARS should be immediately addressed.
A Letter of Demand typically allows only 10 business days for a formal response. Taxpayers must act swiftly, making use of one of the available resolutions, which include (but are not limited to) submission of a Suspension of Payment (“SOP”) request, setting up a payment arrangement or negotiating a Compromise of Tax Debt. With a SOP being only an interim protective measure – although necessary in some instances to ensure that SARS do not attach funds from the taxpayer’s bank account while a merit review is underway – it by no means finalises an outstanding tax debt.
Deferral of payment
Aside from temporarily suspending collection measures being implemented by SARS, another available option to assist taxpayers is a Deferral of Payment arrangement. A key point to note on any Deferral is that it does not speak to a significant reduction of the tax liability, but simply payment of the full amount in monthly instalments.
Compromise of Tax Debt
Taxpayers wishing to rectify historical non-compliance by means of voluntarily approaching SARS – either to rectify prior under-declarations, inaccurate losses, or settle their outstanding tax debts to the revenue authority, in an attempt to ensure both current and future compliance – do have access to specific tailored solutions from a legal standpoint.
The Compromise of Tax Debt is one such solution, and is aimed at aiding taxpayers, both individual and corporate, to reduce their tax liability by means of a Compromise Agreement, which is entered into with SARS. This involves a permanent write-off of interest and penalties, as well as a potential reduction to the capital amount owed to SARS.
Why legal help matters
It is therefore vital to verify the authenticity of any SARS communication and understand tax liability fully. The safest course of action is to engage a qualified tax professional who can run a comprehensive diagnostic on tax affairs and determine compliance status.
If you are found to be non-compliant, your first and most critical line of defence should be a seasoned tax attorney. Legal representation ensures that disclosures are made under legal professional privilege – an essential safeguard in matters involving SARS.
A legal representative is best supported by a robust team comprising skilled accountants, attorneys and negotiation experts. This multidisciplinary approach significantly enhances the chances of securing favourable outcomes, such as tax debt write-offs or settlements.
Despite the stricter enforcement on non-compliant taxpayers, including hefty fines and stints behind bars, SARS remains committed to helping taxpayers who seek voluntary compliance. For those who are early adopters of the correct legal compliance approach and simply cannot afford to settle their entire tax liability in one shot, options like debt compromises and deferrals remain the best compliance course.
Approach SARS before they approach you
With this heightened focus on collections, it’s crucial for anyone with unresolved tax debt to take proactive steps. If you receive a Letter of Demand from SARS, or know that you have a tax debt, but are unable to afford settling it, and do not know which way to turn, it is strongly advised that you consult a specialist tax attorney or a professional tax debt negotiation team immediately. Delaying action could prove costly.
