Vantage Business Magazine Volume 1

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VANTAGE VOL 1 / BUSINESS MAGAZINE THEBUSINESSOF PROPERTY 20 24 vmcomms@gmail.com

Partnership between the FSCA and B-BBEE Commission in pursuit of transformation in the financial sector

On 5 March 2024, the Financial Sector Conduct Authority (FSCA) announced a Memorandum of Understanding (MoU) with the Department of Trade, Industry and Competition’s (DTIC) Broad-Based Black Economic Empowerment (B-BBEE) Commission. The announcement serves as a cautionary note regarding the B-BBEE Commission's concern over, in its view, the inadequate submission of B-BBEE compliance reports by the financial sector.

The purpose of the MoU between the FSCA and B-BBEE Commission is to formalise and strengthen a relationship on issues of common interest, cooperation, collaboration, assistance and exchange of information. This is to fulfil their resultant responsibilities and obligations insofar as it relates to promoting the transformation of the financial sector.

In March 2023, the FSCA published its final "Strategy for Promoting Financial Sector Transformation" (the FSCA Transformation Strategy).It outlines how the FSCA aims to promote transformation within the current legislative framework, such as the B-BBEE Act and the Financial Sector Code, pending the finalisation of the Conduct of Financial Institutions (COFI) Bill for all financial institutions. In addition to this publication, the FSCA published a summary of the feedback received on the draft FSCA Transformation Strategy, and some key changes include:

A two-phase approach

Phase 1 will focus on the role that the FSCA will play within the current legislative framework; and

Phase 2 will focus on the role that the FSCA will play within the COFI legislative framework.

The FSCA's jurisdiction extends widely, encompassing insurers, collective investment schemes, retirement funds, brokers, financial planners, and wealth managers. The FSCA intends to lower entry barriers by adjusting regulatory demands according to the risks and scale of financial institutions. It may introduce phased implementation of requirements and explore tiered licensing. Moreover, when existing regulations pose obstacles for small entities, the FSCA encourages stakeholders to motivate how certain requirements hinder entry.

Phase 2 will require financial institutions to have in place a transformation plan aimed at achieving targets set under the Financial Sector Code. Upon implementation of the COFI Bill, which is said to be tabled in Parliament this year, the FSCA will be empowered to make standards relating to transformation. These standards will aim to provide specific details on requirements for transformation plans. Currently, the FSCA does not have transformation objects as part of its regulatory regime, therefore, there are consequently no significant penalties for failing to meet the government's transformation goals under existing legislation. As the regulatory body for all financial institutions, the FSCA will take a stronger stance on transformation by requiring them to submit plans for achieving it. A failure to comply with specific BEE thresholds outlined in these plans could lead to the FSCA withholding licenses.

Transformation plans during the licensing process

To stay within its designated mandate, the FSCA will base its transformation requirements on provisions outlined in the COFI Act (once implemented). Its mandate remains the enforcement of financial sector laws only, and not the Broad-Based Black Economic Empowerment Act 53 of 2003 (B-

BBEE Act) or the Financial Sector Code, which are the responsibility of the B-BBEE Commission and Financial Sector Transformation Council (FSTC), respectively.

The impact of the inclusion of transformation in the licensing process can be summarised as follows:

financial institutions will be required to have transformation plans in place, likely becoming a mandatory requirement. These plans, tailored to each institution's business model, will be assessed during licensing to ensure commitment to transformation objectives and Financial Sector Code targets. Ongoing supervision will evaluate institutions' performance against their transformation plans, with additional guidance provided as licensing frameworks are developed under the COFI Bill; existing licensed institutions are expected to undergo a conversion process from their current sectoral licenses to licenses and authorisations governed by the COFI Act. As part of this conversion, these entities will likely be mandated to submit their transformation plans to the FSCA within a specified timeframe. The details on the new licensing framework, including the license conversion process will be communicated as the COFI Act is rolled out; and the FSCA will ensure that transformation plans encompass all relevant aspects of the Financial Sector Code for approval. There will be no preference given to specific elements.

Regulatory and supervisory actions

The FSCA has opted for a "proportionate approach" to transformation, abandoning a blanket requirement for a minimum Level 4 B-BBEE status. This approach entails

exemptions and varying requirements based on factors such as turnover threshold, ownership structures, business models, and existing B-BBEE levels. By eliminating the Level 4 requirement, the FSCA aims to adopt a risk-based approach, concentrating resources where transformation is most needed. This includes entities with high BBBEE ratings but poor performance in specific areas, those showing no progress in transformation, and those unable to justify their inability to achieve higher transformation levels. The possibility of establishing a minimum B-BBEE level in the future remains open, pending consultation.

Through this approach, the FSCA seeks to foster sustainable transformation while balancing regulatory imperatives, ultimately paving the way for a more diverse and resilient financial sector.

Pension funds and emigration: Tax could be the make-or-break factor

Investing in an offshore retirement fund is one way of growing your wealth in a stable economy over the longer term, or even gaining residency in a foreign country. However, for South Africans, this scenario presents as many challenges as it does opportunities, and should only be considered after consulting with a financial adviser and tax expert.

When you invest offshore directly, whether in a retirement fund or another funding vehicle, the tax aspects can be tricky to understand and a number of factors must be considered.

If you fall foul of the domicile-specific tax rules, you could end up losing a large portion of your investment when you retire and start to withdraw funds, or during the inheritance process after your passing. And, if it’s not set up properly, your investment could also expose you to more taxation.

With regards to pension funds in South Africa, there are three basic scenarios, and two of them preclude moving one’s contributions into an offshore component to enable financial emigration or offshore retirement.

The first scenario is a membership in an employer-sponsored retirement fund. In some circumstances, an employer will create a free-standing fund and then appoint a board of trustees to make fund-related decisions. The board of trustees makes a variety of decisions, including hiring a fund administrator, an investment and retirement fund consultant, and an asset manager. These types of funds have fund-specific rules, and anyone who joins the fund (via employment) must follow them, including the limited portfolios in which you can invest. The underlying investment portfolios might have some offshore exposure that offers some form of financial security.

In the second scenario, where contributions are made in someone’s personal capacity into an ‘umbrella’ fund, it is typically the fund’s trustees that determine where the contributions are invested. At NMG Benefits, when we look at the asset allocation for a retirement fund, we generally include an offshore component to mitigate local risks and hedge against the Rand.

The third scenario is where someone saves for retirement in an offshore fund – and this is an appealing option when it comes to retirement savings as it allows for actual variety. Normally, as a South Africandomiciled investor, even if your portfolio is properly diversified, you are most likely committed to Rand-based funds which come with an inherent risk. However, when investing in an offshore retirement fund, the annuity could sit completely offshore and may be a vehicle that enables financial emigration. Generally, although not always, international retirement plans enable financial freedom by giving members the freedom to buy and sell assets within the structure, without triggering related capital gains tax.

Another way to fund an international retirement plan is to use funds that are already taxed and cleared, and are being held in an offshore bank account or direct investment vehicle. Such plans have tax benefits for members, but these are by no means the sole advantage. Portfolio diversification is a key benefit, as is the security that comes with investing in jurisdictions that are both politically and economically stable, as well as being wellregulated and having measures in place to combat fraud and money laundering.

However, many factors should be taken into consideration before taking the plunge –including fund options and structures, domicile-specific interest rates and taxes, rules around withdrawals and estate planning, and overall risk. The closer you are to retirement, the lower the risk you should be exposing yourself and your investments to. Ultimately the biggest decision to make is the selection of a qualified, experienced adviser to guide you through the technicalities and tax implications when investing offshore.

All is fair in Love and Finance.

Money conflict is one of the main reasons couples split up the world over. To avoid challenges that come with money matters, it is important for couples to align on finances early on. As part of the Momentum Science of Success To… influencer couple Danielle and her husband Jaun-Pierre Steynvaardt gave insights and tools and how couples can work together to avoid financial conflict and propel to success by making well-informed decisions in the current ever-challenging financial economy.

Let’s talk about money

Talking about money is important and according to Danielle and Jaun-Pierre, not having that sometimes-uncomfortable conversation about money will catch up with you sooner or later in your relationship. “The whole idea of money was different to both of us. I grew up very poor and she was in a privileged home. When I got my first pay cheque I just wanted to explore and buy everything my heart desires because I never had that.” said JP.

This will resonate with a number of individuals who come from previously disadvantaged backgrounds who may not have the skills or knowledge on how to handle their finances due to factors that include a lack of or exposure to financial literacy.

Pre-conceived notions about money can have adverse effects on the health of your relationship, especially when these notions are based on one's historical relationship or understanding of money.

Danielle stated that her and JP’s ideas about money didn’t come together and had they spoken about it more it would have decreased some of the tension that had built up in their relationship at the onset of their union.

It’s better to be overprepared than to be overwhelmed

Having open conversations with your partner such as working on a budget together, disclosing any debts and planning are the key ingredients that will help you better prepare in situations where unforeseen circumstances may arise.

Danielle and JP unexpectedly faced in their eleven-year marriage was the inability to naturally conceive. Not only did this experience take a toll on their marriage, but it dented their finances as well.

“It was an actual burden because you make decisions based on emotion. So, you know, you hear about this amazing doctor in Sandton and you just throw money at it and you literally don't care if you go into debt. It was a big goal for us to have the proverbial perfect family and now it can't happen. So, yeah, it was really difficult,” explained JP.

Overpreparing for unforeseen circumstances such as this may not take away the physical and emotional toll that comes with infertility. Even so, the financial strain that results from attempting to conceive can be reduced by having reserves for such situations.

Three and a half years later, the Steynvaardt’s family unit is stronger than ever. They place immense importance on prioritizing what’s important to them, and to taking decisions today that will ensure a more secure future for themselves and Zinzi, their adopted child.

Through its digital series, Momentum is shining a light on the challenges faced by everyday individuals and in doing so it is has placed a spotlight on the importance of transparency and understanding your finances, particularly in the current economic climate. Visit the Momentum YouTube page by following Danielle and her husband JaunPierre ‘JP’ full conversation on by clicking here.

How Effective Rebranding Can Redefine and Elevate Your Business

In an era where change is the only constant, businesses must adapt and evolve to stay ahead. Penquin, the brand and communication agency based in Johannesburg, is leading by example, embracing transformation with open arms. The agency recently made headlines with the unveiling of its brand-new logo and refreshed corporate identity (CI), marking a significant milestone in its journey. This bold move is not just a change in visual aesthetics but a profound statement of Penquin's commitment to innovation, growth, and the continuous pursuit of excellence in the ever-changing landscape of brand communication.

Veronica Moleele, CEO of Penquin, unpacks the importance of rebranding and how it can breathe new life into a business. "Rebranding is more than just revamping your logo or updating your website. It's about redefining your company's identity to better align with your current vision, values, and the evolving market landscape," states Moleele. This perspective underscores the depth and breadth of what rebranding entails – it's a holistic process that touches every aspect of a company's presence and its interaction with customers.

The Holistic Process of Rebranding

The process of rebranding, as Moleele highlights, requires a deep understanding of one's business, audience, and industry trends. "It's about asking the hard questions: Who are we now? Who do we want to be? How do our clients perceive us? Rebranding provides an opportunity to strengthen your brand's relevance and ensure it resonates with both current and potential customers."

Strategic Considerations for Rebranding

The decision to embark on a rebranding journey is significant and should not be taken lightly. "It's a strategic move that requires

careful planning, clear objectives, and a vision for the future," advises Moleele. However, when done correctly, rebranding can invigorate your brand, fostering deeper connections with your audience and setting the stage for sustained growth and success. "Penquin’s new logo is not just a change in visual identity, but a reflection of our ongoing evolution as a company. It represents our dedication to staying ahead of the curve and continuously providing unparalleled value to our clients.”

Staying True to Core Values

"In essence, rebranding is a delicate balance between remaining faithful to your brand's foundational values and adapting to the everevolving global landscape. It presents a pivotal chance to rejuvenate your story, differentiate your brand in a saturated market, and communicate your unique value proposition with clarity," Moleele sums up, emphasising the criticality of upholding the brand's core principles.

Impact of a Well-Executed Rebrand

A well-executed rebrand can do wonders for a business, serving as a powerful tool to rejuvenate its image, strengthen its market position, and forge a deeper connection with both existing and potential customers. It’s a bold declaration of the brand’s commitment to innovation and its readiness to adapt to the dynamic demands of the marketplace. For businesses considering this transformative step, it's essential to approach the process with clear objectives, creativity, and precision. When done correctly, rebranding can have a remarkable impact, injecting new life into a brand and setting the stage for sustained success in the future.

Century HomeShow 2024: Redefining Luxury Living

Century Property Developments proudly announces the Century HomeShow 2024, an exclusive event poised to redefine the standards of luxury living within the awardwinning Helderfontein Residential Estate. Scheduled across two weekends on 18 & 19 May and 25 & 26 May 2024, visitors at Century HomeShow, can look forward to witnessing the ultimate showdown among South Africa’s top residential architects and builders, and even have a chance to win a variety of sponsored prizes by voting for the “Home of the Century” at the show.

Century HomeShow 2024 promises a delightful day in the countryside without having to leave the city. The show will offer activities for the whole family and serve as a hub of inspiration for those looking to upgrade their current homes, explore property options, or simply stay abreast of the latest trends. Unlike conventional property shows, this format allows the visitor to experience a wide range of products and services in their actual intended environments, as opposed to a stall in an expo-like environment.

In line with post-Covid trends, where individuals have redefined their relationship with their living spaces, Century HomeShow 2024 offers a unique insight into the evolving landscape of architectural and interior design preferences. As people place greater emphasis on their home environments, a more considered approach to design has emerged, reflecting a desire for both aesthetic appeal and functionality. Visitors to the Century HomeShow 2024 can expect to explore the latest trends and innovations in home design, from cutting-edge technologies to eco-friendly materials, all showcased within the luxurious backdrop of Helderfontein Residential Estate.

At Century HomeShow 2024, products and services are installed in actual purpose-built

homes, providing a tangible experience of how these elements can enhance daily living. With a focus on home automation, technology, and green design, attendees will gain valuable insights to elevate their own living spaces.

Mark Corbett, CEO of Century Property Developments, underscores the distinctive appeal of Helderfontein Residential Estate, stating, “Here residents enjoy a rare blend of countryside serenity coupled with immediate access to Fourways and Lonehill. It’s not just a residence; it’s an embodiment of a lifestyle —one that seamlessly merges tranquillity with urban convenience.”

Nestled within the lush natural expanses of Helderfontein Residential Estate are an array of world-class amenities designed to elevate the living experience. From the esteemed Reddam House Helderfontein private school to the meandering walking trails, and idyllic catch-and-release fishing dams, residents are afforded a plethora of leisure opportunities on their doorstep. The estate’s unwavering commitment to safety and security is evident through its comprehensive measures, ensuring residents’ peace of mind. With the above in mind, this makes Helderfontein Residential Estate the perfect canvass for a show of this calibre.

A hallmark of Helderfontein Residential Estate is its picturesque showcase of Jukskei River embankments, adorned with a myriad of rare fauna and indigenous flora, symbolising the estate’s dedication to preserving its natural splendour. Scattered bird hides offer residents a tranquil sanctuary to witness the abundant wildlife that thrives within the estate’s confines.

Century HomeShow 2024 promises an immersive experience, featuring guided estate tours, interactive exhibits, and a chance to explore six exquisite show houses

that epitomise architectural brilliance and design ingenuity – the hallmarks of being a Helderfontein Residential Estate resident.

“Join us at the Century HomeShow 2024, it’s an open invitation to experience a lifestyle that is unsurpassed,” remarks Corbett. “We aim to highlight the magnificence of Helderfontein Residential Estate, where every moment exudes the essence of luxury living.”

Admission to Century HomeShow 2024 is complimentary, offering attendees an opportunity to discover the allure of Helderfontein Residential Estate firsthand, whilst casting their vote for the “Home of the Century”.

Invest in your lifestyle. Step into a world where home is not just a word. Find out more about making your dream home a realty by visiting the Century Property Developments website http://www.century.co.za/homeshow

EXPECT MORE FROM THIS ROUND OF NEGOTIATIONS

Incendiary rhetoric related to main agreement negotiations has been a recurrent issue post 2010 and as this year’s negotiations approach, expect more of it.

In an economy hit by double-digit contraction, battered by an unprecedented and alarming jobless rate and languishing in sub-optimal economic growth, what should the key stakeholders - organized business and labour – be doing to lift SA and this sector out of this mess? Are stakeholders capable of reaching common cause in order to turn things around or as we have come to expect, will employers and labour simply not be able to find one another where it matters most – at the negotiating table. Who would have imagined almost three decades into our democracy we still need to resort to strikes and lock-outs to resolve our differences? Collective bargaining in its crudest form is almost always about power and ideology and stubborn leaders convinced that they are right.

Our disillusionment with the system, the country and the future is a normal response and should be acknowledged. But once that’s done it does not help to dwell on the negatives. This should not be taken as naive optimism, just a realistic acceptance that things are indeed tough at the moment, but we will get through. Never waste a good crisis, they say. This industry has certainly been, and is still in the midst of a number of crises. Surely, opportunity must abound? Indeed, but in the collective barraging space, where business and labour are on opposite sides as adversaries, who has the courage to take the first step towards the middle? In any negotiation, presuming both parties are equally skilled, common interest plays a role in shaping the deal. Where common purpose cannot be found because of a perceived lack of mutual respect the deal will almost inevitably unravel.

In the metals and engineering industries the collective bargaining model has proven to be remarkably resilient. Undoubtedly it has come under sever scrutiny and strain over the last couple of years but it has survived and some would even suggest thrived. Resilience grows from taking constructive steps and building a common purpose. Without common purpose, crafting solutions to entrenched differences will remain elusive. It’s time for all role players to stand up and be counted. Notwithstanding our diverse ideologies as between business and labour and amongst business groupings, finding a way forward in tolerance and mutual respect is now, more than ever, desperately needed.

Insofar as this year’s round of negotiations is concerned, we know things will not be easy and the challenges facing us are many. South Africa’s economic outlook doesn’t look good and there is little business confidence. The notion of job retention and/ or job creation on the back of an alarming high unemployment rate fuelled by ongoing retrenchments and business closures, has become elusive.

Persistent load-shedding, the worst in more than a decade, shows no signs of ending. Spiking unemployment, widespread business failures and huge job losses point to negotiations this year taking place against a difficult economic landscape. It would be fair to say that only if labour and business find a way of working together do we stand a chance of turning things around. It’s also fair to say that the relationship between supporters and detractors of gazetted agreements remain strained. Litigation continuous and in all likelihood may well continue into the future.

Trust amongst all stakeholders must be rebuilt and the national discourse must find a way of transcending beyond purely wages

and terms and conditions of employment. Once negotiations over wages and conditions of employment have been settled, the focus must urgently shift to more important priority interventions, where labour and business collectively can play a part in tackling the deep underlying failures preventing meaningful growth in SA and our sector.

In light of the above the Associations federated to SEIFSA will be proposing a settlement which envisages affording the industry an opportunity to re-set in an enabling environment underpinned by certainty, stability and industrial peace.

Industry negotiations over the years have created a set of comprehensive and favourable employment conditions for employees that are essentially unmatched across most bargaining councils. Hence, we do not foresee any further amendments to benefits contained in the Main Agreement nor do we propose down varying existing terms and condition of employment, including safe guarding section 37 of the Main Agreement which protects members from having to engage in plant level bargaining.

The SEIFSA Council has mandated that this year’s negotiations be structured around four broad principles, themes or business drivers:

· a long-term agreement;

· wages;

gazettal and extension; and

· exemptions incorporating special phase-in dispensation.

As there is a nexus or connectivity between these four themes, consensus must be reached on each of the drivers before an agreement can be considered. It is also envisaged that all outstanding issues be dealt with in-line with the provision as set-out in an already signed-off Process Agreement and

that this process commence immediately once a Settlement Agreement has been concluded.

Finally, resilience comes from chartering a clear purpose and being part of something bigger than any individual or grouping. As Nietzsche said, he who has a why to live for can bear almost any how. The future will be created by those who have the courage to take action and lead.

Lucio Trentini, is SEIFSA’s Chief Executive Officer and Chief Negotiator for the 18 Employer Associations federated to SEIFSA, representing 1 300 affiliated member companies employing l70 000 employees in the metals and engineering industries.

Revolutionizing Urban Lighting:

Introducing the Future Light LED Street Light Series

Future Light, a pioneer in innovative lighting solutions, proudly announces the release of its groundbreaking LED Street Light Series. Designed to transform urban landscapes, these cutting-edge street lights offer unparalleled efficiency, sustainability, and performance.

With urbanization on the rise and the demand for energy-efficient lighting solutions increasing, the Future Light LED Street Light Series emerges as the answer to the evolving needs of modern cities. Featuring state-of-the-art technology and a commitment to sustainability, these street lights set a new standard for urban illumination.

Key features of the Future Light LED Street Light Series include:

Energy Efficiency: Incorporating advanced LED technology, the street lights significantly reduce energy consumption compared to traditional lighting solutions. With up to 80% energy savings, cities can lower their carbon footprint while enjoying superior lighting quality.

Superior Illumination: Engineered to deliver optimal brightness and uniform light distribution, the LED Street Light Series ensures enhanced visibility and safety on roads and streets, contributing to a more secure urban environment.

Longevity and Durability: Built to withstand the rigors of outdoor environments, Future Light LED Street Lights boast exceptional durability and longevity. With a lifespan of over 50,000 hours, these lights require minimal maintenance, reducing operational costs for municipalities and businesses.

Customizable Options: Future Light offers a range of wattages and specifications to cater to diverse urban lighting needs. From 50W to 100W variants, cities can choose the perfect lighting solution tailored to their requirements.

Environmentally Friendly: Committed to sustainability, Future Light LED Street Lights are eco-friendly alternatives to conventional lighting sources. By reducing energy consumption and greenhouse gas emissions, these lights contribute to a greener, more sustainable future.

Future Light LED Street Lights are ideal for various applications, including urban roads, highways, residential streets, parking lots, and public spaces. By embracing this innovative lighting solution, cities can enhance safety, reduce energy costs, and create vibrant, sustainable communities.

For more information about the Future Light LED Street Light Series and other lighting solutions, please visit our website and be sure to check out our 12v led strip lights as well!

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