April 2015  
Dear stakeholder    
     
   


Last week senior representatives from our industry, Government and other key stakeholders convened at the ASISA 2015 Conference in Johannesburg with the aim of reaching that critical tipping point - the point where we fix the holes and start rowing the boat that is SA Inc. in partnership. The two-day Conference, held under the theme “The Tipping Point”, was attended by some 345 delegates.

An important aspect of the Conference was the Expo, themed “The Cutting Edge”. Some 18 exhibitors participated and made good use of the opportunity to interact with decision makers in our industry. The Foster the Future division of ASISA – ASISA Academy, ASISA Foundation and ASISA Enterprise Development Fund – also showcased its achievements for the first time. Five ASISA members put on display some of their financial literacy interventions.

We had hoped that the Conference would facilitate open and honest debate by captains of industry and Government leaders of the challenges facing South Africa. The extreme candour that was present throughout the two days was, however, unprecedented.  The keynote speakers and the various panelists said what needed to be said in a frank, yet respectful manner.

As a result we now all know where we stand and what needs to be done and in our view that critical tipping point was indeed reached last week. When we host the next ASISA Conference we should therefore be able to provide delegates with a substantial progress report instead of still charting the way forward. 

The Conference was also attended by a number of senior journalists who took the debate beyond the Conference and into the public domain. As a result the ASISA Conference and some of its topics started trending on platforms such as Fin24. A summary by Fin24 of the top 10 reader comments last week resulted in the following headline: “Top 10 comments hit a high note after ASISA”.

We would once again like to thank Minister Ebrahim Patel for opening the Conference and for taking time out of his busy schedule to attend the afternoon session as well. Equally, a huge thank you goes to the keynote speakers who set the tone for the rest of the Conference as well as all the panelists who engaged in open and honest debate on some of the critical challenges facing our country. We would also like to express our gratitude to the Premier of Gauteng, David Makhura, for sharing with delegates his exciting vision for Gauteng. The enthusiasm with which Mr Makhura and his team participated in the Conference was hugely encouraging.

The speeches and presentations that were made available to us can be downloaded from the ASISA web site - click here.

 

IN THIS ISSUE

 

Foreign Member Funds (FMF) Workgroup

Africa Outreach Workgroup

Draft Insurance Bill

Financial Intelligence Centre Amendment Bill

Draft Market Conduct Policy Framework for South Africa

ASISA ED Fund invests in Green Construction

Academy Update

In conclusion



 
 
Click on the headings
to go directly to the article
ASISA Icon
 
   
 

Foreign Member Funds (FMF) Workgroup

   

ASISA has been invited to attend a FMF Workgroup including the Financial Services Board (FSB), National Treasury and the SA Reserve Bank (SARB) with the aim of determining the structure and regulations relating to Foreign Member Funds proposed in the 2014 budget.

ASISA has therefore established an internal working group reporting into the Investments Board Committee and an introductory meeting has been held. Representatives on this work group have been asked to consider any concerns, issues or recommendations relating to Foreign Member Funds with a view to documenting these for presentation to the FMF Workgroup.

ASISA is also continuing research into a broader investment management regime similar to that of Australia and the UK to form a view on whether this broader approach would be an appropriate route for SA to follow in relation to the managing of foreign assets.

 


Africa Outreach Workgroup

   

The ASISA Exco has approved the creation of an Africa Outreach Workgroup. The aim of the workgroup is to understand the difficulties being experienced by ASISA members when doing business in other African countries and to explore potential solutions to these problems. The first item placed on the agenda was Foreign Account Tax Compliance Act (FATCA) reporting. The workgroup is still in the formation stage and no meetings have been held as yet.

 


Draft Insurance Bill

   

National Treasury and the FSB published the draft Insurance Bill for comment in April. The Bill consolidates the legal framework for the prudential regulation of insurers and will replace the relevant sections of the Long-and Short-term Insurance Acts relating to prudential matters. ASISA will prepare an industry submission by the deadline of 29 May 2015.

 


Financial Intelligence Centre Amendment Bill

   

National Treasury and the Financial Intelligence Centre published a draft Financial Intelligence Centre Amendment Bill on 21 April 2015 for comment by end May 2015. 

Broadly, the Bill provides for the implementation of the United Nations Security Council Resolutions relating to the freezing of assets, the adoption of a risk-based approach to customer due diligence measures and the enhancement of customer due diligence requirements.  The Bill also introduces the concepts of beneficial ownership, ongoing due diligence, and foreign and domestic prominent influential persons.

ASISA is preparing a submission based on member comments received.

 


Draft Market Conduct Policy Framework for South Africa

   

In February National Treasury released a discussion document titled “Treating Customers Fairly in the Financial Sector: A Market Conduct Policy Framework for South Africa”. The discussion document sets out a comprehensive framework for how the market conduct regulator will operate in order to ensure that financial institutions treat their customers fairly. 

ASISA submitted comments to National Treasury on 7 April 2015.

 


ASISA ED Fund invests in Green Construction

   

In the first quarter of this year, the Fund approved an investment into a 100% black-owned franchisee of the Silverline Group. Silverline is an emerging South African entrepreneurial success story operating in the alternative building solutions space, in particular light steel frame (LSF) construction.

Silverline recognised the need to financially assist a number of highly capable franchisee candidates who were unable to afford the upfront franchise fee, but would add significant value to the company. As a result, Silverline approached the ASISA ED Fund as a potential funding partner for suitable entrepreneurs.

Through a rigorous selection process, Silverline’s top franchisee candidate was identified and received final approval for investment. For the ASISA ED Fund this is the beginning of an exciting journey in empowering more high calibre entrepreneurs and creating sustainable black business ownership in South Africa.

 


Academy Update

   

The month of April is traditionally a quieter period for the Academy. We therefore focused our attention on assisting candidates with their preparations for two Chartered Financial Analyst (CFA) Institute courses, namely the CFA Level One Exam and the Claritas Investment Certificate Exam. Claritas is the CFA Institute’s latest educational offering designed to benefit anyone working in a financial services organisation. Please click here for information on the Academy’s Claritas Exam Readiness workshops.

In April the Academy team also pioneered the first ASISA Investment Management Employment Equity survey intended to measure the extent of racial and gender transformation within 25 distinct roles for staff working in South Africa’s investment management industry. This survey will provide important insights on the effectiveness of current transformation initiatives in the industry and help us focus our energies on areas where transformation needs accelerating.

 


In conclusion

   

The ASISA Annual Review for 2014 made it off the printing presses just in time for the Conference. If you did not attend the Conference, we would like to encourage you to download the Annual Review from the ASISA web site. It provides a good overview of what was achieved by ASISA and its members in 2014 and also maps the path for 2015 and beyond.

Kind regards

Leon and Peter

 

   
Click here to unsubscribe