IN THIS ISSUE

We were exceptionally pleased when the draft amended Financial Sector Code was submitted to the Minister of Finance in early December 2015.

This major milestone was achieved following unanimous support for the revised Code from all stakeholders involved in the 18-month negotiation process facilitated by the Financial Sector Charter Council. The stakeholders were organised labour, the various industry associations including ASISA, community groups, Government (National Treasury and the Department of Trade and Industry) and the Association of Black Securities and Investment Professionals (ABSIP).

Following approval from the Finance Minister, the Minister of Trade and Industry gazetted the draft amended Financial Sector Code on March 17 for public comment. Interested parties have 60 days in which to submit comments.

National Treasury has published draft regulations setting out the rules that will apply to transfers of tax free savings and investment accounts between product providers from 1 November 2016. This follows the gazetting of an amendment to regulations giving effect to the postponement from 1 March 2016 to 1 November 2016 of the effective date for transfers.

ASISA collated member comment for submission to National Treasury by the deadline of April 8.

We would like to alert all ASISA life office members that the Financial Services Board (FSB) will be issuing an urgent request for Solvency Assessment and Management (SAM) figures for the year ended 31 December 2015. We expect the SAM template to be emailed to members by April 12. The deadline for submission of the requested information will be the end of April. The extremely tight deadline is as a result of National Treasury having to prepare draft legislation by June/ July 2016 for comment.

Submitting the requested information will be compulsory for some 12 life offices and voluntary for the rest. Life offices are urged to take this pending FSB information request into account for their April planning.

ASISA released the 2015 long-term insurance industry statistics during the middle of March. The statistics are indicative of a robust industry in good financial health and well positioned to honour policy claims.

The life insurance industry held assets of R2.58 trillion at the end of 2015, a solid increase of 6% from the R2.43 trillion held at the end of 2014. This means that in 2015 long-term insurance industry assets exceeded liabilities by more than four times the legal reserve buffer required.

Life insurers injected R412.2 billion into the economy last year through benefit payments to policyholders and beneficiaries. This is 4% more than in 2014, when total benefit payments amounted to R395.5 billion.

ASISA has formed the ETF Standing Committee under the Investments Board Committee.  This new standing committee will address and co-ordinate all ETF industry related matters and also monitor and integrate matters affecting ETFs across all ASISA Board Committees, Standing Committees and Working Groups.

ASISA submitted comments on amendments to the FAIS Fit and Proper Requirements to the FSB on March 14.

March proved a productive month for the Academy. The CIS@UJ and IFA interns completed their first month in a workplace and reports from their managers indicate that they are making steady progress. 

Last year the Academy embarked on a new relationship with the University of Johannesburg (UJ) partnering on a Collective Investment Schemes (CIS) programme for B.Com (Investment Management) graduates. This programme prepares graduates for the CIS industry and offers them the opportunity to intern with sponsoring ASISA member companies.

Based on the success of this programme the Academy extended this initiative to a group of UJ financial planning graduates. Following a successful work-readiness programme these graduates work as interns for a variety of Independent Financial Adviser (IFA) practices in Johannesburg. 

The second tranche of IFA internship programmes starts in June. Click here for more information on this exciting programme.

The Academy was approached by the Women in Finance Network (WIFN) about potentially mentoring young black women in the financial services industry.  As a result the four young women, who had attended the CIS@UJ programme in 2015, were sponsored by WIFN to attend their March breakfast event with Nicky Newton-King, CEO of the JSE. These four interns will also enter into a mentoring relationship with four carefully selected, experienced women in finance who have committed themselves to sharing their wealth of knowledge and expertise with them. 

March also saw the successful delivery of both the UCT CIS and UCT IMACS Short Courses in Cape Town as well as two Retirement Fund Trustee Education workshops.

Despite all the public holidays and school holidays during March, much has been achieved. We look forward to a productive second quarter of 2016.

Kind regards