Email not displaying correctly? View it in your browser.

JULY 2018

Dear stakeholder

In July the South African Savings Institute (SASI) launched National Savings Month under the theme ‘Employer Assisted Saving’. The theme recognises the important role that employers can play in facilitating financial education.

Understanding that employers, especially those with employee wellness programmes in place, are well positioned to help their workers gain the knowledge and skills needed to take the right decisions when it comes to managing their money, the ASISA Foundation introduced the Saver Waya Waya WageWise programme in 2015.

Since then, the ASISA Foundation has been collaborating with a number of employers from both the private and public sectors, as well as some unions. As a result, more than 11 500 workers from around the country who earn less than R20 000 have participated in the ASISA Foundation’s Saver Waya Waya WageWise programme, gaining critically important financial literacy skills. The programme has been made possible through generous funding by ASISA members including Sanlam and Coronation.

The Saver Waya Waya (‘save all the time’) WageWise programme takes a holistic approach to teaching financial literacy by making use of innovative teaching methods like educational videos with subtitles in a number of languages, as well as providing post workshop support. This support includes handouts such as budgeting templates, SMS reminders of key learnings, as well as a free 45-minute consultation with an independent financial adviser. The consultation only focuses on financial planning such as budgeting and debt management and cannot involve product sales.

International Financial Reporting Standards (IFRS)

The new profit-reporting standard for insurance contracts, known as IFRS17, comes into effect on 1 January 2021.

It provides for:

  • A globally consistent method for insurance contract accounting;
  • Greater transparency of profit sources; and
  • Up-to-date market consistent information about the entity’s obligations.

ASISA has set up a working group under its Life and Risk Board Committee to consider the interpretation of IFRS17, the concerns and challenges presented, as well as the impact of implementation.

This is in conjunction with work being undertaken under the Life Office Tax working group as reported in the March 2018 edition of Dispatches.

ASISA Fund Classification Standard Exemption

During the Budget Speech on 21 February, an increase in the offshore allocation limits for institutional investors was announced. As a result, the limits stipulated by the ASISA Fund Classification Standard for South African portfolios were misaligned.

The ASISA Fund Classification Standing Committee reviewed the Standard and proposed amendments to the ASISA Investments Board Committee.

The proposed amendments were approved, which means that South African portfolios are now defined as portfolios that invest at least 60% (previously 70%) of assets in South African investment markets.

Cell Captive Insurance

A joint communication published early in July 2018 by the Financial Sector Conduct Authority (FSCA) and the Prudential Authority (Communication 2 of 2018) provided an update on regulatory proposals for cell captive insurance. 

This was followed by the publication on 20 July 2018 by the FSCA of a draft Conduct Standard for cell captive insurance business for comment by 31 August 2018.  Members have been requested to provide comments to ASISA.

Draft FAIS Conduct of Business Report

Consolidated comments from ASISA members on a Draft FAIS Conduct of Business Report were submitted to the FSCA on 18 July 2018.

ASISA Enterprise and Supplier Development (ESD) Fund

The ESD Fund released its quarterly results at the end of July. In the second quarter ended June 2018, the Fund created 128 new jobs and deployed R29 million in support of black-owned industry aligned enterprises and suppliers. The quarter further saw new funders contribute an additional R40 million in investment and project capital inflows.

The Fund’s Investment Committee also approved several exciting new investments during the quarter, which are aligned to the Fund’s inclusive innovation theme created to support black-owned entrepreneurs innovating in the technology space.

During the quarter the Fund further deployed R9.2 million towards new acceleration programmes (business development and growth support) for some 40 black-owned SME suppliers and financial planners linked to the insurance industry value chain.

Academy Newsflash

In July the Academy welcomed its eighth intake of TSiBA Education students selected to participate in the ASISA Academy’s IMACS@TSiBA programme for the next year.

The IMACS@TSiBA programme is a dynamic partnership formed in 2011 with TSiBA Education to identify and attract students who have what it takes to build a career in our industry. Second year students in the finance stream of the Bachelors in Business Administration (BBA) degree at TSiBA Education can apply to participate in ASISA Academy’s IMACS@TSiBA programme.

On successful completion of their mid-year exams in their third year, these students will embark on five-month internships at sponsoring ASISA member companies towards the completion of their Bachelor of Business Administration degrees. The sponsors for the 2018/19 group are: Prudential, Coronation, Prescient, Taquanta, Allan Gray, Sanlam Investments and Futuregrowth.

Kind regards

Click here to unsubscribe