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LegalBrief

Once in force, a draft Prevention and Combating of Corrupt Activities Amendment Bill released yesterday for comment will give effect to recommendations in two international conventions...   more  >>

LegalBrief

The US Justice Department and FBI are investigating the role of three banks – Swiss bank, Credit Suisse and VTB – in the $2bn Mozambique secret debt scandal.

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Draft PPRs submitted to Parliament [15-Nov-2017]

More news later

REPLACEMENT OF THE POLICYHOLDER PROTECTION RULES- to come into effect 1 January 2018 [15-Nov-2017]

Paul Kruger

Perceived disparities between remuneration for tied agents and independent advisers have been a bone of contention for ages. The Registrar also expressed concerns about the possibility of using remuneration, other than commission, to create “…opportunities for inappropriate regulatory arbitrage in favour of tied advice and distribution models.”

Proposal RR: Equivalence of reward to be reviewed, published in the 2014 Retail Distribution Review, proposed certain measures to be implemented, subject to further consultation.

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LegalBrief

Uncertainty around how SA’s National Health Insurance will work is cause for concern, according to a new report by the Davis Tax Committee (DTC), which emphasised the need for proper consultation before the health insurance scheme is implemented, says a Fin24 report.   more  >>

Former US Attorney-General Eric Holder says the fact you are not a card-carrying US citizen does not make you immune from prosecution by US authorities under the Foreign Corrupt Practices Act and money laundering legislation. According to a Business Day report, he added that although the US had the ability to indict anyone involved in contravening US law, it was unlikely it would indict a head of state.   more  >>

With just over six months to go before the European Union’s General Data Protection Regulation (GDPR) comes into force, it appears US companies are better prepared than their European counterparts.   more  >>

LegalBrief

A draft report on tax administration released yesterday by the Davis Tax Committee includes several proposals seeking to ‘ensure a governance structure’ for SARS that will: promote ‘the constitutional values of accountability and transparency’; and serve the SARS’ core mandate – in keeping with Katz Commission proposals for its independence.   more  >>

FIC

The National Treasury and the Financial Intelligence Centre (FIC) welcome the decision taken by the Financial Action Task Force (FATF) at its Plenary meeting held in Buenos Aires, Argentina on 1 to 3 November 2017 to remove South Africa from its targeted follow-up process.   more  >>

FA News, Jonathan Faurie

In July, the FAnews reported that the Financial Services Board (FSB) were contemplating scrapping the RE Examinations which are about testing product knowledge. The FSB has indicated that it would replace these exams with Fit and Proper Requirements.
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Tilak Lal, Franklin Templeton

Risk management is a key part of many endeavors, from space travel to investment management. In either case, achieving one’s goals requires awareness of what could go wrong, as well as careful attention to details in often-changing conditions to ensure the smoothest possible journey. Tilak Lal, vice president, Performance Analysis & Investment Risk at Franklin Templeton Investments, describes what risk is within the investment space, and how risk management is essential to success.

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Regulations under the Long Term Insurance Act re Equivalence of Award released- BN 181 of 2017 [13-Nov-2017]

Bloomberg News, Aaron Brown

Are cryptocurrencies an asset class? That depends on you. When you choose an investment portfolio, do you want to start with a category for these new currencies along with stocks, bonds and money market instruments?

This is not related to the question of whether or how much you should invest. You can call cryptocurrencies an asset class and assign zero or even negative portfolio weight to them. Or you can decide they’re not an asset class and still try to get positive or negative exposure to them via other asset classes.
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The Financial Conduct Authority (FCA) has decided to prohibit Tom Hayes from performing any function in relation to any regulated activity in the financial services industry. The FCA considers that Mr Hayes is not a fit and proper person as a result of his conviction for conspiracy to defraud in relation to the manipulation of Yen LIBOR.   more  >>

FCA

The UK's Financial Conduct Authority last week announced that Capita Financial Managers Limited (CFM) has been publicly censured and will pay up to £66 million to those investors who suffered loss as a result of investing in the Guaranteed Low Risk Income Fund, Series 1 (or as it became later known, the Connaught Income Fund, Series 1) (“the Fund”), which is now in liquidation. The payment will be made via the FCA.   more  >>

FCA

Highlights
•PSD2 opens up opportunities for businesses to develop new services to help consumers manage their money, to compare financial products, or to pay for things online.
•We expect firms to adhere to the principles of safety and security anticipated in the draft RTS.
•We expect firms to put the interests of their customers at the heart of their business models.
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LegalBrief

HSBC says it ‘has been reviewing its exposure to the Guptas for some time, and has closed a number of accounts for associated front companies wherever we have found them’, according to Fin24 quoting from reports by the Wall Street Journal, Reuters and Morningstar.
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SARS remains adamant it has not deliberately withheld tax refunds, despite the Tax Ombudsman finding that there were cases that strongly suggest such payments had been purposefully put on ice. According to an eNCA report,
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LegalBrief

Pension fund board members, principals and auditors are just some of the officials listed in a draft directive seeking to discourage them from offering or accepting specific types of inducement or gratification.   more  >>

Latest Banks Act News [13-Nov-2017]

Banks Act: Registration as controlling company: NewDisc Limited to be renamed Discovery Bank Limited
Banks Act: Registration as controlling company: NewDisc Holdings Limited to be renamed Discovery Bank Holdings Limited
Banks Act: Consent to maintain representative office of foreign institution in South Africa: Banco BPI SA: Withdrawal
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Moonstone Report

The Registrar of Pension Funds published, for comment, a draft Directive to determine conditions in respect of inducements and acceptance of gratification to ensure compliance with and to prevent contraventions of the objectives of a board as determined in terms of section 7C of the Pension Funds Act.   more  >>

FAIS Ombud

The Office of the FAIS Ombud shall this week officially release its 2016-2017 Annual Report. The Annual Report for the 2016/2017 financial year reflects an increase in the number of new complaints received by the Office from 9891 in the previous financial year to 10 846 in the 2016/2017 financial year. This is the first time that this Office has received more than 10 000 complaints within one financial year and also marks the first time that the Office has resolved more than 10 000 complaints in a financial year having resolved 11 025 complaints.   more  >>

LegalBrief

Gupta-linked companies have accused the SA Reserve Bank of pressuring the Bank of Baroda into closing their bank accounts. A Business Day report says this is according to court papers lodged by the 20 companies in their final bid to have the courts interdict Baroda from closing their accounts.
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More draft amendments to the JSE’s debt listings requirements have been released for comment – this time with the aim of accommodating project bonds.   more  >>

FATF

The Financial Action Task Force (FATF) is the global standard setting body for anti-money laundering and combating the financing of terrorism (AML/CFT). In order to protect the international financial system from money laundering and financing of terrorism (ML/FT) risks and to encourage greater compliance with the AML/CFT standards, the FATF identified jurisdictions that have strategic deficiencies and works with them to address those deficiencies that pose a risk to the international financial system.   more  >>

FATF

A number of jurisdictions have not yet been reviewed by the FATF. The FATF continues to identify additional jurisdictions, on an on-going basis, that pose a risk to the international financial system.



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FATF

FATF President Mr. Santiago Otamendi and GAFILAT President Mr. Eugenio Curia, both from Argentina, chaired the first Plenary meeting of FATF-XXIX in Buenos Aires. This was a joint Plenary with GAFILAT, therefore all members of both organisations were able to participate in the meeting.   more  >>

FATF

Financial inclusion has always been important for the FATF. Without access to the formal financial system, unserved or underserved customers will resort to cash and unregulated channels, which limits transparency and increases the risk of crime and money laundering.   more  >>

LegalBrief reports this morning that the stock market regulator has said that it has started a formal investigation into trades in Oakbay Resources and Energy, a company controlled by the politically-connected Gupta family, and may seek assistance from international supervisory bodies.   more  >>