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Business Leadership SA (BLSA) CEO Bonang Mohale has launched a scathing attack on the government, singling out President Jacob Zuma’s plan to capture the Treasury, according to a Business Day report.
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Global bank HSBC is shutting accounts associated with the Gupta family as it conducts a wide-ranging review of any possible involvement in suspicious transactions, with the assistance of external investigators, according to a report on the Fin24 site.   more  >>

International Adviser

Jersey and the Isle of Man have topped the Organisation for Economic Cooperation and Development’s compliance table for the exchange of tax information. SA also in the mix.   more  >>

Muvhango Lukhaimane, PFA

The board of a pension board did not conduct a proper investigation when it resolved to allocate the entire amount of the death benefit to the deceased mother, to the exclusion of the complainant who had been nominated as beneficiary.

This was the finding of Pension Funds Adjudicator Muvhango Lukhaimane when she ordered University of Kwazulu-Natal Pension Fund to relook at how it arrived at its decision.
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The Conversation

You may have imagined the blockchain would lead to a world without governments or institutions verifying transactions, research shows that it probably won’t.   more  >>

Jonathan Faurie, FA News

After years of talking about it and warning that it will become a reality, the Twin Peaks Bill is set to be signed off by the president and has promised to be implemented at some stage in 2018. If government has its way, this will be in the first half of the year; however, there could be delays.


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FCA

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•Fintech & Innovative Business
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UK's FCA

From 3 January 2018, firms offering binary options will be regulated by the FCA and will no longer be licensed by the Gambling Commission. The FCA is issuing this warning to inform consumers about the risk of investing in these high-risk, speculative products.   more  >>

FCA

Contracts for differences (CFDs), including financial spread bets, with cryptocurrencies as the underlying investment are increasingly being marketed to consumers. These products are extremely high-risk, speculative products. This warning is to inform consumers about the risks of buying them.   more  >>

FINRA- US

The Financial Industry Regulatory Authority (FINRA) announced today that a FINRA extended hearing panel barred broker Hank Mark Werner of Northport, New York, for fraudulently churning and excessively trading the accounts of his customer – a blind, elderly widow – and for making unsuitable recommendations. The hearing panel also ordered Werner to pay more than $155,000 in restitution to the widow, fined him $80,000 and ordered disgorgement of more than $10,000 representing commissions received for recommending the purchase of an unsuitable variable annuity.   more  >>

Ernie van der Vyver, Partner; Johann Spies, Partner; Nicole Britton, Associate Clyde & Co

On 15 November 2017, the Financial Services Board published the third draft of the proposed replacement Policyholder Protection Rules made under the Long-term Insurance Act, 52 of 1998 and the Short-term Insurance Act, 53 of 1998 ("Draft PPRs").


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a.R90.00, plus value added tax (VAT) per month, or such other monthly amount as the Minister shall determine annually in the Government Gazette, taking into consideration the rate of normal inflation; or 3% plus value added tax (VAT) of the contributions payable in respect of that member, whichever is the lesser.
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Access is restricted to logged-in subscribers - click to log in  The value of bitcoin [20-Nov-2017]

Jacques Plaut, portfolio manager at Allan Gray

The total market value of all bitcoins is US$80bn, which is more than the value of Richemont and triple the value of Anglo American. It is the topic on which we currently receive the most questions from clients. In this article, Jacques Plaut discusses how we would apply our valuation techniques to virtual currencies, and whether we would own them for clients.

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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  >>