Liberty in shock admission it erred in deregistering 130 funds

Liberty’s admission that 130 pension and provident funds must be reinstated years after industry-wide cancellations of thousands of dormant funds could bolster a case before the Constitutional Court.

Speaking at Liberty’s interim results for the six months to June on Thursday, CEO David Munro said it had erred in deregistering 130 funds with about R100m in assets when it cancelled around 4,600 dormant funds about a decade ago.

It had successfully reinstated 25 of these through a high court process and had recommenced payments. Liberty would look for ways to reinstate the remaining 105 funds more expeditiously, Munro said.

“There’s a lot of noise around this matter and we want to be clear that we take it very seriously. We are prepared to go back and look at our actions, and where we’ve made mistakes, to rectify them,” Munro said.

Proceed to Source : BusinessLive

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New banks threaten big four profit

The big four will battle for profit as newcomers start to threaten their market share

The curtain is about to be raised on the next round of financial results, which starts with Liberty Holdings today and carries on for six weeks.

The backdrop will not be favourable: credit demand is growing at just 4% this year yet bank shares soared after the Ramaphosa victory. Managers including Allan Gray then took profits.

Proceed to Source : BusinessLive

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Why Novare blew the whistle on the Municipal Councillors’ Pension Fund

Financial service providers have a legal and moral obligation to act in the best interests of the members of a fund.

Successful whistle-blowing efforts are vital in the financial services industry, and all role-players have a responsibility to act should an entity fail to effectively implement regulations and damage the integrity of the industry.

Financial service providers (FSPs), fund advisors, investment consultants and boards of trustees should each act in the best interests of the members of a fund. Pension funds are especially critical to ensuring the financial prosperity and support of many South Africans. It is therefore unacceptable to abuse this asset in any way, mismanage it and not do everything in one’s power to protect other people’s hard-earned money.

Proceed to Source : MoneyWeb

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Most of us are one incident away from poverty

What if employers and the financial services industry could help?

South Africans are notoriously bad savers. Our household savings ratio has been negative for most of the past 10 years, meaning that we are borrowing more than we put away.

This is a significant problem for the country, as our gross domestic savings rate is below the levels needed to support sustainable economic growth. It is also a risk to individuals and families, as most of the population has no financial safety net.

“All of our middle class, and even many in the upper class, are one unfortunate incident away from poverty,” independent actuary Rob Rusconi told the Alexander Forbes Hot Topics Summit in Cape Town on Wednesday. “In other words they are cutting it very fine. They have enormous potential to fail.”

Proceed to Source : MoneyWeb

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State calls on former employees to collect unclaimed benefits

The government has called on retired public servants and their beneficiaries to apply for unclaimed and unpaid pension benefits, which amount to more than R1.6bn.

Public Service and Administration Minister Ayanda Dlodlo said on Monday the Government Pensions Administration Agency (GPAA) had 44,190 cases of unpaid and unclaimed benefits as of May 2018.

The GPAA administers pensions on behalf of the Government Employees Pension Fund (GEPF). Unclaimed benefits are accumulated as a result of the rejection of incorrect documentation, including the identity of beneficiaries, as well as member tax matters, incorrect banking details and family disputes.

Proceed to Source : Business Day

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Online insurance company connects with younger generation

Reaching millennials has turned into one of the insurance industry’s biggest challenges, says Peter Castleden, CEO of Indie, a division started by Sanlam Life Insurance in 2016.

This is because about 90% of the industry’s business model is built on a single-channel service, via intermediaries, he says.

“Intermediaries generally only connect with clients within a ten-year range of their own age group. The problem here is that the average age of financial brokers, for various reasons, has been increasing for quite some time now, resulting in fewer players with which younger generations can connect.”

Proceed to Source : Fin24

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Nepi Rockcastle and Greenbay added to FCSA investigation

Market regulator’s probe into possible insider trading and market manipulation within the Resilient group is expanded.

The Financial Sector Conduct Authority (FSCA) has broadened its investigation into the Resilient group of companies, casting its net wide to include Nepi Rockcastle and Greenbay Properties for possible insider trading and market manipulation.

An FCSA update of investigations dated July 26 reveals that JSE-listed Nepi Rockcastle and Greenbay have been included in the market regulator’s roll of ongoing investigations.

Proceed to Source : MoneyWeb

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Private equity managers invest a record R31bn

Political turmoil did not deter Southern Africa’s private equity managers in 2017, which invested a record R31.1bn, according to a survey published this week.

That compared with an annual average of R14.7bn over the preceding 10 years, the Southern Africa Venture Capital and Private Equity Association’s (Savca’s) annual private equity survey finds.

New investments, as opposed to follow-on investments, accounted for 60% of the total, or R18.9bn. This was surpassed only once in 16 years, by a record R24.7bn in 2007. The retail, services and real estate sectors claimed more than 50% of investments made in 2017.

Proceed to Source : Business Day

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Cashing your pension fund prematurely is self-sabotage

In tough economic times like these, cashing out your pension fund when you change jobs may seem like a quick cash-flow fix but, in actual fact, it’s self-sabotage.

Cashing in your pension borrows from your future and sabotages your financial wellness in retirement, Jeanette Marais, the CEO of Momentum Investments, says.

Marais says when you withdraw from your retirement savings prematurely, you not only reduce the tax-free lump sum you will get when you retire, but you also increase the rate at which your retirement savings will be taxed.

Proceed to Source : Sowetan Live

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