Archive: May 2015

SAIFM 2nd Regulatory Summit: The brave new world of financial regulation

SAIFM is proud to announce the 2015 Regulatory summit, the premier event with regard to regulation in the financial markets and financial services sector. This event provides an independent forum for South Africa’s financial regulators, financial services professionals and institutions to discuss the essential issues and factors that are shaping South Africa’s financial regulatory reform.

Foreword

By Christo Luüs, Chairman, SAIFM In this edition, the principles regarding effective risk data aggregation flowing from a consultative paper by the Basel Committee on Banking Supervision is briefly explained. There are 14 principles that [...]

Developments at SAIFM

By Karin van Wyk, CEO, SAIFM Summit: Financial Markets Regulation: 1 October 2015 Following the huge success of the inaugural SAIFM Regulatory Summit held on 10 September 2014, the SAIFM Board has decided that this [...]

Long term real investment returns

The return and volatility characteristics of five South African asset classes namely equities, bonds, cash, gold and property were used to construct an efficient frontier, showing the minimum risk that could have been achieved at various returns by asset class diversification…

Convergence of wealth and financial markets through technology

Asset managers, banks and insurance companies are feeling the pressures from investors, customers and regulators scrutinising their business practices and investor protection policies. Financial institution business models are being challenged and shaped by financial sector regulation, more demanding better informed customers and multi-channel multi-platform capability…

Cost of regulatory compliance in the aftermath of the global financial crisis

In recent decades the global financial system has changed noticeably. The regulatory system that oversees it has not kept up with these changes. This became painfully clear in the run-up to the financial crisis and an overhaul of the financial regulatory framework was the inevitable result.

Strengthening collaboration between Chinese-South African exchanges

The future success of capital markets in developing economies will rely on the extent of cooperation between the major stock exchanges in frontier markets. The collaboration between Chinese and the South African stock exchange have grown significantly in recent years and the trend is set to continue…

BCBS 239: Risk data aggregation and reporting

The Basel committee’s requirements in terms of risk data management greatly focuses on “risk data aggregation”, the gathering and processing risk data in order to satisfy the risk regulatory reporting requirements, assist or support measurement of portfolio performance against risk tolerances/appetites and to enable the analysis of a firm’s risk data…

New bank rules bring equity-like risks to fixed income securities

Basel III requires that bondholders share in the losses of a bank should it need to be recapitalised in times of stress. These new types of loss-absorbing instruments are commonly known as “new style” tier 2 bonds. They are subordinated to senior bonds and now include potential write-off provisions, meaning that investors are now effectively exposed to equity-like risk in a bond under certain scenarios…

Why we don’t save enough

Among the biggest concerns of most investors is the adequacy of savings earmarked to sustain a financially successful retirement. Amplifying this worry are increases in the cost of living and increased longevity. ’Enough’ and ‘sufficiency’ are words that require particular definitions in the context of retirement…

The RDR paradox

The FSB’s Retail Distribution Review is intended to provide a framework for accessible, high-quality financial services advice that is free from conflicts of interest. It will have widespread implications for the distribution of financial services products, but it might not achieve its objective of quality financial advice for all.

Tax update – Reportable arrangements

Structures to improve tax efficiency may be at risk of being classified as impermissible tax avoidance schemes. The mechanism used by SARS to identify impermissible avoidance schemes is an obligation to report certain transactions. New regulations which may impact taxpayers have recently been issued...

Constitutional court changes the application of the common law in duplum rule

The in duplum rule is a common law rule that provides that arrear interest ceases to accrue once the sum of the unpaid (accrued) interest equals the amount of capital outstanding at the time (and not the amount of capital originally advanced).

Big win for banks against sureties in context of business rescue

The business rescue regime in terms of the Companies Act introduced much anticipation as to how courts would treat sureties who had stood and provided security for the debts of a company that subsequently went into business rescue and had a business rescue plan adopted: would such suretyships remain unaffected and enforceable?

The Companies Act and constitutional documents

The case of Verso Financial Services (Pty) Ltd v Burger and Others case highlights the importance to companies of ensuring that the provisions of their MOIs are consistent with the provisions of the Companies Act, and ensuring that all relevant provisions of their shareholders agreements are migrated into their MOIs – and the risks of not doing so.

Africa’s online securities trading revolution

As a matter of operating necessity, Africa has been compelled to shape up or ship out of the globalization rat-race. Management of change or change of management or both have become a necessity in the competitive quest to woo global capital from other emerging market suitors.

Finding hidden market gems

It seems like just last month that the oil price slipped to fresh lows and the expected benefit was widely discussed in local news. Many analysts were anticipating consumers to have more disposable income, companies to benefit from lower input costs and the economy to enjoy higher growth rates from the windfall...

Planning for income and capital growth in 2015 and beyond

The current investment environment, characterised by economic uncertainty and volatile markets, coupled with a choice of over 1 000 unit trusts and a myriad of different products, has made the simple act of investing a difficult and often stressful endeavour. An exclusive focus on capital growth has further complicated this process...