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August 1998
Foundation for growth

After two years of consolidation Mercantile Asset Mangers (MAM) is poised to market its products through the intermediary market “in a big way.”
General Manager of MAM, Howard Rabins, explains that the attraction of unit trusts as an...

August 1998
Competition bug bear

The short term insurance market made a total net underwriting profit of R679,4m in 1996 according to the latest official annual report from the Financial Services Board (FSB) — up almost 65% from the 1995 figure of R411,9m. Significant...

August 1998
Home truths

One of the features of global investment markets in recent years has been a marked increase in volatility. This inevitably brings with it increased risk and is a challenging structural development for investors. There are however two ways of...

August 1998
Transfer concerns

During 1996 the Pension Funds Act was amended to make provision for the compulsory appointment of a board of management. Most commentators focused on the fact that, by 15th December 1998, retirement fund members will have the right to elect at...

August 1998
Negligence and ignorance

Patrick Bracher of Deneys Reitz discusses some controversial wording in short term insurance policies.
There are various versions of the prevention of loss clause. The basic Multimark III requires the insured to “take reasonable precautions...

August 1998
Keeping a record

It seems to be a case of sue or be sued. South Africa has become more litigious than ever. The once positive motto of ‘the customer is always right’ has turned Joe Public into ‘Innocent’ Joe whom, when things go wrong, will insist that it isn’t...

August 1998
Don’t be a turkey

Under the guise of providing an ‘excellent service’ and ‘value for money’, many suppliers of goods and services aim to maximise their profits by seducing consumers into parting with their hard-earned money.
They offer seemingly ‘attractive’...

August 1998
Merger mania miff

While the business logic behind bancassurance may make sense for shareholders, it’s questionable whether the clients of investment managers affected by the recent spate of mergers will reap much in the way of enhanced rewards.
At least, this...

August 1998
It wasn’t me

Increasingly more companies are establishing websites and attorneys Deneys Reitz (whose site is at http:/ / www.deneysreitz.co.za) recently issued some legal guidelines.
For an effective disclaimer
Firstly, the wording for a disclaimer...

August 1998
Prime targets

Money laundering can be described as the process by which criminals place illegally gained money into legitimate financial institutions so that it gains the appearance of lawful funds. This process always presupposes another related crime. Money...

August 1998
More consumer protection needed

The proposed legislation on short- term insurance is very welcome and it is hoped that in the interest of good business practice it will be passed and be in effect as soon as possible, says Barry Scott, chief executive of The South African...

August 1998
Policy proposals

The government has been looking at the debt problems and other issues facing the Road Accident Fund (RAF). The White Paper of 4th February 1998 by the Department of Transport, as approved by Cabinet, sets out some proposals to address the...

August 1998
Damage control

With millions at stake in the purchase of an aircraft, lending institutions naturally call for the most comprehensive of aviation insurance to secure their debts. Just about everything can be covered, including:
• Damage to the asset (the...

August 1998
Local benefits

Interesting developments are afoot for The Cologne Re following the acquisition of its parent, General Reinsurance, by Berkshire Hathaway. Cologne Re is one of seven reinsurers who have full branches in this country.
Berkshire Hathaway,...

August 1998
Volatile bandwagon

The unit trust industry is attracting vast inflows of funds, despite the recent months of nervous volatility in the markets. According to figures from the Association of Unit Trusts (AUT) the industry’s quarter to June 1998 enjoyed record sales...