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February 2003
Which legal entity?

In part one of this article, we commented on certain factors that should be considered when choosing the type of business entity through which to conduct a small business.

The factors that were not dealt...

February 2003
Consumer confusion

For the life assurance industry to remain ‘sustainable’ it needs to consider its strategy regarding four key elements: risk management; shared goals; quality and value.

This is the view of Michael Blain,...

February 2003
Market influences

Given recent market volatility, reminiscent of the 1998 fall that compromised pension increases, retired people with so-called ‘with-profit’ annuities will be waiting anxiously for life assurers to declare their...

February 2003
Real works of art

“Works of Art do not attract Capital Gains Tax. Buy for pleasure without fear of finding a hole in your profit” read the legend on invitations to an exhibition at a local art gallery recently. Now, we all like...

February 2003
A fly in the ointment

The airborne variety of Deep veinous thrombosis, or DVT, has become known in the press as ‘Economy Class Syndrome’. This condition arises from the clotting of blood, usually occurring in the lower legs, occurring in...

February 2003
Useful diversity

Bond, income and money market funds outperformed equities during 2002 in spite of expectations to the contrary at the beginning of last year. The average return of bond funds was 14,9%, income funds 11,2% and money...

February 2003
Spread out

Local might be ‘lekker’ and there are very good reasons to invest in South Africa. But a strategy to diversify offshore still reflects smart thinking, says Keith Bradley, Business Development Manager: International...

February 2003
Phased approach

Since its trough against the dollar of R13.85 in December 2001, the rand had appreciated about 37,5% to R8.64 by the first week of January 2003. Even though this was really bad for hedge funds last year, Paul Hansen...

February 2003
Better for consumer

The Collective Investment Schemes Control (CIS) Act was signed into law last December, bringing with it greater flexibility for investment managers, enhanced consumer protection and wider and more tailored product...

February 2003
Essential part

Investors should see an offshore investment as an essential part of a comprehensive portfolio that adds diversification and offers increased investment opportunities.

Says Anthony Katakuzinos, head of...

February 2003
Enhanced flexibility

“Revised investment limits will form part of the Registrar’s Conditions of the Collective Investment Schemes Control (CIS) Act, says Colin Woodin, CE of the Association of Unit Trusts (AUT).


February 2003
Retaining profits

For companies with the right employee profile there may be value in self-insuring all or part of their group risk benefits. Not only does the employer get to keep the profit, which the insurer builds into death and...

February 2003

TBA or not TBA

The insurance market has long used the initials “tba” to signify that something in the contract has still “to be agreed”. In its inevitable slow march to pinpointing dangers, the UK...

February 2003
Lost work

Whilst much attention has been directed towards the ever-increasing level of medical aid contributions, the impact of AIDS on group life assurance contributions has received less focus.

For instance,...

February 2003
Myths dispelled

Financial planning is not only important - it’s essential. Here the Advice Bank points out a few myths regarding financial planning and gives an indication of what a balanced portfolio looks like.


February 2003
Direct boost

Clientèle Life, which says it is South Africa’s largest direct distributor of insurance products, has been awarded the maximum discretionary grant of R500 000 by the Inseta (Insurance Sector Education and Training...

February 2003
Coming clean

Institutions, which range widely from financial planners to insurance salesmen to stockbrokers and estate agents, now have to be accountable in terms of money laundering control measures. They may not help anyone to...

February 2003
Goal seeker

Financial planning is the process of meeting your life goals through the proper management of your finances. Life goals can include buying a home, saving for your child’s education or planning for retirement. The...

February 2003
Casting a shadow

In the short-term industry an estimated R3 billion is lost to fraudsters every year, reason why Tip-Offs Anonymous was set up recently (see Insurance Times & Investments Vol 15.6 December 2002/January 2003 page 2...

February 2003
Mortal reasons

The starting point in pricing risk benefits is to estimate the future claims experience, whether the claims will be due to death, disability, accident, or another cause. Insurers use mortality tables – and similar...

February 2003
Emergency plan

Most people think that the emergency services will take care of fires on or near their properties. Unfortunately, as Santam points out this is not always the case. More often than not, firefighters have other...

February 2003
Often on a Tuesday

You are more likely to be hijacked on a Tuesday than on any other day of the week, according to statistics from Matrix Vehicle Tracking. “Of course, hijackings can occur any day of the week,” observes Stefan Joss, CEO...

February 2003
The 30-second promise

It can take less than 30 seconds for a thief to steal your motor vehicle. And there’s scant chance of retrieving it if it is not fitted with a tracking device. Even then, success relies on the quality and...

February 2003
Capital activities

Section 31 of the Income Tax Act provides the mechanism by which SARS may attack transfer pricing and thin capitalisation activities. Insofar as transfer pricing is concerned, where a loan from a non-resident to a...

February 2003
Nuisance, aesthetics, and danger

Deneys Reitz on insurance case law: Dorland and another v Smits 2002

The appellants and respondent are neighbours. The two properties are divided by a boundary wall, 32 metres in length, and little over 2...

February 2003
Read the small print

Most contracts with removal or storage firms contain provisions under which the contractor claims to be absolved from whatever common-law liability it may have for loss of or damage to the goods whilst in its...

February 2003
Consumer benefits

The new Medical Schemes Act regulations, passed early November 2002, for the first time formally recognise the role of the healthcare adviser in providing services to consumers. They also pave the way for ongoing...

February 2003
Don't be fazed by FAIS

Much has been written about the impact of new regulatory legislation on the financial planning industry, including FAIS (Financial Advisory and Intermediary Services Act), FICA (Financial Intelligence Centre Act),...

February 2003
Nice niche

Company directors

The prospect of directors facing liability claims because of actions taken in the line of duty has never been greater. Shareholders, tax authorities and the general public are far more...

February 2003
Be proactive

The Financial Planning Institute (FPI) exists to benefit and protect the consumer by setting ethical and competency standards for financial planning professionals. It says, if you are considering help from a financial...

February 2003
Muddled and confused

Some may not have noticed it, but since October, premium increases have slacked off somewhat. Hull rates for Airlines have averaged a 14% rise. Liability premiums are more difficult to compare as there is a surcharge...

February 2003
Going well

A quicker than expected integration of the Fedlife book, tight cost management and a good performance from the group risk division has resulted in a better than expected interim performance in 2002 from Capital...

February 2003
Tariff tussle

GPNet Managed Healthcare has reacted strongly against doctors being forced to pay over R3 000 for the South African Medical Association (SAMA) tariff list.

According to Dr Johann van Zyl, GPNet group...

February 2003
Loyalty pays off

Widespread benefit improvements have been made at OpenPlan Medical Scheme for 2003, on the back of a successful strategic turnaround over the past year. This success recently earned it an upwards re-rating, by Global...

February 2003
Take an interest

Following the run of corporate scandals worldwide this year, the International Investment Funds Association has requested unit trust companies and their associations globally to encourage the companies in which they...

February 2003
Shabby compliance

The pension department of the Financial Services Board (FSB) plans to hold discussions with trustees on how to handle the affairs of their funds so as to improve the level of compliance.

This is part of...

February 2003
Pilot success

All individuals who take an HIV test for long-term assurance purposes will soon be offered face-to-face pre-test counselling, says Gerhard Joubert, executive director of the Life Offices’ Association (LOA). He says...

February 2003
Welcome refunds

The Council for Medical Schemes says it has retrieved more than R50 million in members’ money spent on inappropriate or illegal reinsurance contracts.

In settlements reached out of court, members of...