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October 2008
Legal catch

Deneys Reitz on insurance case law: Pestana v Nedbank Limited 2008

This recently reported case highlights the difficulties a bank faces if it unilaterally reverses a transfer that it ought not to have...

October 2008
Transparent treat

Last year the South African unit trust industry grew by a record R58.2 billion to R546 billion, displacing the life assurance industry as the preferred vehicle for long-term savings.

According to Dale...

October 2008
Tax benefit

From 1st January 2009 it is likely that no tax will be payable by beneficiaries on the capital they withdraw from “death benefit” monies invested in ‘beneficiary funds’.

Such funds are being set up to...

October 2008
Reserves and underwriting

Most businesses present their financial position by subtracting all costs from gross income and ending up with a profit (or loss) before tax. Their balance sheet will show assets (hopefully) more than liabilities,...

October 2008
Complex security issues

While there have been reports of criminal syndicates renting units in complexes to rob other residents, ongoing building activities in complexes pose a different set of security risks.

“It is not uncommon...

October 2008
Weather watch

In its Sustainability Report for 2007, released in August, Santam said that international reinsurers generally believe that the local insurance industry is poorly prepared for the effects of climate change. In...

October 2008
Cycle beginning to turn

Observations from the latest Financial Services Board report on the short term insurance industry, indicate a continuing rise in the claims ratio (the amount of claims paid as a percentage of net earned premiums) from...

October 2008
No accounting for confusion

I received a letter recently about an account that was inactive and that, if it is not used for three months it would be declared ‘’dormant’ by the ‘system’. The reason, evidently, is to protect customers against any...

October 2008
Showroom check

If you are looking to purchase a vehicle, whether new or pre-owned, first contact your insurer or broker to establish the cost of insurance, as well as any stipulations with regard to car alarms, immobilisers or...

October 2008
Middle man cut

There are various costs associated with the transfer of a property, some of which are payable by the purchaser and others for which the seller is liable.

An agreement of sale will ordinarily provide that...

October 2008
Shifting goal-posts

Accounting standards, company law and tax law continue to conspire to leave companies breathless in their attempt to keep up with the changing landscape, notes Prof Osman Mollagee, Tax Technical Director at...

October 2008
The site of fraud

PayPal, the Internet transaction intermediary, recently reported suspicious-looking emails and fake websites. Emails sent to members, purportedly from PayPal, request that they verify their details, noting that their...

October 2008
Secret profit warning

The Registrar of Pension Funds is concerned that recent media reports have not properly reflected the true nature of how the pension-backed lending businesses are structured and the extent of his supervisory powers in...

October 2008
Don’t interrupt me, I’m busy

Reading Seth Godin’s book makes me realise just how backward South Africa is. Telkom’s monopolistic grip on most of our communication infrastructure is seriously damaging the economy and preventing progress....

October 2008
Written in black and white

The prospectus for the Vodacom YeboYethu share issue, marketed trough post office branches countrywide and the like stipulated that:
Until 11th September Black South Africans had the opportunity to invest...

October 2008
Disclosure grid

Critical illness insurance products should become a lot less confusing once life insurers get the go ahead to implement a ‘standard disclosure grid’. This has been developed by the Life Offices’ Association (LOA) to...

October 2008
Rand hedge

Last month the JSE’s Yield-X launched its currency options service with the first contract initially based on the rand-dollar with other contracts to be requested from the relevant Market markers. This new investment...

October 2008
Consumer benefitpeter

The introduction of new commission structures from 1st January 2009 has got to be the biggest shake up the life industry has faced since the adoption of FAIS and the requirement for compliance officers. From the...

October 2008
At last!!!

The new Regulations on Commission and Early Termination Values were gazetted on 5th September 2008 in terms of the Long-term Insurance Act. They are to be implemented on 1 st January next year, and life insurers...