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January 2009
Growing attention

Financial literacy has received growing attention in both the developed and developing worlds in recent times. One just has to look at the current subprime and subsequent financial sector crisis in the US and other...

January 2009
Impossible task

Any broker or underwriting manager who tries to formulate a business plan for 2009 has an impossible task at the moment. The situation illustrates the undesirability of legislating by regulation when the statute...

January 2009
For whom the toll goes

The 26th November 2008 judgment of the Supreme Court of Appeal that allowed the South African National Roads Agency to recover damages from a transport company, Fourway Haulage SA (Pty) Limited, for negligently...

January 2009
Needing financial loss

Just because member of the family is killed in a crash doesn’t mean that you will automatically qualify for huge damages or compensation. To get this there has to be some financial loss involved, not just pain and...

January 2009
Disbelievers

Banks are notoriously incompetent at making the right lending decisions. Have problems with a R100m debt? No problem, here’s another R20m. Need R5 000 for a new business idea? You must be joking; come back when you...

January 2009
Value judgement

Judging from sums insured and indemnity limits nominated in policies viewed recently in claims, we were shattered to find that the asset values and financial impact on the insured bore little resemblance to the sums...

January 2009
Don’t spoil the sharing

The spouse of a member of a retirement fund may be entitled to share in the retirement savings of that member immediately on divorce. Whether the spouse is entitled to a share, and the extent of the share, depends on...

January 2009
Much to be done

"The introduction of a national savings fund represents the single most significant retirement fund industry event since the introduction of the Pension Funds Act in 1956 and will have a profound impact on the...

January 2009
Accident disrepair

As the Rand weakens insurers will find that the cost of replacing parts will drive up the cost of motor claims and increase the number of write-offs.

“In a weak rand cycle, vehicle part replacement values...

January 2009
A mean idea

One long range valuation tool is the so-called ‘Tobin Q ratio’, which was developed by the late James Tobin in 1969. It measures the value of listed shares with the value of company’s equity book value or the...

January 2009
The cost of impatience

Investors, who believe they can time the markets successfully, have less than a 10% chance of outperforming a long-term buy-and-hold strategy.

John Kinsley, Chief Operating Officer of Prudential Portfolio...

January 2009
Ignore the common trend

Warren Buffett needs no introduction these days; but his investment philosophy seems as ignored as ever. ‘Buy and hold’, has for instance been an abiding strategy of his. And, despite the global turmoil he shows no...

January 2009
Destroying value

When planning a strategy, it is important to evaluate what it is that you know as a fact, and what it is that you don't know. “There is a lot which we don't know,” points out Mark Cliff of  Alphen Asset...

January 2009
Time to buy

It’s time to take stock of the situation after something of a dismal year for the residential property market, reeling from the effects of a commodity price spike which saw oil peak near to US$150/barrel and global...

January 2009
Don’t leave home without it

We are fast approaching the time of year when South Africans from all over the country will be packing their bags and getting ready to go on a well deserved holiday. The safety on our roads has been improving...

January 2009
Check the paperwork

Markets are volatile, and some consumers are counting the cost of rash investment decisions made in happier times. There have been several reports recently of people losing money as a result of investing in schemes...

January 2009
Steering the right course

The Ombudsman for Short-Term Insurance warns consumers to ensure that they fully understand and appreciate the basis upon which motor vehicle insurance is taken out and the category of persons who are insured whilst...

January 2009
Global trend

Cartels continue to be the target of competition regulators worldwide and penalties are becoming increasingly severe. Last week, the European Commission imposed the highest total fine ever imposed by any competition...

January 2009
Scourge of fraud

Commercial Crime has broadly been defined as fraud in all its different guises. The financial damages associated with this phenomenon can be immense and crippling to any business. The Global Economic Crime Survey,...

January 2009
More teeth for the FSB

Due to the success of the Enforcement Committee of capital markets, the Financial Services Board (FSB) has extended the Committee to include other laws that the FSB regulates.

The FSB appointed its...

January 2009
Turn in the cycle

After two years of deepening hardship, in which interest rates have been increased ten times, with prime rising to 15.5%, we are finally coming to a turning of the financial cycle, having enjoyed the first cut to 15%...

January 2009
You’re expelled

Following allegations in the media of improprieties at the Insurance Sector Education and Training Authority (INSETA), the Council of INSETA has appointed Dr. Len Konar of ORCA to conduct a forensic investigation into...

January 2009
Interim results to June 2008

Lloyd’s says it made an interim profit before tax of £949 million (US$1,889 million) for the six-month period ending 30th June 2008. The result reflects a softening in market conditions and a rise in worsening claims...

January 2009
Licence issues

Although the National Ports Act commenced almost two years ago, the full effects of the law are yet to be felt. The Act contemplates some drastic changes to the regulation of port facilities and services, one of the...

January 2009
JSE measure

Last month the JSE revealed a change to the FTSE/JSE Top 40 Index of blue chip companies. Companies Growthpoint and Pick ‘n Pay will now be included in the index replacing Murray and Roberts and Aveng.

...

January 2009
Appropriate support

Despite the impact of the changes to commission regulations o¬n 1st January 2009, Old Mutual says it is confident that the majority of financial advisers are committed to remaining in the industry, provided they...

January 2009
Black October

The recent spate of fatal aircraft accidents which shocked the country has caused the insurance sector to re-assess risk in the local aviation industry and rates have begun to harden report brokers Glenrand M.I.B....