Pension Funds Adjudicator Muvhango Lukhaimane is not able to take action against the penalties applied by life assurance companies.
Delays by the Financial Sector Conduct Authority (FSCA) to enforce the new regulation regime of Treating Customers Fairly (TFC) is the main reason why Pension Funds Adjudicator Muvhango Lukhaimane is not able to take action against the penalties applied by life assurance companies to contractual retirement annuity funds.
It is something the adjudicator s office has been concerned about for many years, going back to Vuyani Ngalwana, who raised the penalties in 2004. He ruled against them but life assurance companies took him to the Supreme Court and had his rulings reversed, basically on the back of technical arguments and past secrecy.
Relationships change all the time and the one between financial advisor (FA) and client is about to undergo a big shift due to regulatory issues, as well as more ordinary social trends after the Covid-19 pandemic.
Henry van Deventer, chief specialist in advice model design at LibertyThe financial advisory sphere has already seen incredible innovation over the past year, but that there will be new trends in how FAs deal with their customers – as well as a change in the products that clients really want.
More online engagement
Before the pandemic, virtual financial advice was rare, but with changes in the working environment taking place, FAs have been asking themselves how they can extend the value of their relationships online.
MONEYWEB
app instead?
Warns the ‘tickbox’ approach to the record of advice falls short of compliance requirements. 00:01
Generic documents are âoften grudgingly and apologeticallyâ provided to the client for completion when finalising the application process. Image: Shutterstock
The Financial Advisory and Intermediary Services (Fais) Ombud has criticised financial service providers (FSPs) for marketing endowment policies as investments to consumers.
Acting Fais Ombud Nonku Tshombe has also expressed her disapproval of the âtickboxâ approach of FSPs towards compliance with the record of advice provisions in the general code of conduct for authorised FSPs, stressing that this practice falls short of compliance with the code and detracts from the financial planning process.