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20 June 2018

Dear Alica

In this issue, we share the policies and procedures you should include in your Governance Framework as prescribed by the new Fit and Proper requirements.

Local businesses are suffering under the recent wave of cyberattacks. We look at what you can do to protect your FSP against cybercrime.

We also share the following:

A document from FIC highlighting the criminal activities that take place in the financial industry and how you can identify these.
A media release from the Ombudsman for Short-Term Insurance commenting on misrepresentation, non-disclosure, dishonesty and fraud by policyholders
An update from the FSCA on the status of the Retail Distribution Review (RDR)

Reminders

FSPs with financial year end at February need to submit their financial statements to the FSCA by 30 June 2018.
Any FSP that was authorised for Collective Investment Schemes and/or Long-term or Short-term Deposits on 1 April 2018, and wishes to add CIS Hedge Funds and/or Structured Deposits to their licence, must submit their applications to the FSCA by 30 June 2018. If you need any assistance, please contact your Masthead Compliance Officer.

We would like to hear your feedback and comments. Please feel free to get in touch by emailing us compliance@masthead.co.za

Regards,
Nicky Nairn
Head of Compliance

Get a head start on your CPD activities

Online CPD Introductory Offer

CPD is now a regulatory requirement. Sign up for full access to a variety of online courses, webinars and reading material up until 31 May 2019, ensuring you meet your FSCA required number of CPD hours as set out in Fit and Proper Board Notice 194 of 2017.

Get your Governance Framework in place

All FSPs must have a Governance Framework that provides for the fair treatment of customers and prudent oversight of the business. This is one of the terms of the new Fit and Proper requirements that came into effect from 1 April 2018.

To learn what policies and procedures you need to include in your framework, click here

Cyberattacks hitting closer to home than you think

Cyberattacks are becoming more frequent in South Africa, not only for large organisations but for smaller businesses too. Financial services companies are attractive targets for cybercriminals, putting your FSP and staff at risk of being their next target.

Click here for 4 ways to protect your business against cybercrime.

Latest industry news and updates

FIC highlights criminal activities used within the financial system

The Financial Intelligence Centre (FIC) released a Typologies document that gives an overview of nine different types of criminal activities and methods used to abuse the financial system. Amongst these are Money Laundering, Corruption, Cybercrime.

This is a worthwhile read as each type of criminal activity is thoroughly explained and accompanied by a real-life scenario in the form of a case study. There are also notes on what you should look out for to identify and prevent a possible criminal act.

Click here to read the document

Ombudsman for Short-Term Insurance comments on misrepresentation, non-disclosure, dishonesty and fraud by policyholders

The Ombudsman for Short-Term Insurance (OSTI) published a media release on the importance of providing accurate and truthful information when reporting a claim.

The OSTI emphasises the challenges of fraudulent claims in the short-term insurance industry and the terms and conditions clauses that some insurance companies have included in their policy wording to assist with this challenge. Some insurance policies contain a clause entitling the insurer to reject the entire claim even if just one aspect of it is found to be dishonest.

To read the media release, click here.

FSCA: Retail Distribution Review Status update - June 2018

The Financial Sector Conduct Authoritys (FSCA) has published an update on the status of the Retail Distribution Review (RDR). The goal of RDR is to promote the fair treatment of financial customers by financial institutions.

The RDR proposed a number of regulatory reforms related to the distribution of financial products and the provision of financial advice.

The FSCA continues to roll out the RDR reforms in phases. Click here to see the status update.