Representative bodies Association of Unit Trusts

SAGE LIFE GROUP Winston Churchill Once Said

3.2. Life Assurance Industry

3.2.3. Structure ofthe Financial Services Industry

3.2.3.3. Representative bodies Association of Unit Trusts

Banking Council of South Africa

Compliance Institute of South Africa

South Africa

The AUT represents the collective interest of all South African unit trust management companies and their unit holders. The primary aim is to facilitate the development and growth of the industry, primarily through its dealings with the authorities and through regular communication with the media, financial planners and advisors and the investing public. Members subscribe to a code of ethics, which states that all members are committed to conducting their business in accordance with the law, the highest standard of ethical behaviour and a sense of fair play.

The AUT provides qualifications through education partners in unit trusts and

investments. It also hosts a series of

financial planner forums aimed at financial planners and advisors, designed to address issues that impact directly of the advisor community and to offer solutions from a

unit trust perspective.

The Banking Council of South Africa is an industry body whose primary role is to establish and maintain the best possible framework for banking groups to practice responsibility, yet competitive and profitable, banking. One of its core functions is to provide comment and submissions on regulatory changes legislation and consumer concerns that

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- - - Institute of South Africa (USA) is a non-profit organization whose main objective is to encourage and promote compliance within the regulatory environment of the South African financial services industry. Their current emphasis is setting challenging objectives, is the

development of an industry compliance This"

(IBC) , the Life

-Asspciation_of_South Africa

Financial Planning Institute

Insurance Brokers Council

(LUASA) and the South African Financial Services Intermediaries Association (SAFSIA). FIFSA is a new representative umbrella organization for intermediaries,

both brokers and company representatives,'

to speak on their behalf in matters of

common concern.

The Financial Planning Institute is a body dedicated to the profession of financial planning. The organization changed its

name from the Institute of Life and

Pensions Advisors (ILPA) to reflect a change of focus from life business to the whole spectrum that makes up personal

financial planning.

The FPI now has two levels of membership below the Certified Financial Planner. This means that financial advisors may join the institute at three different levels of

membership, namely:

• The certified financial planner (CFP)

or " v ' ''

• An associate member (AFPI), or

• A member (MFPI).

To become a member of the FPI, the financial advisor must comply with the Institute's Code of Conduct and a Generally Accepted Planning Practice document (GAPP), be found acceptable by the ethical standards committee, have the required level of relevant qualification for the membership level applied for and have completed an appropriate period of practical experience in financial advice - currently 3 years, 2 years for AFPI and 1

year for MFPI.

_. - Brokers Council (IBC) was

established out of the need for independent

brokers to have a national organization to

act collectively on their behalf and in the

interest of their clients. Their vision is to

promote their member's independence and

ensure their right to exercise and harness

-^L_collertive_industry capacity to the

IB Direct benefit of the consumer.

Insurance Sector Education and Training

Authority

Insurance Institute of Southern Africa

Institute of Retirement Funds

Life Offices Association of South Africa

IB Direct is the commercial or business

arm of the IBC (above) and belongs to every member of IBC. A certain percentage of the IBC membership fees goes to IB Direct in order to provide members with certain benefits.

INSETA represents that skills development interest of the following sectors

• Short-term insurance

• Life assurance

• Insurance and pension funding

• Risk management

• Unit trusts

• Health care benefits administration

• Funeral Insurance

• Reinsurance

• Pension funding and any other activities auxiliary to financial

intermediation.

Its vision is based on quality skills development for sustainable business

;rowth.

The Insurance Institute of South Africa (USA) is an educational body, which provides a platform for learning by offering a wide variety of qualifications within the different sectors of the financial services

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The Institute of Retirement Funds (IRF) is a non-political body, which represents and

promotes the interest of the retirement

industry in Southern Africa, to the ultimate benefit of the members of retirement funds.

The most important function of the IRF is to represent the retirement industry in negotiations with government authorities and the FSB. This function includes

commenting on legislation and tax matters

affecting retirement funds and their members. The IRF has been actively involved in setting out the key principles of

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Ihe Life Offices Association of South

Africa lLOA)_seeks to promote the

Life Underwriters Association of South

Africa

Linked Investment

Association Services Providers

interests of the long-term assurance

industry. It is the industry's representative body for long-term assurers. The LOA is

an association of registered long-term assurance companies conducting business

in South Africa and, as a result, any intermediaries employed by these

companies obtain registration to the LOA.

The LOA regulates the business activities of its members to a limited extent by virtue of a number of different codes of conduct

to which they have to adhere.

The LOA seeks to promote the interests of the life assurance industry and the interests

of the assured public.

Although the ~Life Underwriters

Association of South Africa 9LUASA) mainly represents the agency force, it also focuses on independent brokers, tied

agents, legal advisors and broker consultants.

The mission of LUASA is to raise the

status and advance the profession of

financial services intermediaries and thereby protect the public they serve.

Membership of LUASA provides access to the Million Dollar Round Table (MDRT), which is an international body that

promotes the writing of quality insurance

business. The MDRT is the premier association for the world's best sales professionals in the life assurance-based financial services business.

The Linked Investment Services Providers

Association 9LISPA) was formally

established as a regulatory body for

supplier in the linked product industry A

linked product supplier generally

administers client investments that are

regulated by the Stock Exchange and

financial Markets legislation.

South African Financial Services Intermediaries Association

South African Insurance Association

South African Institute of Financial

Markets

The South African Financial Services Intermediaries Association (SAAFSIA) is a national body representing the interest of firms operating in the financial services intermediary sector. It is recognizes as such by the FSB.

Their main objectives are to protect, promote and advance the common interest of its members and to promote agreement and co-operation between its members on all matters of mutual interest, to provide effective methods for examination and reconciliation of any differences and to introduce and maintain a level of professionalism in the financial services market for the benefit of the consuming

public.

The South African Insurance Association (SAIA) promotes the short-term insurance industry in order to create awareness and understanding of the industry. SAIA represents almost all the short-term

insurance companies and is authorized to

negotiate on their behalf.

Their main objectives are the representation of its members' interest to

the public in a proactive manner, to the

government at all levels and the provision of a forum for discussion of common

interests in the short term insurance

industry.

The South Institute of Financial Markets (SAIFM) aims to fulfill a unique role in the financial markets by developing the concept of self-regulation in the industry,

balanced with central regulation, thereby ensuring a world-class financial sector.

This process has already commenced hrough the creation of the Accredited Dersons Central Register as a database of nformation on individuals whose credentials have been verified as well as he offer of internationally accredited

qualifications.

The mission of the SAIFM is to promote professionalism and integrity in the South African Financial markets. Their vision is that all individuals participating in the financial markets. Their vision is that all individuals participating in the financial markets are members of or become accredited with the SAIFM and that it is recognized internationally as a credible

association

Table 3.2

Manual.

Structure of the Regulatory Environment (Source: Sage Life Training Course 3.2.4.Financial Services Regulatory Environment - (Framework for Customer Service

Delivery)

The financial services environment is made up of service providers, consumers, analysts and regulatory bodies all lobbying ,„ achieve a clean, fair and well-oiled industry. Consequently serv.ce providers and intermediaries are constantly a. the wrong end of the barrel They are' required to adapt to changes in regulations on an ongoing basis. Hence, n.anmng is critical and changes in regulation need ,„ be integrated into the business as quickly as i, occurs. Effective change management is necessary to overcome negative emotional responses and to create a

climate ofgoodwill between service providers, their

intermediaries and the consumers.