Back to all articles

Delay in RDR implementation

21 July 2016 | Regulatory Reform

The Financial Services Board (FSB) has announced a delay in the RDR Phase I timelines originally communicated in November 2015. At that time, the FSB planned for the drafts that would give effect to most of the RDR Phase I proposals be published for comment in April 2016, with effective dates staggered between July and November.

The timing of implementation has now been delayed, due to National Treasury asking that the consultation on insurance-related legislation be held back until after Parliament has been briefed on the new Insurance Bill, 2016.

Because the same regulatory instruments will be used to align the new Insurance Bill requirements with the updated market conduct requirements under the Long-term and Short-term Insurance Acts, draft amendments to Regulations and Policyholder Protection Rules under the Long-term and Short-term Insurance Acts will be published for comment later than planned. The date of promulgation of the relevant regulatory instruments also needs to be aligned with the proposed effective date of the Insurance Bill, namely 1 January 2017 (dependent on the meeting schedule of Parliament’s Standing Committee on Finance).

At the same time, the latest draft of the Financial Sector Regulation (FSR) Bill, published in October 2015, is still awaiting parliamentary approval. Once the FSR comes into force, the regulator will restructure itself as the Financial Sector Conduct Authority (FSCA).

RDR Phase I will therefore be postponed until 2017, and we’ll be keeping you up to date as the new timelines unfold.

Show Comments

Comments are closed.

© 2021 Sanlam. All rights reserved
Sanlam Investments consists of the following authorised Financial Services Providers: Sanlam Investment Management (Pty) Ltd (“SIM”), Sanlam Multi Manager International (Pty) Ltd (“SMMI”), Satrix Managers (RF) (Pty) Ltd, Graviton Wealth Management (Pty) Ltd (“GWM”), Graviton Financial Partners (Pty) Ltd (“GFP”), Satrix Investments (Pty) Ltd, Amplify Investment Partners (Pty) Ltd, Sanlam Capital Markets (Pty) Ltd (“SCM”), Sanlam Credit Fund Advisor Proprietary Limited, Sanlam Africa Real Estate Advisor Proprietary Limited and Sanlam Employee Benefits (“SEB”), a division of Sanlam Life Insurance Limited and Simeka Wealth (Pty) Ltd; and has the following approved Management Companies under the Collective Investment Schemes Control Act: Sanlam Collective Investments (RF) (Pty) Ltd (“SCI”) and Satrix Managers (RF) (Pty) Ltd (“Satrix”).

The Sanlam Group is a full member of the Association for Savings and Investment SA. Collective investment schemes are generally medium- to long-term investments. Please note that past performances are not necessarily an accurate determination of future performances, and that the value of investments / units / unit trusts may go down as well as up. A schedule of fees and charges and maximum commissions is available from the Managers, Sanlam Collective Investments (RF) Pty Ltd & Satrix Managers (RF) (Pty) Ltd, a registered and approved Managers in Collective Investment Schemes in Securities. Additional information of the proposed investment, including brochures, application forms and annual or quarterly reports, can be obtained from the Manager, free of charge. Collective investments are traded at ruling prices and can engage in borrowing and scrip lending. Collective investments are calculated on a net asset value basis, which is the total market value of all assets in the portfolio including any income accruals and less any deductible expenses such as audit fees, brokerage and service fees. Actual investment performance of the portfolio and the investor will differ depending on the initial fees applicable, the actual investment date, and the date of reinvestment of income as well as dividend withholding tax. Forward pricing is used. The Manager does not provide any guarantee either with respect to the capital or the return of a portfolio. The performance of the portfolio depends on the underlying assets and variable market factors. Performance is based on NAV to NAV calculations with income reinvestments done on the ex-div date. Lump sum investment performances are quoted. The portfolio may invest in other unit trust portfolios which levy their own fees, and may result is a higher fee structure for our portfolio. All the portfolio options presented are approved collective investment schemes in terms of Collective Investment Schemes Control Act, No 45 of 2002 (“CISCA”). The fund may from time to time invest in foreign instruments which could be accompanied by additional risks as well as potential limitations on the availability of market information. The Manager has the right to close any portfolios to new investors to manage them more efficiently in accordance with their mandates. The portfolio management of all the portfolios is outsourced to financial services providers authorized in terms of the Financial Advisory and Intermediary Services Act, 2002. Standard Bank of South Africa Ltd is the appointed trustee of the Sanlam Collective Investments Scheme & Standard Chartered Bank is the appointed trustee of the Satrix Managers Scheme.