We’ve passed the southern hemisphere winter solstice, so it’s not long until everyone starts planning their December break. There will be plenty to do for the next half of the year, so we recommend you get it done before it becomes urgent.
THE FINANCIAL SECTOR CONDUCT AUTHORITY (FSCA)
Crypto-Asset Service Provider (CASP) applications
A reminder that FAIS licence applications for CASPs are open and need to be submitted before 30 November this year to take advantage of the exemption allowing entities to continue trading past that date should their licence not be approved by then.
Contact us if you need assistance with your application.
Amendments to over-the-counter (OTC) derivative margins
The FSCA and Prudential Authority released a joint Communication (1 of 2023) which details the amendment to margin requirements for non-centrally cleared OTC derivative transactions.
The original standard was released in 2020 and (as noted) set the margin requirements for OTC derivatives.
The amendment serves to refine the quantitative portfolio margin models to clarify the application of historical calibration data, as well as align the phase-in dates, and came into effect on 9 June 2023.
FINANCIAL INTELLIGENCE CENTRE (FIC)
The FIC provided a summary of the most recent meeting of the Financial Action Task Force in Singapore during June.
Of particular interest is the list of jurisdictions under increased monitoring requirements which (including South Africa) now includes the following countries: Albania, Barbados, Burkina Faso, Cameroon, Cayman Islands, Croatia, Democratic Republic of the Congo, Gibraltar, Haiti, Jamaica, Jordan, Mali, Mozambique, Nigeria, Panama, Philippines, Senegal, South Sudan, Syria, Tanzania, Türkiye, Uganda, United Arab Emirates, Vietnam, and Yemen.
Three jurisdictions have been identified as high risk, namely: Democratic People’s Republic of Korea, Islamic Republic of Iran, and Myanmar.
Risk Management and Compliance Plans will need to be updated once again.
The meeting also noted concerns around the lack of development of controls for crypto assets, and said that plans are underway to lay out a framework to manage the money laundering and terrorist financing risk posed by these instruments.
SOUTH AFRICAN RESERVE BANK (SARB)
Annual Report and Annual Financial Statements
The SARB released its annual report and Annual Financial Statements on 26 June.
As is to be expected, they are a hefty read. The summarised information will become available through various news sources, but a nice interactive version is available here which will allow you to filter through to your area of interest.
Financial Stability Review
The SARB released its first Financial Stability Review on 30 May.
It’s a very well drafted document and shows the realities of South Africa’s uphill struggle to setting the economy on a positive track. The various sectors have shown immense resilience, but are posed with the hurdles of loadshedding, potential further rating downgrades, the next level down from “grey listing”, rising unemployment, and an ineffectual government.
We would recommend you have your anxiety medication before reading it…
PRUDENTIAL AUTHORITY (PA)
Collection of fees and levies by the PA
The PA released Communication 3 of 2023 on 30 May.
It served to inform supervised bodies (banks, insurers, and exchanges) of the PA’s authority to impose levies and fees as provided for in the Financial Sector Regulation Act, the Levies Act, and the Levies Administration Act. The authority took effect from 1 April 2023, which is the date the levy year will be active from.
The calculation methodology of the levies and fee structure are yet to be released, as are the interim payment due dates.
Directive on operational resilience for banks
The PA released a Directive to extend the deadline for Directive 10 of 2021 to 31 December 2024.
The paper outlines principles that are organised across the following seven categories:
- governance
- operational risk management
- business continuity planning and testing
- mapping of interconnections and interdependencies of critical operations
- third-party dependency management
- incident management
- resilient information and communication technology, including cyber security
It’s likely the change is also to allow banks to set up contingencies for possible grid failure.
Annual Report
The PA released its annual report on 26 June (since it is a subsidiary of the Reserve Bank).
The report provides summaries of the performance of the South African insurance and banking industries should you be interested in comparing your company’s position to the market.
NATIONAL TREASURY
International Monetary Fund (IMF) press release on South Africa
National Treasury released a media statement in response to the IMF’s press release following the conclusion of its Article IV consultation.
Only if you live under a rock would any of the findings of almost stagnated economic growth, poor governance, corruption, and electricity woes surprise you.
National Treasury has responded to the issues with the usual “we’re working on it” type of statement, but we thought it was far more interesting to look at the numbers included in the report. The most striking thing was that even the IMF projects an increase in real Gross Domestic Product over the next two years (1.8% in 2024 and 1.6% in 2025) and a reduction in the Consumer Price Index from the current 6% to 4.9% in 2023 and 4.6% in 2024. Perhaps we have turned a corner…
Two Pot System explained (sort of)
National Treasury released a series of documents to explain the draft revisions to the retirement system legislation, and released the draft changes to the applicable tax regime.
The documents note draft changes to the revenue laws and pension legislation.
The interaction between financial products and tax laws will need to be carefully considered by product providers and intermediaries assisting their clients.
Comments can be submitted to 2023AnnexCProp@treasury.gov.za by 15 July 2023.
INFORMATION REGULATOR
PAIA returns
A reminder that all public and private companies must lodge their returns regarding any requests in terms of the Promotion of Access to Information Act by 30 June 2023.
The return is available from your log-in page.
NATIONAL CREDIT REGULATOR
The National Credit Regulator issued a reminder to industry to renew their registration in terms of the National Credit Act.
The deadline for renewed registration is 31 July 2023.
A-PROOFED
Remember our resident proofreading service provider Kim Hatchuel from A-Proofed? Well, she’s very definitely still around and providing services to us. We asked her for a refresher for online meeting etiquette since they are definitely here to stay.
Online meeting etiquette: Navigating the digital space with professionalism
Even though we’re well out of the COVID-19 pandemic where most of us sat in Zoom meetings on our couches in our pyjamas, there is still the need to have some of our meetings online. Some people find it easier to “jump onto a meeting”, and while in-person meetings still hold value in certain situations, online meetings have proven to be a convenient and effective alternative. They provide flexibility, save time and costs, and enhance collaboration, ultimately improving productivity and efficiency.
Whether you’re attending a team huddle, a client presentation, or a brainstorming session, it’s crucial to navigate the digital space with professionalism and adhere to proper online meeting etiquette.
Test your technology
Before the meeting starts, test your audio and video equipment to ensure they are functioning properly. Check your internet connection, and make sure that it’s stable and reliable. Familiarise yourself with the meeting platform and its features to avoid any technical hiccups during the meeting. In South Africa, we also need to remember to check loadshedding schedules and make alternative arrangements if your power will be off during the meeting.
Be punctual and prepared
Treat online meetings with the same level of importance as in-person ones. Log-in on time, and be prepared by reviewing any relevant documents or agenda items beforehand. Being punctual demonstrates respect for others’ time, and shows your commitment to the meeting’s objectives.
Dress appropriately
While working from the comfort of your home, it’s tempting to hang out in a tracksuit. However, dressing professionally for online meetings sets the right tone and maintains a sense of professionalism. Consider how you would dress if the meeting were in-person, and dress accordingly.
Choose a suitable environment
Find a quiet and well-lit space for your online meetings. Make sure that the background is clutter-free and professional. Avoid joining meetings from public places or areas with lots of noise. Minimise distractions wherever you can to create a focused meeting experience.
Practice active listening
Engage in active listening during the meeting. Give your full attention to the speaker, avoid multitasking, and don’t interrupt. Non-verbal cues like nodding and smiling can convey your attentiveness and encourage a positive atmosphere.
Keep your camera on
Seeing participants’ faces fosters a sense of connection and engagement. However, be mindful of your surroundings and ensure that your appearance remains professional.
Mute when not speaking
Background noise can be a significant distraction during online meetings. Mute your microphone when you’re not speaking to minimise any unintended disruptions. Remember to unmute yourself when you need to speak.
Avoid multitasking
It can be tempting to check emails or get busy with other things while in an online meeting, but doing so can compromise your focus and engagement. Give the meeting your undivided attention, actively participate, and contribute meaningfully to the discussion.
Maintain professional behaviour
Treat online meetings with the same level of professionalism as face-to-face interactions. Avoid side conversations, and be mindful of your tone and language, ensuring that your contributions are respectful and appropriate.
Practicing online meeting etiquette is crucial for maintaining professionalism, productivity, and effective communication. By being punctual, prepared, and engaged, you show respect for others’ time, and contribute to a positive meeting experience. Muting when not speaking, active listening, and maintaining a professional demeanour all help to minimise distractions and foster a focused and respectful atmosphere.
