Newsdesk - 24 March 2011 by chenmeixiu



News Desk
        Thursday 24 March 2011
                                                has since processed approximately 861
                                                insurance claims, mostly in the motor and
                                                asset space, with a total claims pay out value
Local insurers benefit from                     of around R 19.75 million”, says Roux.
growth of major sporting                        Dr Danny Jordaan, CEO of the 2010 FIFA
events                                          World Cup Organising Committee South
                                                Africa, last week thanked Aon South Africa
The growth in the number and scale of major     for its contribution to the World Cup.
sporting events being held in South Africa      Roux says that besides the financial aspect,
has benefited local players in the insurance    the tournament afforded companies such as
industry, which are being utilised to provide   Aon South Africa the chance to showcase
risk management and insurance solutions for     specialist skills in Event Liability and Event
these occasions. Besides the immediate          Cancellation covers. "A year after the event,
financial spinoffs, local companies in the      we are ready to share the knowledge gained
insurance sector are also benefiting from the   with our colleagues in Brazil as they bid for
experience gained from providing these          an appointment to the Local Organising
services, with some being requested to share    Committee for in Brazil for the 2014 World
their knowledge with insurers in other          Cup."
                                                The recent Top Gear Festival, one of the
According to Anton Roux, CEO of Aon South       largest motoring festival the country has ever
Africa, which arranged and placed all the       seen, is another example of a large event
insurances required by the Local Organising     requiring     expert    and     precise   risk
Committee for the 2010 FIFA World Cup, the      management solutions. Dani Ettridge of
event is a good example of such                 Aon’s Sport, Recreation and Entertainment
opportunities. “The premium for the event       Business Unit, says while the more than 75
cancellation cover was the single largest       000 attendees soaked up the trackside thrills
premium ever placed by a South African          in the rain this past weekend, few would have
organisation at Lloyds,” he says. The group     realised how much planning goes into the
event. “There is detailed risk analysis being      Stephenson         recommends        selecting
carried out alongside the diverse operational      investments tools that enable pensioners to
logistics behind the scenes. The presenters,       share in the investment returns made on the
the cars, the track, the spectators and even       underlying annuity portfolio by way of annual
the weather must be considered.                    increases to their pensions. “The aim of these
“Managing big event risks require a clear          products is to provide annual increases to
understanding of how to best transfer risk at      help combat the negative effects of inflation,”
a viable cost to the organiser – something         says Stephenson,
best delivered by a broker with experience in
                                                   As an example of the effectiveness of these
large-scale events,” says Ettridge.
                                                   tools, Stephenson highlights the Old Mutual
Fanews                                             Corporate Platinum Pension 2003 With-Profit
                                                   Annuity which recently declared positive
 Retirement Funds                                  bonuses across all of its pricing interest rate
                                                   categories     (see   table     below).    The
Pensioners urged to use                            announcement, marks eight unbroken years
investment tools to protect                        of positive bonus declarations and is effective
                                                   for increase dates from 1 April 2011 - 31
retirement savings from                            March 2012.
                                                 Profit     Pricing          2011
Factors such as the recent inflation hikes       Category   Interest Rate    Bonus
and market volatility could have a significant   1.5%       1.5%             4.0%         3.5%
impact on South African pension funds. In        2.5%       2.5%             3.5%         3.5%
order to protect their retirement lump sums      3.0%       3.0%             3.0%         3.5%
from these potentially erosive factors, local    A          3.5%             3.0%         3.5%
pensioners are urged to use specialised          B          4.0%             2.5%         3.5%
investment tools to safeguard their future       C          4.5%             2.5%         3.5%
nest egg.                                        D          5.0%             2.0%         3.5%

This is according to Roy Stephenson, Annuity       Stephenson says that the 2011 increases on
Actuary at Old Mutual Corporate, who points        the Platinum Pension 2003 With-Profit
to the South African Volatility Index (SAVI)       Annuity compare well with inflation over the
which increased by more than 50% during            year, with increases on the lowest pricing
the second quarter of 2010, indicating             interest rate categories matching inflation.
dangerous levels of volatility for pensioners.
“It is here where the benefits of inflationary     “Inflation has come down from the 6.3% year-
protection and smoothing returns from year-        on-year CPI inflation reported by Statistics
to-year become even more valuable to               South Africa at the end of December 2009. In
pensioners, because they are shielded from         light of this, the 2011 increases as set out
excessive market volatility,” he says.
above are a substantial improvement on last     better, according to Jonathan Dixon, its
year relative to inflation,” he says.           executive officer for insurance.

According to Stephenson, the Platinum           Articles
Pension 2003 increases for 2011 are 0.5%        Dixon addressed an Association for Savings
higher than last year in line with long-term    and   Investment   SA     conference    on
increase expectations relative to inflation.    Wednesday.
Year-on-year Consumer Price Inflation (CPI)
                                                The FSB is an independent institution that
was 3.5% for the year ending 31 December
2010.                                           oversees the local non-banking financial
                                                services industry in the interest of the public.
The average increase for the Platinum           Dixon said the FSB wanted to move from a
Pension 2003 profit category of 1.5% has also   "reactive approach" regarding regulations to
exceeded inflation over the past five years.    one where they would monitor situations and
                                                "detect early warning signs" as well as
Pensioner Assets underlying the Platinum        address conduct concerns before they
Pension 2003 pensions are invested in a         became "widespread".
balanced portfolio of assets, with local and
                                                The      institution  would      have     more
international equities together representing
                                                responsibilities once proposed regulatory
30-40 percent of the total asset portfolio
                                                changes for the financial services sector came
depending on the pricing interest rate
                                                into effect.
                                                The    National    Treasury  in   February
Stephenson says local equities, in the second   announced the proposal for a twin-peak
quarter of 2010, performed consistently with    system, which would see the FSB become the
the global theme of improved market             market conduct regulator for financial
conditions, with most international markets     services in the country.
generating positive returns over the period.    "It's about changing our approach to
However, he warns that the improvement in       supervision and doing a lot more on-site
the equity market was accompanied by very       supervision, possibly active supervisory steps
high levels of market volatility.               on the conduct side," Dixon said.

Moneyweb                                        He added that "additional capacity" and skills
                                                would help the regulator improve.
 FSB                                            Business Live

FSB: We want to be more                          Media
proactive on regulations
                                                SABC ordered to apologise
The Financial Services Board wants to
improve and perform its regulatory duties       over M&G story
The Broadcasting Complaints Commission of         It said the SABC had failed to contact Sole
SA (BCCSA) found that, in neglecting to give      and had approached the Mail & Guardian
journalist Sam Sole the right to reply to         only an hour-and-a-half before the story was
allegations that he accepted a R900 bribe         to be aired. Gumede was contacted three-
and was guilty of racial bias, the SABC failed    and-a-half hours earlier.
in its obligation to publish truthful and         "The SABC has failed to comply with the
unbiased news in an ethical manner.               BCCSA code of conduct by broadcasting the
The allegations against Sole were made by         Gumede-Mail & Guardian story in a manner
businessman Robert Gumede in a report on          which is inconsistent with the requirements
the SABC on November 4.                           of the code of conduct.
In the insert broadcast on SABC 3 and             "The BCCSA is requested to order the SABC
SAFM, Sole was accused of accepting bribes        to broadcast an apology to the Mail &
from British businessman John Sterenborg          Guardian and Sole on the SABC 3 7pm news
in return for publishing damaging allegations     bulletin and on the SAFM 6am and 7am
of corruption against Gumede.                     news.
"Here's a payment, one of the first payments      "The apology must be given the              same
that Sterenborg made out to a journalist who      prominence as the original broadcast."
is an award-winning journalist, so-called         The SABC said it believed        it   had    not
investigative journalist who goes out to attack   contravened the code.
black people, to say that they are corrupt,
they bribe people and here it is," Gumede
said in the report.
The BCCSA said the report was "serious" and
                                                  New bank info brings news of
"The allegations made by Gumede against
Sole are very serious and damaging," the
                                                  economic strength ahead
BCCSA said.
                                                  Revisions to the Reserve Bank’s lead
"Sole's   credibility as    an   investigative    indicator show a more upbeat picture of the
journalist was questioned and he was not          economic outlook than previous releases.
afforded the opportunity to defend himself.       Data out yesterday show the composite
                                                  leading business indicator bounced in
"The SABC is clearly biased against the Mail      January to 134.2 points from 132.6. But
& Guardian."                                      even better news is that revisions to historic
                                                  figures create a far more consistent view of
The BCCSA said the broadcaster had                growth ahead.
"intentionally or negligently" distorted and
                                                  The indicator signals the strength of the
misrepresented the facts of the story, "in
                                                  economy six to 12 months ahead. Before the
particular, the allegation that Sterenborg        revisions, the figures showed a peak of 131.4
paid Sole a bribe".                               points in April last year and erratic moves
                                                  since then, reflecting uncertainty about
future growth. Now there is a steady              The surge in new residential mortgage loans
progression from a recent low of 128.8 last       in December “may have been short-lived”.
                                                  Eight of the 12 components that make up the
Reserve Bank economist Iaan Venter said:          composite lead indicator were up in January.
“After the two monthly declines in May and        Among them were average hours worked per
June, the revised indicator is much smoother      factory worker, volume of orders in
now and displays a clearer gradual upward         manufacturing, the number of building plans
trend, before increasing quite notably in         passed and share prices on the JSE.
December and January. This rising trend
                                                  Three were down: job advertisements, the
signals that the economic recovery should
                                                  year-on-year change in the number of new
continue over the short term.”
                                                  passenger vehicles sold and the year-on-year
This interpretation is in line with most          change in the leading indicator of major
economists’ forecasts that economic growth        trading partner countries.
will accelerate. Elna Moolman, the South
                                                  The figure for gross operating surplus as a
Africa economist at Renaissance BJM,
                                                  percentage of GDP was not available.
predicted that gross domestic product (GDP)
would grow 3.7 percent this year and 4.2          Lead indicator figures are routinely revised
percent next year. In last month’s Budget         from early estimates, which are made when
Finance Minister Pravin Gordhan forecast          some of the components are not available. –
GDP growth would rise from 3.2 percent this
year to 4.1 percent next year.                    Business Report

Venter said revisions to the lead indicator       FNB launches ATM cash
had been made as from January last year
and affected the gross operating surplus as       withdrawal by cellphone
percentage of GDP, the export commodity
price index, and the leading indicator of         First National Bank has announced its latest
South Africa’s major trading partner              innovation - a Cash Withdrawal solution
countries.                                        using Cellphone Banking.
“A few other components were revised
marginally due to new seasonal factors.”          A first in South Africa, Cash Withdrawal will
Despite the revised outlook, some economists      allow FNB Cellphone Banking customers to
still expressed caution. Year-on-year growth      withdraw cash directly from their FNB
in the indicator is lower than it was             transactional account at an FNB ATM
previously – 5.5 percent in January from a        without the use of any bank cards.
peak of 24 percent in April last year – a sign
that growth in GDP could lose momentum.
                                                  CEO of FNB Cellphone Banking Solutions,
John Loos, a home loans strategist at FNB,        Ravesh Ramlakan said: "Innovation is at the
said the fact that growth in the lead indicator   heart of FNB's core values. It is through
was tapering off had implications for the
                                                  constant innovation that we are able to
property market, which showed signs of
recovery in December when year-on-year            design and deliver solutions that will bring
growth in the “value of new residential loans     convenience to the lives of our customers and
granted” rose to 16 percent from 5.4 percent      Cash Withdrawal using FNB Cellphone
in November.                                      Banking is such a solution.
"The increasing number of South Africans        when you forget your purse or wallet at
choosing to bank via their cellphones is        home, or just quickly need cash for life's little
evidence of the channels ease of use, safety    emergencies, you can simply use your
and convenience. When FNB developed             cellphone.
Cellphone Banking in 2005 it was with our
customers in mind and wanting to provide        "Constant innovation of our solutions is
them with 24 hour access to their banking.      another way of living to our brand promise of
In developing Cash Withdrawal it was with       how can we help you. It is through product
the intention of providing our customers with   enhancement that we empower our
24 hour access to their cash - even without     customers through a variety of choices. FNB
the use of a bank card," Ramlakan added.        Cellphone Banking has changed the banking
                                                playing field," Ramlakan concluded.
Ramlakan explained that cash withdrawal
using FNB Cellphone Banking would work          Personal Finance
similar to a bank card, except that customers
would no longer need to use their bank cards     Market Conduct
to withdraw cash.

To withdraw cash using Cellphone Banking,       Market conduct supervision
customers needed to log onto Cellphone
Banking and select the banking option.
                                                crucial - Treasury
Customers would then have to select
                                                Market conduct supervision in the financial
Withdraw Cash, and then the account from
                                                sector is as important as prudential
which they wanted to withdraw cash i.e.
                                                regulations, according to Ismail Momoniat,
cheque account, savings account, etc.
                                                the deputy director-general of tax and
                                                financial sector policy in the National
Once the transaction was completed, the
customer would receive an sms with a
temporary ATM PIN to use at the ATM. "For
                                                At an Association for Savings and Investment
security reasons the temporary ATM Pin has
                                                SA (ASISA) conference on Wednesday,
to be used within 30 minutes of receipt and
                                                Momoniat compared the financial sector to
can only be used once," noted Ramlakan.
                                                nuclear plants.
He added: "Technology has enabled us to
                                                "Certainly, regulating the financial sector is
respond quickly and proactively to our
                                                like having oversight over a nuclear facility,"
customers' needs by coming up with
                                                Momoniat said.
solutions that will help them go about their
business. We've monitored customer              In February, the National Treasury released a
behaviour and have found that they often        document entitled "A safer financial sector to
have to enter a branch to get cash because      serve SA better". Some of the key aims of the
they've left their bank cards at home. Now,     proposals in the document are making the
financial sector safer by tightening prudential   He said the document released by the
regulations, improving market conduct and         Treasury outlined proposals along four
protecting    the   consumer      better,  and    priority areas of financial stability, consumer
broadening access to the financial sector.        protection, access to financial services and
                                                  combating financial crime.
The document also has proposals for the so-
called SIFIs (systemically important financial    A financial stability oversight committee
institutions).                                    would be created soon, Momoniat said.

A proposal for a twin-peak system was             "We hope that market conduct regulators can
announced during Finance Minister Pravin          be set up more explicitly so we can move,"
Gordhan's Budget speech in February.              Momoniat concluded.
Discussions on this proposal are still taking
place.                                            Business Live

Under the twin-peak system, the Financial          Asset Management
Services Board (FSB) would be the market
conduct regulator for the financial services,     Protect your portfolio from
while the SA Reserve Bank (SARB) would be
responsible for the prudential regulation of
banking and insurance sectors.
                                                  The volatility in local and global equity has
"We need to have the appropriate checks and       once again highlighted the need for proper
balances," Momoniat said.                         diversification across asset classes within
                                                  investment portfolios, according to Eben
According to Momoniat, in moving towards a        Karsten, portfolio manager at Blue Ink
twin-peak system, the SARB would be "well         Investments.
placed" to efficiently manage regulation as
well as take responsibility of "macro             The ALSI rallied almost 2% early in February
prudential supervision".                          before plummeting 5% towards month-end
                                                  on the back of concerns over the unrest in
SA's financial sector was not severely affected   north Africa and the Middle East.
by the global financial crisis that saw many
banks collapse two years ago, as local banks      This volatility continued on the back of the
remained sound during and after the crisis.       devastating tsunami that hit Japan, sending
                                                  stock markets plummeting by as much as
Momoniat said SA was also under "great            12% in some cases.
pressure" to provide loans to the low-income
market and would have suffered the same           In contrast, the monthly Blue Ink All South
fate as the banks in countries such as the US     African Hedge Fund Composite (BIC), which
had regulations not been in place.                tracks the performance of hedge funds in SA,
registered a marginal decrease of 0,03%          The rotation out of emerging markets was
during the month.                                further evidenced in the bond market as the
                                                 long bond yield rose by 50 basis points.
According to Karsten, volatile short-term
investment returns reinforce the argument        "Foreign investors were net sellers of local
for diversification - or the balancing of        bonds based on their expectation of the SA
portfolios across a variety of asset classes.    Reserve Bank hiking interest rates in the
                                                 next six months. Their fears drove the All
"There was a major rotation out of emerging      Bond Index (ALBI) 2.1% lower in January.
markets into developed markets as risk           Fixed-income hedge strategies shed, on
aversion took centre stage through February.     average, 1.67%."
The trouble with the ALSI is the constant
volatility and the negative external factors     Karsten notes that the BIC has achieved a
that can influence the markets.                  total return of 32.90% over three years,
                                                 compared with 25.10% from the ALSI over
"The geopolitical turmoil in the MENA (Middle    the same period. Over the past year the BIC
East and north African) countries detracted      has returned 9.79% versus 18.98% on the
from what initially looked like a strong month   ALSI. The three-year volatility on the BIC is
for the local equity market, "says Karsten.      just 3.06% versus 22.05%.

He adds that the hedge fund industry,            "This volatility means equity investors who
however, offers a number of investment           enter and exit the market at the wrong time
strategies across the risk/return spectrum.      can suffer extensive capital losses."

"Fund managers cannot predict when market        Karsten says that, against the present global
sentiment will swing from positive to            backdrop of uncertainty, there is a strong
negative; but they can protect investors'        case for persisting with conservative asset
assets from periods of market turbulence by      classes through the first half of 2011.
ensuring adequate exposure to hedge funds
and other defensive assets."                     "Conservative investments offer positive real
                                                 returns with very little risk."
The BIC ended marginally lower, but, says
Karsten, "a number of hedge fund strategies      Personal Finance
outperformed the index over the month, with
long-short directional funds (+0.25%), long-      FSP’s
short non-directional funds (+0.57%) and
market neutral strategies (+0.5%) leading the    Alexander Forbes’ dabble in
way."                                            securitisation raises a few
The   risk   and      financial   services    group,          •   You settled the loan.
Alexander Forbes, back in 2006, when the
                                                       On the surface the product appeared to be
world was flush with cheap money and the
                                                       made in heaven, but not for the big-four
public had yet to develop a hatred for
bankers and high finance, launched Seniors’
Finance - South Africa’s first home equity             Pat Lamont, general manager for Nedbank
release loan.                                          Home Loans: Sales and Customer Relations,
                                                       said “Nedbank Home Loans can confirm that
The product on the cutting edge of innovation
                                                       the product in question formed part of its
had a simple promise − if you were 65 and
                                                       offering however [it] was discontinued in July
older had built up residual equity in the
                                                       2008 due to low uptake. Whilst the product
value of your home it would enable you to
                                                       is well established in most western countries,
access that value at least in part through
                                                       we are of the view it was not well received in
borrowing money against the value of your
                                                       the South African market, as such the bank
house. The borrower would receive “a lump
                                                       took a decision to discontinue the offering”.
sum or five equal annual instalments”, using
their home as security and here’s the kicker           Standard Bank said after extensive research,
there would be “no monthly repayments”                 data showed that there was “… a very limited
until the borrower triggered a “repayment              demand …” for the offering in South Africa.
event”.                                                For its part Absa and First National Bank
                                                       said they do not grant asset-based home
A repayment event would occur when:

      •   You died;
                                                       So what made Alexander Forbes believe it
      •   Sold your house;                             could succeed?

      •   You moved out           of   your   house    Anton Ossip, managing director of Alexander
                                                       Forbes Financial Services, said, “There is a
      •   You were sequestrated;                       demand and need for the product offering in

      •   You commit a default under the loan          the South African market” but despite this
          agreement and fail to remedy such            view it had to close the product.
          default within the time period
          specified by Seniors’ Finance;               Why?
      •   You terminated the loan agreement;
          or                                           Ossip      says   because   “where   it   becomes
                                                       difficult is that for this type of product you
need a funder with a very long-term view,             value of their home also known as the no
because typically these kinds of loans do not         negative equity guarantee simply proved
have any repayment either of interest or              too costly in the short term?
capital for very long periods of time and
therefore you need a funding institution or           When asked about this Alexander Forbes

funders that actually have the need for that          said,   it   was“…     very   confident    that   the

very long-term kind of paper and that has             actuarial work done on the business model is

proven to be more difficult to put together in        of [sic] the best available…”. Determined to

the South African market particularly after           prove    this   Deon    Viljoen,   group    finance

the debt crises of 08/09.                             executive at Alexander Forbes, said, “the way
                                                      this model works internationally is that a
“The business model underpinning Seniors'             bank or consortiums of banks provides a
Finance anticipated using a combination of            facility to fund loans for a period, until the
shareholder funds and institutional credit            total loan book is of such a size that it can be
lines to finance the issue of SF HELP loans.          economically securitised and issued in the
As a direct result of the international credit        long-term debt market.         This frees up the
crunch, we have been unable to access the             facility to build up a new book until it is of a
institutional credit lines that we require, and       size to securitise. The debt crisis of 2008/09
have thus funded new loan issue entirely out          clearly has had a significant impact on the
of shareholder funds to date, which is                availability of such funds. It should be noted
unfortunately not sustainable. As a result we         that Seniors’ Finance owns the intellectual
have made the difficult decision to stop              property around the design and features of
issuing new SF HELP loans until further               the product, but that the funding was
notice”.                                              always intended to be provided by banks
                                                      and the securitisation market”.
On face value it seems highly suspect that
Alexander Forbes would continue to insist             Prior to the product closing its applications to
that its business model remains sustainable.          new loans approximately 184 loans were
Perhaps its actuarial models underestimated           written to the value of R48m.
both the mortality rate, ie, the models
assumed     more     people   would   trigger    a    Perhaps Viljoen is right but one has to ask if

repayment    event    (primarily   death)   a   lot   the model was always based on securitisation

sooner than actually happened? Or the                 why not close the product to new applicants

concept of guaranteeing the borrower that             back in 2008/09 when the credit markets

he/she could never owe more than the sale             seized up? Why did it try to keep it afloat
until August 1 2010 opting for a new model             Given that the product was new to the
based on funding new loan issues entirely              country it created a regulatory vacuum. In
out of shareholder funds a position they               response Forbes set up an entity called the
concede was unsustainable?                             South African Home Equity release protection
                                                       association (SAHERPA), which has since gone
“We funded the small book ourselves and I              into hibernation says Viljoen.
mean we are not a funding institution but we
piloted the funding as a proof of concept but          Despite this Alexander Forbes told Moneyweb
in order to secure the warehouse funding               that “should borrowers have any complaints
facility we had to put together a consortium           or issues, SAHERPA would still to our
of banks that would typically be banking               knowledge handle these matters”.
institutions that would be willing to provide
the warehousing facility [which it never               Chairman of SAHERPA Paul Rosenbrock told

received]   and   then   when    you        get   to   Moneyweb “… that similar organisations to

securitisation it would typically be the longer-       SAHERPA in Australia & New Zealand have

term players insurance companies and the               also   gone     into    hibernation     pending      the

like.                                                  normalisation of money supplies worldwide.

“The funding is not what we bring to the               “The continued existence of SAHERPA is not

company it’s the intellectual property around          an issue; it is a watchdog type of organisation

this product which is highly complex and               operating     in     the consumers’      interest.    It

very    sophisticated     but       the      actual    carries on albeit also in a ‘hibernation’ mode,

warehousing    and   securitising     the    paper     because there are no accredited suppliers

would be in the hands of the financial                 offering    [this]     product   at    present,   and

institution,” said Ossip.And despite all this          therefore     operations    have      been   curtailed

Ossip is adamant the product will make a               accordingly”.

comeback, “… it’s a complex product which is
                                                       One thing is for sure it will be interesting to
why it’s not an easy one to fund we’ve put it
                                                       see if this product does indeed make a
in hibernation for the time being but it
doesn’t mean we’ve given up on the idea… we
definitely believe it can work”.So how will            Moneyweb
people who’ve already signed up to this
                                                        Estate Agents
scheme be protected?
The Consumer Protection Act (CPA) becomes         buyer or the seller. Lake says this could be
effective on April 1 2011, and those who are      problematic in terms of the new Act which
affected, especially suppliers, have been         stipulates goods can be returned if found to
urged to familiarise themselves with the          be defective. In terms of immoveable
legislation, or face stiff penalties.             property, delivery takes place once the
The Act is particularly relevant to practising    transfer has been registered at the deeds
estate    agents,    especially   those    who    office. If, for example, it has been found that
unscrupulously sell defective properties to       the     seller    had   deliberately    withheld
unsuspecting      investors    or   prospective   information of defects to the property, the
homeowners. This is particularly relevant         deal can be cancelled, if the latter can be
when it comes to developers selling property      proven. In the case of transfer fees having
off plan. Marketing companies, who often          been paid, the buyer will have to take the
undertake      the    promotion      of   such    matter to court and if it is found that the
developments at exorbitant fees, are often        seller had acted wrongfully, he or she will
known for using the rather intimidating           have to foot the bill for the re-transfer of fees
"hard sell" tactic. This method will, once the    paid.
Act comes into effect, be closely monitored       Advice to estate agents at this stage: make
and the understanding is that if the              sure your representations regarding any
developer and the marketer fail to deliver        property are accurate, that you have the
on promises made, they can and will be            appropriate insurance in place and that you
taken to task.                                    know what your obligations as a service
Deneys Reitz associate, Rosalind Lake, says       provider are to your consumer. Agents have
real estate is only one of many areas targeted    also been cautioned that whereas the
by the Department of Trade and Industry due       proverbial fine print tended to protect sellers
to the number of people who lose large            in the past, this will no longer be the case.
amounts of money after being misled into          Lake says any restriction of sale will have to
buying less than satisfactory property or         be spelled to any prospective buyer or
developments. Estate agent principals will        investor.
have to be particularly vigilant in that that     Consumers will also be happy to know that
their      agents      are    not      making     the dealings of developers will be heavily
misrepresentations to prospective buyers.         scrutinised within the new Act. Developers
Also, consumers will have a five-day cooling      will no longer be able to prescribe to buyers
off period after entering into a transaction.     buying off plan which service provider to use
This will include buyers who feel they have       or not to use. Hopefully this will eliminate to
been short-changed.                               some extent "jobs for pals" and rebates and
Lake says the same is not necessarily true for    kickbacks. From April 1 2011, developers
private sales. The voetstoots clause can still    will have to prove some form of "economic
be applicable. Depending on the sale              benefit" in using prescribed service providers.
agreement, the clause can benefit either the      Realestateweb
DATE        TIME    COMPANY                      HEADLINE

24.03.2011 08h00 Litha Healthcare Group Lt... LHG - Litha Healthcare Group Limited - Reviewed condensed consolidated

24.03.2011 08h00 Gold Reef Resorts Ltd           GDF - Gold Reef Resorts Limited - Dealings in securities by a director

24.03.2011 08h00 Exchange Traded Funds           GLD - NewGold - Partial De-Listing of Newgold Debentures

24.03.2011 07h10 British American Tobacco ... BTI - British American Tobacco p.l.c.- Transaction in own shares

24.03.2011 07h05 Illovo Sugar Ltd                ILV - Illovo Sugar Limited - Changes in Directorate

Just for laughs
                       Things To Do On An Elevator While Bored

    When there's only one other person in the elevator, tap them on the shoulder and then
    pretend it wasn't you.

     Swat at flies that don't exist

    Before the elevator door opens shout "DING" and then laugh and say "beat you again
    Mr Elevator."

    Stand really close to someone, sniffing them occasionally.

    Stand silently and motionless in the corner, facing the wall, without getting off.

To top