HEARD on the street

CityPress - - Business - COM­PILED BY NEESA MOOD­LEY-ISAACS Pro­tec­tion from Abil debt

If you are an in­vestor keen to in­vest in a unit trust fund but have been dis­cour­aged by the re­cent crash of African Bank In­vest­ments Limited (Abil), you no longer need to worry.

The Fi­nan­cial Ser­vices Board (FSB) an­nounced this week that col­lec­tive in­vest­ment schemes, in­clud­ing unit trust funds, would now be al­lowed to cre­ate “side pock­ets” for any Abil debt in­stru­ments. This means new in­vestors in the funds will be pro­tected from any ex­po­sure to the Abil debt.

Jur­gen Boyd, the deputy ex­ec­u­tive of­fi­cer for col­lec­tive in­vest­ment schemes at the FSB, con­firmed that by the close of busi­ness on Au­gust 18, at least 50 funds had ap­plied to the FSB to cre­ate side-pocket port­fo­lios.

If you are an ex­ist­ing in­vestor of an af­fected fund that chooses to cre­ate a side-pocket port­fo­lio, the fund is required to in­form you in writ­ing of its cre­ation and to reg­u­larly up­date you on its sta­tus.

Eas­ier to earn eBucks

Af­ter a re­view of the re­wards pro­gramme and af­ter changes to the way re­wards are earned, it could be eas­ier for you to earn eBucks.

Your eBucks re­ward level will now be as­sessed monthly rather than over a 12-month rolling pe­riod. Pre­vi­ously, you had to agree to re­ceive mar­ket­ing ma­te­rial be­fore you could start earn­ing eBucks. Now, you can earn eBucks re­gard­less, and can earn ad­di­tional points if you agree to re­ceive mar­ket­ing ma­te­rial.

If you are us­ing a gold or plat­inum cheque card, you re­ceive in­creased eBucks if you use a match­ing gold or plat­inum credit card as well.

Smart ac­count hold­ers will now re­ceive:

R5 back in air­time for ev­ery R100 spent with Sho­prite and Check­ers.

R5 back in air­time for ev­ery R100 spent on pre­paid air­time through FNB’s elec­tronic chan­nels.

An ad­di­tional R5 back in air­time per month for trans­act­ing via cell­phone bank­ing, on­line or by us­ing the FNB bank­ing app, as op­posed to trans­act­ing at a branch.

R5 per month for with­draw­ing cash at a till point.

The new earn­ing rules are effective im­me­di­ately for Smart ac­count hold­ers and effective from Oc­to­ber 1 for gold and plat­inum ac­count hold­ers.

FirstRand lists Gold Bond

If you have Kruger­rands or want to in­vest in gold, you can now do so by buy­ing Kruger­rands and us­ing them to in­vest in the FirstRand Gold Bond, which listed on the JSE this month. Your Kruger­rands are the cur­rency and the Gold Bond has a fiveyear term.

When your in­vest­ment term ex­pires, the value of the bond will be de­ter­mined by the gold price, the dol­lar/ rand ex­change rate and the in­ter­est earned.

The in­ter­est is cal­cu­lated in terms of ounces of gold. You may take de­liv­ery of your Kruger­rands on ma­tu­rity, or opt to set­tle the deal in cash.

The FirstRand Gold Bond can be ac­cessed via a stock­bro­ker in the same way you would buy any other JSE-listed in­vest­ment.

Molo Fu­neral Ser­vices fined

Molo Fu­neral Ser­vices was fined R200 000 and or­dered to pay R71 230 in costs af­ter the Fi­nan­cial Ser­vices Board ( FSB) found the com­pany had been con­duct­ing the busi­ness of a long-term in­surer with­out a li­cence.

Between Septem­ber 2011 and De­cem­ber 2013, the com­pany sold as­sis­tance poli­cies to clients, pro­vided pol­icy ben­e­fits for pre­mi­ums and also set­tled claims lodged by pol­i­cy­hold­ers.

The com­pany’s client book has now been taken over by a reg­is­tered, longterm in­surer. When you buy a fu­neral pol­icy, you should en­sure it is un­der­writ­ten by a reg­is­tered long-term in­sur­ance com­pany.

You can dou­ble-check the un­der­ly­ing com­pany is reg­is­tered with the FSB by call­ing 0800 110 443 or 0800 202 087. You can also check the Fi­nan­cial Ser­vice Provider num­ber, which should be on your pol­icy doc­u­ment.

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