HEARD on the street
LOWER COSTS FOR ETFs
Satrix is significantly lowering the annual management fees charged on its flagship Satrix 40 exchange-traded fund (ETF) from October 1. Satrix CEO Helena Conradie says: “Democratising investments and giving all South Africans access to the markets has always been at the core of what Satrix stands for as an investment business and, to the extent that costs can be lowered responsibly, we will endeavour to do so.”
She adds that, while business sustainability must consistently be carefully considered, Satrix is committed to lowering fees, thereby transferring enhanced value to their investors.
The current total expense ratio of 0.38% will be lowered to a capped 0.10%.
Satrix chief financial officer Rick Martin says: “Investors will incur a total expense ratio of no more than 0.10% on the Satrix 40 ETF from October, and this will be achieved through lowering the management fee.”
The South African ETF pioneer shook up the South African investment space with the Satrix 40 in 2000. It was the first ETF listed on the JSE. Since that first introduction, Satrix has continued to innovate in index tracking, meeting clients’ needs and helping South Africans grow their wealth.
All Satrix ETFs can be accessed via the online platform, SatrixNOW.co.za. There is no annual platform fee and no minimum investment amount.
FSB WARNS AGAINST BINARYTILT
The Financial Services Board (FSB) has issued a warning about Chemmi Holdings trading as BinaryTilt, which claims to be dealing in binary options.
According to information received by the FSB, a South African citizen invested in binary options with BinaryTilt, but could not get his money paid back to him. According to the company’s website, it has a presence in London and in Saint Vincent and the Grenadines.
The FSB says that Chemmi Holdings, trading as BinaryTilt, is not authorised to operate as a financial services provider in South Africa.
The FSB reminds consumers to check the legitimacy of a company or person before investing with it. This can be done through the FSB on either the toll-free number 080 011 0443, or on the website fsb.co.za, which will provide information about whether an institution or person is authorised to render financial services.
SHOPRITE FINED R1 MILLION FOR RECKLESS LENDING
The National Consumer Tribunal has found retailer Shoprite guilty of reckless lending and fined it R1 million. The tribunal ordered Shoprite to appoint a debt counsellor, at its own cost, to assess if the affected customers were over-indebted.
The regulator’s CEO, Nomsa Motshegare, says: “This judgment comes after an investigation by the National Credit Regulator revealed Shoprite entered into credit agreements with consumers without conducting a reasonable and objective assessment of their ability to afford the loans.”
She said Shoprite was in contravention of the National Credit Act because, when it assessed if someone could afford a loan, it took into account the unverified income of another person, such as a spouse or life partner.
Shoprite acknowledged the findings, adding that the tribunal had found one of its subsidiaries extended credit to some of its customers to buy goods from its OK Furniture stores too easily.
“This matter relates to credit agreements concluded in June 2013 and June 2014 with nine consumers from among thousands. In all these cases, the credit extended was settled in full by the customers concerned,” Shoprite said.
FSB ISSUES WARNING ABOUT BCI BUSINESS CONSULTANTS INTERNATIONAL
The Financial Services Board has warned against dealing with BCI Business Consultancy International and its CEO, Jacques Magliolo. The regulator said that, in terms of the Financial Advisory and Intermediary Services Act, neither were authorised to render any financial advice and intermediary services.
Magliolo and the company were allegedly advising clients to invest in instruments including US oil options. Preliminary investigations by the FSB into the affairs of BCI and Magliolo revealed that clients’ savings were being used for other purposes than investments in US oil options or in financial products for the benefit of these clients.
“Neither BCI Business Consultancy International nor Magliolo is an authorised financial services provider and/or representative to render financial services in derivatives,” the FSB said.