HEARD on the street

CityPress - - Business - COM­PILED BY AN­GELIQUE RUZ­ICKA

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.

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