Dear Marc Nedbank would like to bring to your attention a number of inaccuracies and misconceptions that appeared in an article you wrote on pages 30 and 32 of your 6 December edition entitled Whose bank is it anyway?
First, the fact that non-executive directors are not subject to the PAT policy is not an indication that bank does not recognise an insider-trading risk for nonexecutive directors. The only reason the policy excludes non-executive directors is because they are already governed by a much stricter set of regulations. Nonexecutive directors dealing in shares are governed by very strict regulatory requirements imposed on them in terms of JSE listing requirements.
Our stakeholders have an even a stronger level of comfort around such governance, especially as this is also strictly monitored by the JSE, as well as controlled by the conf lict of interest protocols.
There are, however, no such regulatory requirements for other employees within the f inancial services industry and therefore the South African Reserve Bank and Financial Services Board both published position papers where they stated that the in the event that the market participants do not implement minimum industry standards, it would result in regulations being imposed to govern this. This is why banks have created policies to manage this risk.
Second, the pricing comparison used in the article is wholly inaccurate as Nedbank staff members qualify for special pricing rates from Nedbank Private Wealth. The rates they pay are lower than the rates mentioned in the article.
Third, when it comes to research, the article did not mention that Nedbank Private Wealth employs 12 analysts who cover more than 120 companies listed on the JSE. This coverage includes industrial, f inancial and resource stocks. Property and f ixed interest investments are also covered by our team of highly qualif ied and experienced analysts. Analysis undertaken by our team includes detailed company reports, “heads up” reports, trading ideas, sector analysis, monthly newsletters and comments on companies’ interim and f inal f inancial results.
It is also important to note that our analysts provide this personal and exclusive service for the benefit of private clients – as a result, members of our research team do not qualify to participate in the Financial Mail ’s annual rating of analysts.
And then, on the subject of investor education, the stockbroking division of Nedbank Private Wealth works very closely with the JSE in rolling out and making available the profiles of JSElisted companies. In fact, over the past 18 months, we have hosted more than a dozen companies in seven different locations in conjunction with the JSE. These initiatives have helped considerably to give retail investors access to company management, improving their own investment decision-making processes.
In conclusion, Nedbank Private Wealth believes that it offers a competitive service for our clients – external clients and Nedbank staff clients – complemented by strong research, cutting-edge technology, Nedbank AppSuite (where you can trade shares and view your portfolio), personal service and educational support activities.