NED­BANK RE­SPONDS

Finweek English Edition - - FEEDBACK - Sizwekazi Jekwa Se­nior Com­mu­ni­ca­tions Man­ager Ned­bank Group Com­mu­ni­ca­tions

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.

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