DIS­CLO­SURE OF THE WRONG KIND

Weekend Argus (Saturday Edition) - - GOODWINES -

A short swift kick in the pants for linked-in­vest­ment ser­vices provider Au­to­mated Out­sourc­ing Ser­vices (AOS), which pro­vides the ad­min­is­tra­tion plat­form for most of the ex­change traded funds. It man­aged to send out quar­terly Sa­trix state­ments ad­dressed to a Dr L – and it pro­vided ev­ery other in­vestor with his email ad­dress.

AOS as­sured in­vestors that the “un­for­tu­nate er­ror was tech­ni­cal in na­ture and has no ef­fect on the sta­tus or in­tegrity of your in­vest­ment; and your con­fi­den­tial and per­sonal in­for­ma­tion was not dis­closed to a third party” – ex­cept Dr L, that is. This is un­ac­cept­able. The ques­tion must be: what other tech­ni­cal er­rors AOS can and does make.

And while on the sub­ject of ad­min­is­tra­tive plat­forms such as AOS: why do they charge a per­cent­age of as­sets for an ad­min­is­tra­tive ser­vice? Some of their charges are lu­di­crous. They should be limited to a rand amount.

Most of these plat­forms are sim­ply a li­cence to print money, par­tic­u­larly when they have cosy lit­tle kick­back ar­range­ments with as­set man­age­ment houses. They con­trib­ute to un­der­min­ing the cre­ation of a sav­ings cul­ture.

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