Legislation will have an impact

In releasing their results today Liberty Group looked at their consultancy business. Angelo Coppola reports.

In terms of their franchise business it too has been rationalised, with the elimination of non-producing franchises, while additional branches have been created on the agency level.

In terms of the brokers there is a Gauteng focus becoming evident, and the development of administration hubs.

On the other hand Standard Bank financial consultants (SBFC) has had more people employed and the benefits should come through in 2004.

In an offhand reference to other competitors looking at the Gauteng area, Ruck says: "Nothing stops us for having lunch in areas where our competitors are traditionally strong. We will look at the Western Cape, although it wont be a big bang approach.

In terms of legislation, Ruck says that FAIS implementation is going ahead, and commission deregulation is awaited and the FICA legislation has been implemented.

"There will be margin squeeze when commission deregulation is implemented. It will affect the single premiums side of the business. We will just have to cope. Here the consumer doesn't pay.

"FAIS on the other hand will have an impact on the selling community. The one-man shows wont be able to cope with the demanding requirements."