The Life Offices’ Association (LOA) became the fourth association to vote in favour of dissolving and transferring its functions to a new association.
The LOA, together with the Association of Collective Investments (ACI), the Investment Management Association of South Africa (IMASA), and the Linked Investment Service Providers Association (LISPA) will therefore disband before the year is over.
Gerhard Joubert (pictured right), CEO of the LOA, says now that members have voted for joining the new association, the next step will be to coordinate an orderly transfer of the LOA’s staff, assets and activities to the new association by the end of 2008.
The new association is aiming at formally opening its doors on October 1, with Leon Campher as the first CEO.
The LOA Board today also voted into office the first representatives of the life insurance industry within the new association. The first chairman of the new association’s Risk (Life Insurance) Committee will be Herschel Mayers, CEO of Discovery Life, and the deputy will be Wilhelm van Zyl, CEO of Metropolitan Life. Both will also serve on the new association’s Board of Directors, together with the other five Directors that will be representing the life industry.
“I support the outcome of today’s vote and believe that the trend of convergence in the financial services industry has necessitated that the investments and life industry starts speaking with one voice,” comments Joubert. “Unfortunately I will not be involved in this process. After having served the LOA for many years, I have decided to leave the LOA at the end of September to take up a new challenge with Sanlam in India. Over the next few months I will continue to work with the new association to ensure an orderly transfer to the new association.”
Background to the new association
For just over two years, various financial services providers who are members of the ACI, IMASA, LISPA and the LOA have been exploring the possibility of creating a single new association to collectively represent the investment and life industries of South Africa.
The aim of this association will be to jointly represent the interests of asset management companies, linked product providers, multi-managers, unit trust companies and life insurers.
The reason is that a single association would enable the financial services industry to work towards greater level playing fields, creating an environment for more holistic regulation. This would not only be in the interest of the members of the various associations, but would ultimately also serve the interests of consumers. It would also create the single body Government is looking for to engage with on policy issues.