A big hit
A provisioning of R225m for PFA rulings related costs or expenditure was explained by Jim Sutcliffe, Old Mutual plc group executive, as not a mis-selling issue, but rather a cessation of the contract issue.
He was quick to point out that it wasn’t a similar situation to the UK market and the whole issue around misselling there.
He also doesn’t see this as a black hole of liabilities. “This has nothing to do with the sales process,” says Sutcliffe, “it has to do with the termination of the contract. The new product range change doesn’t have the cessation of contract characteristics.”
Sutcliffe says that there is no black hole here.
On a semi-related issue (commission) the papers presented to the National Treasury by the LOA and other associations and their effect on the sales process, also raised its head.
Roddy Sparks – CEO of OMSA - says that the submissions and the discussions are going well, but the outcome has to be satisfactory for both the agent and the client.
