Employment equity targets and financial sector transformation…

Tough targets, tougher to meet… overly aggressive EE targets could prove almost impossible for firms to achieve. We are in for a rude awakening (45.45%)

Self-regulation has not worked. Employment equity targets is the way to go. Proposals will also strengthen the overall framework for transformation in the financial sector. (4.55%)

One wonders what will happen to firms operating in the financial services sector when they’re physically unable to onboard enough qualified and experienced individuals to meet these targets. (31.82%)

It seems that the policymakers decided that transformation had/has a nice ring to it. (18.18%)

The Budget Speech 2022...

Is welcome news and will go a long way to bolster the economy (20%)

Is taxpayer-friendly, with tax increases kept to a minimum (8%)

Is realistic and meets my expectations (12%)

I have mixed feelings. Cutbacks and reprioritisations in government spending pose a significant risk (44%)

Oh no! The taxes on booze and tobacco are higher again (16%)

The latest Momentum Sci-fi report introduces the concept of a behaviour tax under four investor archetypes. Which of the following archetype best describes your equity fund decision making?

Anxious investor. Panic sell, but cannot get back in. (30.77%)

Assertive investor. Switch to latest themes and trends, always. (15.38%)

Avoider. Sit in safety to avoid risk. (23.08%)

Market timer. Get in low, get out high. (30.77%)

Each year dozens of analysts and economists have a go at forecasting the rand to US dollar 12-months into the future; but their educated ‘guesswork’ produces a wide range of outcomes. What do you think a dollar will ‘cost’ at 31 December 2022?

Let the professionals do the guesswork (8.54%)

R14.50 per dollar, or better (4.88%)

R14.50-R16.50 per dollar (50%)

R16.50 per dollar, or worse (36.59%)

Are you shocked by Sasria’s 2022 rate increases, or is it expected given the sheer scale of the July 2021 rioting plus the ongoing increase in frequency and severity of protest losses?

Yes, I am shocked and so will my clients be shocked (28.07%)

No, it was expected (71.93%)

2020/21 FAIS Ombud Annual Report: Which trend do you believe financial advisers/ product providers should address to avoid a flood of complaints in 2022?

Investments made into cryptocurrencies (13.95%)

The sales process to ensure that consumers are provided with concise details of any special terms, exclusions, or instances in which cover will not be provided (11.63%)

Processes and procedures of product providers - to assist policyholders in remaining appropriately insured (2.33%)

Making recommendations - clients should receive advice that is appropriate to them (4.65%)

Using risk analysis against complainants - there is still a significant reliance on the generic risk profiling questionnaire (2.33%)

All of the above (65.12%)

Do you agree that offshore returns outweigh the ‘returns plus tax concession’ on SA retirement funds?

Yes (57.78%)

No (42.22%)

The second draft amendments to Regulation 28 will allow retirement funds to allocate up to 45% of their assets to SA infrastructure, with a further 10% for rest of Africa; but the equity & offshore caps remain unchanged. What are your thoughts on the proposal?

Infrastructure? You mean cash returns with higher risk!?! (18.33%)

Infrastructure cap is way too high (18.33%)

Offshore limit still needs to be raised (46.67%)

Who cares… Reg 28 does not apply to discretionary savings (16.67%)

What are the challenges you face in the implementation of POPIA?

Taking stock - knowing what you have - the who, how, what, where etc. (46.15%)

Understanding the law - what does the law require? (23.08%)

Understanding the policies and procedures (30.77%)

Do you believe this is the toughest period for financial advice in many years?

Yes, it’s hard to navigate the challenges and difficult to adapt. I’m struggling. (32.14%)

No, I have managed to navigate the challenges and have adapted. I’m good. (19.05%)

50/50. I just feel like whether we like it or not, we have to ready ourselves for change… be resilient and scale for the future. It’s not about survival of the fittest anymore but survival of the quickest. We just have to move on with life. (48.81%)