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 Category : Banking during the Covid-19 pandemic (17)
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| Will I be able to access my account if my bank closes?
| Banks have business continuity plans, including contingency plans in place, outlining how customers will be assisted in the result of branch closures due to business disruption. It is expected of banks to have alternative arrangements in place, in order to continue providing services to you. This includes information on how to access banking services if some branches were to be closed. We will continue working with banks to ensure that where they must take the decision to close certain branches, that customers without online facilities will still be able to easily access basic banking services. Banks are expected to communicate with customers and advise them on any changes that might have a direct impact on their access to basic banking services.
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| How do I know which bank branches remain operational during this period?
| Various banking institutions have provided a list of both their operational and closed branches on their websites. Customers are urged to be on the lookout for this.
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| Are ATMs still operational during the pandemic?
| Banks have assured the continued operation of ATMs during this period.
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| What if there are no bank specific ATM’s around my residential area?
| As a result of the difficulty experienced by customers in accessing bank specific ATMs, most banks have since waived additional charges levied for utilising a different ATM. This means that customers will not incur additional charges for using any ATM of their choice. We urge customers to confirm this with their respective banks’ prior using a different ATM.
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| What happens if I lose my source of income or employment during the COVID-19 pandemic?
| Banks are currently offering a range of relief measures to assist customers during this period. We urge customers to keep their banks and or credit providers informed if they have lost their source of income or employment. They must be open and honest with their banks and or credit providers, when declaring their financial position. This is to ensure that they receive suitable assistance in line with their current circumstance. Small businesses are advised to investigate other government-initiated measures to assist them during this period.
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| What should I do if I can no longer afford to make payments on my credit obligations?
| Banks have introduced payment reliefs on mortgages, personal loans and business loans for customers affected by the COVID-19 pandemic. Lenders are working through the practical operation of these initiatives. We expect all regulated firms, including banks, to take a customer-focused approach and to act in their best interest. If you are facing potential difficulties in making loan repayments as a result of COVID-19, you should contact your bank using the following platforms: - Responding to SMS's directly sent to you by your respective bank;
- Accessing further details using the banking applications, official bank website or USSD functionality;
- Contacting banks' dedicated relief centers; or
- Contacting your dedicated Relationship Banker or Business Manager.
A payment relief gives you as a customer, an opportunity to postpone or reduce your repayments. However, it is essential that your bank or credit provider explain to you the implications of the payment relief on your mortgage loan, or any other loans, including the overall costs and revised monthly repayments. Customers should speak to their banks or credit providers to discuss these terms and conditions. This is to ensure that they understand what a payment relief plan means for them.
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| How long does it take to process relevant applications?
| Banks have committed to have these applications processed as soon as possible, so consumers are urged approach their respective banks immediately. Customers are urged to be mindful of the different approaches used by banks, including taking into consideration customers’ credit records and history. Customers are urged to also consider their individual circumstances and credit profiles whilst awaiting feedback from their banks.
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| Is it advisable to simply stop credit repayments without first approaching your bank or credit provider or while they are busy processing your relief application during this period?
| Customers are urged not to stop their loan repayments without first engaging their banks or credit providers, as this will have an adverse impact on their credit profile or history. We further urge customers who are able to pay their debts during this period, to continue doing so, as this will be advantageous for them in future.
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| Is there a deadline for the submission of relief applications?
| Various banking institutions have indicated and committed to offer payment relief options from 1 April 2020 until 30 June 2020. It is recommended that customers engage their respective banks timeously in order to get the full details of stipulated deadlines.
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| Do I need to apply for payment relief with all the financial institutions that I have credit obligations to and is this allowed?
| We advise customers to direct this question to their respective financial institutions.
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| What other options are available to customers other than payment relief plans or holidays?
| Prior to and/or during the process of seeking payment relief or holidays, customers are urged to first check with their banks if they do not have credit life policies attached to their respective loans and or mortgage. Credit life policies refer to an insurance type of an arrangement tied to a loan granted to a customer. Such a credit life policy is meant to kick-in and assist or cover loan repayment obligations from customers, in cases where they can no longer afford to do so due to, amongst others, loss of income or employment.
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| Will I be allowed to claim from Credit Life Insurance on applicable products or apply for payment relief on other products where Credit Life Insurance is not available?
| We urge customers to engage their respective financial institutions in respect to this question.
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| Will opting for payment relief impact my credit score or history in any way?
| As the various banks will be using different approaches, customers are urged to robustly raise these questions with their respective banks while exploring their options. From a regulatory perspective, banks are legally obligated and expected to provide detailed education regarding the implications attached to payment relief or holidays.
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| Will I still qualify for additional credit at the same institution or bank that has granted me payment relief?
| Customers are urged to raise this question with their respective banks. We further advise customers to note that the rationale behind relief measures is to enable customers to repay or restructure their debts, rather than taking on extra credit.
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| If I am unfortunately unable to maintain an adequate income post the three months payment relief or holiday, who should I notify of this and will I receive further assistance?
| We urge consumers to raise this question with their respective banks, taking into consideration their individual financial position or circumstance. |
| What can I do if I am unhappy with the way my bank has handled a query or concern?
| If you are unhappy with the service received from your bank, you are entitled to lodge a complaint with the bank concerned. The bank is obliged to handle the complaint fairly, efficiently and speedily. If you are not happy with the response you receive from the bank, you are may escalate your complaint to the Ombudsman for Banking Services, who has the statutory powers to investigate complaints against banks. Please note that the Ombudsman for Banking Services will only consider a case once the relevant bank’s internal complaints procedure has been followed.
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| What can I do if I feel that I have been unfairly treated by my bank during this period?
| We urge consumers to report any allegations of misconduct to the Financial Sector Conduct Authority. Please visit www.fsca.co.za
NB: The FSCA urges customers to ensure that they fully understand the payment relief plans terms and conditions, as well as the implications thereof. |
| Category : CIS - Part I: Definitions, Objectives and Application (6)
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| What is the objective of advertising, marketing and information disclosure regulation?
| The objective of advertising, marketing and information disclosure regulation is to provide a legal framework within which managers of collective investment schemes must advertise and market their products in a way that protects investors from misleading or fraudulent conduct.
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| Who is expected to comply with the rules for advertising, marketing and information disclosure?
| Any manager of a registered and approved CIS Scheme or portfolio, including foreign portfolios approved in terms of section 65 and anyone that acts as their agent, for example its marketing agents.
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| What is plain and understandable language?
| Plain and understandable language is language that is concise, clear and not misleading to the investor.
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| Who is responsible for providing investors with product information, CIS manager or intermediary?
| The regulation is aimed at improving disclosure and understanding of CIS products by any potential investor. The regulation gives responsibility to the CIS manager to make sure that disclosures are available to its potential investor and the intermediary would similarly be responsible for obtaining and providing the information.
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| How will the FSB handle Tweets/social media?
| The regulation currently does not regulate any specific medium for the purpose of applying these rules, however it is expected that such medium used should not be in contravention of these rules.
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| In terms of Sections 5(3), 10(1) 12 (1) and (2), 16 (3) (v), all refer to “the most expensive class offered by the manager for investment by members of the public, other than financial institutions”. What is referred as “financial institutions”?
| One needs to distinguish between “offered to” and “offered through”. In other words it refers to a person ending up with the investment account not being a financial institution, even if the intermediary service is provided by a financial institution.
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| Category : CIS - Part II: General Rules for Marketing & Advertising (5)
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| What are the requirements in terms of marketing rules?
| A manager may not advertise or market any collective investment scheme or portfolio in a manner that is likely to create a misleading or false statement. The advertisement should not be fraudulent or deceptive in any manner.
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| What are the advertising platforms that a manager can use?
| The advertising platforms that a manager may use can be direct or indirect visual or oral communication transmitted by any medium. The manager may use brochures, prospectuses and websites as its advertising platforms.
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| Can a manager publish marketing and advertising information without lodging material with the registrar?
| No. A manager must lodge with the registrar copies of all advertising and marketing material to be published by the manager prior to the publication or use of the material.
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| Section 5(3) relates to requirements of an advertisement, does this also relate to marketing material and MDD? Paragraph 5(3) pertains specifically to advertisements.
| If the MDD or marketing material is being used as an advertisement (which is unusual due to its size), then it would need to comply with the requirements for advertising as well.
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| Section 5(3) (h) states that an advertisement must disclose “special areas of risk” relating to the investment? Please provide guidance on the term “special”?
| It is intended to refer to the risks other than the normal market risks. Investors generally understand the market risks associated with an investment, but they are not aware of risks associated with, for example investing in a third world country, or an illiquid currency, etc.
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| Category : CIS - Part III: Mandatory Disclosures (2)
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| In which material should mandatory disclosures be made?
| Mandatory disclosures must be included in all marketing material about that specific portfolio as well as on the MDD. The statements must be clearly shown for investors to read and understand.
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| How should the risk and disclosure requirements be made for portfolios that include foreign securities?
| The disclosure of any material risk is expected prior to effecting the transaction. The method or medium is not prescribed and it should be considered as to whether the manager can prove that that disclosure took place when challenged thereon.
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