Quick reads for this week

Capitec has launched Capitec Life Cover – an affordable and simple life cover. Picture: Lubabalo Poswa/Independent Newspapers.

Capitec has launched Capitec Life Cover – an affordable and simple life cover. Picture: Lubabalo Poswa/Independent Newspapers.

Published Jun 30, 2024


FSCA plans to launch a Know Your Rights campaign nationwide.

The Financial Sector Conduct Authority (FSCA) has announced that it is set to launch a nationwide Know Your Rights campaign aimed at educating Members and the Boards of Trustees of Retirement Funds, as well as the public, about their rights and responsibilities regarding retirement fund contributions and the two-pot retirement system (otherwise known as the two-component system).

According to the FSCA, this nationwide initiative follows its communications, which identified over 4 178 South African employers who are behind in making retirement fund contributions towards employee retirement funds, which ultimately form part of the employee remuneration package.

“This means that these employers are withholding what is owed to their employees and are in violation of Section 13A of the Pension Funds Act (PFA), which regulates the payment of retirement fund contributions," it said.

The FSCA said it encourages consumers who are members of retirement funds to check if their employer is on the list of non-payers by referring to FSCA Communication 10 of 2024.

"If you have been affected, approach your employer to pay over the owed amounts and contact the retirement fund to enquire whether the employer has rectified or is trying to rectify any outstanding amounts," the FSCA said.

Competition Tribunal unconditionally approves some mergers

The Competition Tribunal has announced that it has unconditionally approved the merger wherein Burstone Group Limited and Flanagan and Gerard Frontiers (F&G Frontiers) seek to jointly acquire the rental enterprise known as The Neighbourhood Square from Investec Property, as a going concern.

Burstone, a Real Estate Investment Trust (REIT) listed on the Johannesburg Stock Exchange, owns properties in various sectors of the South African property market. F&G Frontiers is a property investment company. The core business of the F&G Group is the development of and investment in retail property. The Neighbourhood Square is a neighbourhood centre comprising retail space. It is situated in Johannesburg, in Gauteng.

Meanwhile, the Tribunal has also unconditionally approved the merger whereby Arzatouch intends to acquire a 50% undivided share of the rights held by Equites Property Fund Limited in a light industrial property known as “Amrod”. Following the implementation of the proposed merger, the target property will be jointly controlled by Arzatouch and Attacq Waterfall Investment Company.

The Tribunal said the acquiring group controls several firms through which it conducts activities involving property rental, agriculture, financial services, manufacturing, renewable energy, and transport and logistics, among others.

"Its light industrial property activities in Gauteng are of relevance to this merger. The target property is located in Midrand, in Gauteng. Equities is a REIT listed on the JSE," it said.

Capitec has announced that it has launched Capitec Life Cover

According to the bank, the life cover would be affordable, transparent, and simple, offering a quick and easy application process, three different payout types, and premiums that don’t increase annually.

Capitec CEO Gerrie Fourie says Capitec wants to break the barriers, enabling more South Africans to obtain crucial life insurance solutions.

"South Africa’s vast insurance gap is likely due to people’s experience of life insurance as complicated, expensive, and intimidating. The complex terms and conditions, invasive medical tests, lack of transparency around premiums, and prohibitive selling practices deter many from getting the cover they need to protect loved ones. We’re committed to helping South Africans overcome these obstacles by providing a simple, affordable, accessible, and personalised life insurance solution.”

Capitec said its life cover premiums will not increase annually.

"This will give clients certainty over life costs unless additional cover is taken, putting the clients in control of their affordability. This is unlike the rest of the industry, where premiums tend to increase by 5-8% annually without corresponding increases in cover," the group said.

Fourie added: "Premium increases are one of the main reasons people cancel their life insurance, leaving them vulnerable.”