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August 2020 – Compliance

Compliance certification

Financial Services Providers, such as Kevin Mills Financial Services CC is required to appoint a compliance officer. The role of a compliance officer is to assist the management of the Financial Service Provider to establish and maintain compliance procedures within their business operations.  

Kevin Mills Financial Services CC has appointed Masthead (Pty) Ltd, an independent specialist provider of regulatory compliance risk management services and solutions to the financial services sector. Masthead (Pty) is authorized by the Financial Sector Conduct Authority as a compliance practice; Registration number: CO 6737.

Over the past year, Kevin Mills Financial Services CC has had regular on-site visits from our compliance officer. The purpose of these visits is:

  • To ensure that Kevin Mills Financial Services CC complies with all aspects of the Financial Advisory and Intermediary Services Act no 37 of 2002 and subordinate legislation.
  • To ensure that Kevin Mills Financial Services CC complies with all aspects of the Financial Intelligence Centre Act no. 38 of 2001.
  • To ensure that Kevin Mills Financial Services CC complies with all other relevant legislation.
  • To submit compliance reports to the Registrar of the Financials Sector Conduct Authority.
  • To provide Kevin Mills Financial Services CC with written reports indicating the progress achieved in compliance management and make any relevant recommendations to Kevin Mills Financial Services CC

Masthead (Pty) Ltd has issued a certification that Kevin Mills Financial Services CC has consistently maintained procedures as prescribed by the Financial Advisory and Intermediary Services Act no 37 of 2002. Masthead (Pty) Ltd has also issued their seal of compliance.

By issuing this seal, investors can be certain that Kevin Mills Financial Services CC has been evaluated on the regulatory requirements set out by the Financial Sector Conduct Authority and has achieved an excellent standard of compliance. It signifies that everyone who interacts with Kevin Mills Financial Services CC can be assured that it is a professionally managed business. It also demonstrates that Kevin Mills Financial Services CC are complying with legislation and taking their roles and responsibilities seriously.

We are extremely proud of this achievement! We will strive to maintain and improve all aspects of our compliance framework. 

Trust takes years to build, seconds to break and forever to repair!

July 2020 – Offshore Investing

Time to invest offshore?

Investors often pose the question “when is the right time to take money offshore?” Foremost in their minds is what is the current Rand/Dollar exchange rate is and what happens if the Rand strengthens. Although we cannot predict short-term currency movements, history suggests that over time the Rand will continue to weaken against the major currencies of the world.

In a recent webinar we hosted, Marriott’s Chief Investment Officer, Duggan Matthews presented Marriott’s 5-year exchange rate expectation.

Image supplied by Marriott

In trying to address when the best time to invest offshore is we have tried to address how the currency will impact your investment over a 5-year investment horizon.

What happens if the currency strengthens or weakens

In the recent Budget update, the Finance Minister highlighted the daunting task facing South Africa as a nation as it tries to balance its debt obligations, maintain/increase current spending levels all the while whilst trying to tackle corruption and irregular expenditure.

On the 27th March 2020, Moody’s cut South Africa’s international credit rating from Baa3 to Ba1, which is sub-investment grade and commonly referred to as “junk status”. The harsh effects of the COVID-19 pandemic are likely still to be felt with South Africa expected to record its worst economic performance in recent history.

Is it not time for investors to consider diversifying their investments and seeking investment opportunities in different markets? South Africa represents less than 1% of the global economy. Investing offshore allows investors to spread their investment risk across different economies and regions. It also provides access to industries and companies that may not be available in South Africa.

Perhaps the pertinent question is not when is the right time to be investing offshore but why not.

Every decade or so, dark clouds will fill the economic skies, and they will briefly rain gold. When downpours of that sort occur, it’s imperative that we rush outdoors carrying washtubs, not teaspoons. And that we will do.” Warren Buffett

June 2020 – Special Budget update

Tax revenue declines, debt grows…

Yesterday South Africa’s Finance Minister, Tito Mboweni, delivered the supplementary budget update. Minister Mboweni brought into focus the stark reality facing the South African government and the need for structural and political reform.

Some of the issues highlighted by the Minister were the large decline in tax revenue. Tax revenue is forecast to decline by over R304 billion. Other key points highlighted by the Minister

  • Government borrowing will have to increase
  • A far greater budget deficit is forecast
  • Debt servicing is becoming increasingly unaffordable

In closing, the Minister warned that if structural reforms were not implemented timeously, South Africa could face a sovereign debt crisis. To read more on the supplementary budget update please click on the link to read the thought’s of Stanlib’s Chief Economist, Kevin Lings.