Glossary
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Glossary

​​​​​​​​​​​Below you will find a list of definitions that are related to the financial industry. We hope that this will assist you in understanding technical terminology when making financial decisions. Definitions as per Acts, unless the context otherwise indicates.  Let your cursor hover over the word and an explanation will appear on the right hand side.

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  1. means subject to subsection (3) (a), any recommendation, guidance or proposal of a financial nature furnished, by any means or medium, to any client or group of clients:-
  1. in respect of the purchase of any financial product, or
  2. in respect of the investment in any financial product, or
  3. on the conclusion of any other transaction, including a loan or cession, aimed at the incurring of any liability or the acquisition of any right or benefit in respect of any financial product, or
  4. on the variation of any term or condition applying to a financial product, on the replacement of any such product, or on the termination of any purchase of or investment in any such product, and irrespective of whether or not such advice:-
i.              is furnished in the course of or incidental to financial planning in connection with the affairs of the client or
results in any such purchase, investment, transaction, variation, replacement or termination, as the case may be, being effected.

 

  

in relation to a fund which is

a.  subject to actuarial, valuation, means the difference between:-

i.      the value that the valuator has placed on the assets of the less any credit balances in the member and employer surplus accounts, and
ii.     the value that the valuator has placed on the liabilities of the fund in respect of pensionable service accrued by members prior to the valuation date together with the value of those contingency reserve accounts which are established or which the board deems prudent to establish on the advice of the valuator,

b.  exempt from actuarial valuation, means the difference between:-
i  the fair value of the assets of the fund less any credit balances in the member and employer surplus accounts, and
ii.  the sum of the values of all the accounts held for individual members, whether contributory or paid – up, plus any other liabilities plus the values of any investment reserve account set up to facilitate the smoothing of investment returns credited to member accounts and such contingency reserve accounts as the board deems prudent,
[Definition of “actuarial surplus” inserted by s.1of Act 39/2001]

 

  

means any fellow of the Institute of Actuaries of England or of the Faculty of Actuaries in Scotland or of the Society of Actuaries of America or of any other institute, faculty, society or chapter of actuaries approved by the Minister, [Definition of “actuary” substituted by s.21 of Act 104/93]

 

  

means the Pension Funds Adjudicator appointed under Section 30C(1).  [Definition of “Adjudicator” inserted by s.1 of Act 22/96]

 

  

means any proportional short-term reinsurance policy in terms of which the reinsurer  is liable for the liabilities of a short-term insurer under short-term policies and any non-proportional short-term reinsurance policy which remains in force until the liabilities under short-term policies have expired, entered into by the short-term insurer with:-

  1. another short-term insurer, if the policy benefits under that short-term reinsurance policy are to be provided in the Republic,
  2. an insurer by virtue of section 2 of the Export Credit and Foreign Investments Reinsurance Act, 1957 (Act No. 78 of 1957)
  3. Lloyd’s underwriters in accordance with part VIII or
  4. an insurer under a reinsurance policy ill terms of which the reinsurer  furnishes security in the form of :-
i.              money in the Republic with the short-term insurer by which such reinsurance  was entered into and on which the short-term insurer has a prior charge and lien or
ii.             an irrevocable guarantee or a letter of credit issued by a bank and in the form prescribed by the registrar
against losses which may be occasioned by the failure of the reinsurer to discharge its obligations under the said policy or by the termination of such policy for any reason..
  

means a life policy in respect of which the aggregate of:-

  1. the value of the policy benefits, other than an annuity, to be provided (not taking into account any bonuses to be determined in the discretion of the long-term insurer)
  2. the amount of the premium in return for which an annuity is to be provided, does not exceed R10 000, or another maximum amount prescribed by the minister, and includes a reinsurance policy in respect of such a policy.
  

means an auditor registered in terms of the Public Accountant’s and auditor’s Act, 1991 (Act No. 80 of 1991), and appointed in terms of section 19(1) or 21(1)(a) of this Act.

 

  

means a bank registered otherwise than provisionally in terms of the Banks Act, 1990 (Act No. 24 of 1990)

  

means the Financial Services Board established by section 2 of the Financial Services Board Act  or means the board of a fund contemplated in section 7A of this Act. [Definition of “board” inserted by s. 1 of Act 22/96]

  

means the board of appeal established by section 26(1) of the Financial Services Board Act.

  

means a specific person or group of persons, excluding the general public, who is or may become the subject to whom a financial service is rendered intentionally, or is the successor in title of such person or the beneficiary of such service.

  

means a collective investment scheme as defined in the Collective Investment Schemes Control Act, 2002

  

means the date of commencement of the Pension Fund Second Amendment Act, 2001.
[Definition of “commencement date” inserted by s.1 of Act 39/2001]

  

means the companies Act, 1973 (Act No. 61 of 1973).

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