NEWS & OPINION
RICHARD RATTUE MD, Compli-Serve SA
The dangers of becoming a cheerleader
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he status of the compliance officer and the compliance function has changed significantly over the last 10 years and now generally has a seat at EXCO. This change in status has been helped along by both local and international scandals whereby a combination of questionable no impact on objectivity. business practices and lax If we take a look at the local risk and compliance controls environment, we have seen resulted in magnified a similar focus on the roles of downside for investors and compliance officers and the stakeholders. We must take a compliance function, albeit closer look at where there have with a more positive aspect as been failures and breakdowns the local compliance industry within the compliance function has taken strides towards and analyse exactly what the professionalism. causes are. We are moving towards a Reading through various principles-based oversight regulatory postregime and must mortems shows that note the inexorable problems occurred rise of tech in the CLEARLY WHEN not as a lack of rules industry, which will YOUR SALARY per se, but rather force the risk and IS PAID BY THE a combination of compliance function lax oversight from COMPANY ITSELF, to adapt and evolve. both the regulatory Some components THIS DOES CLOUD of the role will no authorities and risk and compliance doubt be taken over INDEPENDENCE management. In by algorithms, yet many instances, risk and compliance this will not change the fundamental leaders had forgotten their impartial requirement of the compliance officer role and had essentially become to act without fear or favour and, cheerleaders for the business. indeed, be given the space to do this I understand and have indeed by the business. myself experienced instances For financial services providers who whereby a compliance officer can be engage the services of a compliance subjected to quite intense pressure officer, I must point out that in order from a business to approve certain to do their job properly, they cannot structures or products. become sycophants for the business, If the compliance officer is not of and must apply themselves objectively strong personality and in a position to any issues that are presented of some authority within a firm, there before them. To do anything else is is a risk that their opinions and/ to place the business, and indeed the or concerns will not be heard and compliance officer, at great risk of will not get management attention. personal censure from both the FSCA Compliance officers should not and potentially the courts. forget that a fundamental tenet of Compliance officers must their role is to remain objective, and remember that their position is one independent at all times. of seriousness and it is important Clearly when your salary is paid by that any cheerleading takes place the company itself, this does cloud on the sports fields and not in the independence, but it should have compliance department.
6 WWW.MONEYMARKETING.CO.ZA
29 February 2020
Money Smart Week South Africa to be launched next month Money Smart Week South Africa (MSWSA), a financial literacy campaign aimed at motivating and empowering South Africans to become more educated about their finances, is taking place between 23 and 28 March 2020.
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n initiative of the National Consumer Financial Education Committee (NCFEC) and championed by National Treasury, this campaign sees organisations – which include any South African firm or business that offers a financial product or service or any organisation with an interest in financial literacy – having the opportunity to conduct their own financial education projects and programs throughout South Africa during the designated period. The inaugural campaign in 2018 limited activities to Mamelodi, Tembisa, Alexandra and Soweto within Gauteng. It is reported to have reached over 5 500 consumers at various activities and reached over nine million impressions through various media platforms. The 2020 campaign aims to reach as many South Africans as possible, to inspire people to become more financially literate and to educate people about the myriad of structures that exist to provide financial advice. Above all else, MSWSA2020 is a platform to raise awareness of the benefits of financial literacy for all South Africans at every stage of their life. Results from the Human Sciences Research Council’s 2017 Financial Literacy component of the South African Social Attitudes survey revealed that although 60% of South Africans kept a close watch over their finances, nearly half (48%) did not manage to save at all and a significant segment (42%) of the adult population had no long-term savings. The decline in disposable income, the low savings culture and the failure to service debt, makes a campaign such as MSWSA more vital as improved financial literacy can play a major role in improving consumers’ ability to make sound and informed financial decisions. “One financially literate person in a home can influence an entire generation. This campaign is about educating South Africans that financial education is accessible and readily available to all,” says Lyndwill Clarke, Head of Consumer Education at the Financial Sector Conduct Authority. Any organisation with an interest in financial literacy can apply to host an educational event or programme during Money Smart Week. All applications will be vetted according to set criteria as defined by the NCFEC. All successful applicants who will be running programmes during the campaign will benefit from marketing support to promote these initiatives nationally. Interested organisations are urged to go to https://www.mswsa.co.za/ or to email info@mswsa.co.za to find out more about how they can become more involved in creating a money smart South Africa. This flagship event is aligned with the objectives of the NCFEC and National Treasury to coordinate and implement financial education, promote financial literacy and, most importantly, empower people to change their lives for the better. Money Smart Week South Africa coincides with Global Money Week, an annual financial awareness campaign built to inspire children and young people to learn about money matters, livelihoods and entrepreneurship. Since its launch in 2012, this campaign has reached over 40 million children and youths in 175 countries worldwide. Information about all activities, dates, venues, participants, campaign champions and ambassadors will be communicated on the website https:// www.mswsa.co.za/ and social media platforms in due course.
