Liberty Corporate Customer Update | May 2011
At the beginning of April consumers were given substantially more protection when the long-awaited Consumer Protection Act came into effect. From fixed-term agreements to shrink wrapped products, the Act is sure to have numerous and long lasting implications for consumers and businesses alike. The general theme of the Act is to protect the consumer ensuring transparency and disclosure, and the Act alters the common law to be more favourable to consumers. Click here for a dummies' guide to the basics of the Act. Also on the regulatory front, the financial services industry watchdog, the FSB, is drafting new capital rules for insurers aimed at protecting consumers and strengthening the sector. The new rules (expected to be implemented in 2014), known as Solvency Assessment and Management (SAM), will require insurers to match the capital they hold with the underlying risk they carry to be able to pay out claims should policyholders suffer losses. For those of us who keep an eye on the economy, the latest inflation figures came in higher than expected (while February's retail sales slowed), confirming the Reserve Bank's observation of growing inflationary pressures and this is likely to push interest rates higher later in the year. With two major components, oil and electricity prices, heading for the skies, there is little chance of the pressure easing at this point. At current levels, oil prices are a concern to the long-term economic growth rates of all non-oil producing nations. Click here to read about the SA Reserve Bank's tough call on inflation. The consensus among economists is that the next adjustment in rates will be up, but the question remains when. Local markets have suffered some losses in recent weeks along with international markets and the Rand has lost ground against major currencies. Gold has, however, continued to push upwards to new all-time highs as crude oil prices remain high and unsettled. As always, health and wealth are things that require consistency and long term planning regardless of the volatility of the daily markets. So be sure to choose a medical aid that suits your needs. Finally, the new and much-awaited revision to the taxation of employer-paid lump sums came into effect on 1 March 2011. The South African Revenue Service distinguishes between the sources of a lump sum in an employee's hands when it comes to their taxation. To find out how all retirement and severance lump sums will be taxed on the sliding scale (with the first R315 000 tax-free, except if you ever held more than 5% of your employer's shares, in which case, best you wait 'til you are 55), click here. This customer update is created especially for you. If there are any particular topics you'd like to hear more about, let us know. Email us at [email protected]. Alternatively, let us know what you think of this newsletter. We look forward to hearing from you. Until next time Liberty Corporate: Communications
	Let us know what you think What topics would you like to see covered in this newsletter? Send your suggestions to us at [email protected]. We look forward to hearing from you.