Page 12 - Business Sense 11.1 (Virosha Pillay)- eBook

THE FINANCIAL BRIGHT SIDE

Heather Flack, The Johannesburg Stock in the world with major firms
Business Leader, Flair Exchange (JSE) like Sanlam, Old Mutual and
Accounting Discovery. Our retirement
The JSE remains Africa’s
largest and most liquid stock and pension funds are well
he news market. It ranks among the structured, which helps
mostly top 20 globally by market immensely with long term
Tfocuses capitalisation, and offers access financial stability. Private
on all that is to equities, bonds, derivatives investment opportunities
wrong with and commodities markets. are vast and diverse making
our beloved us an attractive investment
country. Strong Fintech and Digital destination.
And Banking Growth
make no mistake, we have our An Internationally Recognised
challenges. Show me a country We are a leader in fintech Tax Administration Platform
that doesn’t? However, there innovation in Africa with SARS e-Filing is globally
are always two sides to the startups seeing growth in the acclaimed as a leader in digital tax
proverbial coin, and both must branchless banking, SME lending administration among developing
be thoroughly considered. and mobile payment solutions countries. While not at the level Corporate Governance sets All of this is best epitomised by
space. Mobile banking adoption international best practices for those magical moments when
So, for this short moment in is very high with banks offering of advanced economies like the
time, why not look at some of digital-first services. United States or United Kingdom, transparency and accountability. our Springboks lifted the World
the financial factors we get right. it outperforms many tax systems Businesses in SA adhere to Cup – not just once, but on all
Despite challenges, South Africa’s Competitive Interest Rates and in Africa and other LMICs (low global financial reporting and three occasions, and how this
financial sector has several Monetary Policy to middle income countries). auditing standards, ensuring galvanised us as a nation.
positive factors that make it a investor confidence. So, when looking at the other
strong and dynamic player in the The SA Reserve bank We have an Open Economy side of our South African coin,
global economy. follows an inflation-targeting with International Trade & Most of all – South Africa has and the temptation to become
framework, keeping inflation Investment something that is truly our
Here are some of our key relatively controlled. Foreign super power – South Africans jaded creeps in, just remember
economic strengths: investors view the SA Reserve South Africa is an attractive Institutions, policies and what power we as a people have,
A Well-Regulated and Bank’s policies as credible – destination for foreign direct procedures are only as good as individually and collectively. 
Sophisticated Banking Sector supporting long term economic investment (FDI) due to its the people who believe in and
stability. Our repo and lending strong financial system, natural T: +27 31 207 1572
South Africa has one of resources, and industrial base. implement them. The people of M: +27 76 555 7529
the most advanced banking rates are competitive compared Trade agreements (e.g., AGOA, this country are a special kind, E: heather@flairaccounting.co.za
systems in Africa, ranked to many emerging markets. BRICS, AfCFTA) make SA a unlike any other in the world. W: www.flairaccounting.co.za
among the top globally for (The repo rate is set by the key player in global and African Maybe because of all we have
stability and soundness. Reserve Bank and is the rate markets. The SA Rand is one of faced and continue to face. But
Several of our major banks at which money is lent to SA’s the most traded emerging market its that drive, that determination
like Standard Bank, FirstRand, commercial banks.) currencies, reflecting SA’s role in that we show up with, the “make
ABSA and Nedbank operate at global finance. a plan” philosophy… that makes
international standards. The SA South Africa has a Strong us truly South African.
Reserve Bank maintains strict, Insurance and Financial Strong Corporate Governance
independent monetary policies, Services Sector and Compliance Standards We are adaptable, determined
which go a long way to ensuring We have one of the most and resilient, and when we stand
financial stability. developed insurance markets The King IV Report on together, we are unstoppable.

ARE YOU AN OBLIVIOUS TRUSTEE!?

ver the last few decades, trustees to take action on either was previously an otherwise, receiving instant clarity on
many people had closing down the entity and complicated closure-process their trust’s status and the way
Othe honour of being stepping up to their fiduciary has been made easier by LEMS, forward. The system generates a
asked to become a trustee of responsibilities. There is no specialists in the closure process. comprehensive, pre-populated
one of their friends’, family’s alternative from here on out. This is often considered to be the starter pack of documents
or acquaintances’ trusts. Trustees face increasing most logical decision by many tailored to the specific needs of
Whilst probably regarded as trustees for their respective their trust.
an honour at the time, no one scrutiny over the management trusts – and can be done at a
For trustees burdened by
could possibly have foreseen of their trusts. The Financial fraction of the cost of keeping an dormant or obsolete trusts,
Action Task Force (FATF) is
legislation changing to such a tightening its regulatory grip unwanted trust registered. there’s no simpler or faster
degree that you wish you had
thought harder before accepting! in 2025 and beyond. Whilst LEMS is an innovative, high- way to close the chapter. With
Who would have thought it ignoring one’s responsibility tech solution that revolutionises LEMS, you can release yourself
from the looming penalties and
has been the default response
the traditionally complex
would become the onerous and from many trustees, looming process of closing a trust. obligations of managing a trust
risky position that it has become
Alan Hockey in 2025. enforcement and massive Designed to be user-friendly and move forward confidently,
penalties is making even the and efficient, LEMS transforms knowing compliance risks are a
There is no escaping it and most innocuous trustee sit up the initial onboarding from thing of the past. 
ALL trustees of all trusts find and take notice. And claiming what could take weeks into a
themselves in a position that ignorance is not an acceptable few simple steps. By answering For more information contact:
ignoring could result in some excuse. just 16 questions on our Alan Hockey: +27 (0)71 673 9937 or
nasty consequences. And even electronic form, trustees can Brian Payne: +27 (0)83 309 1982
A large portion of trusts that
dormant or inactive trusts are were opened often years ago are begin the closure process, W: www.lemsystems.co.za
no exception – trustees are no longer needed and no longer
liable for compliance lapses, (or ever) served a purpose. Many
regardless of the trust’s activity.
Whilst ignoring these trustee of the trustees who accepted
election as a trustee of these
responsibilities remains an now dormant trusts are faced
option, the stakes of being held with the responsibility of closing
accountable for non-compliance
is forcing more and more these trusts down to obviate
Brian Payne their own personal risks. What

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