30 September 2021
NEWS & OPINION
Independent virtual Financial Planning Summit brings latest thought leadership to FAs
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aunched in 2020, the inaugural Financial Planning Summit was an outstanding success, with nearly 1 000 delegates enjoying the market-leading content. Delegates who attended the event commented:
Janice Roberts, Editor of MoneyMarketing: “I must congratulate the organisers for an event that was well planned, run to near perfection, and for bringing a breath of fresh air to the industry and profession with their approach. I must also say something about the technology to run and deliver the Summit – what an experience! Easy to navigate. Easy to interact. Easy to know where to go next. Clean interface. High-quality video production that works on any device. The best I have seen yet! In my opinion, for the price of only R575 and CPD included, there is nothing out there that matches the value offered by The Financial Planning Summit.” Russel Ho from Succession Financial Planning: “Thoroughly enjoyed the three days of insights from professionals in our industry, particularly those advisers that have been through it all and are willing to share their experiences. Definitely will attend future conferences like these.” Francois du Toit from PROpulsion: “This platform and the great content is world class!” The virtual conference will be brought to delegates in 2021 by The Collaborative Exchange and in conjunction
with Investec and Adviceworx as the lead associate sponsors. Discovery, Momentum, Glacier, Old Mutual Wealth, Iress and OUTvest are other associate sponsors. The Collaborative Exchange is a specialist strategic advisory and research business that works with investment managers and wealth managers/financial advisers throughout South Africa. It also owns the intellectual property rights for arguably South Africa’s largest industry events, including The Investment Forum, Meet the Managers and The Investment Think-Tank. The conference will cover the latest developments in the financial planning landscape during the COVID-19 pandemic, including the future of financial planning, the pros and cons of vertically integrated financial planning practices, how to set up your practice for continued growth and expansion, technology developments that are reshaping the industry, as well as many other relevant subjects. Leading local and international experts in their respective fields will be speaking at the event. Ian van Schoor, the Chief Executive Officer of Adviceworx, says, “Advice innovation and disruptive business models are finding traction in the financial adviser market as more and more financial advisers evaluate the future of their own tied or independent practice. Advisers are taking a more serious look at their ‘own businesses’, with a growing urgency to improve client outcomes and future fit client propositions. A far more fundamental interrogation of issues, such as efficient operating models, technology integration, data analytics, client experience, sustainable practice management and succession models, are the critical issues of the modern practice today.”
René Grobler, Head of Investec for Intermediaries, says, “In an increasingly competitive and complex world, the need for financial advisers to help their clients navigate uncertainty has never been greater. For this reason, Investec for Intermediaries is excited to partner with The Collaborative Exchange and the financial adviser community in this thought leadership event. This conference provides a unique platform for the best minds in the industry to join forces and look into the future of financial planning to help crystallise the opportunities and the challenges ahead.” The conference will include the latest developments in the financial advisory landscape: • Five industry trends reshaping financial advice around the world • Solving for efficiencies in your practice and client reporting • The critical questions financial advisers should be asking investment managers, platforms and other such providers to your clients’ benefit • Why mergers in financial advisory practices sometimes fail • The future of wealth management and how companies are innovating to keep ahead • Who will buy your practice when it’s too late to plan for succession? • How you can scale your advice practice through the effective use of technology. Further details about the event can be found at www.financialplanning-summit.co.za or by emailing info@financialplanning-summit.co.za
Income Tax Act legislative cycle ushers in important changes BY HERNA-DETTE VAN DER ZANDEN Junior Associate, AJM Tax
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he Income Tax Act is amended annually to keep pace with change, and when Treasury wants to close certain perceived loopholes. The way it works is the Finance Minister delivers the Budget Speech in February, and the framework of certain amendments are provided as part of Annexure C of the Budget Speech. The Draft Taxation Laws Amendment Bill is then made available for public comment during June or July of every year. This is where we currently find
DE WET DE VILLIERS Director, Private Clients, AJM Tax
ourselves, with the bill published for public comment on 28 July 2021. Following this, the Final Taxation Laws Amendment Bill is made available for public comment during September or October and the Taxation Laws Amendment Act is ultimately promulgated during December of the same year, or January of the following year, often with amendments that take effect and change the provision of the Act from the date of publication of the Draft Taxation Laws Amendment Bill.
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Two proposed amendments on the table, and relevant to those acting in a financial advisory capacity, are the taxation of retirement funds on emigration and anti-avoidance measures for loan transfers between trusts. Proposed changes on emigration The ongoing exchange control reform has led to a proposed amendment whereby an individual emigrating from South Africa for tax purposes will be deemed to cash in or withdraw their retirement savings, giving rise to a tax liability. Up to now, retirement funds, along with cash and South African immovable property, would have fallen outside of the so-called ‘exit charge’ levied when an individual ceases to be a South African tax resident. It is proposed that going forward, the tax liability in relation to the retirement fund is calculated on the day before the individual ceases to be a South African tax resident. The tax liability will be deferred (with interest) until the funds are actually withdrawn and against which PAYE will then be automatically withheld by the product provider paying out those cash proceeds.
This is to be regulated by a newly inserted provision of the Act, section 9HC which, if promulgated, will come into operation on 1 March 2022. Important changes to Section 7C The other section to receive attention is the anti-avoidance measures for loan transfers between trusts, as contained in section 7C of the Act. Changes are proposed to ensure that the anti-avoidance measures of the said section also apply in respect of any loan, advance or credit that a trust, directly or indirectly, provides to another trust in relation to which its (the trust providing the loan, advance or credit) beneficiaries or founder are connected persons. This proposed change significantly expands the scope of application of section 7C. The proposed amendment, if promulgated, will be effective from 28 July 2021. The Draft Taxation Laws Amendment Bill contains many other amendments that also need to be monitored. Taxpayers are encouraged to contact their registered tax practitioners and use the opportunity provided by National Treasury to comment on the proposed amendments.
