Virgin Money has turned one. The newborn got off to a brilliant start. But, its toddler years might prove to be a bit more challenging. So far, Virgin has signed up 180 000 card holders. This is ahead of its original business forecast of 150 000 cards in the first year.
The Competition Commission inquiry into banking costs and charges has been a South African first. Until now banks have operated largely as a cosy cartel, but since the commission first started asking questions, better banking models have been suggested, writes Maya Fisher-French.
With the local equity market having had a spectacular run, fund managers believe that the developed offshore markets are offering better value for South African investors. But investing offshore does not mean that you have to go through the whole hassle of getting permission from the Reserve Bank to use your R2-million foreign investment allowance.
Specialists have compiled a survey of the medical schemes they would recommend. The results: Camaf, Fedhealth, Liberty and Profmed. They judged these according to the level of interference with the doctor-patient relationship, balanced billing, efficiency with accounting and pre-authorisation, co-payments, rate fixing, reversals and formularies.
As a result of interest rate hikes in the past year, a homeowner with a bond of R500 000 is paying an extra R1 000 a month to his or her bank. Where does that extra mortgage payment go each month? Who benefits from the billions of extra rands that are paid by homeowners? The short answer is: the savers.
The pension fund and life industry has baulked at the government’s proposed national social security system. It says it could lose 60% of its members. The current national pensions plan proposal is for about 13% of the first R60 000 earned by workers to be invested into a national savings fund. This money would only be accessible on retirement.
The medical fraternity is up in arms over the Discovery Health Network — they call it "unethical" and an attempt by a dominant player to control their practices. Discovery says it is cutting the rate of medical inflation. This year, Discovery introduced a direct payment plan for general practitioners and specialists who sign up to their network.
A national pension system should be managed by a competitive private sector subject to ÂÂmarket-friendly regulation by government, says Jose Pinera, the architect of the world-renowned Chilean pension fund system and founder and president of the International Centre for Pension Reform.
Another week of hearings at the banking inquiry of the Competition Commission; another bonanza for the lawyers. All the banks seem to have lawyers present at all the hearings, madly taking notes and looking very serious. The debate can degenerate into mind-numbing legalese, which is no doubt important in determining the legal framework of anti-competitive behaviour, writes Maya Fisher-French.
Some mining companies dispute that billions have been lost in mining investment in South Africa, as reported this week. They argue that while there may have been delays because of the new Mineral Petroleum and Resources Development Act, there has not been a loss in investment and the Act has brought about an increase in exploration in South Africa.