Dear Readers,

It is this time of the year again - Christmas and the summer holidays are just around the corner. Our team wishes you a great time with your family, friends and all the best for 2012. Make sure you travel safely on our busy roads during the festive season.

This is the last newsletter for 2011 and we trust you find the information we want to share with you useful.

Enjoy the reading, with best regards,

Your SwissFin - Team

CONTENTS

1. INVESTMENTS

• 1.1. Interest rates: Bank deposits, insurance plans, tax-free investment amounts and our offshore model portfolios

2. SWISS BANKING

• 2.1. Credit Suisse provides client names to IRS

3. SHORT-TERM INSURANCE

• 3.1. SwissFin launches GolfEstateSure
• 3.2. Body Corporates and use of claim payments
• 3.3. BnB sure introduces loyalty program and adjusts premiums
• 3.4. Is overflowing of a bath a valid claim?
• 3.5. Notice to all Mutual & Federal policy holders
• 3.6. Defective design or construction can cause claims rejection
• 3.7. Report claims to the SAPS without delay
• 3.8. Firedart ceases operations in Western Cape

4. HEALTH CARE COVER

• 4.1. Bupa MembersWorld, Rewards Programme and other important matters
• 4.2. Please consider taking out Gap Cover if you are on a local medical aid
• 4.3. Discovery changes Pick n' Pay cash back and medical savings booster

5. IMMIGRATION

• 5.1. Update on residency applications and other matters

6. OTHER

• 6.1. Treasury eases some exchange controls

7. SWISSFIN INTERNAL MATTERS

• 7.1. Personel changes at SwissFin
• 7.2. SwissFin office opened in Johannesburg
• 7.3. We value your comments

1. INVESTMENTS

1.1. Interest rates

SwissFin offers the following rates as of November 2011:

Bank Deposits:

Please contact our office for more information. Conditions apply.

Insurance Plans: "Guaranteed growth plans" (5 year term):

Tax-free interest income - maximum investment amounts:

• R 1'367'000 each for taxpayer under the age of 65
• R 2'103'000 each for taxpayer between the age of 65 and 75
• R 2'287'000 each for taxpayer over the age of 75

Underlying assumptions: 6.0% effective interest. Couples married in community of property can double these amounts.

SwissFin offshore model portfolios

The annualized performance (before costs) of our balanced portfolios is as follows:

Comment

At the recent meeting of the Monetary Portfolio Committee (MPC) of the Reserve Bank, it was decided to keep interest rates unchanged.

The ongoing debt crisis in the Eurozone is a major threat to South Africa. If not resolved, it will have an impact on the valuation of the Rand and hence the local economy will be negatively affected.

The rating agency Moody's decision to review South Africa's outlook from "stable" to "negative" is another cause for concern. Moody's commented that the growing political risk and the government's budget deficit were the reasons.

It needs to be seen if this will result in a rating downgrade as the suspension of Julius Malema followed the same day. If this was in response to Moody's review could not be confirmed by the Reserve Bank or the ANC.

2. SWISS BANKING

2.1. Credit Suisse provides client names to IRS

Swiss bank Credit Suisse has confirmed that they have informed some of their American clients with offshore private banking accounts that their names will be handed to the US tax authorities.

The bank did not disclose how many clients have been notified but said in a statement that the US' Internal Revenue Service had made a request for information and that in turn the Swiss tax authority had ordered the bank to submit account information to the IRS.

Credit Suisse is not the only Swiss bank to find themselves in the IRS' radar in recent years. In 2009 Switzerland's biggest bank UBS was forced to pay $780m (£485m, €565m) to settle criminal charges and the Swiss authorities ordered the bank to release the names of almost 5,000 clients.

Last month, the FSA - the UK financial supervising body - fined Credit Suisse £5.95m for systems and control failings related to sales of structured capital at risk products (SCARPs) in the UK.

3. SHORT-TERM INSURANCE

3.1. SwissFin launches GolfEstateSure

It is with great pleasure to announce a first for the South African insurance market.

After thorough market research and talks with many of our clients residing on golf estates, we were able to find a partner, namely MUA insurance, who would listen to the needs of our clients and implement a tailor-made policy with the required benefits.

The main features are as follows:

• You have a choice of contents cover with or without theft insurance. The latter will save you up to 60% of your insurance premium. If you feel that theft is not a great risk on your estate, you could achieve a considerable premium saving.
• If a window is accidentally broken by an errant golf ball, you do not have to pay an excess. Many residents on golf estates are tired of replacing windows on a regular basis and having to pay R 250 to R 500 themselves for each incident.
• Highest hole-in-one cover in South Africa - R 10'000 if you get lucky....
• Your golf cart is insured free of charge for third party - this includes if children take the cart and cause damage to other people's property.
• Your golf clubs are insured on an all-risk basis under the contents section, up to R 25'000, free of charge and on a world-wide-basis.
• Your building and contents will be valued by professional valuators and the underinsurance clause in the contract will be deleted - at last no more underinsurance!
• The premium rates are very competitive and far better than market average.

Combined with the above benefits it is a package that is outstanding - guaranteed!

Our existing clients on golf estates will automatically be transferred upon renewal of their policy if they are already insured with MUA.

Please do not hesitate to contact any of our consultants for more information on this exciting offer.

3.2. Body Corporates and use of claim payments

Section 37 (1) (h) of the Sectional Titles' Act mentions that all insurance monies received must be used for the reason of the claim in respect of damages. In other words, the money paid out cannot be used for anything else and must be used to reinstate the damaged property.

Some complexes have such inadequate levies that they make use of these funds for the daily running of a complex - which is not legal. If you are a member of a Body Corporate, please make the other members aware of the Act.

3.3. BnB Sure introduces loyalty programme and adjusts premiums

The specialist guesthouse insurance company will be launching a loyalty programme from 1st January 2012 that will give clients extra benefits and in certain cases a premium reduction. Full details will appear on their website shortly and they will keep you informed.

The rising costs have made it necessary for the insurance company to increase premium rates by 7.5% from 1^st January 2012 for existing business and from 1^st October 2011 for new business.

3.4. Is overflowing of a bath a valid claim?

What happens if you forget to turn off a tap and water overflows into your house? Have a look at the answer of various insurance companies for domestic policy holders:

If your building insurance is with your bank, please contact our office as the benefits of our insurance partners are normally better and the premium rates far lower.

3.5. Notice to all Mutual & Federal policy holders

The insurance company is converting existing policies to a new product which changes the cover for our clients in many ways.

We have therefore searched for viable alternatives and have found a new partnership with Chartis Insurance, which is the world's largest insurance company. For more information about Chartis, please go to http://www.chartisinsurance.com/za-home_917_210441.htm.

Chartis will take over the Mutual & Federal policies at the same terms and conditions. You will be paying the same premium with the equal cover and SwissFin will stay your single point of contact.

Chartis is an international company with innovative products from which you will hear much more in the future. Our office is very pleased to have found such a competent partner with which we can guarantee that you will get the best benefits. We have tested the company over an extended period and are very happy with their prompt service as well as their professional claims handling.

At renewal date we will take the liberty to change your existing policy from Mutual & Federal to Chartis. However, if you do not agree with the move and you would rather choose to stay with Mutual & Federal, please let us know as soon as possible.

We are confident that we will be able to provide a far better service to our clients with the Chartis offering.

Should you require more information, please contact our consultants either Aileen or Jacqueline who will gladly assist you.

3.6. Defective design or construction can cause claims rejection

As mentioned in our last newsletter, homeowners should not confuse an insurance contract with a guarantee or warranty. If there is a defect in the design of your home or it is poorly constructed, your insurance claims may be rejected. These are some regular examples:

• Tiles lifting due to poor adhesive.
  
• Tiles cracking due to insufficient spacing preventing normal contraction and expansion.
• Houses build against slopes without underpinning or adequate compaction supporting the foundation, allowing movement and causing cracks.
• Retaining or boundary walls not built to regulation, for example single course brick walls built higher than 1.8m without either supporting piers, weep holes, brick force or adequate foundations.
• Inadequate roof pitch preventing water flowing freely off the roof. Water pooling on the roofs will penetrate buildings causing damage.
• Ceilings without or inadequately spaced roof supports, will sag and collapse.
• Poorly damp proofed foundations allow rising damp to gradually penetrate the building.

Insurance is there to protect people against any sudden and unforeseen events. It is not a contract to pay for maintenance work on your home, or to fix damage resulting from defective design, materials or workmanship.

If you are not certain if damages are covered, please contact our claims manager, Ms Tiziana Di Cosmo ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ) who will gladly assist you.

3.7. Report claims to the SAPS without delay

It has recently come to our attention that clients are expected to pay a R1000 fine to the SAPS if the crime is reported more than 24 hours after it occurred.  This matter has caused some confusion and we were not able to verify this fact.

Especially when items are stolen out of your vehicle with no signs of break-in, we recommend that you report the matter immediately.

3.8. Firedart ceases operations in Western Cape

The local Firedart team has joined Etana Insurance Company Limited. All existing Firedart policies will be insured on similar (and in some respects better) terms to existing Firedart policies.

The change is effective from 1^st December 2011. Both Etana Insurance and Compass Insurance have Global Credit Ratings of A+ and the policyholder's security is unaltered.  Etana Insurance is also a Level 4 BEE contributor.

4. HEALTH CARE COVER

4.1. Bupa MembersWorld, Rewards Programme and other important matters

MembersWorld and claims

If you are a Bupa member, please make sure that you register on this site (https://www.bupainternational.com/membersworld/). It will make the communication and claims handling process much easier.

It is no longer a requirement that doctors sign off claim forms. Bupa has confirmed that if claims are submitted without this part of the claim form being completed, the claim will still be assessed and the member will not be contacted to provide this information.

Bupa Rewards Programme

Please note that all individual members are automatically enrolled for the programme, but you have to be registered on MembersWorld.

Bupa will reward you for your loyalty through a series of gifts, articles and information.

Premium rates

The new premium rates, effective 1^st October 2011, can be viewed as follows: Click here for Euro premiums or here for USD premiums.

4.2. Please consider taking out Gap Cover if you are on a local medical aid

As you might know, no medical scheme in South Africa covers 100% of costs whilst being hospitalized. If the hospital or specialist charges more than the maximum percentage stipulated by your medical aid, you will be liable for the difference.

In order to close this gap, Turnberry offers various insurance packages. The most comprehensive one is the Execu-Care plan with the following benefits:

• Covers up to R 500'000 in short payment for a single member and R 1'500'000 for a family per year.
• Pays for co-payments up to R 1'000'000 per family per year.
• Some biological cancer drugs are covered up to R 1'000'000.

The plan costs R 250 p.m. per family.

For more information, contact Mr. Tony R. Hug ( This e-mail address is being protected from spambots. You need JavaScript enabled to view it ).

4.3. Discovery changes Pick n' Pay cash back and medical savings booster

From 1^st December 2011 the DiscoveryCard Pick n Pay cash back will be replaced with a new benefit that will integrate with the smart shopper programme. You can now earn up to 10 times more smart shopper points at Pick n Pay.

What you need to do to enjoy the rewards:

1. You must have a smart shopper card from Pick n Pay. If you do not have a smart shopper card, you can apply for one in store at your nearest Pick n Pay.

2. Each DiscoveryCard holder on your account must link their own smart shopper card number to their DiscoveryCard.

a) at www.discovery.co.za, click on "DiscoveryCard" ; or

b) call 0860 11 2273 (follow the DiscoveryCard prompts) or

c) SMS the word "smart" followed by your ID number and your 16 digit smart shopper number to 31347

3. You must swipe your smart shopper card before the cashier starts to ring up your purchases; and then use your DiscoveryCard to pay. If you do not pay with your DiscoveryCard, you cannot multiply your smart shopper points.

4. You can link your cards at any time from 1^st November 2011, but to ensure continuation of your Pick n Pay rewards please link your smart shopper card to your DiscoveryCard between 1^st November 2011 and 1^st December 2011.

Your HealthyFood^TM savings will remain unaffected and we will continue to pay your savings as normal.

The structure of the Medical Savings Booster will change in 2012. From 1^st January 2012, Discovery will no longer boost HealthyFood savings paid into the Medical Savings Booster to 75%. Discovery Vitality members will save up to 25% on HealthyFood from Pick n Pay. They can also get up to 25% savings on HealthyCare products at Clicks and up to 25% savings on HealthyGear from Adidas.

From 1^st January 2012, DiscoveryCard holders have the option of having all these savings paid into their Medical Savings Booster. Please contact Discovery on 0860 998877 for more information.

5. IMMIGRATION

5.1. Update on residency applications and other matters

We have been informed that only 6 staff members at the Head Office were working on 33000 temporary residence applications. Most staff have been sent for training on the new Act which will come into effect early next year, whilst the Regulations are being drafted.

The Department of Home Affairs is once again restructuring the various Departments. Further, it was announced that the Headquarters of the Department will be moved from 17^th November to 22^nd December 2011. This will cause further delays in processing of applications and more patience on pending applications is required.

Minister Nkosazana Dlamini-Zuma said in a statement, that Home Affairs is launching a pilot project to train immigration officers, with the help of Cuban officers. Immigration staff from OR Tambo International Airport would be the first to take part in the programme and their posts would be filled by soldiers transferred from the defence force. She said the Cubans had a good system, from which South Africa could learn.

Please do not forget to follow up on your application via the Call Centre - the telephone number is 0800 601 190 or +27 11 4619252 from overseas.

6. OTHER

6.1. Treasury eases some Exchange Controls

The National Treasury has announced some relaxations in exchange controls, saying that the R4 million-a-year foreign investment allowance will be consolidated with the R 1.0 Mio discretionary allowance into one R 5.0 Mio foreign investment allowance a year.

It also said this week that other limits applicable to individuals, such as allowances for alimony, weddings and the travel allowance, will fall away.

In addition, the treasury says in a statement that to eliminate the bias against residents compared with non-residents, the Reserve Bank will consider applications for offshore investments by residents and estates above the R5-million allowance, subject to strict criteria related to appropriate disclosure on foreign assets and income, tax compliance and market conditions.

The Reserve Bank is expected to provide further details on the relaxed exchange controls shortly.

7. SWISSFIN MATTERS

7.1. Personel changes at SwissFin

Please note that Mr. Kenny Williamson no longer works for our company. All health insurance matters will be attended to by Mrs. Natasha Greenfield and Mr. Tony R. Hug will assist you with all life insurance enquiries.

7.2. SwissFin office opened in Johannesburg

We have opened another office which will primarily look after our corporate clients in the Gauteng region for international health insurance matters. All other enquiries are still being dealt with at the Cape Town office.

7.3. We value your comment

Do you want to know about something, share something with us or comment? Please feel free to send us an e-mail so that we can assist.