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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Explain how offshore legislation differs from South African legislation and the implications this has for South African investments 
SAQA US ID UNIT STANDARD TITLE
14520  Explain how offshore legislation differs from South African legislation and the implications this has for South African investments 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 5  Level TBA: Pre-2009 was L5 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Registered" 
2003-08-13  2006-08-13  SAQA 0249/03 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-08-13   2010-08-13  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
242556  Demonstrate knowledge and insight into offshore legislation in the South African investment environment  Level 6  Level TBA: Pre-2009 was L6   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for Product Developers, learners in Marketing and Compliance and Intermediaries.

The qualifying learner is capable of:
  • Showing insight into international regulations relating to knowledge of the client.
  • Explaining the South African regulations pertaining to offshore investments.
  • Demonstrating insight into the regulation of offshore funds.
  • Applying knowledge of international law to offshore investments.
  • Demonstrate knowledge and insight into time differences and international standards. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this Unit Standard. Learners should be competent in Communication and Mathematical and Financial Literacy at NQF Level 4. 

    UNIT STANDARD RANGE 
  • Vehicles for offshore investments include, but are not limited to, Trusts, open-ended schemes and investment trusts.
  • Implications in cases of joint offshore investments include, but are not limited to, death, divorce, separation, liquidation and the redemption of investments. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Show insight into international regulations relating to knowledge of the client. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The Financial Action Task Force (FATF) regulations are explained in terms of knowing your client and anti-money laundering procedures. 

    ASSESSMENT CRITERION 2 
    2. Countries that are members of FATF are named and an indication is given of the legislation a country must have in place to join FATF. 

    ASSESSMENT CRITERION 3 
    3. The advantages of being a member of FATF are explained and indication is given of the impact on investment if the client's country of residence is not a member. 

    ASSESSMENT CRITERION 4 
    4. Countries classified as non-cooperative jurisdictions are named and an indication is given of why five selected countries appear on this list. 

    ASSESSMENT CRITERION 5 
    5. Procedures for dealing with non-FATF member countries are explained with reference to information required for transactions. 

    ASSESSMENT CRITERION 6 
    6. The consequences of dealing with countries that are regarded as non-cooperative jurisdictions are explained with reference to the procedures to be followed in such cases. 

    SPECIFIC OUTCOME 2 
    Explain the South African regulations pertaining to offshore investments. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Legislation regulating personal offshore investing allocations is explained with reference to exchange control, tax and the necessary documentation. 

    ASSESSMENT CRITERION 2 
    2. The legislation pertaining to offshore investments is applied to three case studies. 

    ASSESSMENT CRITERION 3 
    3. Offshore investments that can be marketed to South African clients are explained with reference to approved list and structures of funds on the list. 

    ASSESSMENT CRITERION 4 
    4. The mandate of an offshore fund is analysed and a schedule of differences is drafted to comply with Financial Services Board regulations for the registration of offshore funds. 

    ASSESSMENT CRITERION 5 
    5. Offshore investments that may not be marketed to South African clients are explained with reference to Financial Services Board regulations relating to offshore schemes and the consequences of non-compliance. 

    ASSESSMENT CRITERION 6 
    6. Rules regulating promotion of offshore funds are explained with reference to the Association of Unit Trusts (AUT) code of conduct on advertising. 

    ASSESSMENT CRITERION 7 
    7. A standard advertisement for an offshore fund is analysed for compliance with the AUT code and recommendations are made to rectify irregularities. 

    SPECIFIC OUTCOME 3 
    Demonstrate insight into the regulation of offshore funds. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The vehicles used for offshore investments are named and compared in terms of the basic legal structure of each. 

    ASSESSMENT CRITERION 2 
    2. The concept of a feeder fund is explained with examples. 

    ASSESSMENT CRITERION 3 
    3. The difference between an umbrella fund, a distribution fund and a gross roll up fund is explained with examples. 

    ASSESSMENT CRITERION 4 
    4. The Regulator that is the equivalent of the South African FSB is named for four key offshore territories. 

    ASSESSMENT CRITERION 5 
    5. An approved offshore life policy investment is compared to an approved offshore unit trust investment with reference to product structure, tax implications, approved investment vehicles and product term. 

    SPECIFIC OUTCOME 4 
    Apply knowledge of international law to offshore investments. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of an offshore tax haven is explained with reference to a South African investor. 

    ASSESSMENT CRITERION 2 
    2. The concepts of citizen, ordinarily resident and tax domiciled entities are explained with reference to where tax is paid and the role each plays in offshore investment. 

    ASSESSMENT CRITERION 3 
    3. The rules relating to client confidentiality in international investments are explained with reference to tax havens. 

    ASSESSMENT CRITERION 4 
    4. The legal status of parties to joint investments is compared for RSA and another international example. 

    ASSESSMENT CRITERION 5 
    5. The implications for South Africans who hold joint offshore investments are explained with reference to implications of legal ownership of the investment. 

    ASSESSMENT CRITERION 6 
    6. The consequences of attempting to cede or transfer an offshore investment are explained with reference to the difference between SA law and the law of an international tax haven. 

    ASSESSMENT CRITERION 7 
    7. The concept of probate is explained with reference to the process involved in administering an estate offshore. 

    ASSESSMENT CRITERION 8 
    8. The consequences of dieing in testate are explained with reference to international investments. 

    ASSESSMENT CRITERION 9 
    9. The difference between a domestic trust and an offshore trust is explained with reference to the registration of an offshore investment. 

    ASSESSMENT CRITERION 10 
    10. The implications of double taxation agreements between countries are explained with reference to tax havens and investor's residency. 

    ASSESSMENT CRITERION 11 
    11. The potential tax liability for a South African investor offshore is explained for a tax haven with a gross roll up fund; a tax haven in a non-gross roll up fund/distribution fund; a non tax haven and a deemed income situation. 

    SPECIFIC OUTCOME 5 
    Demonstrate knowledge and insight into time differences and international standards. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The concept of time zones and their implications for international investments is explained with examples. 

    ASSESSMENT CRITERION 2 
    2. Knowledge of time in relation to international banking procedures is used to estimate the difference between the time money is invested in South Africa and the time the investment is effected in an offshore fund and visa versa. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This Unit Standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA (INSQA framework for assessment and moderation). 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is able to identify and solve problems in which responses show that responsible decisions using critical thinking have been made in applying trends in the economic environment to a specific business. 

    UNIT STANDARD CCFO COLLECTING 
    The learner is able to collect, organise and critically evaluate information in researching components of the required assessment portfolio. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively using visual, mathematics and language skills in the modes of oral and/or written presentations in explaining concepts required in the Unit Standard. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to demonstrate an understanding of the world as a set of related systems by recognising that problem-solving contexts do not exist in isolation in explaining the consequences of dealing with non-cooperative countries, and attempting to cede a probate or offshore investment or dying in testate. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242556, which is "Demonstrate knowledge and insight into offshore legislation in the South African investment environment", Level 6, 3 Credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  23973   National Certificate: Financial Services: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2006-08-13  Was INSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. Sanlam Life Insurance Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.