LOA Votes in Favor of New Association

The investment and life industries in South African may soon be operating in a completely different landscape if plans to create one umbrella association get underway.

This week, the Life Offices Association (LOA), which represents life insurance companies in the country, voted to disband before the end of the year and join a new association. Other groups that have already voted in favor include the Investment Management Association of South Africa (IMASA), the Linked Investment Service Providers Association (LISPA) and the Association of Collective Investments (ACI).

If all goes according to plan, the new association will open its doors in October this year, with Leon Campher serving as its first Chief Executive Officer.

LOA makes its decision LOA plans to disband and join a new umbrella association that will serve the investment and life industries with greater efficiency.

The CEO of the Life Offices Association, Gerhard Joubert said: "I support the outcome of today's vote and believe that the trend of convergence in the financial services industry has necessitated that the investments and life industry starts speaking with one voice."

Joubert spoke about his personal plans for the future. "Unfortunately, I will not be involved in this process," he said. "After having served the LOA for many years, I have decided to leave the LOA at the end of September to take up a new challenge with Sanlam in India. Over the next months, I will continue to work with the new association to ensure an orderly transfer to the new association."

The aim for a new umbrella association is to enable the financial services industry to work towards creating an environment for more holistic operations and regulation. The South African government would also have a single body to deal with when deliberating important issues that affect the industry.