Professional services firms face many of the same challenges as the businesses they work with. Operational efficiency and effectiveness, retaining and rewarding staff and achieving sustainable growth are all common issues. Having advisers who can help you navigate these varied challenges for your own firm is key to success.
BRINGING CLARITY TO FINANCIAL SERVICES AUDITING AND ASSURANCE
BDO in South Africa provides audit, advisory and tax services to a broad range of clients: large JSE-listed companies, small and medium sized entities, the public sector and individuals.
BDO’s Financial Services division is part of the global BDO organisation, which has offices in 167 countries, and has delivered exceptional service to our clients since 1963. In South Africa we service clients countrywide from our offices in Cape Town, Durban, Johannesburg, Port Elizabeth, Pretoria and Stellenbosch. We also have satellite offices in Nelspruit, Polokwane and Rustenburg. Because of our skills and experience, our clients trust us to deliver a quality and tailored service. Our people have the skills and experience to be agile and quick-thinking in responding to client needs. Our approach starts with listening to our clients, understanding their expectations and delivering a level of service in line with any leading global financial services firm.
ATIME FOR CHANGE
I am proud to be leading a comprehensive BDO Financial Services practice in South Africa. Our team includes a large number of highly skilled and experienced professionals who specialize in banking, insurance, asset management, stockbroking and fund administration. I am confident we have assembled a financial services team and developed an offering to rival the best in the market. The 48 partners, associate directors and managers currently in the Financial Services business unit has more than 350 years of financial services experience between them. Not only has BDO been the fastest growing professional services firm in the world for a number of years now, but BDO South Africa has during the last 18 months become a much bigger and more prominent player in the South African professional services industry following the merger with the Johannesburg, Cape Town and Durban offices of Grant Thornton. The firm has established policies, systems, procedures and has employed appropriate human capital to ensure our audit quality, risk management, training and operational systems are of a very high standard. Our CEO, Mark Stewart is determined that we will continue to grow the firm responsibly, further increase our collaboration with BDO’s comprehensive global network in 167 countries, maintain the highest level of ethical behavior and never compromise the public trust in BDO. We have been in the fortunate position that we could be very specific in the type of person, skill and experience we have recruited and will continue to recruit for our Financial Services business. Our culture is one of passion and energy, team work and collaboration, building meaningful relationships with our clients and a relentless drive to innovate. The team is very ambitious and our plans to further grow the BDO Financial Services business in size and quality, is measured, balanced and very achievable. In a world of exponential change and innovation, especially when it comes to technology solutions and offerings in the financial services industry, we know that we must invest in new and emerging cloud and machine augmented technologies. Our Financial Services technology team has my full support to continue to develop their skills and expertise to support our audit and advisory clients in this developing digital age. The financial services industry is heavily regulated, and those regulations are continuously being challenged, reviewed and updated.We understand the pressures that management of financial services organisations face in such a closely monitored environment. Our team has the necessary knowledge and practical know-how to appropriately advise our clients.We are also fully committed to maintain a healthy and supportive relationship with the various regulators. BDO South Africa is very serious about playing a leading role in transforming not only our firm, but also the broader accounting profession. Both gender and race transformation goals and objectives are viewed as a business and social essentials for BDO.We will actively work to help ensure that our young professionals are sufficiently trained and upskilled to enable them to become business leaders and role models in our broader society. This is a very important part of our purpose. Our Financial Services team is driven and extremely passionate about delivering exceptional client service, whilst maintaining, and holding ourselves accountable to the highest levels of public trust, integrity and audit quality. In summary, we are rethinking the traditional service line and functional business model of professional firms, and putting the needs of our clients first, giving our clients and stakeholders access to deep financial services expertise, specialisations and innovation, through a single point of contact and consistent quality of service.
Experience has taught me that being an expert is more about a passion for what you do rather than what you have done or where you have come from.
Pierre Jacobs Head of Financial Services
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“Our financial services team continues to develop its skills and expertise to support our audit and advisory clients. In addition, our methodologies and processes are and will continue to be cutting edge to deliver high quality, effective audits.”
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BDO GLOBAL
WHAT IS OUR AMBITION? Driven by our own ambition, our clients’ needs and a focus on delivering exceptional client service, we’re working collaboratively across the world to offer innovative solutions and services to our clients. We’re striving to become a much larger BDO, and to be seen as the only viable choice for our clients whose companies are looking to grow. We aim to be the one true powerhouse of the mid-tier and a major player on the global stage of our profession.
OUR PEOPLE At BDO, we understand that exceptional service to our clients begins and ends with exceptional regard for our people. Partners and staff are accessible W e encourage collaboration in an atmosphere of trust and cooperation, mentoring, consulting, and exchanging ideas The BDO culture emphasises career growth L ocations in large and small centres around the globe
BDO SOUTH AFRICA
REVENUE R902 miliion
OFFICES 8
STAFF 1,600
PARTNERS & DIRECTORS 128
BDO INTERNATIONAL
OFFICES 1,617
COUNTRIES &TERRITORIES 167
STAFF 88,120
REVENUE US$9.6 billion
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OUR PRESENCE SUB-SAHARAN AFRICA
Angola, Botswana, Burundi, Comoros, Ethiopia, Kenya, Madagascar, Malawi, Mauritius, Mozambique, Namibia, Nigeria, Rwanda, Réunion, Seychelles, Sierra Leone, South Africa, Tanzania, Uganda, Zambia and Zimbabwe.
ASIA PACIFIC Afghanistan, Australia, Bangladesh, Brunei Darussalam, Cambodia, China, Fiji, French Polynesia, Hong Kong, India, Indonesia, Japan, Korea, Laos, Macao and Samoa.
“We are serious about sustainability and offering a credible alternative in this market, so it cannot be only about growth for growth’s sake.”
EUROPE Albania, Algeria, Armenia, Austria, Azerbaijan, Belarus Cape Verde, Croatia, Cyprus, Czech Republic, Denmark & Faroe Islands, Estonia, Finland, France, Georgia, Germany, Gibraltar, Greece, Iceland, Ireland, Isle of Man, Israel, Italy, Jersey, Kazakhstan, Kosovo, Kyrgyzstan, Latvia, Liechtenstein, Lithuania, Luxembourg, Montenegro, Morocco, Netherlands, Norway, Poland, Romania, Russia, San Marino, Serbia, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Tajikistan, Tunisia, Turkey, Turkmenistan, Ukraine and United Kingdom.
~ Mark Stewart CEO
LATIN AMERICA Argentina, Bolivia, Brazil, Chile, Colombia, Costa Rica, Ecuador, El Salvador, French Guiana, Guatemala, Mexico, Panama, Paraguay, Peru, Uruguay and Venezuela.
MIDDLE EAST Bahrain, Egypt, Jordan, Kuwait, Lebanon, Oman, Qatar, Saudi Arabia and United Arab Emirates.
NORTH AMERICA AND CARIBBEAN Antigua and Barbuda, Anguilla, Aruba, Bahamas, Barbados, British Virgin Islands Canada, Cayman Islands, Curaçao, Dominica, Dominican Republic, Grenada, Jamaica, Montserrat, Puerto Rico, St Lucia, St Maarten, St. Kitts & Nevis, St. Vincent & The Grenadines, Suriname, Trinidad & Tobago, USA and US Virgin Islands.
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FINANCIAL SERVICES AUDITING AND ASSURANCE
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“We empower our people to meet client challenges and we invest time building long term relationships that mean we can stand in our client’s shoes while helping them reach their objective. Our client’s reputations are as important ours, so integrity has to be at the heart of everything we do.” ~ Paul Eagland Managing Partner, BDO UK
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WEALTH AND INVESTMENT MANAGEMENT
Our team provides the full range of audit, assurance and expert services on a range of complex issues in the asset management industry. The industry is rapidly changing and increasing in complexity due to global financial reform, complex regulations, advancements in Fintech and market pressures for transparency.
Our combination of talent and resources across the asset management industry gives us the ability to anticipate and adapt to the rapid and accelerating changes of today’s global economy.We offer our clients a business advantage by helping them mitigate risk and respond to regulatory changes. In the information age, the ability of asset managers to rapidly respond to the information needs of stakeholders in an ever-changing macro and regulatory environment, is becoming increasingly important. To stay ahead of the pack, investment in new and emerging cloud and machine augmented technology can pave the way for asset managers to improve downward pressure on margins and differentiate themselves from competitors. BDO Financial Services is making such investments in technology to ensure we can fully support and advise our clients in this age of digital transformation. We understand from our asset management clients that there appears to be a trend where companies are looking at alternatives to raise capital, especially through debt and/or equity in the Private Capital Market. In this way they do not have to face the challenging environment and exposure that a listing brings to management. This in turn causes potential complexity when these investments must be valued. We believe a combination of the BDO Corporate Finance expertise and the Specialised Valuations Group will ensure we can advise or express an appropriate view on these unlisted equity and debt valuations. COLLECTIVE INVESTMENT SCHEMES Our audit approach and methodology focus on the key risks relevant to the financial statements, internal controls over financial reporting, and regulatory requirements for the CIS to remain compliant. This has been developed through our understanding and experience of how the industry operates. Our audit approach is further supported by an experienced and highly skilled valuation team (Specialist Valuations Group).
Our services include the following: Financial statement audits Valuations testing of 100% of the investment portfolios of the CIS being audited Assessment of compliance with Collective Investment Schemes Control Act Assessment for compliance with Regulation 28 of the Pension Funds Act, for Collective Investment Schemes which are marketed as such HEDGE FUNDS An in- depth understanding of the various fund structures, investment models, fee arrangements and performance fee variances lead to a focused and tailored audit approach that is supported by our Specialist Valuations Group. By being at the forefront of industry developments we can help our clients anticipate and comply with changing accounting, tax, and regulatory pronouncements as well as ensure that their operations and infrastructure are able to meet challenges and take advantage of opportunities. PRIVATE EQUITY We understand the financial reporting framework, and country specific regulatory and economic issues that private equity businesses face. From start-up funds to large financial entities, we know the complexities and nuances of the private equity market, including fund structures and their overarching business implications. Our services include statutory audits, accounting for complex equity structures, accounting for business combinations, accounting for complex debt arrangements, identification of internal control issues, independent valuations, financial reporting, tax structuring and regulatory compliance. REAL ESTATE AND INVESTMENT Are you trying to identify the right opportunities for growth and diversification of your portfolios for investors?We offer comprehensive assurance, tax advisory, valuation, and consulting services, drawing on the resources of an established national and international network to scale them specifically to your needs and ambitions. BDO’s work for REIT and property clients, and associations with industry bodies, ensures we are at the forefront of the current political, economic, and market events impacting you and your business.
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GIPS® Our team has global experience in verifying compliance with Global Investment Performance Standards® in line with the Investment Performance Council (IPC) guidelines. Compliance with GIPS® has become a key differentiator in the industry, providing a consistent approach to investment managers in communicating their performance to clients.We give managers, investors and regulators the confidence that risks and returns are managed, measured, and reported effectively and transparently. STOCKBROKING The Financial Services team understands the unique and complex issues our JSE listed clients face. Our dedicated professionals have the skills and expertise to meet the unique economic, compliance and accounting challenges stockbrokers face while managing money and customer assets. Through our audit team and JSE accredited partners’ experience, we offer knowledge of processes, governance, internal controls and technical accounting. Our teams are experienced in carrying out assurance work, including regulatory reporting as required by the JSE. INVESTMENT ADMINISTRATION The investment administration industry is subject to local and global regulations around anti-money laundering, privacy and reporting. We anticipate the impact of industry trends on your business and provide tailored solutions underpinned by detailed knowledge of processes, governance and internal controls. ISAE 3402 There are two types of ISAE 3402 reports. Our versatile audit methodology focuses on both types of reports. For the Type One report we provide assurance on the service organisation’s description of controls at a specific point in time, considered a “readiness” report. For the Type Two report, we provide reasonable assurance on the fairness of the presentation of the description and on the suitability of the design, implementation and operating effectiveness of the controls over a specified period. ISAE 3402 engagements provide the following benefits: Identification of opportunities for improvement in the control environment The client’s potential new clients are given external confirmation about their control environment and the assurance that the controls are regularly evaluated The client’s potential new clients’ external auditors can place reliance on the controls if operating effectively over a specified period, thereby reducing disruption at their organisation
JARED MITRI FINANCIAL SERVICES SECTOR HEAD FORWEALTH AND INVESTMENT MANAGEMENT E: jmitri@bdo.co.za T: +27 (0) 21 460 6322
Jared has over 13 years’ experience in auditing and advising clients in the wealth and investment management sector. He has looked after leading financial institution clients in this sector, helping them navigate both local and non-local regulation, operation and financial risk. After joining BDO in 2019 from a big four firm, Jared has crystallised his passion for the profession in particular the enhancement of quality services through technology and appreciation for our professional capacity for insights when afforded the scarcest commodity – time.
Qualifications: CA(SA) H.Dipp.Tax Law
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BANKING
than making money from money, i.e. by using a balance sheet. Mainstream banks will have to carefully consider the fast-changing banking and technology landscape and respond to the changing demands of customers to ensure the client experience is more convenient and faster than before, while delivering it at a reduced cost. Artificial intelligence will assist people and organisations make faster, more informed and cost-effective decisions. These decisions are driven through algorithms that analyse large volumes of structured and unstructured data to quickly deliver data-based decisions that greatly improve the customer experience, such as having loans approved in near real time. When one looks at the operational and risk management functions in a bank, the option to replace repetitive predictive tasks with robots will have a significant effect on operational efficiency, accuracy and speed. It will be at the cost of some jobs though, unless employees are re-skilled or re-purposed. As the new entrants into the market move from transactional banking and deposit taking into more complex offerings like business banking and credit, they will also have to review their business and pricing models – all while the cost of compliance continues to rise. Historically, regulations have lagged behind innovation in the banking sector and the same is seen with the introduction of emerging technologies.Worldwide, regulators are investigating new ways to regulate these new technologies and business models with the intention of protecting consumers.
Managing a bank today is no longer only about the numbers. It is about agility, foresight, innovation, speed and a deep understanding of your customers. At BDO, our team of financial services specialists, with experience auditing banks in South Africa and globally, are equipped with the understanding and expertise needed to provide clients with the assurance and support they need in a highly regulated and controlled sector. Our people understand the issues faced by bankers, whether your business has been operating on a traditional banking model, or whether you are a start-up fintech entity. Like all sectors of the global and local economy, traditional bankers are faced with numerous challenges on all fronts relating to their business model. Digital transformation is challenging large financial services institutions as they battle to transform from their current technologies to digital solutions. Emerging technologies such as blockchain, artificial intelligence and cloud solutions allow fintech-type entities to challenge traditional models as they offer better customer experiences at much lower costs because they do not have challenges with legacy technology. In several cases the burden of regulation is also still absent. In South Africa the competitive banking landscape has a number of new players in the entry-level segment of banking. These new disruptive fintech companies and digital platform businesses bring a different angle as they want to earn money through providing a superior customer experience rather
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UNSECURED LENDING The unsecured lending industry in South Africa comprises several niche lenders who provide loans and advances to mainly lower income clients.With the recent introduction of IFRS 9, lenders operating in this industry needed to revisit their existing provisioning methodology, as the components of the Expected Credit Losses (ECL) model require specific behavioural and credit risk changes to be built into the credit models. Our team has the technical and practical competence to assist lenders with audit and advisory services related to this, including the key component of credit modelling. Our services include the following: Financial statement audits Review of credit modelling methodology of the impairment models Testing of the ECL models Taxation, specifically new legislation in line with the Tax Laws Amendment Bill and new s11j provisions Data integrity reviews of client systems to respond to input, processing and output data risks
KEVIN HOFF FINANCIAL SERVICES SECTOR HEAD FOR BANKING E: khoff@bdo.co.za T: +27 (0) 11 481 3008
Kevin has a 14-year demonstrated history of working in the financial services industry in South Africa and across the African continent. He is skilled in audit and consulting in the fields of banking, investment management, corporate treasury, stockbroking, financial risk management, financial engineering and related financial instrument accounting and fair valuations.
Kevin leads the Financial Services division and Specialised Valuations Group across Gauteng for BDO South Africa.
Qualifications: CA(SA) CFA
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INSURANCE
Insurance regulation has evolved with digital ways of working and changes in customer expectations, risk management practices, and global market integration. This is specifically true in South Africa, where the industry has experienced recent natural disasters, severe political and economic uncertainty as well as the introduction of the Insurance Act 18 of 2017 and the proposed implementation of IFRS 17: Insurance Contracts . The introduction of the Solvency Assessment and Management (SAM) legislation has placed further challenges on insurers to comply with capital requirements. With the promulgation of the Financial Sector Regulation Act in August 2017, the Twin Peaks approach to regulation has resulted in increased scrutiny of insurers by the Prudential Authority. The pace of technological change and shifts in consumer behavior in terms of flexibility and pricing of products has led to increased competition among insurers. Insurance models thus needs to be continually updated to remain relevant and customer-centric. Our teams can provide assurance, proactive advice and business services.We are ideally placed, locally and globally, to assist our clients navigate the latest financial, operational and regulatory risks. Our insurance credentials include life and linked life, short-term, casualty and cell-captives. To deliver high quality, relevant and cutting-edge service in this industry, BDO and its business partners can offer a skilled and experienced actuarial team, especially when it comes to the implementation and/or evaluation of IFRS17. Our services include the following: External audit and financial reporting Actuarial services Regulatory compliance Technology assurance and advisory Internal audit
SERENA HO FINANCIAL SERVICES SECTOR HEAD FOR INSURANCE E: sho@bdo.co.za T: +27 (0) 10 590 7329
Serena’s audit experience spans over 37 years. Serena completed her articles and worked at one of the big four firms for a period of thirteen years. During this period she gained invaluable exposure to listed and privately held clients in a broad spectrum of industries including life and non-life insurance, banking, retailing, construction and manufacturing. She has experience in both public listed and privately held entities and continues to service clients in both the life and non-life insurance sectors.
Serena is a member of the SAICA Insurance project group with participants from industry, the regulators and the audit and accounting profession.
Qualifications CA(SA)
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FUNDS
RETIREMENT FUNDS We have long standing relationships with many of the administrators within the retirement fund industry.We also believe it is critical that our team works closely with the Principal Officer to understand where they would like to see audit focus. Our comprehensive experience in the industry has enabled us to become specialists and develop a focused audit approach. Our methodology meets the Financial Sector Conduct Authority regulatory requirements and focuses on the key risks related to financial statements in terms of the regulators’ financial reporting framework. Our services include the following: Audit the financial statements in compliance with the Regulations of the Pension Funds Act of South Africa Support, where applicable, from our BDO Specialist Valuations Group, which can independently value 100% of the unlisted investments within the fund Completion of Section 15, regulatory agreed-upon procedures required in terms the Pension Funds Act of South Africa Assurance opinion relating to the compliance on Schedule IB that the assets held per fund are compliant with the Regulation of the Pension Funds Act of South Africa Agreed-upon procedures engagement in terms of Section B2H of the Currency and Exchange Manual for Authorised Dealers MEDICAL SCHEMES Despite the imminent implementation of National Health Insurance (NHI), its funding model remains a mystery, compounded by the fact that medical schemes are battling over their integrity and ethical values with the current Section 59 enquiry. In these times, schemes need reputable advisors they can rely on to help them navigate these challenges. BDO has been providing services to medical schemes for over 25 years, giving us a deep knowledge of the industry and the unique challenges that schemes face.We have a good working relationship with regulators and we contribute and participate in most industry initiatives. Our services include the following: Audit of the financial statements in compliance with International Financial Reporting Standards and the Medical Schemes Act ISAE 3402 engagements Internal audit
TERRI WESTON FINANCIAL SERVICES SECTOR HEAD FOR FUNDS E: tweston@bdo.co.za T: +27 (0) 21 460 6386
With over 11 years’ experience at a big 4 audit firm, Terri has gained significant experience in the financial services industry. In addition to managing large audit and advisory teams she played various key leadership roles in the operational management of a professional services business. Terri has also gained experience on an international secondment to the Cayman Islands and spent some time in practice at an asset manager. Terri has specialised in the Collective Investment Scheme and Real Estate industries. Her relevant client experience includes Old Mutual Unit Trusts, Boutique Collective Investments, Stor-Age Property REIT Limited and the Old Mutual Property portfolio. Other industries within which she has substantial experience is asset management, retirement funds and medical schemes.
Qualifications: • CA(SA)
Technology assurance and advisory Regulatory compliance and reporting
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FINANCIAL SERVICES SPECIALISTS
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“Our client challenges do not exist in silos, so neither do we.”
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TECHNOLOGY
IT AUDIT SERVICES The fourth industrial revolution around digital transformation, plus emerging disruptive technology, has changed the IT environment for many of our clients, who are spending more on IT systems to remain competitive Our IT auditors have deep audit and business skills and are able to respond to these risks. New technology in the financial reporting process means our IT professionals can identify key IT risks that impact financial reporting and then implement innovative audit solutions. These solutions cater to the specific IT risks facing businesses, in addition to new IT risks which are emerging as a result of exponential technologies such as machine learning, artificial intelligence (AI) and robotics. Our IT audit solutions are tailored to the following: IT audits in support of external audit opinions on financial statements IT audits in support of internal audit reviews focused on specific risks These solutions are performed through IT risk assessments, general IT controls, application controls and data analytics. IT ATTESTATION SERVICES Many of our clients are large software and infrastructure service providers who outsource key business processes like payroll and IT for better synergies. We are able to perform IT attestation services work on behalf of these service providers and issue an assurance report into the market that provides their clients with assurance over the design, implementation and operating effectiveness of their controls. These IT Attestation services provided are SOC 1, SOC 2 and SOC 3 reporting
EMERGING TECHNOLOGY RISK Information technology is continuously evolving in innovative ways, providing businesses with the ability to streamline processes, decrease operating costs and increase competitive advantage through digital disruption. Our vast knowledge of emerging technologies allows us to provide governance, risk and compliance assurance on a vast array of emerging technologies such as: Blockchain and distributed ledgers Cryptocurrencies Robotic process automation (RPA) AI and machine learning Big data Internet of things Digital solutions Cloud Agile and dev ops As these emerging technologies change the world, we can help you navigate the risks that come with them.
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IT BUSINESS CONSULTING Technology is a key accelerator when evaluating how to enhance business processes and achieve a competitive advantage in the market. BDO provides insight into how to achieve specific business needs and ambitions with our wide range of assurance and process analysis offerings including, but not limited to: Business process optimisation Governance, risk and compliance reviews SOX controls consulting GAP analysis reviews Data migration reviews Remediation implementation and reviews Disaster recovery reviews Privacy assurance Project assurance and project management Data and Analytics as a service: providing management reporting and business insights to clients CYBER SECURITY Cyber theft is fast becoming one of the biggest risks to business sustainability, making it a risk that can no longer be ignored. We provide insight into how vulnerable your organisation is to cyberattacks and how to manage this risk using penetration testing and vulnerability assessments.
NEVELLAN MOODLEY FINANCIAL SERVICES HEAD OF FINANCIAL SERVICES TECHNOLOGY
E: nmoodley@bdo.co.za T: +27 (0) 11 481 3123
Nevellan has 10 years’ experience in financial services, completing his articles at a big four firm. Much of experience is in IT audits and executing on related IT advisory projects. He has also managed retail, corporate and investment banking IT audits across the major banks in South Africa. Nevellan is passionate about driving emerging technologies into audits as can be demonstrated through the use of robotics and data analytics into audit processes, which has enabled auditors to obtain assurance over 100% of the population. Nevellan has also delivered leading audit innovation initiatives at several financial services clients across the country. Nevellan also has detailed knowledge on credit management systems and related data, which has assisted him in a number of IFRS 9 technology projects that he has led across the financial services industry. He is an industry leader on blockchain and digital ledgers and is an active presenter at several cryptocurrency events.
Qualifications: CA(SA)
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SPECIALISEDVALUATIONS GROUP The BDO Specialised Valuations Group (SVG) is a team of professionals who have expertise in the valuation of financial instruments including the related credit risk exposure. Our valuations are primarily focused around unlisted debt and derivative instruments. This team operates within BDO’s Financial Services business unit to provide specialist skills, advice and audit support. The capabilities of the team include valuation, accounting, auditing, and the review of operational, credit and market risks of the environments our clients operate in and trade. BDO’s SVG is unique in that it combines the numerical and financial modelling skillset together with the knowledge of accounting and experience of auditing financial services clients. Our experience in the local and international financial markets enables us to provide quality support to our audit and advisory clients. Our services include the following: Independent valuations and modelling of financial instruments, including unlisted debt and derivative instruments Independent assessment of yield curves and rates applied in valuations Independent valuation reports Evaluation of credit risk exposure through credit spread benchmarking and analysis Provide access to highly skilled resources to assist with hedge accounting and option pricing methodologies Improve audit efficiencies related to financial instrument valuations and related accounting Evaluation of IFRS 9 classification, implementation and measurement criteria including hedge accounting requirements and expected credit loss models Training on financial instrument valuations and IFRS 9 accounting Portfolio valuations of collective investments schemes and hedge funds
KEVIN HOFF FINANCIAL SERVICES SECTOR HEAD FOR SVG E: khoff@bdo.co.za T: +27 (0) 11 481 3008
In additional to his wide financial sector knowledge and expertise, Kevin also has consulting experience in: designing hedging and market risk strategies for commodity, foreign exchange and interest rate risks, along with associated derivative fair valuations; and ALCO and market risk best practice reviews and benchmarking.
Qualifications: CA(SA) CFA
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CORPORATE FINANCE
In our challenging business landscape, with political uncertainties and tax changes, businesses need advisors who help maximise shareholder value, pursue liquidity objectives, accelerate growth strategies and raise capital. BDO Corporate Finance is a specialist valuation, merger & acquisition and transaction advisory practice, with professionals who understand the full complexity of our clients’ needs, capital structures and strategies.With deep experience across industries, we offer companies a full range of valuation, financial modelling, transaction support, M&A and BEE advisory services through our quality-driven, personal and proactive approach. Our team has consistently ranked as one of the leading accounting and advisory firm in the DealMakers Investment advisers ranking for deal flow and activity. Thanks to our global network we are able to provide a comprehensive solution to our clients’ local and international transaction needs. The team achieved an impressive first place in the M&A deal value ranking by transactional support services adviser at the 2020 Dealmaker’s awards, in both in the deal flow and deal value categories, having advised on transactions to the value of R39.4 billion.
NICK LAZANAKIS CORPORATE FINANCE DIRECTOR E: nlazanakis@bdo.co.za T: +27 (0) 11 481 3161
Nick leads the South Africa Corporate Finance Team of BDO Corporate Finance. These activities have grown remarkably in the past years. Nick has established a professional and market-oriented team with profound knowledge of transaction advisory on both sell-and buy-side as well as for listed company transactions, MBIs, MBOs, joint ventures, mergers and IPOs.
Qualifications: CA(SA)
MICHAEL RAYNER CORPORATE FINANCE ASSOCIATE DIRECTOR E: mrayner@bdo.co.za T: +27 (0) 21 417 8745
Michael has extensive experience in financial due diligence, valuations (including company valuations, JSE fairness opinions, Companies Act ‘fair and reasonable’ opinions, intangible assets, IFRS 3 PPA’s, and biological valuations), and financial modelling assignments.
Qualifications: CA(SA)
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TAXATION
The tax profession has a strong role to play in assisting in the development of tax regimes around the world and ensuring they remain effective.We work within our profession’s ethical framework and BDO’s values and code of conduct to help our clients: make informed, balanced and considered decisions on tax understand the broader stakeholder context make us of tax incentives introduced by governments. We work with our professional associations to maintain the quality of our tax advice and to ensure that it is undertaken within a robust ethical framework.We welcome comments on the work that we do and continually look for ways to ensure that these frameworks are relevant, up to date and operate to the highest standards. BELOW IS A LIST OF OUR EXPERTISE: Corporate tax Compliance Corporate tax Consulting Global employer services Individual, trust and estate tax International tax Transfer pricing services VAT and customs
LOUISVAN MANEN TAX DIRECTOR E: lvanManen@bdo.co.za T: +27 (0) 10 590 7478
Louis has extensive experience in corporate tax matters covering a broad range of industries and economic sector, and servicing clients ranging from large JSE-listed companies to small public benefit organisations.
Qualifications: CA(SA) HDip Tax Law
MARCUS BOTHA HEAD OF CORPORATE TAX
E: mabotha@bdo.co.za T: +27 (0) 11481 3016
Marcus has over 14 years’ experience in corporate tax. He specialises in providing internal assurance on tax risk to audit committees, boards and management team. He has assisted various clients with mitigating tax risk and assessing the design and effectiveness of internal tax controls to provide ultimate internal assurance to both internal and external stakeholder groups. He has been actively involved in creating best practice in the tax strategy and integrated reporting field in Africa.
Quali cations CTA MCom(Tax)
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FINANCIAL REGULATORY AND COMPLIANCE During the last decade, financial sector regulation developed and evolved at an unprecedented rate. The requirements of financial regulatory bodies became more and more challenging and complex, placing increasing demands on management. This trend is likely to continue during the current decade and beyond. Financial Regulatory and Compliance Services (FRACS) is a specialized unit within BDO Financial Services concentrating on the financial sector legislative and regulatory environment. FRACS provides audit and advisory support across the various BDO Financial Services functions, and where necessary, draws on the skills of the other specialised skills within Financial Services. A Regulatory Centre of Excellence has been established to drive quality and consistency across BDO Financial Services and places training and knowledge sharing as two of its core functions.
JOHN MARTIN FINANCIAL SERVICES SECTOR HEAD OF FINANCIAL REGULATORY AND COMPLIANCE SERVICES E: jmartin@bdo.co.za T: +27 (0) 11 481 3002 John has 40 years’ experience in financial services, 35 of which have been in banking regulatory services, including 22 years with the South African Reserve Bank. Over this time, he has gained a deep, specialised knowledge of banking regulation and has worked with a large number of South African banks and foreign banks’ subsidiaries and branches in South Africa.
Our services include: Training (internally and externally) Financial statement audit support Regulatory audits Internal audit support Regulatory and compliance advisory services
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OUR FINANCIAL SERVICES TEAM
We also have partners who serve on SAICA’s sector project group for the medical scheme industry, SAICA’s Retirement Funds Project Group, Medical Aid Project Group, Insurance Industry Project Group, as well as SAICA’s sector project group for the pension fund industry. We have 8 Partners who are members of SAICA, 5 Partners who are members of IRBA, four teammates who are members of ISACA, and two JSE accredited team members. Seven of our team members are also COBIT certified. One of our Partners was selected by the South African Institute of Chartered Accountants (SAICA) as one of the Top 35 under 35 Chartered Accountants in South Africa in 2014. In the same year she was also one of the five finalists in the “SAYoung Professional of the Year”, an award organised by the South African Institute of Professional Accountants. BDO’s Financial Services Practice draws on industry experience to help clients navigate a changing and highly competitive industry, making us the right choice for you.
BDO’s Financial Services team is backed by BDO’s solid and reliable experience, having come into the market in 1910. BDO’s global network also spans more than 167 countries, as such, we are able to address both domestic and international needs. Our professionals deliver audit, tax, technology and consulting services to financial institutions, asset managers and insurance companies. Across all of these segments, BDO brings an in-depth understanding of the complexities of the financial services industry, and the unique challenges facing our clients’ businesses. Our team has extensive experience in the provision of external audit services to clients in the financial services sector, including a specialty in Retail, Corporate and Investment Banking IT Audits. Our Partners’ experience covers asset management, collective investments schemes, life and non-life insurance companies, private equity, hedge funds, REIT’s, medical schemes and retirement funds, banking, specialized valuations group, real-estate, unsecured lending, technology and IT.
WEALTH & INVESTMENT MANAGEMENT
BANKING
BDO FINANCIAL SERVICES EXECUTIVE TEAM 13 PARTNERS | 4 ASSOCIATE DIRECTORS | 31 MANAGERS 350+ years of combined experience
INSURANCE
FUNDS
TECHNOLOGY
VALUATIONS
OUR SPECIALISED EXECUTIVE TEAM HAS ACCESS TO A NATIONAL TRAINEE POOL OF 67 TRAINEES
BDO FINANCIAL SERVICES 24
THE BDO JOURNEY
2019
BDO’s Financial Services division is established.
2018
BDO merged its Cape Town office with Grant Thornton in Cape Town and Port Elizabeth, and its Johannesburg office with Grant Thornton Johannesburg. It also added Business Restructuring and BEE Verification Services as additional service lines.
2015
RW Irish in Johannesburg joined BDO.
2010
BDO repositioned its brand internationally, when all local member firm names were dropped. This ensured that BDO positioned itself as a truly global network with one name. Moore Stephens’ Johannesburg office joined BDO, as did Cameron Prentice in Cape Town.
2001
The tax practice was bolstered when specialist tax firm, Munnik Fourie , joined BDO.
1988 1987
The firm became known as BDO Spencer Steward .
Henry & Storey aligned itself with BDO, joining the BDO network.
1986 1984 1980 1976
Ironsides became part of the BDO family.
Dreyer & Dreyer joined BDO.
Spencer Steward &Co joined the BDO network.
Spencer Shaw Hood merged with Ross Spencer Rule , forming Spencer Steward &Co.
1963
An agreement was reached between Johannesburg firm, Spencer Shaw Hood , Cape Town firm, Welby Steward , and Durban firm, Arthur Hopewell to use the same name, Spencer Shaw Hood , logo and audit methodology.
1938
Jock Spencer, Bill Shaw and Bob Hood formed Spencer Shaw Hood &Co in South Africa.
1920
Grant Thornton South Africa was founded as Isaacs & Kessel . It later became Kessel Feinstein .
1916
The forerunner to BDO in South Africa, Charles Welby Steward was established in Cape Town.
1910
USA founding firm, Seidman and Seidman was established.
BDO FINANCIAL SERVICES 25
OUR FINANCIAL SERVICES TEAM
BDO FINANCIAL SERVICES 26
BDO FINANCIAL SERVICES 27
KEVIN HOFF FINANCIAL SERVICES SECTOR HEAD FOR BANKING E: khoff@bdo.co.za T: +27 (0) 11 481 3008 Kevin has a 14-year demonstrated history of working in the financial services industry in South Africa and across the African continent. He is skilled in audit and consulting in the fields of banking, investment management, corporate treasury, stockbroking, financial risk management, financial engineering and related financial instrument accounting and fair valuations. Kevin leads the Financial Services division and Specialised Valuations Group across Gauteng for BDO South Africa. In additional to his wide financial sector knowledge and expertise, Kevin also has consulting experience in: designing hedging and market risk strategies for commodity, foreign exchange and interest rate risks, along with associated derivative fair valuations; and ALCO and market risk best practice reviews and benchmarking.
PIERRE JACOBS FINANCIAL SERVICES HEAD OF FINANCIAL SERVICES
LANCE SEPTEMBER FINANCIAL SERVICES HEAD OF FINANCIAL SERVICES CAPE TOWN
E: pjjacobs@bdo.co.za T: +27 (0) 21 460 6350
E: lseptember@bdo.co.za T: +27 (0) 21 460 6349
Pierre is the national Head of BDO Financial Services. He has 22 years’ experience in this sector, both in Audit and Advisory. He started his career at a big 4 audit firm in South Africa before moving to the UK where he spent seven years in their London office, carrying out work in the USA, Europe and the Middle East. Since 1997 Pierre has specialised in the areas of investment banking and stockbroking whilst in the UK. In the last fourteen years since his return, his client portfolio included major businesses in South Africa and the rest of Africa. During this period, he also performed audit and advisory work in other financial services sectors such as unsecured lending, corporate banking, asset management, corporate treasuries and credit. His client experience includes Nedbank, Old Mutual, Old Mutual Finance, Deutsche Bank, Citigroup, RMB, Investec, Prescient Group and the Taquanta Group. Pierre is also heading up BDO’s Specialised Valuations Group which is specifically skilled in the valuation, audit and accounting of financial instruments, including derivatives and unlisted debt.
Lance has been in the profession for 21 years and during this time he has held various leadership positions. Lance has been an audit partner since 2005 and has worked across many sectors with the last 11 years specifically spent in financial services. His experience covers asset management, collective investments schemes, linked life insurance companies, private equity, hedge funds, REITs, medical schemes and retirement funds. His client experience includes inter-alia Old Mutual Investment Group, Prescient Group, Argon Asset Management, Futuregrowth Asset Management and he has acted as the concurring partner on Investec Asset Management, Taquanta Asset Management, Maitland Group, Efficient Group, Boutique Collective Investments, Budget Insurance Group, Old Mutual Insure and ABSAWealth, Investment Management and Insurance.
Qualifications: • CA(SA)
Qualifications: CA(SA) CFA
Qualifications: • CA(SA)
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VIANCA PRETORIUS PARTNER
SERENA HO FINANCIAL SERVICES SECTOR HEAD FOR INSURANCE E: sho@bdo.co.za T: +27 (0) 10 590 7329
JARED MITRI FINANCIAL SERVICES SECTOR HEAD FORWEALTH AND INVESTMENT MANAGEMENT E: jmitri@bdo.co.za T: +27 (0) 21 460 6322 Jared has over 13 years’ experience in auditing and advising clients in the wealth and investment management sector. He has looked after leading financial institution n clients in this sector, helping them navigate both local and non-local regulation, operation and financial risk. After joining BDO in 2019 from a big four firm, Jared has crystallised his passion for the profession in particular the enhancement of quality services through technology and appreciation for our professional capacity for insights when afforded the scarcest commodity – time.
E: vpretorius@bdo.co.za T: +27 (0) 10 590 7332
Vianca has been a partner since 2013. She has a master’s degree in international financial Reporting Standards specialisation (M.Com Accounting Science) at the University of Pretoria. In 2014 Vianca was selected by the South African Institute of Chartered Accountants (SAICA) as one of the Top 35 under 35 Chartered Accountants in South Africa. In the same year she was also one of the five finalists in the “SA Young Professional of the Year”, an award awarded by the South African Institute of Professional Accountants. Vianca’s client base mostly comprises public interest entities and a number of privately held businesses within the insurance, asset management, retail, commodity and legal fields. Her financial services client experience includes Constantia Insurance Company, Genric Insurance Company, Munich RE and Anchor Capital. Vianca has previously served on the Training Requirements Committee at SAICA.
Serena’s audit experience spans over 37 years. Serena completed her articles and worked at one of the big four firms for a period of thirteen years. During this period she gained invaluable exposure to listed and privately held clients in a broad spectrum of industries including life and non-life insurance, banking, retailing, construction and manufacturing. She has experience in both public listed and privately held entities and continues to service clients in both the life and non-life insurance sectors. Serena is a member of the SAICA Insurance project group with participants from industry, the regulators and the audit and accounting profession.
Qualifications CA(SA)
Qualifications: • CA(SA)
Qualifications: • CA(SA)
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MARNUS FOURIE PARTNER E: mafourie@bdo.co.za T: +27 (0) 21 417 8856
NEVELLAN MOODLEY FINANCIAL SERVICES HEAD OF FINANCIAL SERVICES TECHNOLOGY
JOHN MARTIN FINANCIAL SERVICES SECTOR HEAD OF FINANCIAL REGULATORY AND COMPLIANCE SERVICES E: jmartin@bdo.co.za T: +27 (0) 11 481 3002 John has 40 years’ experience in financial services, 35 of which have been in banking regulatory services, including 22 years with the South African Reserve Bank. Over this time, he has gained a deep, specialised knowledge of banking regulation and has worked with a large number of South African banks and foreign banks’ subsidiaries and branches in South Africa.
E: nmoodley@bdo.co.za T: +27 (0) 11 481 3123
Marnus is an experienced financial services partner with over 14 years’ experience of auditing and advising various financial services clients. His sector experience includes retirement funds, asset management, insurance and investment fund administration. In addition to the above he has also completed regulatory audits and carried out other assurance related engagements such as internal reviews and ISAE 3402 reporting. His client experience includes Hortors Pension and Provident Fund (Umbrella Funds), Freddy Hirsh Retirement Fund, Business Partners LTD Pension and Retirement Fund, Abacus Life and Abacus Insurance, KGA Life, Goldman Sachs (Cayman), Julius Bear (Cayman), IP Management, Stellar Capital, Century Capital and Capfin.
Nevellan has 10 years’ experience in financial services, completing his articles at a big four firm. Much of experience is in IT audits and executing on related IT advisory projects. He has also managed retail, corporate and investment banking IT audits across the major banks in South Africa. Nevellan is passionate about driving emerging technologies into audits as can be demonstrated through the use of robotics and data analytics into audit processes, which has enabled auditors to obtain assurance over 100% of the population. Nevellan has also delivered leading audit innovation initiatives at several financial services clients across the country. Nevellan also has detailed knowledge on credit management systems and related data, which has assisted him in a number of IFRS 9 technology projects that he has led across the financial services industry. He is an industry leader on blockchain and digital ledgers and is an active presenter at several cryptocurrency events.
Qualifications: • CA(SA)
Qualifications: CA(SA)
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