conflict of interest by esncQK0

VIEWS: 9 PAGES: 97

									          FAIS General Code of Conduct - Conflict of Interest - A PS Guidance Note




Board Notice 58 of 2010 amended the previous conflict of interest standards with significant changes to the
management and disclosure of actual or potential conflict situations. In addition financial limits have been
imposed on what "hospitality" can be provided by or to an FSP as well as specific regulations on incentives
for sales and the need to have a qualitative element in all volume driven remuneration structures




This Guidance Note, upon it's release in June & July 2010, has to be seen as a Work In Progress. There are
3 distinct effective dates (July & October 2010 and April 2011) and each will require specific actions
following specific reviews of current company operations, company and/or group structures, relationships
with others FSP's, insurers and any distribution channels. Whilst we can supply guidance and suggested
solutions the ultimate management policy required will be unique to you.



The "Conflict - full wording" and "Definitions" provide the actual regulations whilst "Overview" provides
a more practical summary and highlights key aspects that will be affected or corrective actions that may be
needed.

                                       Index      ( With Hyperlinks )
Conflict - Full Wording
Definitions                                       Enhanced disclosure document (S/term Broker)
Overview                                          Enhanced disclosure document (L/term Broker)
Do we have conflicts ( Insurers )                 Enhanced disclosure document (UMA/Administrator)
Do we have conflicts ( Other FSP's )              Enhanced disclosure document (Insurer)
Do we have conflicts (Other dist channels )       Financial interest tracking Tool
Do we have conflicts ( Other persons )            Financial tracking Rep control
Do we have conflicts (Suppliers)                  Staff CofI Questionnaire
Do we have conflicts ( Staff )                    COI management policy
Conflict of Interest from 2010'!A1
Conflict of Interest from 2010'!B29
                                      FAIS General Code of Conduct - Conflict of Interest - An Overview


           This section provides a more practical interpretation of the Regulations and how best to use the various tools
           provided to both implement and then maintain the required Management Policy. Tips on other aspects of the
           business that may need to be reviewed as part of this process are also included

           There are potential additional conflict situations not specifically dealt with by the FAIS requirements
           and we would recommend that such areas be addressed as part of this exercise.
           These include, but will not be limited to, situations such as staff appointments, additional
           employment of staff outside of your company (moonlighting) your suppliers outside of the
           insurance company/UMA/administrators environment

           There are probably a few golden rules to follow when deciding on the implementation of the controls required;

           1)          Can I justify my actions in the press if the need arises? Am I happy to be quoted?
           2)          Can I justify my actions to my competitors? Peer pressure is likely to be intense.
           3)
                       If in doubt as to whether a business practice or relationship presents a conflict always look at the intent of
                       the regulations i.e. Do these actions cause a conflict situation for my staff, my clients or my associates?
           4)          If my client knew of the relationship would they still doing business with me?

           AND this is not a task or decision that can be "outsourced" to any person or contractor.
           Management need to take responsibility for the implementation and management
           of the Conflict of Interest standards of the company they need to understand and "buy into"
           the principal that conflict is inherent in business and needs to be managed.


           So how can we manage conflicts?

           "Do we have conflicts" is a tool to assist in documenting the various relationships and arrangements that you
           currently have in place, whether or not these create a conflict or potential conflict. If they do then a decision is
           needed as whether these are to be avoided or mitigated and the decision recorded accordingly. These sections will
           be reviewed as part of the ongoing monitoring process followed by PS and will be the basis of ongoing reporting to
           the FSB

           To assess what conflict situations may be present we first have to identify (map) all the situations that may lead to a
           conflict. This is not a once off exercise - these key indicators must be reviewed, at the very least annually and
           BEFORE any new relationships are entered into because a new relationship may well demand avoidance,
           mitigation steps or additional disclosures.
                                  The situations we need to "map" include;
1 What Third party relationships do we have?             These include;
  i         Product suppliers (insurers)      Including any of their associates
  ii        Other FSP's                       Including any of their associates
  iii       Distribution channels
  iv        Any other person who in terms of an agreement or arrangement with any of these provides a financial
            interest to us or one of our representatives, for example;
             Panel beaters
             Assessors
             Security companies
             Fitment centres
  v          Suppliers outside the insurance environment, for examples;
             Stationary
             IT
             Accounting


2 Is there any ownership interest within these relationships?
             And would this create a conflict of interest?

3 Is there any financial interest paid from or to the entities within these relationships?
             And would this create a conflict of interest?

4 Is there any immaterial financial interest paid from or to the entities within these relationships?
             If so are we monitoring the frequency and extent?

5 What are our staff remuneration policies?


  The mapping tools provided allow for all relationships, including financial aspects, to be fully
  documented. Each category of relationship requires that one sheet be completed per individual
  relationship. The data collected then needs to be reviewed to see, if a potential conflict has been
  identified, and then how best to deal with this i.e.

             i)           Avoidance i.e. Take Away the situation that creates the conflict which is the
                          primary objective
                                                              OR
             ii)          Mitigate i.e. Put measures in place that acknowledge the conflict situation but implement
                          measures to reduce its potential impact
                                                           AND/OR
             iii)         Disclosure i.e. Formally provide details of the situations that are there and what has been done,
                          if anything, about these to reduce or eliminate the situation itself

                          NB:         Disclosure alone will seldom solve a conflict situation and should
                                      not be relied upon as the panacea of all conflict ills
A conflict can be a permanent feature or could arise as your circumstances change or may present themselves in
one specific occasion. In our view a perceived conflict also needs to be dealt with, as other people's (FSPs Insurers
and clients) perceptions can be based on ignorance and present a reputational exposure.

Any solution could be a combination of all three e.g. Avoid some, Mitigate others and Disclosure of
of what you have done and will continue to do.

A provider, where possible, has to avoid such conflicts i.e. prevent them by physically removing the conflict
situation. For example where there is common ownership and management of associated or third party companies
restructure to create distinctly separate juristic entities and management

Where it cannot be avoided the conflict situation, actual or potential, needs to be mitigated i.e. put controls in place
to reduce the likelihood of a conflict arising. For example where staff work for two related FSPs restrict their duties
and authorities to just one of the FSPs

The disclosure of conflicts, which includes potential ones, needs a much higher level of formality when dealing with
clients. It demands formal disclosure "at the earliest reasonable opportunity " which is deemed to be when
providing the initial advice/quote to the client.
The disclosures need to be clear, concise and effective. When deciding how to disclose aspects such as the
language of the client, their overall literacy levels - both language and financial as well as the complexity of the
product involved have to be considered.

This disclosure has to include;

1          What conflicts are there
2          What measures have been taken to avoid or mitigate these

3
           Ownership interests that may become due - this includes shareholding, dividends, profit share and
           similar payments. This includes ownership of and payments from associated companies that can include
           administrators, cell captives and insurers
4          Financial interests (these are things you actually pay for that are made available by other FSP's or
           insurers as part of the relationships that exist) that may become due, These include vouchers, benefits,
           travel, hospitality, accommodation, sponsorships and other incentives.
5
           Details of the relationships and/or arrangements that exist that create the (potential) conflict. This has to
           be in detail sufficient for a client to appreciate what the conflict is
6          That a conflict of interest management policy actually exists and how a client can obtain a copy if
           required (Until such time as this document has been developed the measures taken for mitigation are
           sufficient)

           NB:       Disclosures are meant to be, from the regulators perspective, personalised to the situation
                     of the client for the product sold. This would demand the ability of the rep to record individual
                     circumstances of conflict situations at the time of submission of the record of advice,
                     a difficult task! Easier on the short term environment but getting increasingly difficult as
                     you move towards investment products.
           NB: This enhanced disclosure should have been in place by 19th July 2010.

           Complete the Do we have conflicts sections and Enhanced Disclosure document to
           assess the required level of disclosure
Financial interest - paid and received- what is allowed?

The Code now sets out clearly what may be received or offered by an FSP and/or it's representatives to any
third party. It needs to be read in conjunction with the Regulations on Binder agreements.

The definition of a third party is very wide - basically includes any person/company involved in the distribution
channel
        1 Commission - as controlled by the Long Term, Short Term and Medical Schemes Acts

        2 Fees - as controlled by the Long Term, Short Term and Medical Schemes Acts
          NB: The Regulations on Binder agreements will have an impact on what is and is not allowed

        3 Fees - Providing you obtain written authority from the client you may charge a fee in lieu of commission
          as envisaged by items 1 & 2 above on the understanding that these fees can be stopped by the client at
          their discretion
           NB: This does not refer to fees you may charge a client over and above commissions received


        4 Fees - for services given to a 3rd party (see definition) provided the fee is reasonable for services done
          NB: This is to prevent ridiculously high fees being paid for the work done and thus circumvent the other
          restrictions

        5 Immaterial financial interest (see definition) - this is essentially the "entertainment" provided by insurers
          and other FSP's. The limit per representative is R1, 000 per calendar year

           However where the benefit is provided to the FSP itself, rather than the individual representative, the limit
           is aggregated to R1, 000 for the year in total so the idea would be to avoid such benefits being paid to
           maximise the available monies for entertainment

           It should be noted that the regulations do not specifically refer to a pure Key Individual but the generally
           accepted opinion is that the limitation applies equally to the pure key individual and the representative.


           Other FSPs include UMAs, Distribution channels, associate companies and Third parties.

           NB: This will demand that records be kept of all such entertainment/gifts. PS will be obliged to report to
           the FSB at least as part of the annual compliance reporting on the level of adherence to these limitations.
           See "Financial interest tracking" for a draft tracking/reporting tool
           NB: A practical approach is needed in managing the application of these limits and such approach needs
           to be documented in your management plan.
6 Other financial interests - anything else offered or accepted has basically to be paid for by the receiving
  party. And this payment has to be at a "fair value" This prevents the provision of services at a negligible
  cost which would be an attempt to circumvent the regulations

    One specific area that will be allowed to be provided is training. However such training has to comply with
    the following restrictions;
 i) It has to be generally available i.e. not on invitation only/top producers etc
ii) It has to be on products and related legal issues OR general financial & industry information OR
    on specialised systems of the insurer/UMA that assist the FSP in rendering a financial service
    However the cost of any associated travel or accommodation cannot be provided so no exotic
    locations can be used for the delivery of the training unless the participants pay their way
    Other examples;
    Provision of IT infrastructure and systems
    Office consumables
    Provision of free or subsidised staff resources

  NB: These limitations have to be in place by 19th October 2010.
  NB: Where the FSP is an insurer these limitations do not apply to the
  representatives themselves.

  However the Code now sets out clearly what financial interest may be offered by an FSP to it's
  representatives with regard to quantity and/or preference for insurers/UMA's and/or preference for
   specific products of any insurer/UMA.

  Where you remunerate staff based on the quantity of business as the only underlying criterion
  for such payment or for the payment of an incentive or bonus then this has to be expanded to include a
  qualitative aspect. Volume has to be balanced with quality, although there is no specific definition of
  what quality tool is to be used so the inference has to be that which is appropriate to the sales process.
  An obvious criteria will be that of the FAIS requirements of Needs Analysis, Record of Advice.
  Replacement product advice and the like

  Incentives for preference of insurer and/or insurer products over others is simply not allowed

  NB: These limitations have to be in place by 19th April 2011.
  NB: Any changes to remuneration structures will need to be managed carefully and in accordance with HR
  policies and legislation. The lead time for implementation is generous but plans need to be put in place to
  achieve the deadline
Conflict of interest management policy


The identification and control of conflicts, potential or actual, need to be fully documented by the FSP. These
controls need to be contained on a formal document to be known as the Conflict of Interest Management Policy and
needs to be made available to any client or other interested party that may require sight of it. The policy needs to be
monitored by PS and the effectiveness of it reported to the FSB at least on an annual basis as part of the annual
compliance report process and as such will form part of the monitoring process conducted by PS each quarter.

The policy must be real - there needs to be a formal acceptance of the policy and ongoing management
of it irrespective of the type of company involved (sole trader/CC/Pty). Any formal meeting structure
used by the FSP e.g. Board meetings must have a formal reference to the policy and changes to
the circumstances that may affect the policy

The policy itself needs to contain the following MINIMUM components;

        1 It must be easily understood by all potentially interested parties
        2 Procedure for the Identification of conflict (or potential conflict) situations
          This will require initial and ongoing disclosure to PS of relationships/structures/agreements and the
          like so their potential for creating conflicts can be assessed and appropriate actions taken.
        3 Any avoidance and/or mitigation and/or disclosure of conflict strategies and reasons for these actions
          need to be fully documented.
        4 The controls that will be exercised need to be documented. As much as PS will monitor these issues
          there is a requirement for internal understanding of the need for and consequences of non compliance
          and the controls implemented is critical to the process. This needs to include awareness and training for
          ALL levels of staff. These issues need to be managed internally at the appropriate management level
          and monitored externally by PS
        5 How the staff will gain an understanding of how the financial and/or immaterial financial interest issues
          work and will affect them.
          This will include the following;
          i)          The supplying of the Management policy upon employment (or introduction of,
                      if already employed)
          ii)         The completion of a Conflict of Interest Questionnaire upon employment and annually thereafter
          iii)        The provision of awareness training
          iv)         The ongoing control and reporting of immaterial financial interests
          v)          A remuneration policy that complies the limitations of incentives for products and/or product
                      providers
          v)          Incorporation of Conflict of interest management in the Key Result Areas of a company               delete if not applicable


        6 Details of the following parties. These will be listed as Annexures to the Policy;
          i)          All associates
          ii)         All third parties who own an interest in you and the extent of this ownership
          iii)        All third parties in whom you own an interest and the extent of this ownership
NB        The basis of review of the policies
          i)         The Mapping process used to establish the Management policy must be reviewed no less than
                     annually and agreed with PS
          ii)        All key individuals must have the review process as a Key Result Area of their                   delete if not applicable
                      job description
NB        How the policy will be made readily available to interested parties will vary from FSP to FSP
          i)         A hard and soft copy should be available to all staff
          ii)        A hard and soft copy should be available at each branch of the FSP
          iii)       If the FSP has a web site the policy should be available there
NB        Impact into HR aspects
          i)         Existing contracts of employment should be reviewed to ensure that adherence to the
                     Management policy is an integral part of that contract
          ii)        Breaches of the Management policy should be an offence in terms of the disciplinary sections
                     of the employment policy
          iii)       Job descriptions and related appraisal processes need to cater for the management of the
                      Policy at appropriate levels
          iv)        Remuneration policies may need to be amended to cater for the limitations on incentives
          v)         Recruitment policies need to ensure the Conflict Questionnaire is completed upon
                     employment and at least annually thereafter
          NB: These limitations have to be in place by 19th April 2011.

NB:       Avoidance and or attempts to avoid, limit, circumvent any of these regulations is not allowed


When this Guidance Note was issued there were still a number of issues where the practical implications had yet to
be fully understood. Some of the most high profile ones were; i) Differential treatment of clients ii) Differential
treatment of brokers
Conflict of Interest from 2010'!A22

                       FAIS General Code of Conduct - Conflict of Interest - The actual Code wording




            The following is the full wording of the amended Section 3 of the General Code of Conduct. All appropriate
            definitions are provided in this PS Guidance Note

            3) (1) When a provider renders a financial service -

                       (a)            representations made and information provided to a client by a provider -

                                      (i)       must be factually correct;

                                      (ii)      must be provided in plain language, avoid uncertainty or confusion and not be
                                                misleading;

                                      (iii)     must be adequate and appropriate in the circumstances of the particular
                                                financial service, taking into account the factually established or reasonably
                                                assumed level of knowledge of the client;

                                      (iv)      must be provided timeously so as to afford the client reasonably sufficient
                                                time to make an informed decision about the proposed transaction;

                                      (v)       may, subject to the provisions of this Code, be provided orally and, at the client's
                                                request, confirmed in writing within a reasonable time after such a request;

                                      (vi)      must, where provided in writing or by means of standard forms or format, be in a
                                                clear and readable print size, spacing and format;

                                      (vii)     must, as regards all amounts, sums, values, charges, fee, remuneration or monetary
                                                obligations mentioned or referred to therein and payable to the product supplier
                                                or the provider, be reflected in specific monetary terms: Provided that where any
                                                such amount, sum, value, charge, fee, remuneration or monetary obligation is not
                                                reasonably pre-determinable, its basis of calculation must be adequately described; and
      (viii)     need not be duplicated or repeated to the same client unless material or significant
                 changes affecting that client occur, or the relevant financial service renders to
                 necessary, in which case a disclosure of the changes to the client must be made
                 without delay;

(b)   a provider and a representative must avoid and where this in not possible mitigate, any conflict
      of interest between the provider and the client or the representative and a client;

(c)   a provider or a representative must, in writing, at the earliest reasonable opportunity -

      (i)        disclose to a client any conflict of interest in respect of the client, including -
                 (aa)       the measures taken, in accordance with the conflict of interest management
                            policy of the provider referred to in section 3A(2), to avoid or mitigate
                            the conflict;
                 (bb)       any ownership interest or financial interest, other than an immaterial
                            financial interest, the provider or representative may be or become
                            eligible for;
                 (cc)       the nature of any relationship or arrangement with a third party that give rise
                            to a conflict of interests, in sufficient detail to a client to enable the client to
                            understand the exact nature of the relationship or arrangement and the conflict
                            of interest; and
      (ii)       inform the client of the conflict of interest management policy referred to in
                 section 3A(2) and how it may be accessed.

(d)   the service must be rendered in accordance with the contractual relationship and reasonable
      requests or instructions of the client, which must be executed as soon as reasonably possible and
      with due regard to the interests of the client which must be accorded appropriate priority
      over any interests of the provider;

(e)   transactions of a client must be accurately accounted for; and

(f)   the provider involved must not deal in any financial product for own benefit, account or interest
      where the dealing is based upon advanced knowledge of pending transactions for or with clients,
      or on any non-public information the disclosure of which would be expected to affect the prices
      of such product.
2)   (a)       A provider must have appropriate procedures and systems in place to -
               (i)       record such verbal and written communications relating to a financial service rendered
                         to a client as are contemplated in the Act, this Code or any other Code drafted in terms
                         of section 15 of the Act;

               (ii)       store and retrieve such records and any other material documentation relating to the
                          client or financial services rendered to the client; and

               (iii)      keep such client records and documentation safe from destruction.

     (b)       All such records must be kept for a period for five years after termination, to the knowledge of
               the provider, of the product concerned or, in any other case, after the rendering of the financial
               service concerned.

     (c)       Providers are not required to keep the records themselves but must ensure that they are available
               for inspection within 7 days of the registrar's request.

     (d)       Records may be kept in an appropriate electronic or recorded format, which are accessible and
               readily reducible to written or printed form.

3)   A provider may not disclose any confidential information acquired or obtained from a client or, subject
     to section 4(1), a product supplier in regard to such client or supplier, as the case may be, has been obtained
     beforehand or disclosure of the information is required in the public interest or under any law.

3A   Financial interest and conflict of interest management policy

1)   (a)       A provider or its representative may only receive or offer the following financial interest from
               or to a third party -

               (i)        commission authorised under the Long-term Insurance Act, 1998 (Act No. 52 of 1998)
                          or the Short-term Insurance Act, 1998 (Act No. 53 of 1998);
               (ii)       commission authorised under the Medical Schemes Act 1998 (Act No. 131 of 1998);
               (iii)      fees authorised under the Long-term Insurance Act, 1998 (Act No. 52 of 1998), the
                          Short-term Insurance Act, 1998 (Act No. 53 of 1998) or the Medical Schemes Act,
                          1998 (Act No. 131 of 1998), if those fees are reasonably commensurate to a service
                      being rendered;
           (iv)       fees for the rendering of a financial services in respect of which commission or
                      fees referred to in subparagraph (i), (ii) or (iii) is not paid, if those fees -
                      (aa)        are specifically agreed to by a client in writing; and
                      (bb)        may be stopped at the discretion of that client;
           (v)        fees or remuneration for the rendering of a service to a third party, which fees or
                      remuneration are reasonably commensurate to the service being rendered;
           (vi)       subject to any other law, an immaterial financial interest; and
           (vii)      a financial interest, not referred to under subparagraph (i) to (vi), for which a consideration,
                      fair value or remuneration that is reasonably commensurate to the value of
                      the financial interest, is paid by that provider or representative as the time of receipt
                      thereof.
     (b)   A provider may not offer any financial interest to a representative of that provider for -
           (i)        giving preference to the quantity of business secured for the provider to the
                      exclusion of the quality of the services rendered to clients; or
           (ii)       giving preference to a specific product supplier, where a representative may recommend
                      more than one product supplier to a client; or
           (iii)      giving preference to a specific product of a product supplier, where a representative
                      may recommend more than one product of that product supplier to a client.
     (c)   For the purpose of this section, where the same legal entity is a product supplier and a provider,
           paragraph (a) does not apply to the representative of that entity. That entity is subject to section
           3A(1)(b), in respect of its representatives.

2)   (a)   Every provider, other than a representative, must adopt, maintain and implement a conflict
           of interest management policy that complies with the provisions of the Act.
     (b)   A conflict of interest management policy must -
           (i)         provide for the management of conflicts of interest as defined in section 1, and -
                       (aa)       mechanisms for the identification of conflicts of interest;
                       (bb)       measures for the avoidance of conflicts of interest, and where avoidance
                                  is not possible, the reasons therefore and the measures for the mitigation of
                                  such conflicts of interest;
                       (cc)       measures for the disclosure of conflicts of interest;
                       (dd)       processes, procedures and internal controls to facilitate compliance with
                                  the policy; and
                       (ee)       consequences of non-compliance with the policy by the provider's
                                  employees and representatives; and
               (ii)        specify the type of and the basis on which a representative will qualify for a financial
                           interest that the provider will offer a representative and motivate how that financial
                           interest complies with section 3A(1)(b);
               (iii)       include a list of all its associates;
               (v)         include the names of any third parties in which the provider hold an ownership
                           interest;
               (vi)        include the names of any third parties that holds an ownership interest in the provider;
                           and
               (vii)       include the nature and extent of the ownership interest referred to in subsection (v)
                           and (vi); and
               (viii)      be drafted in an easily comprehensible form and manner.
     (c)       A conflict of interest management policy must be adopted by the sole proprietor of a provider,
               the board of directors of a provider or, in the case where a provider is not a company, the governing
               body of the provider.
     (d)       A provider must ensure that its employees, representative and, where appropriate, associates
               are aware of the contents of its conflict of interest management policy and provide for
               appropriate training and educational material in this regard.
     (e)       A provider must continuously monitor compliance with its conflict of interest management
               policy and annually conduct a review of the policy.
     (f)       A provider must publish its conflict of interest management policy in appropriate media and
               ensure that it is easily accessible for public inspection at all reasonable times.
3)   A provider or representative may not avoid, limit or circumvent or attempt to avoid, limit or circumvent
     compliance with this section through an associate or an arrangement involving an associate.
4)   (a)       A compliance officer or, where the provider need not, in terms of the Act, have a compliance officer,
               the provider must include a report on the providers conflict of interest management policy in
               compliance reports submitted to the Registrar under the Act.
     (b)       The report referred to in paragraph (a) must report on at least the implementation, monitoring
               and compliance with, and the accessibility of the conflict of interest management policy.
Conflict of Interest from 2010'!B29

                                  FAIS General Code of Conduct - Conflict of Interest - Key Definitions


          associate
          (a)       in relation to a natural person, means;
                    (i)         a person who is recognised in law or the tenets of religion as the spouse, life partner
                                or civil union partner of that person;
                    (ii)        a child of that person, including a stepchild, adopted child and a child born out of wedlock;
                    (iii)       a parent or stepparent of that person;
                    (iv)        a person in respect of which that person is recognised in law or appointed by a Court as the person
                                legally responsible for managing the affairs of or meeting the daily care needs of the first mentioned
                                person;
                    (v)         a person who is the spouse, life partner or civil union partner of a person referred to in
                                subparagraph (ii) to (iv);
                    (vi)        a person who is in a commercial partnership with that person;

          (b)         in relation to a juristic person -
                      (i)         which is a company, means any subsidiary or holding company of that company, any other
                                  subsidiary of that holding company,
                                  and any other company of which that holding company is a subsidiary
                      (ii)        which is a close corporation registered under the Close Corporations Act. 1984 (act No t69 of 1984)

                                  means any member thereof as defined in section 1 of that Act
                      (iii)       which is not a company or close corporation as referred to in subparagraphs (i) and (ii), means another
                                  juristic person which would have a subsidiary or holding company of the first-mentioned
                                  juristic person -
                                              (aa)       has such first mentioned juristic person been a company; or
                                              (bb)       in the case where that other juristic person, too, is not a company, had
                                                         both the first-mentioned juristic person and that other juristic person
                                                         been a company.
                      (iv)        means that any person in accordance with whose directions or instructions the board of directors
                                  of or, in the case where such juristic person is not a company, the governing body of such
                                  juristic person is accustomed to act;
          (c)         in relation to any person -
                      (i)         means any juristic person of which the board of directors or, in the case where such juristic
                                  is not a company, of which the governing body is accustomed to act in the accordance with the
                                  directions or instructions of the person first- mentioned in this paragraph;
                      (ii)        includes any trust controlled or administered by that person.

          company
                      means a company under the Companies Act, 1973 (Act No. 61 of 1973);

          conflict of interest
                     means any situation in which a provider or a representative has an actual or potential interest that may,
                     in rendering a financial service to a client, -
                                (a)         influence the objective performance of his, her or its obligations to that client; or
                                (b)         prevent a provider or representative from rendering an unbiased and fair financial
                                            services to that client, or from acting in the interests of that client,
                     including, but not limited to -
                                (i)         a financial interest
                                (ii)        an ownership interest
                                (iii)       any relationship with a third party;
distribution channel means -
           (a)      any arrangement between a product supplier or any of its associates and one or more
                    providers or any of its associates in terms of which arrangement any support or service
                    is provided to the provider or providers in rendering a financial service to a client;
           (b)      any arrangement between two or more providers or any of their associates, which arrangement
                    facilitates, support or enhances a relationship between the provider or providers and a product
                    supplier;
           (c)      any arrangement between two or more product suppliers or any of their associates'
                    which arrangement facilitates supports or enhances a relationship between a provider or
                    providers and a product supplier;

fair value
             has the meaning assigned to it in the financial reporting standards adopted or issued under the Companies
             Act, 1973 (Act No. 61 of 1973)

financial interest
           means any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic or foreign
           travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration, other than -
           (a)        an ownership interest;
           (b)        training, that is not exclusively available to a selected group of providers or representatives'
                      on -
                      (i)          products and legal matters relating to those products;
                      (ii)         general financial and industry information;
                      (iii)        specialised technological systems of a third party necessary for the rendering of a
                                   financial service;
                                    but excluding travel and accommodation associated with that training;
holding company
           means a holding company as defined in section 1(4) of the Companies Act, 1973 (Act No. 61 of 1973)

immaterial financial interest
         means any financial interest with a determinable monetary value, the aggregate of this does not exceed
         R1000 in any calendar year from the same third party by -
         (a)        a provider who is a sole proprietor; or
         (b)        a representative for that representative's direct benefit
         (c)        a provider, who for its benefit or that of some or all of its representatives, aggregates the
                    immaterial financial interest paid to its representatives;"

ownership interest
        means -
        (a)        any equity or proprietary interest, for which fair value was paid by the owner at the time
                   of acquisition, other than equity or a proprietary interest held as an approved nominee
                   on behalf of another person; and
        (b)        includes any dividend, profit share or similar benefit derived from that equity or ownership
                   interest;

subsidiary
         means a subsidiary as defined in section 1(3) of the Companies Act. 1973 (Act No. 61 of 1973)

third party
           means -
           (a)         a product supplier;
           (b)         another provider
           (c)         an associate of a product supplier or a provider
           (d)         a distribution channel
           (e)         any person who in terms of an agreement or arrangement with a person referred to in
                       paragraphs (a) to (d) above provides a financial interest to a provider or it's representatives"."
Conflict of Interest from 2010'!A1
                                           FAIS General Code of Conduct - Conflict of Interest - Do we have conflicts?




                                                   Product suppliers (insurers) - incl. subsidiaries & holding companies
                                                         NB: Complete one mapping sheet per product supplier relationship


                       This mapping process, following the initial review, should be updated;
                                i)        For any known changes in the ownership relationship
                                ii)       For any known changes in the business relationship
                                          and
                                iii)      At the scheduled annual review date

                       The following review completed:                **/**/****
                       Completed by:                                   *******
                       Scheduled review date:                         **/**/****
                                                                                                                            Provide Details
                                Ownership by?               Yes          No
                                Ownership of?               Yes          No
                       Seen as conflict by CO?              Yes          No          N/A
                       Seen as conflict by FSP?             Yes          No          N/A
                       Current status?
                       Disclosed                            Yes          No          N/A
                       avoided? If so how?                  Yes          No          N/A
                       Mitigated? If so how?                Yes          No          N/A
                       To be changed to?
                       Disclosed                            Yes          No          N/A
                       avoided? If so how?                  Yes          No          N/A
                       Mitigated? If so how?                Yes          No          N/A

                                                                                                                            Provide Details
                         Financial interest received?       Yes          No
                         Fair value paid for financial
                                                            Yes          No
                                  interest?
                       Seen as conflict by CO?              Yes          No          N/A
                       Seen as conflict by FSP?             Yes          No          N/A
                       Current status?
                       Disclosed                            Yes          No          N/A
                       avoided? If so how?                  Yes          No          N/A
                       Mitigated? If so how?                Yes          No          N/A
To be changed to?
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
                                                   Provide Details
  Immaterial Financial interest
                                  Yes   No
            received?
 Records retained of frequency
                                  Yes   No
           and value?
Seen as conflict by CO?           Yes   No   N/A
Seen as conflict by FSP?          Yes   No   N/A
Current status?
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
To be changed to?
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
                                                   Provide Details
 Percentage of income earned
                                             %
  per annum from this insurer
Seen as conflict by CO?           Yes   No   N/A
Seen as conflict by FSP?          Yes   No   N/A
Current status?
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
To be changed to?
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
   Fee income paid by this
                             Yes   No
          insurer?
Seen as conflict by CO?      Yes   No   N/A
Seen as conflict by FSP?     Yes   No   N/A
Current status?
Disclosed                    Yes   No   N/A
avoided? If so how?          Yes   No   N/A
Mitigated? If so how?        Yes   No   N/A
To be changed to?
Disclosed                    Yes   No   N/A
avoided? If so how?          Yes   No   N/A
Mitigated? If so how?        Yes   No   N/A

     Agreement in place?     Yes   No
Conflict of Interest from 2010'!A1         FAIS General Code of Conduct - Conflict of Interest - Do we have conflicts?


                                                            Other FSP's - incl. subsidiaries & holding companies
                                                         NB: Complete one mapping sheet per FSP relationship


                       This mapping process, following the initial review, should be updated;
                                i)        For any known changes in the ownership relationship
                                ii)       For any known changes in the business relationship
                                          and
                                iii)      At the scheduled annual review date

                       The following review completed:                **/**/****
                       Completed by:                                   *******
                       Scheduled review date:                         **/**/****

                                Ownership by?               Yes          No
                                Ownership of?               Yes          No
                       Seen as conflict by CO?              Yes          No         N/A
                       Seen as conflict by FSP?             Yes          No         N/A
                       Current status?
                       Disclosed                            Yes          No         N/A
                       avoided? If so how?                  Yes          No         N/A
                       Mitigated? If so how?                Yes          No         N/A
                       To be changed to?                    Yes          No         N/A
                       Disclosed                            Yes          No         N/A
                       avoided? If so how?                  Yes          No         N/A
                       Mitigated? If so how?                Yes          No         N/A


                         Financial interest received?       Yes          No
                         Fair value paid for financial
                                                            Yes          No
                                  interest?
                       Seen as conflict by CO?              Yes          No         N/A
                       Seen as conflict by FSP?             Yes          No         N/A
                       Current status?
                       Disclosed                            Yes          No         N/A
                       avoided? If so how?                  Yes          No         N/A
                       Mitigated? If so how?                Yes          No         N/A
                       To be changed to?                    Yes          No         N/A
                       Disclosed                            Yes          No         N/A
avoided? If so how?     Yes   No   N/A
Mitigated? If so how?   Yes   No   N/A
  Immaterial Financial interest
                                  Yes   No
            received?
 Records retained of frequency
                                  Yes   No
           and value?
Seen as conflict by CO?           Yes   No   N/A
Seen as conflict by FSP?          Yes   No   N/A
Current status?                   Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
To be changed to?                 Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A

 Percentage of allowed income
earn per annum where UMA on                  %
        behalf of insurer?
Seen as conflict by CO?           Yes   No   N/A
Seen as conflict by FSP?          Yes   No   N/A
Current status?                   Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
To be changed to?                 Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
 Fee income paid by this FSP?   Yes   No   N/A
Seen as conflict by CO?         Yes   No   N/A
Seen as conflict by FSP?        Yes   No   N/A
Current status?                 Yes   No   N/A
Disclosed                       Yes   No   N/A
avoided? If so how?             Yes   No   N/A
Mitigated? If so how?           Yes   No   N/A
To be changed to?               Yes   No   N/A
Disclosed                       Yes   No   N/A
avoided? If so how?             Yes   No   N/A
Mitigated? If so how?           Yes   No   N/A

     Agreement in place?        Yes   No   N/A
Conflict of Interest from 2010'!B29

                                      FAIS General Code of Conduct - Conflict of Interest - Do we have conflicts?


                                                Distribution channels - incl. subsidiaries & holding companies
                                                  NB: Complete one mapping sheet per Distribution channel


            This mapping process, following the initial review, should be updated;
                     i)        For any known changes in the ownership relationship
                     ii)       For any known changes in the business relationship
                               and
                     iii)      At the scheduled annual review date

            The following review completed:                    **/**/****
            Completed by:                                       *******
            Scheduled review date:                             **/**/****

                     Ownership of?                   Yes          No
            Seen as conflict by CO?                  Yes          No          N/A
            Seen as conflict by FSP?                 Yes          No          N/A
            Current status?                          Yes          No          N/A
            Disclosed                                Yes          No          N/A
            avoided? If so how?                      Yes          No          N/A
            Mitigated? If so how?                    Yes          No          N/A
            To be changed to?                        Yes          No          N/A
            Disclosed                                Yes          No          N/A
            avoided? If so how?                      Yes          No          N/A
            Mitigated? If so how?                    Yes          No          N/A


              Financial interest received?           Yes          No
              Fair value paid for financial
                                                     Yes          No
                       interest?
            Seen as conflict by CO?                  Yes          No          N/A
            Seen as conflict by FSP?                 Yes          No          N/A
            Current status?                          Yes          No          N/A
            Disclosed                                Yes          No          N/A
            avoided? If so how?                      Yes          No          N/A
            Mitigated? If so how?                    Yes          No          N/A
            To be changed to?                        Yes          No          N/A
            Disclosed                                Yes          No          N/A
avoided? If so how?     Yes   No   N/A
Mitigated? If so how?   Yes   No   N/A
  Immaterial Financial interest   Yes   No
 Records retained of frequency
                                  Yes   No
           and value?
Seen as conflict by CO?           Yes   No   N/A
Seen as conflict by FSP?          Yes   No   N/A
Current status?                   Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
To be changed to?                 Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A


        Fee income paid?          Yes   No
Seen as conflict by CO?           Yes   No   N/A
Seen as conflict by FSP?          Yes   No   N/A
Current status?                   Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
To be changed to?                 Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A


     Agreement in place?          Yes   No   N/A
Conflict of Interest from 2010'!B29

                                      FAIS General Code of Conduct - Conflict of Interest - Do we have conflicts?



                                                Other Persons - incl. subsidiaries & holding companies
            This Category should be seen to include service providers within the context of the insurance business but need not be restricted
                                                  to FSP's e.g. panel beaters, assessors, contractors
                                                  NB: Complete one mapping sheet per Other person


            This mapping process, following the initial review, should be updated;
                     i)        For any known changes in the ownership relationship
                     ii)       For any known changes in the business relationship
                               and
                     iii)      At the scheduled annual review date

            The following review completed:                   **/**/****
            Completed by:                                      *******
            Scheduled review date:                            **/**/****


                     Ownership of?                   Yes         No
            Seen as conflict by CO?                  Yes         No          N/A
            Seen as conflict by FSP?                 Yes         No          N/A
            Current status?                          Yes         No          N/A
            Disclosed                                Yes         No          N/A
            avoided? If so how?                      Yes         No          N/A
            Mitigated? If so how?                    Yes         No          N/A
            To be changed to?                        Yes         No          N/A
            Disclosed                                Yes         No          N/A
            avoided? If so how?                      Yes         No          N/A
            Mitigated? If so how?                    Yes         No          N/A


              Financial interest received?           Yes         No
              Fair value paid for financial
                                                     Yes         No
                       interest?
            Seen as conflict by CO?                  Yes         No          N/A
            Seen as conflict by FSP?                 Yes         No          N/A
            Current status?                          Yes         No          N/A
            Disclosed                                Yes         No          N/A
            avoided? If so how?                      Yes         No          N/A
Mitigated? If so how?   Yes   No   N/A
To be changed to?       Yes   No   N/A
Disclosed               Yes   No   N/A
avoided? If so how?     Yes   No   N/A
Mitigated? If so how?   Yes   No   N/A
  Immaterial Financial interest   Yes   No
 Records retained of frequency
                                  Yes   No
           and value?
Seen as conflict by CO?           Yes   No   N/A
Seen as conflict by FSP?          Yes   No   N/A
Current status?                   Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
To be changed to?                 Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A

 Percentage of allowed income
 earn per annum if on behalf of              %
              insurer
Seen as conflict by CO?           Yes   No   N/A
Seen as conflict by FSP?          Yes   No   N/A
Current status?                   Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
To be changed to?                 Yes   No   N/A
Disclosed                         Yes   No   N/A
avoided? If so how?               Yes   No   N/A
Mitigated? If so how?             Yes   No   N/A
   Fee income charged/paid?   Yes   No
Seen as conflict by CO?       Yes   No   N/A
Seen as conflict by FSP?      Yes   No   N/A
Current status?               Yes   No   N/A
Disclosed                     Yes   No   N/A
avoided? If so how?           Yes   No   N/A
Mitigated? If so how?         Yes   No   N/A
To be changed to?             Yes   No   N/A
Disclosed                     Yes   No   N/A
avoided? If so how?           Yes   No   N/A
Mitigated? If so how?         Yes   No   N/A

     Agreement in place?      Yes   No   N/A
Conflict of Interest from 2010'!B29

                                      FAIS General Code of Conduct - Conflict of Interest - Do we have conflicts?



                                                   Suppliers - incl. subsidiaries & holding companies
              This Category should be seen to include our suppliers of services or goods outside the insurance business
                                                                       accounting
                                                  NB: Complete one mapping sheet per Supplier


           This mapping process, following the initial review, should be updated;
                    i)        For any known changes in the ownership relationship
                    ii)       For any known changes in the business relationship
                              and
                    iii)      At the scheduled annual review date

           The following review completed:                     **/**/****
           Completed by:                                        *******
           Scheduled review date:                              **/**/****


                    Ownership of?                    Yes          No
           Seen as conflict by CO?                   Yes          No         N/A
           Seen as conflict by FSP?                  Yes          No         N/A
           Current status?                           Yes          No         N/A
           Disclosed                                 Yes          No         N/A
           avoided? If so how?                       Yes          No         N/A
           Mitigated? If so how?                     Yes          No         N/A
           To be changed to?                         Yes          No         N/A
           Disclosed                                 Yes          No         N/A
           avoided? If so how?                       Yes          No         N/A
           Mitigated? If so how?                     Yes          No         N/A


             Financial interest received?            Yes          No
             Fair value paid for financial
                                                     Yes          No
                       interest?
           Seen as conflict by CO?                   Yes          No         N/A
           Seen as conflict by FSP?                  Yes          No         N/A
           Current status?                           Yes          No         N/A
           Disclosed                                 Yes          No         N/A
           avoided? If so how?                       Yes          No         N/A
           Mitigated? If so how?                     Yes          No         N/A
           To be changed to?                         Yes          No         N/A
           Disclosed                                 Yes          No         N/A
           avoided? If so how?                       Yes          No         N/A
           Mitigated? If so how?                     Yes          No         N/A


              Immaterial Financial interest          Yes          No
 Records retained of frequency
                                 Yes   No
           and value?
Seen as conflict by CO?          Yes   No   N/A
Seen as conflict by FSP?         Yes   No   N/A
Current status?                  Yes   No   N/A
Disclosed                        Yes   No   N/A
avoided? If so how?              Yes   No   N/A
Mitigated? If so how?            Yes   No   N/A
To be changed to?                Yes   No   N/A
Disclosed                        Yes   No   N/A
avoided? If so how?              Yes   No   N/A
Mitigated? If so how?            Yes   No   N/A

        Fee income paid?         Yes   No
Seen as conflict by CO?          Yes   No   N/A
Seen as conflict by FSP?         Yes   No   N/A
Current status?                  Yes   No   N/A
Disclosed                        Yes   No   N/A
avoided? If so how?              Yes   No   N/A
Mitigated? If so how?            Yes   No   N/A
To be changed to?                Yes   No   N/A
Disclosed                        Yes   No   N/A
avoided? If so how?              Yes   No   N/A
Mitigated? If so how?            Yes   No   N/A

     Agreement in place?         Yes   No   N/A
terest - Do we have conflicts?



& holding companies
r goods outside the insurance business e.g. stationary, IT,
g
Conflict of Interest from 2010'!B29

                               FAIS General Code of Conduct - Conflict of Interest - Do we have conflicts?


                                                                                Staff
                  Ensure all staff complete the Conflict of Interest Questionnaire and summarise
                  the results below;


      This mapping process, following the initial review, should be updated;
               i)        For any known changes in staff relationships
               ii)       For any planned changes in remuneration policy by us or 3rd parties
                         and
               iii)      At the scheduled annual review date

      The following review completed:                                   **/**/****
      Completed by:                                                      *******
      Scheduled review date:                                            **/**/****


            Do we offer any financial interest (see definition) to representatives for;

  i   The quantity of business written?                        Yes                       No
      If Yes
      Is there any quality requirement for this payment to be made?
                                                               Yes                       No
      If Yes please provide details;




      NB: This method of remuneration is no longer allowed from April 2011
       unless there is a quality aspect to the calculation of the payments

                                       Agreed corrective action




                                  Agreed implementation date
                                          **/**/****
           Do we offer any financial interest (see definition) to representatives for;

ii       Giving preference to one insurer where there is the option of more than one?

                                                           Yes        No

      If Yes please provide details;




      NB: This method of remuneration is no longer allowed from April 2011


                                Agreed corrective action




                             Agreed implementation date
                                      **/**/****
           Do we offer any financial interest (see definition) to representatives for;

iii      Giving preference to one product where there is the option of more than one?
                                                          Yes       No
      If Yes please provide details;




      NB: This method of remuneration is no longer allowed from April 2011


                                Agreed corrective action




                              Agreed implementation date
                                      **/**/****
Do any representatives have a relationship with any third parties, as defined, or other service providers?


Representative                                  3rd Party, Service Provider        Relationship                Seen as conflict?
                                                                                                             Yes     No         N/A
           Corrective action taken




Representative                                  3rd Party, Service Provider        Relationship                Seen as conflict?
                                                                                                             Yes     No         N/A
           Corrective action taken




Representative                                  3rd Party, Service Provider        Relationship                Seen as conflict?
                                                                                                             Yes     No         N/A
           Corrective action taken




Representative                                  3rd Party, Service Provider        Relationship                Seen as conflict?
                                                                                                             Yes     No         N/A
           Corrective action taken




Representative                                  3rd Party, Service Provider        Relationship                Seen as conflict?
                                                                                                             Yes     No         N/A
           Corrective action taken
Conflict of Interest from 2010'!B29

                    FAIS General Code of Conduct - Conflict of Interest - Additional disclosure document



        Additional specific disclosures are demanded relating to an FSP's conflict of interest. Refer to the Overview
        section for specific details.

        Draft disclosures have been included in this PS Guidance note, with one for each of the following
        categories of FSP;

        i       Short term broker
        ii      Long term broker
        iii     UMA/Administrator
        iv      Insurer



        These documents are drafts and need to be personalised to your specific
        conflict profile - they CANNOT BE USED AS IS!

        These disclosures are designed to be used IN ADDITION to existing disclosure documentation

        These disclosures are effective from 19/7/2010
isclosure document



rest. Refer to the Overview


h of the following




documentation
         of Interest from 2010'!B29
Conflict Conflict of Interest from 2010'!B29
                                      IMPORTANT ADDITIONAL INFORMATION FOR ALL OUR CLIENTS




        We make every effort to ensure that at all times we act in your best interests and in no way allow our own interests,
        potential or actual, to influence our objective performance and the delivery of unbiased and fair financial service to you. In
        furtherance of this objective we want to ensure you fully understand the various interests we have, be they Ownership,
        Financial or Relationships with third parties. There are a number of entities with whom we can have a relationship of this
        nature and a summary of these is provided below;




        Financial Service Providers                     We are an FSP and act as your broker/intermediary. There may be
                                                        circumstances where we have a relationship with another broker (FSP) that you
                                                        need to be aware of.



        Underwriting Manager/
                                                        They are appointed either by a Product Provider (Insurer) or the broker to
        Administrator
                                                        manage a specific type of product on their behalf. They are also licensed
                                                        Financial Service Providers




        Product Provider/Supplier                       This is Your insurer.


                                                        Each of the above may well have companies that are associated with them with
                                                        whom we have a relationship. These could be subsidiary or holding companies or
                                                        certain natural persons such as spouse, children, parent. Where these
                                                        relationships exist you need to be made aware of them.



        Distribution channel                            These are arrangements with any of the above or combination of these that
                                                        provides support or services to us in our role of providing a financial service to
                                                        you




        Any other person
                                                        If there are any other persons that provide us with a financial interest as part of
                                                        the delivery of the financial service



        What represents an Ownership or financial interest?



                    Ownership                           Actual equity that was paid for.

                    Financial                           Cash, or its equivalent, vouchers, gift service, advantage, benefit, discount
                                                        domestic or foreign travel, hospitality, accommodation, sponsor ship, other
                                                        incentive or valuable consideration




        Any combination of these relationships and/or ownership or financial interests may present a potential conflict and as

        such we need to ensure you are aware of these.
        We also confirm that no staff are incentivised to give preference to any specific insurer and/or product and where incentives
        based on volumes of business are in place these are supported by an assessment of the quality of the business sold and
        procedures followed

        We further undertake that no financial interest exceeding R1, 000 per calendar year, will be received by any of our
        representatives or provided to any representative of the above listed entities
How do we get paid for what we do:




Generally we receive a commission from the Insurer with whom we place Your insurances.
The level of these commissions vary depending upon product type and range from 7,5%
for SASRIA, 12,5% for Motor and 20% for all others. Any fees due by You to ourselves will
be pointed out to You when we provide You with a quote or renewal terms and will also be
shown on Your policy schedule.




Do we have a shareholding in any                   Yes        No          If Yes which ones?:
Insurer and/or cell captive
arrangement?                                                              If Yes what percentage:                       %


Do we receive more
                                                   Yes - we receive more than 30% of our income is derived from *****
than 30% of our
income from this
insurer or cell
captive?




Do we have a relationship with any product provider/supplier that provides a financial interest     Yes       No
                                   other than ownership?

If Yes the following detail of the relationship is relevant




           And how do we avoid or mitigate any potential conflict in this relationship?




    Do we have a relationship with any other FSP that provides an Ownership or financial            Yes       No
                                          interest?

If Yes the following detail of the relationship is relevant




           And how do we avoid or mitigate any potential conflict in this relationship?
 Do we have a relationship with any Distribution channel that provides an Ownership, financial   Yes   No
                                 interest or support service?

If Yes the following detail of the relationship is relevant




             And how do we avoid or mitigate any potential conflict in this relationship?




      Do we have a relationship with any other Person that provides an Ownership or financial    Yes   No
                                             interest?

If Yes the following detail of the relationship is relevant




             And how do we avoid or mitigate any potential conflict in this relationship?




Immaterial Financial interest
 It is generally accepted practice within our industry that "entertainment" and "gifts and
  incentives" collectively referred to as an immaterial financial interest in the Conflict of
 Interest regulations, are often provided by the product provider to the financial services
     provider (broker) and vice versa and potentially from and to other financial service
providers. The Rand value of such interests are limited, by legislation, per calendar year, to
   R1, 000 in respect of any one individual be they the provider of or beneficiary of such
      immaterial financial interest. Such limitations are dealt with and managed by our
                                      management policy


A full copy of our overall conflict of interest management policy can be obtained from;

i)            Our website              www.*****.co.za

ii)           Our offices upon written request to *** @ *****.co.za
        of Interest from 2010'!B28
ConflictConflict of Interest from 2010'!B29
                                     IMPORTANT ADDITIONAL INFORMATION FOR ALL OUR CLIENTS




       We make every effort to ensure that at all times we act in your best interests and in no way allow our own interests, potential
       or actual, to influence our objective performance and the delivery of unbiased and fair financial service to you. In furtherance
       of this objective we want to ensure you fully understand the various interests we have, be they Ownership, Financial or
       Relationships with third parties. There are a number of entities with whom we can have a relationship of this nature and a
       summary of these is provided below;




       Financial Service Providers                    We are an FSP and act as your broker/intermediary. There may be
                                                      circumstances where we have a relationship with another broker (FSP) that you
                                                      need to be aware of.


       Underwriting Manager/
                                                      They are appointed either by a Product Provider (Insurer) or the broker to
       Administrator
                                                      manage a specific type of product on their behalf. They are also licenced
                                                      Financial Service Providers




       Product Provider/Supplier                      This is Your insurer.



                                                      Each of the above may well have companies that are associated with them with
                                                      whom we have a relationship. These could be subsidiary or holding companies or
                                                      certain natural persons such as spouse, children, parent. Where these
                                                      relationships exist you need to be made aware of them.




       Distribution channel
                                                      These are arrangements with any of the above or combination of these that
                                                      provides support or services to us in our role of providing a financial service to
                                                      you




       Any other person
                                                      If there are any other persons that provide us with a financial interest as part of
                                                      the delivery of the financial service



       What represents an Ownership or financial interest?



                   Ownership                          Actual equity that was paid for.

                   Financial
                                                      Cash, or its equivalent, vouchers, gift service, advantage, benefit, discount
                                                      domestic or foreign travel, hospitality, accommodation, sponsor ship, other
                                                      incentive or valuable consideration




       Any combination of these relationships and/or ownership or financial interests may present a potential conflict and as

       such we need to ensure you are aware of these.
       We also confirm that no staff are incentivised to give preference to any specific insurer and/or product and where incentives
       based on volumes of business are in place these are supported by an assessment of the quality of the business sold and
       procedures followed.

       We further undertake that no financial interest exceeding R1, 000 per calendar year, will be received by any of our
       representatives or provided to any representative of the above listed entities
How do we get paid for what we do:




Generally we receive a commission from the Insurer with whom we place Your insurances.
The level of these commissions vary depending upon product type. Any fees due by You to
ourselves or the insurer will be pointed out to You, as will the commission details, when we
provide You with a quote or renewal terms and will also be shown on Your policy schedule.




Do we own more                                                                                                          as per ST
than 10% of this
Insurer?



Do we receive more                                 Yes - we receive more than 30% of our income is derived from *****
than 30% of our
income from this
insurer?



Do we have a relationship with any product provider that provides an Ownership or financial Yes           No            as per ST
                                        interest?


If Yes the following detail of the relationship is relevant




          And how do we avoid or mitigate any potential conflict in this relationship?




    Do we have a relationship with any other FSP that provides an Ownership or financial       Yes        No
                                          interest?


If Yes the following detail of the relationship is relevant




          And how do we avoid or mitigate any potential conflict in this relationship?
Do we have a relationship with any Distribution channel that provides an Ownership, financial Yes      No
                                interest or support service?


If Yes the following detail of the relationship is relevant




             And how do we avoid or mitigate any potential conflict in this relationship?




      Do we have a relationship with any other Person that provides an Ownership or financial    Yes   No
                                             interest?


If Yes the following detail of the relationship is relevant




             And how do we avoid or mitigate any potential conflict in this relationship?




Immaterial Financial interest
 It is generally accepted practice within our industry that "entertainment" and "gifts and
  incentives" collectively referred to as an immaterial financial interest in the Conflict of
 Interest regulations, are often provided by the product provider to the financial services
     provider (broker) and vice versa and potentially from and to other financial service
providers. The Rand value of such interests are limited, by legislation, per calendar year, to
   R1, 000 in respect of any one individual be they the provider of or beneficiary of such
      immaterial financial interest. Such limitations are dealt with and managed by our
                                      management policy



A full copy of our overall conflict of interest management policy can be obtained from;

i)             Our website             www.*****.co.za

ii)            Our offices upon written request to *** @ *****.co.za
   Conflict of Interest from 2010'!B29
Conflict of Interest from 2010'!B28
                               IMPORTANT ADDITIONAL INFORMATION FOR ALL OUR CLIENTS



   We make every effort to ensure that at all times we act in your best interests and in no way allow our own interests, potential
   or actual, to influence our objective performance and the delivery of unbiased and fair financial service to you. In furtherance
   of this objective we want to ensure you fully understand the various interests we have, be they Ownership, Financial or
   Relationships with third parties. There are a number of entities with whom we can have a relationship of this nature and a
   summary of these is provided below;



   Underwriting Manager/
                                                  We are appointed by the Product Provider (Insurer) OR (DELETE AS
   Administrator
                                                  APPLICABLE) the broker to manage a specific type of product on their behalf.
                                                  We are a licenced Financial Service Providers



                                                  They act as your broker/intermediary. They are also an FSP. There may be
   Financial Service Providers
                                                  circumstances they have a relationship with another broker (FSP) that you need
                                                  to be aware of and should be advised of such by your broker.


   Product Provider/Supplier                      This is Your insurer.


                                                  Each of the above may well have companies that are associated with them with
                                                  whom we have a relationship. These could be subsidiary or holding companies
                                                  or certain natural persons such as spouse, children, parent. Where these
                                                  relationships exist you need to be made aware of them.


   Distribution channel                           These are arrangements with any of the above or combination of these that
                                                  provides support or services to us in our role of providing a financial service to
                                                  you



   Any other person
                                                  If there are any other persons that provide us with a financial interest as part of
                                                  the delivery of the financial service


   What represents an Ownership or financial interest?


               Ownership                          Actual equity that was paid for.
               Financial                          Cash, or its equivalent, vouchers, gift service, advantage, benefit, discount
                                                  domestic or foreign travel, hospitality, accommodation, sponsor ship, other
                                                  incentive or valuable consideration



   Any combination of these relationships and/or ownership or financial interests may present a potential conflict and as
   such we need to ensure you are aware of these.
   We also confirm that no staff are incentivised to give preference to any specific insurer and/or product and where incentives
   based on volumes of business are in place these are supported by an assessment of the quality of the business sold and
   procedures followed
   We further undertake that no financial interest exceeding R1, 000 per calendar year, will be received by any of our
   representatives or provided to any representative of the above listed entities
How do we get paid for what we do:



The actual premium shown on Your quote, renewal or policy schedule will be
paid over to *****. If there are any additional fees due to us or ***** these will be
shown separately. As Underwriting Managers of ***** we are paid a fee by them
for managing your insurances on their behalf. In addition we do have a vested
interest in this transaction by virtue of a profit share between ourselves
and *****.




Do we own more than
10% of any Insurer?


Do we receive more                                Yes - we receive more than 30% of our income is derived from *****
than 30% of our
income from any
insurer?




Do we have a relationship with any product provider that provides an Ownership or financial Yes          No
                                        interest?

If Yes the following detail of the relationship is relevant




         And how do we avoid or mitigate any potential conflict in this relationship?




   Do we have a relationship with any other FSP that provides an Ownership or financial       Yes        No
                                         interest?

If Yes the following detail of the relationship is relevant




         And how do we avoid or mitigate any potential conflict in this relationship?
       Do we have a relationship with any Distribution channel that provides an Ownership,        Yes   No
                              financial interest or support service?

If Yes the following detail of the relationship is relevant




             And how do we avoid or mitigate any potential conflict in this relationship?




      Do we have a relationship with any other Person that provides an Ownership or financial     Yes   No
                                             interest?

If Yes the following detail of the relationship is relevant




             And how do we avoid or mitigate any potential conflict in this relationship?




Immaterial Financial interest
   It is generally accepted practice within our industry that "entertainment" and "gifts and
    incentives" collectively referred to as an immaterial financial interest in the Conflict of
  Interest regulations, are often provided by the product provider to the financial services
       provider (broker) and vice versa and potentially from and to other financial service
 providers. The Rand value of such interests are limited, by legislation, per calendar year, to
     R1, 000 in respect of any one individual be they the provider of or beneficiary of such
        immaterial financial interest. Such limitations are dealt with and managed by our
                                        management policy



A full copy of our overall conflict of interest management policy can be obtained from;
i)             Our website             www.*****.co.za
ii)            Our offices upon written request to *** @ *****.co.za
as per ST




as per ST
  Conflict of Interest from 2010'!B29
Conflict of Interest from 2010'!B28
                               IMPORTANT ADDITIONAL INFORMATION FOR ALL OUR CLIENTS



   We make every effort to ensure that at all times we act in your best interests and in no way allow our own interests, potential
   or actual, to influence our objective performance and the delivery of unbiased and fair financial service to you. In furtherance
   of this objective we want to ensure you fully understand the various interests we have, be they Ownership, Financial or
   Relationships with third parties. There are a number of entities with whom we can have a relationship of this nature and a
   summary of these is provided below;



   Product Provider                               This is us - your insurer


   Underwriting Manager/
                                                  If applicable these are appointed by the Product Provider (Insurer) OR (DELETE
   Administrator
                                                  AS APPLICABLE) the broker to manage a specific type of product on our
                                                  behalf. They are a licenced Financial Service Providers

                                                  They act as your broker/intermediary. They are also an FSP. There may be
   Financial Service Providers
                                                  circumstances they have a relationship with another broker (FSP) that you need
                                                  to be aware of and should be advised of such by your broker.


                                                  Each of the above may well have companies that are associated with them with
                                                  whom we have a relationship. These could be subsidiary or holding companies
                                                  or certain natural persons such as spouse, children, parent. Where these
                                                  relationships exist you need to be made aware of them.


   Distribution channel                           These are arrangements with any of the above or combination of these that
                                                  provides support or services to us in our role of providing a financial service to
                                                  you



   Any other person
                                                  If there are any other persons that provide us with a financial interest as part of
                                                  the delivery of the financial service


   What represents an Ownership or financial interest?


              Ownership                           Actual equity that was paid for.
              Financial                           Cash, or its equivalent, vouchers, gift service, advantage, benefit, discount
                                                  domestic or foreign travel, hospitality, accommodation, sponsor ship, other
                                                  incentive or valuable consideration



   Any combination of these relationships and/or ownership or financial interests may present a potential conflict and as
   such we need to ensure you are aware of these.
   We also confirm that no staff are incentivised to give preference to any specific insurer and/or product and where incentives
   based on volumes of business are in place these are supported by an assessment of the quality of the business sold and
   procedures followed
   We further undertake that no financial interest exceeding R1, 000 per calendar year, will be received by any of our
   representatives or provided to any representative of the above listed entities
How do we get paid for what we do:




The risk premium as reflected in your policy schedule is what is paid to us, Your
broker receives a commission, details of which are provided to you by your
broker. All fees are shown separately




Do we own more than
10% of any Insurer?


Do we receive more                                Yes - we receive more than 30% of our income is derived from *****
than 30% of our
income from any
insurer?




Do we have a relationship with any product provider that provides an Ownership or financial Yes          No
                                        interest?

If Yes the following detail of the relationship is relevant




         And how do we avoid or mitigate any potential conflict in this relationship?




   Do we have a relationship with any other FSP that provides an Ownership or financial       Yes        No
                                         interest?

If Yes the following detail of the relationship is relevant




         And how do we avoid or mitigate any potential conflict in this relationship?
       Do we have a relationship with any Distribution channel that provides an Ownership,        Yes   No
                              financial interest or support service?

If Yes the following detail of the relationship is relevant




             And how do we avoid or mitigate any potential conflict in this relationship?




      Do we have a relationship with any other Person that provides an Ownership or financial     Yes   No
                                             interest?

If Yes the following detail of the relationship is relevant




             And how do we avoid or mitigate any potential conflict in this relationship?




Immaterial Financial interest
   It is generally accepted practice within our industry that "entertainment" and "gifts and
    incentives" collectively referred to as an immaterial financial interest in the Conflict of
  Interest regulations, are often provided by the product provider to the financial services
       provider (broker) and vice versa and potentially from and to other financial service
 providers. The Rand value of such interests are limited, by legislation, per calendar year, to
     R1, 000 in respect of any one individual be they the provider of or beneficiary of such
        immaterial financial interest. Such limitations are dealt with and managed by our
                                        management policy




A full copy of our overall conflict of interest management policy can be obtained from;
i)             Our website             www.*****.co.za
ii)            Our offices upon written request to *** @ *****.co.za
broker/uma/dist channel




broker
                             FAIS General Code of Conduct - Conflict of Interest - Immaterial Financial Interest Tracking

                                        Immaterial Financial Interest RECEIVED by us

The following level of control and record keeping are effective from 19/10/2010

financial interest (Type) means;
means any cash, cash equivalent (C), voucher (V), gift (G), service (S), advantage, (A) benefit (B), discount (D), domestic or foreign
travel (T), hospitality (H), accommodation (A), sponsorship (S), other incentive or valuable consideration (O)

     NB: Your policy may well set controls on what of the above may be accepted and/or provided without referral to management and therefore this list may need adapting
             Limit:       R1, 000 per representative per calendar year OR R1, 000 in total for the year if provided to the FSP itself
                                        NB: Add additional columns as required
     Year: 2010                                                                Rand spent on each Representative
                                                Rep 1                                               Rep 2                                    Provided to us as the FSP
        Month
                          Value (R)          Type           From whom           Value (R)        Type            From whom        Value (R)        Type       From whom
      January                  R                                                     R                                                   R
      February                 R                                                     R                                                   R
       March                   R                                                     R                                                   R
        April                  R                                                     R                                                   R
        May                    R                                                     R                                                   R
        June                   R                                                     R                                                   R
        July                   R                                                     R                                                   R
       August                  R                                                     R                                                   R
     September                 R                                                     R                                                   R
      October                  R                                                     R                                                   R
                               R                                                     R                                                   R
                               R                                                     R                                                   R
                               R                                                     R                                                   R
      November                 R                                                     R                                                   R
                               R                                                     R                                                   R
                               R                                                     R                                                   R
                               R                                                     R                                                   R
      December                 R                                                     R                                                   R
                               R                                                     R                                                   R
                               R                                                     R                                                   R
                               R                                                     R                                                   R
                You need to track per Rep per other FSP             You need to track per Rep per other FSP       You need to track per other FSP providing
  Totals      providing the immaterial financial interest per      providing the immaterial financial interest   the immaterial financial interest per calendar
                              calendar year                                    per calendar year                                     year




     Limit:   R1, 000 per representative per calendar year OR R1, 000 in total for the year if provided to the FSP itself
                          NB: Add additional columns as required


Year: 2011                                                      Rand spent on each Representative
                                  Rep 1                                             Rep 2                                Provided to us as the FSP
  Month
              Value (R)       Type           From whom          Value (R)        Type         From whom          Value (R)       Type         From whom
 January          R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
February          R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
  March           R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
  April           R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
   May            R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
  June            R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
                  R                                                   R                                              R
  July          R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
 August         R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
September       R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
 October        R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
November        R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
December        R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R
                R                                                R                                          R

              You need to track per Rep per other FSP          You need to track per Rep per other FSP
 Totals     providing the immaterial financial interest per   providing the immaterial financial interest       need total per period per FSP
                            calendar year                                 per calendar year
Conflict of
 Interest
   from                        FAIS General Code of Conduct - Conflict of Interest - Immaterial Financial Interest Tracking
2010'!A1
                                                     Immaterial Financial Interest PROVIDED by us

              The following level of control and record keeping are effective from 19/10/2010

              financial interest (Type) means;
              means any cash, cash equivalent (C), voucher (V), gift (G), service (S), advantage, (A) benefit (B), discount (D), domestic or foreign
              travel (T), hospitality (H), accommodation (A), sponsorship (S), other incentive or valuable consideration (O)
               NB: Your policy may well set controls on what of the above may be accepted and/or provided without referral to management and therefore this list may
                                                                                  need adapting
              Limit:       R1, 000 per representative per calendar year OR R1, 000 in total for the year if provided to the FSP itself
                                        NB: Add additional columns as required
     Year: 2010                                                            Rand spent by each Representative
                                                 Rep 1                                               Rep 2                                Provided to the FSP
       Month
                           Value (R)       Type        Person         FSP       Value (R)      Type        Person         FSP       Value (R)          Type   FSP
      January                   R                                                   R                                                    R
      February                  R                                                   R                                                    R
       March                    R                                                   R                                                    R
        April                   R                                                   R                                                    R
        May                     R                                                   R                                                    R
        June                    R                                                   R                                                    R
        July                    R                                                   R                                                    R
       August                   R                                                   R                                                    R
     September                  R                                                   R                                                    R
      October                   R                                                   R                                                    R
                                R                                                   R                                                    R
                                R                                                   R                                                    R
                                R                                                   R                                                    R
     November                   R                                                   R                                                    R
                                R                                                   R                                                    R
                                R                                                   R                                                    R
                                R                                                   R                                                    R
     December                   R                                                   R                                                    R
                                R                                                   R                                                    R
                                R                                                   R                                                    R
                                R                                                   R                                                    R
                                                                                                                  You need to track per other FSP
               You need to track per Rep per other FSP we       You need to track per Rep per other FSP we
                                                                                                                     you provide the immaterial
  Totals      provide the immaterial financial interest to per provide the immaterial financial interest to per
                                                                                                                  financial interest to per calendar
                              calendar year                                    calendar year
                                                                                                                                 year




     Limit:   R1, 000 per representative per calendar year OR R1, 000 in total for the year if provided to the FSP itself
                          NB: Add additional columns as required


Year: 2011                                                Rand spent by each Representative
                                  Rep 1                                            Rep 2                              Provided to the FSP
  Month
              Value (R)     Type       Person        FSP       Value (R)      Type       Person        FSP        Value (R)     Type        FSP
 January          R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
February          R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
  March           R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
  April           R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
   May            R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
  June            R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
                  R                                                R                                                 R
  July          R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
 August         R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
September       R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
 October        R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
November        R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
December        R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
                R                                                R                                                 R
                                                                                                                You need to track per other FSP
             You need to track per Rep per other FSP we       You need to track per Rep per other FSP we
                                                                                                                   you provide the immaterial
 Totals     provide the immaterial financial interest to per provide the immaterial financial interest to per
                                                                                                                financial interest to per calendar
                            calendar year                                    calendar year
                                                                                                                               year
C
V
G
Se
Ad
B
D
T
H
Ac
Sp
O
Confli
 ct of
Intere                        FAIS General Code of Conduct - Conflict of Interest - Immaterial Financial Interest Reporting tool Monthly Rep report
   st
 from

         The following level of control and record keeping are effective from 19/10/2010
         Limit:     Receive R1, 000 per representative per calendar year from a third party
                    Give       R1, 000 per representative per calendar year of a third party OR R1, 000 in total for the year if provided to the third party itself

         Definition:
         Third party means;

         (a)        a product supplier;
         (b)        another provider
         (c)        an associate of a product supplier or a provider
         (d)        a distribution channel
         (e)        any person who in terms of an agreement or arrangement with a person referred to in
                    paragraphs (a) to (d) above provides a financial interest to a provider or it's representatives"
         NB:        This list should ideally be personalised to the agencies/arrangements that are in place so it is better understood by staff


         financial interest (Type) means;
                     means any cash, cash equivalent (C), voucher (V), gift (G), service (S), advantage, (A) benefit (B), discount (D), domestic or foreign
                     travel (T), hospitality (H), accommodation (A), sponsorship (S), other incentive or valuable consideration (O)
         NB:        Your policy may well set controls on what of the above may be accepted and/or provided without referral to management and therefore this list may need adapting


               Year: 2010                Received by *************                                        Provided to another Rep                                   Provided to the FSP
                 Month           Value (R)    Type         From whom                   Value (R)        Type        Person                        FSP      Value (R)    Type          FSP
                                     R                                                     R                                                                   R
                                     R                                                     R                                                                   R
                October
                                     R                                                     R                                                                   R
                                     R                                                     R                                                                   R
                                     R                                                     R                                                                   R
                                     R                                                     R                                                                   R
               November
                                     R                                                     R                                                                   R
                                     R                                                     R                                                                   R
                                     R                                                     R                                                                   R
                                     R                                                     R                                                                   R
               December
                                     R                                                     R                                                                   R
                                     R                                                     R                                                                   R
                 You need to track per Rep per other FSP                                                                     You need to track per other FSP you provide
                                                                    You need to track per Rep per other FSP we provide the
  Totals       providing the immaterial financial interest per
                                                                       immaterial financial interest to per calendar year
                                                                                                                               the immaterial financial interest to per
                               calendar year                                                                                                calendar year




     Limit:   R1, 000 per representative per calendar year OR R1, 000 in total for the year if provided to the FSP itself

Year: 2011            Received by *************                                 Provided to another Rep                               Provided to the FSP
  Month       Value (R)    Type         From whom                Value (R)    Type        Person                   FSP       Value (R)    Type          FSP
                  R                                                  R                                                           R
                  R                                                  R                                                           R
 January
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
February
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
  March
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
  April
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
   May
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
                  R                                                  R                                                           R
  June
                  R                                                  R                                                           R
                  R                                                  R                                                           R
               R                                              R                                                            R
               R                                              R                                                            R
  July
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
 August
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
September
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
 October
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
November
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
               R                                              R                                                            R
December
               R                                              R                                                            R
               R                                              R                                                            R
              You need to track per Rep per other FSP                                                                  You need to track per other FSP you provide
                                                              You need to track per Rep per other FSP we provide the
 Totals     providing the immaterial financial interest per
                                                                 immaterial financial interest to per calendar year
                                                                                                                         the immaterial financial interest to per
                            calendar year                                                                                             calendar year
C
V
G
Se
Ad
B
D
T
H
Ac
Sp
O
Conflict of Interest from 2010'!A1
                                                                 Staff Conflict of Interest Questionnaire

              This questionnaire is an integral part of the companies Conflict of Interest management policy, a copy of which forms part of
            the documents supplied to you upon employment. The questionnaire is completed upon employment and at least annually but
             it is expected that any changes that occur in your personal circumstances are disclosed to us as they occur or you are aware
                                                           of changes that are about to take place

            Whilst our full policy contains all the required definitions the following have relevance for this questionnaire;

                  Third party
                                      Any product supplier (insurer), any other Financial Services Provider, any distribution channel
                                          (a company that provides assistance with the sale of insurance products to the greater
                                       financial industry) and any other person or company that has a relationship with companies
                                         within the financial industry (other than Suppliers and Services providers defined below)

                                             The suppliers of services within the insurance business e.g. Panel beaters, assessors,
            Service Providers                                           contractors, security companies

                   Supplier                  The suppliers of services or goods to the company outside the insurance business e.g.
                                                                            stationary, IT, accounting

                                       Any of the following relationships: Employer/Employee, Partnership, Owner, work for NGO's
            Other employment                                 Section 21 companies or community associations

                    Family             Spouse (legal, religious, civil union, life partner), Child (own/adopted/step), Parent (own/step
                                        and their spouses), Siblings (own, step), immediate next level of any of the former (Niece,
                                                              Nephew, Uncle, Aunt, Cousin) and Guardian/s,



                                     (i)           products and legal matters relating to those products;
             Financial Interest
                                     (ii)          general financial and industry information;
                                     (iii)         specialised technological systems of a third party necessary for the rendering of a
                                                   financial service;
                                                    but excluding travel and accommodation associated with that training;

            NB:        All answers given as Yes need to provide full details.
                       If there are any relationships that exist that you feel may not be covered by the above definitions or
                       the questions then please provide this information.


         1 Do you or any member of your family have any direct financial interest in any third party?                           Yes       No
           Details:




         2 Do you or any member of your family have any direct financial interest in any Service provider?                      Yes       No
           Details:




         3 Do you or any member of your family have any direct financial interest in any Supplier?                              Yes       No
           Details:
 4 Are you or any member of your family employed by any Third party?                                           Yes   No
   Details:




 5 Are you or any member of your family employed by any Service Provider?                                      Yes   No
   Details:




 6 Are you or any member of your family employed by any Supplier?                                              Yes   No
   Details:




 7 Do you have any other employment?                                                                           Yes   No
   Details:




 8 Are you or any member of your family a director of any Third Party?                                         Yes   No
   Details:




 9 Are you or any member of your family a director of any Service Provider?                                    Yes   No
   Details:




10 Are you or any member of your family a director of any Supplier?                                            Yes   No
   Details:




11     Have you or any member of your family received any financial interest from any Third Party within the   Yes   No
                                               past 12 months?
     Details:



12    Have you or any member of your family received any financial interest from any Service provider within   Yes   No
                                             the past 12 months?
     Details:



13 Have you or any member of your family received any financial interest from any Supplier within the past Yes       No
                                               12 months?
  Details:
      14                                                                                                               Yes   No
             Have you or any member of your family a current debtor - creditor relationship with any Third Party?
           Details:




      15                                                                                                               Yes   No
           Have you or any member of your family a current debtor - creditor relationship with any Service provider?
           Details:




      16                                                                                                               Yes   No
               Have you or any member of your family a current debtor - creditor relationship with any Supplier?
           Details:



      17         Do you have any relationship, including a financial one, with any member of management, any           Yes   No
                                  director/member, or other staff member of the company?
           Details:



      18                                                                                                               Yes   No
                                           Any other information you deem relevant?
           Details:




Declaration:

           I have read and fully understand the Companies Conflict of Interest Management policy

           I confirm that the information supplied is accurate and complete

           I undertake to advise the company of any changes to the provided detail or any other situation that may
           arise that could potentially be seen as a conflict of interest

           Name




           Signature




           Date
Conflict of Interest from 2010'!B29

            FAIS General Code of Conduct           -     Conflict of Interest Management Policy


            The Management policy has to be in place and readily available from 19/4/2011

            The Overview section of the PS Guidance Note provides a summary of the aspects that need
            to be dealt with in this policy. As the effective date for implementation is April 2011 it is
            suggested that the balance of the structures be "mapped" and the required controls
            implemented, the overall management policy can then be developed

            PS have supplied a draft format for the Management Policy but it must be remembered that
            this is a draft of a FORMAT and not for a policy. The management must set the standards,
            with the FAIS regulations being the minimum, and the format supplied being used as the
            structure for documenting YOUR policy.


            It is important to understand that the policy, it's implementation and effective controls will form
            part of the 2011 annual compliance report and with such a lead time there will be no excuse
            for this being a development item come 31/5/2011
Conflict of
 Interest
   from                                  Conflict of Interest Management Policy for GL Insurance Brokers CC
2010'!A1



              Management policy statement;

              GL Insurance Brokers CC recognises the importance of operating in an open and transparent manner in all aspects of the
              operations of the business, be they with our clients, our suppliers, our service providers or members of the greater business
              community within which we work, be they directly a part of the financial services industry or not. Whilst the legislative
              requirements may be the foundation for our policy is far more practical in it's application and takes basic business ethics as it's
              overall primary standard and objective. The Board of directors/members/ I personally take this policy as a statement that
              binds the ethics of the company.

              Signed


              Member

              Date              15          4      2011
To whom does this policy apply?

This policy is deemed to apply to all employees, which includes


i)         Members
ii)        Managers
iii)       Permanent staff
iv)        Contract and/or temporary staff

whether they be employed in the financial services sector or not.

What do we deem to be a Conflict of Interest?

The Financial Advisory & Intermediary Services Act (FAIS) gives us the foundation for our policy. It defines a conflict as;

"any situation in which a provider or a representative has an actual or potential interest that may,
in rendering a financial service to a client, -
           (a)         influence the objective performance of his, her or its obligations to that client; or
           (b)         prevent a provider or representative from rendering an unbiased and fair financial
                       services to that client, or from acting in the interests of that client,
including, but not limited to -
           (i)         a financial interest
           (ii)        an ownership interest
           (iii)       any relationship with a third party"
Where can these potential conflict situations arise within our business?

i)         With insurers with whom there is a business/ownership relationship

ii)        With other FSP's with whom there is a business/ownership relationship

iii)       With Distribution channels with whom there is a business/ownership relationship

iv)        With any other persons with whom there is a business/ownership relationship

v)         With any service providers with whom there is a business/ownership relationship

             Any of the above could be deemed Associate companies or 3rd party companies with whom we may
             have an ownership interest in them or by them. These companies, if applicable, are listed in separate
                                                    annexure to this policy.

vi)        With our staff as a result of employment contracts and remuneration polices

vii)       With any other relevant relationship that may exist within the company

How do we assess whether there are conflict situations within our business?

We have a management tool that assists in documenting the various relationships and arrangements that we
currently have in place, whether or not these create a conflict or potential conflict. If they do then a decision has
been taken as to whether these are to be avoided or mitigated and the decision recorded accordingly. These
sections are reviewed as part of the ongoing monitoring process followed by our external compliance officer and
forms the basis of an ongoing reporting strategy to both ourselves and should the need arise to the Financial
Services Board, the ultimate authority governing the financial services sector.


To assess what conflict situations we had we firstly identified all the situations that may have led to a conflict. This
was an initial once off exercise but our compliance policy is such that these key indicators are reviewed, at the very
least annually and BEFORE any new relationships is entered into because a new relationship may well demand
avoidance, mitigation steps or additional disclosures.
                                   The situations that we scrutinised included;


1 What Associate company relationships do we, or our staff, have?
                    i.e. In simple terms companies with whom there is a relationship based on common shareholding, management
                          control or family(in its widest context) members are involved and subsidiary or holding company status


2 What Third party relationships did we, or our staff, have?         These included;
  i         Product suppliers (insurers)      Including any of their associates
  ii        Other FSP's                       Including any of their associates
  iii       Distribution channels
  iv        Any other person who in terms of an agreement or arrangement with any of these provides a financial
            interest is due to us or one of our representatives, for example;
             Panel beaters
             Assessors
             Security companies
             Fitment centres
  v          Suppliers outside the insurance environment, for example;
             Stationary
             IT
             Accounting


3 Was there any ownership interest within these relationships?
           And would this create a conflict of interest?

4 Was there any financial interest paid from or to the entities within these relationships?
           And would this create a conflict of interest?

5 Was there any immaterial financial interest paid from or to the entities within these relationships?
           If so are we monitoring the frequency and extent?

6 What were our staff remuneration policies?

      The process allowed us to assess all of our relationships, including those of our staff and including financial
   aspects, and to document these fully. The data collected was then reviewed to see, if a potential conflict had been
             identified, and then we had to see how best to deal with this. The options open to us included;

             i)              Avoidance i.e. Take Away the situation that creates the conflict
                                                                 OR
             ii)             Mitigate i.e. Put measures in place that acknowledge the conflict situation but implement
                             measures to reduce its potential impact
                                                              AND/OR
             iii)            Disclosure i.e. Formally provide details of the situations that are there and what has been
                             done, if anything, about these to reduce or eliminate the situation itself
Any solution we have established could be a combination of all three e.g. Avoid some, Mitigate others and
Disclosure of what we have done and will continue to do.

Our general strategy was, where possible, to avoid such conflicts i.e. prevent them by physically removing the
conflict situation.
Where we could not avoid the conflict situation, actual or potential, needed to be mitigated i.e. we had to put
controls in place to reduce the likelihood of a conflict arising.
Where disclosure of conflicts, which includes potential ones, involved clients the standard adopted demands a
higher level of formality. It demands formal disclosure "at the earliest reasonable opportunity " which is deemed
to be when providing you with the initial advice/quote.
Our disclosures are clear, concise and effective, in our opinion although we constantly strive to ensure we are
achieving this lofty ideal.


Our disclosures include;
1         What conflicts we have
2         What measures we have been taken to avoid or mitigate these
3
          Financial interests (these are things we actually pay for that are made available by other FSP's or
          insurers as part of the relationships that exist) that may become due, These include vouchers, benefits,
          travel, hospitality, accommodation, sponsorships and other incentives.

5         Details of the relationships and/or arrangements that exist that create the (potential) conflict.
6         How to obtain our Conflict of Interest management policy.

What were the results of this process and it's ongoing monitoring?

We have summarised the results in 3 specific annexure, namely;

1         Management policy summary of our conflict situations and actions taken
2         Associates companies - a listing of all such companies
3         3rd Party companies with whom there is an ownership interest by ourselves and/or staff


How do we ensure this policy is understood and adhered to by all role players?
                                                                                                             ⁾
1   This policy has been developed in conjunction with and formally approved by management. The              ⁾
    adherence to and breaches of are a standing item on the board meeting agenda/management meetings.        ⁾
2   This policy is published within the company and is readily available to all staff, clients and other     ⁾

    interested parties                                                                                       ⁾
3   All staff have been provided with a copy of this policy and have been given awareness training by        ⁾
    our compliance department                                                                                ⁾
4   Compliance with this policy is an integral part of our employment contract and subject to review on      ⁾
    at least an annual basis. This includes a breaches of the policy are seen as an issue subject to the     ⁾
    companies disciplinary procedures.                                                                       ⁾
5   All staff complete and annually update a Conflict of Interest Questionnaire                              ⁾
6     All management and staff sign a formal declaration relating to the understanding of and agreement to   ⁾
                                                adhere to this policy
7   Our compliance program ensure a constant review of our standards which includes an obligation to
    report non compliance to the authorities if corrective action is not taken
Conflict of
 Interest
                                     Conflict of Interest Management Policy - Details of identified associated companies -
   from
                                                                      incl. those of our staff
2010'!A1


              Who is the Associate         Do we have a       Do they have a        Do we see this as a
                  company?                shareholding in   shareholding in us?     potential conflict?
                                              them?
              A product supplier                     No                  No                      No

                 Another FSP                         No                  No                      No
                A distribution
                                                     No                  No                      No
                   channel
               Any other person                      No                  No                      No
                 and brief details
ils of identified associated companies -
ur staff



                  If Yes what have we   Controls in place?
                      done about it?


                        Nothing            Not needed

                        Nothing            Not needed

                        Nothing            Not needed
                        Nothing
Conflict of
 Interest
               Conflict of Interest Management Policy - Details of 3rd party companies with ownership relationships.                      Incl
   from                                                             those of our staff
2010'!A1

              Who is the 3rd party?    Do we have a       Do they have a       Do we see this as a   If Yes what have we   Controls in place?
                                      shareholding in   shareholding in us?    potential conflict?       done about it?
                                          them?
              A product supplier                 No                  No                     No

                 Another FSP                     No                  No                     No
                 A distribution
                                                 No                  No                     No
                   channel
               Any other person                  No                  No                     No

                 and brief details
Conflict of
 Interest
   from                       Conflict of Interest Management Policy - Summary of other identified conflicts and corrective actions taken
2010'!A1

                                             Do we see this as a
                 Possible other conflicts
                                             potential conflict?    If Yes what have we done about it?                   Controls in place?
                       identified?

                 Staff receiving gifts,
                                               Yes                                                                    We rely on emplyee honesty
                vouchers and the like.                               The Employee needs to tell management
                 Staff providing gifts,
               vouchers and the like to
                                               Yes                                                                      managments discretion
                clients, third parties or
               associated companies.                                 Only managment are allowed to give gifts

                 Staff entertained by
               Associate or Third party                   No                                                            managments discretion
                     companies
                                                                           With managents permission


              Staff entertaining Associate
                                               Yes                                                                      managments discretion
               or Third party companies
                                                                           With managents permission
                   Staff employment
                                               Yes                                                                        Conflict of interest
                      elsewhere?                                                   Not Allowed

                         Others                Yes        No

                         Others                Yes        No

								
To top