Record of Advice and/ or Engagement (Long Term Insurance)

Record of Advice/ Engagement

• Name of Client

• Conducted on

  Date

• Prepared by

• Location
  Address

• Review Date:

  Date

• Reference:

• Confidentiality statement:
  All information provided by you is treated in terms of the strictest confidentiality. We will under no circumstances reveal this to any 3rd party without your written permission, unless we are obliged to do so, in terms of law.
  
  We are regularly audited by our Compliance Practice as well as the Financial Services Board. It may happen that your file is one of those which are audited to ensure compliance with prevailing legislation, and in this instance, your information will be made available to these persons. In turn, they are also bound by strict confidentiality restraints and ethics.
  
  Information: Protection of Personal Information Act
  The information which we require from you is specifically required to assess your financial needs/ situation, analyse, and make appropriate recommendations to you in the course of financial planning. We are required by law to maintain this information for a period of 5 years after the termination of our relationship with you as a minimum, however we prefer to keep our records permanently - and by accepting our services you agree to these terms.
  
  Please ensure that you regularly keep us updated with correct details. You are welcome to contact us at any time to review the information we have and ensure it is correct.
  
  Should you have any requests or complaints please forward these to us in writing and supply all relevant information regarding your request to us. Please also confirm whether or not this request is relevant to the Service Provider or to ourselves. Your request will be answered in due course, however as we rely on outside parties for most of relevant / requested information and documentation, we respectfully request that a reasonable time period is given in order for us to finalise and reply to your request.

Advisor to do:

To Do

• FICA applicable

  Yes

  No

• The following is still required

  Select ID required Address proof reqd Bank details Letter from spouse - address None

  • ID required
  • Address proof reqd
  • Bank details
  • Letter from spouse - address
  • None

Record of Advice/ Instruction/ General Meeting Notes

• In accordance with section 9 of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS) General Code of Conduct, a written record of advice / details of engagement is required detailing a financial transaction and providing a summary and basis of the advice provided or discussions held, and the information upon which an analysis was performed. This document is intended as a confirmation of the process that yu recently undertook with your advisor. By signing this document, you confirm:
  - a brief summary of your individual financial needs
  - the products considered based on your current financial needs
  - the final solution ( and if applicable, product) selected
  - reasons why this is expected to satisfy your need

  

Mandate and Special Instructions

• You hereby appoint the intermediary to act as your broker and provide you with the financial services below

  Yes

  No

• Only the services noted below will be provided, as per your mandate.

• Advice is deemed to be any recommendation, guidance or proposal of a financial nature. In terms of the mandate which you are providing here, the following is specifically required:

  Advice

  Information

  Instruction

• It is recommended that you complete and implement a recorded, financial plan before implementing any financial solution or product. If you choose to exclude any information from this analysis/ only provide an instruction, or elect not to have a financial needs assessment completed due to either lack of time or information, you may be at risk and you are advised to take particular care in the selection of any financial solution or product. Please indicate we are to provide you with:
  
  Advice, which also includes information
  Information only - no advice
  Follow a specific instruction without the provision of advice

Summary of Information

• Current financial services and product experience: As a financial services consumer, how knowledgeable are you about the products and services we are discussing? Selections:<br><br>Experienced: - You have previously taken out similar insurance or investments and understand the mechanics thereof, and are fully versed in respect of your financial needs.<br><br>Fair: - You have a general understanding of the products and your requirements, but still need guidance

  Inexperienced

  Fair

  Good

• What are your objectives?

• What is your financial situation: (needs/ budget)?

• Are there any particular requirements/ special needs we should focus on?

  No

  Yes

• Details:

Priorities and Needs

• It is important that you identify and note your requirements, in order of priority. Although every requirement should be addressed, it may happen that due to your current situation, only certain of these can be addressed at this stage and the balance will have to be addressed at a later stage

• Addressed and discussed?

  Yes

  No

• We recommend that these areas be discussed and analyzed going forward to enable us to provide your with a comprehensive financial service. As this is not going to be addressed, we remind you to take particular care in your final selection of product, service or solution.

• Is the focus of this discussion based on your personal needs, your business needs, or both?

  Personal

  Business

  Both

• Please rate each of the following business needs in order of priority

• Buy and Sell (exit strategies). Note: if you have recently amended your MOI, and you currently have a buy and sell agreement in place, this should be reviewed to ensure it aligns to your amended/ updated MOI (Memorandum of Incorporation)

  High

  Medium

  Low

• Key Person Replacement

  High

  Medium

  Low

• Business overheads expenses protection

  High

  Medium

  Low

• Loan account redemption planning

  High

  Medium

  Low

• Contingent Liability Planning

  High

  Medium

  Low

• Creditors Protection planning

  High

  Medium

  Low

• Employee benefits

  Yes

  No

  N/A

• Other: Detail

• Please rate each of the following personal needs in order of priority

• Life Cover - general

  High

  Medium

  Low

• Life cover for debt (such as bond cover)

  High

  Medium

  Low

• Disability/ Severe illness cover

  High

  Medium

  Low

• Planning for your retirement

  High

  Medium

  Low

• Medical aid/ Medical insurance

  High

  Medium

  Low

• Savings and investments

  High

  Medium

  Low

• Education funding

  High

  Medium

  Low

• Funeral cover which is immediately available

  High

  Medium

  Low

• Other: Detail

• Are there any areas which we specifically need to review at a later stage, or any additional information which we need to note here?

  Yes

  No

• Have all identified matters relating to your Will been addressed?

  Yes

  No

Savings and/or Investments

• Are savings and/or investments being considered?

  Yes

  No

• Reason for investing

• Did you select your own underlying fund/ investment vehicle/ portfolios?

  Yes

  No

• Funds/ investment vehicle selected

• Age/ risk period left to invest

• Single investment or recurring premium

  Single

  Recurring

  Both

• Amount to invest

• Investment period (this is the period where funds can remain untouched and without being accessed or required

• 0 - 1 year

• 1 - 3 years

• 3 - 5 years

• 5 years plus

• Are any guarantees required

  Yes

  No

• Percentage of capital you are willing to risk

• Do you require income from your investment

  Yes

  No

• Do you have funds available (other than this) which can be used to cover emergency costs and/ or expenses

  Yes

  No

• What would you rate your own risk appetite as?

  High

  Medium

  Low

• Have you elected to invest in a solution which differs to your assessed risk tolerance. If yes, explain.

  Yes

  No

• The proposed solution is the following, which has been identified as being an appropriate solution and aligned to my requirements

Solutions and/or products we considered to address your needs

• Was this done?

  Yes

  No

• We confirm that we did not provide you with any proposed solutions or recommendations but acted purely upon your instruction

• Solution and/ or recommendation to address the needs identified

Recommendation

Needs Identified

Proposed Solution

Products or solutions considered

Our recommendation

Reason for recommendation (eg. charges, affordability, preferred provider, service levels, product integrity)

• Product / Solution advantages/ limitations

  Select Financially sound Claims expediency Cost effective General Service Underwriting expedience Product structure other

  • Financially sound
  • Claims expediency
  • Cost effective
  • General Service
  • Underwriting expedience
  • Product structure
  • other

• Product/ solution advantages / limitations

• We have completed a due diligence on the recommended product provider<br>(a due diligence entails obtaining pertinent information from the Product Provider (insurance/ investment company. Going into 2014, this will be done for each provider with whom we hold a contract in order to satisfy ourselves that our recommendation to you is sound)

  Yes

  No

• We have completed a due diligence on the considered product/ solution<br>(a due diligence entails obtaining pertinent information from the Product Provider with specific reference to the products we recommend (insurance/ investment company. Going into 2014, this will be done for each provider with whom we hold a contract in order to satisfy ourselves that our recommendation to you is sound)

  Yes

  No

Changes, amendments or reasons for not following the recommendation (eg. limitations, counter offer, priority, affordability)

Important information highlighted and compliance confirmation

• Highlighted important information which you need to take particular note of?

  Yes

  No

• Detail: (special risks, tax implications, legislative restrictions, exclusions, consequences of replacement, counter offer, limitations)

Confirmation

• The solutions provided are in accordance with your mandate

• You were provided with a copy of the advisor's Statutory Notice/ Letter of Introduction which confirm that he/she is accredited and qualified to provide you with the service you require. This document contains contact details, details of product providers with whom the intermediary holds contracts, reference to the complaints and conflict of interest policy of the intermediary, as well as details of the compliance officer and relevant Ombuds

• You understand that the objectives of a needs analysis is to provide you with an analysis of your financial situation and/or needs, goals and situation, and to develop strategies to address these needs and/or goals. Any recommendations and/or solutions can impact on your broader financial objectives and situation. Where an analysis is not performed due to limited time or information, or where you decide not to follow the recommendations of the intermediary, the appropriateness of the service/ advice/ solution may be limited. In this instance, you are reminded to take particular care in your final decisions.

• The intermediary spent time in obtaining information from you in order to conduct an analysis and provide you with a recommendation

• Product quotations were disclosed and explained where necessary, and the principal terms and conditions explained. In particular the following was noted: costs and charges, commissions, any penalties (if applicable), liquidity limitations (if applicable), product provider details, benefits and limitations, risks

• Selected quotes were initialed on every page and signed as an indication of this being understood and accepted

• Product information was disclosed and explained where necessary, to ensure that you adequately understand, and the principal terms and conditions explained. In particular the following was noted: costs and charges, commissions, any penalties (if applicable), liquidity limitations (if applicable), product provider details, benefits and limitations, risks, fund facts (in the event of savings/ investment). These are understood sufficiently to enable you to make an informed decision

• Investment/ savings solutions were provided

  Yes

  No

• Your risk was profiled in order to assess the most appropriate solution and portfolio

  Yes

  No

  Self selected

• Assumptions such as rate of return and inflation rates were explained and the assumptions appear reasonable

• Product information was disclosed and explained where necessary, to ensure that you adequately understand, and the principal terms and conditions explained. In particular the following was noted: costs and charges, commissions, any penalties (if applicable), liquidity limitations (if applicable), product provider details, benefits and limitations, investment risks, performance, fund facts, underlying investment instruments. These are understood sufficiently to enable you to make an informed decision

• The consequences of investing in a risk profile different to that of your needs has been explained

  Yes

  No

  N/A

• Separate disclosures of fees has been done, including the amount and frequency thereof, the recipient, services for which each fee was charged (investments - frequency, performance measurement period, benchmarks of performance related fees, platform fees, rebates)

• The solutions are a replacement. A replacement is any change in an existing plan/ investment/ policy, which is made in order to effect a new plan/ investment /policy.

  Yes

  No

• Section 8(1)(d) of the General Code of Conduct regulates the information to which you are entitled in the event of a replacement The financial implications, costs and possible consequences of replacement (such as exclusions/ loss of guarantees/ exclusions etc.), as well as other options, were disclosed in order to allow you to make an informed decision. A summary of this is attached and forms part of this record of advice/engagement

• Fees and charges - differences:

• Special terms and conditions, exclusions of liability, waiting periods, loadings, penalties, excesses, restrictions or circumstances in which benefits will not be provided, which may be applicable to the replacement product:

• Impact of health and/or age

• Differences in tax implications

• Material difference between investment risk of the replaced and replacement product

• Penalties or unrecovered expenses due to the replacement

• Vested rights, minimum guaranteed benefits or other guarantees or benefits which will be lost

• To what extent is the replacement product readily realisable (convertible to cash)

• Any incentive, remuneration, consideration, commission, fee or brokerage received where the intermediary has rendered financial services on both the replaced and replacing products

• The replacement is deemed more suitable than modifying or retaining the existing product of the following reasons:

• Agreed date to review (this is on the frontpage)

• All documentation was fully complete prior to your signing same. Caution: no person may request you to sign any document which has not been completed. You are advised to review information to ensure that it is correct, before signing anything.
  
  The accuracy and completeness of the information provided by you remains your responsibility. It has been brought to your attention that any non-disclosure or incorrect information provided to a product provider, can result in claims repudiations, loss of benefits and/or inappropriate products being recommended, as these are completely reliant on the information which you provide.
  
  Notwithstanding the information provide by the intermediary, you understand that you also have an obligation to familiarize yourself with the implemented solutions and will direct any enquiries to the intermediary should you be unclear or require assistance
  
  Documentation review: all documentation received by you from our offices or that of the product provider should be carefully read, understood and retained. Any areas requiring clarification should be addressed with your intermediary
  
  You are advised as to your freedom of choice entitlement. You confirm that you have not been coerced or induced to waive or forego any right in respect of this engagement.

• Select date

  Date

• Full names and signature

  Sign

• Intermediary

  Sign