In terms of the Financial Advisory and Intermediary Services Act, 2002, 33 Actuarial and Advisory (“the FSP”)
is required to maintain and operate effective organisational and administrative arrangements with a view to
taking all reasonable steps to identify, monitor and manage Conflict of Interest (“COI”). Section 3A(2)(a) of
the FAIS General Code of Conduct (“GCOC) stipulates that every financial services provider, other than a
representative, must adopt, maintain and implement a conflict of interest management policy that complies
with the provisions of the Act.
The purpose of this policy is to comply with these obligations and provide for mechanisms in place to
identify, mitigate and manage the conflicts of interest to which the FSP is a party. In addition, to ensure
alignment between the values of the organisation and the conduct of its people by safeguarding clients’
interests and ensuring the fair treatment of clients.
The FSP is committed to ensuring that all business is conducted in accordance with good business practice.
To this end, the FSP conducts business in an ethical and equitable manner and in a way that safeguards the
interests of all stakeholders to minimise and manage all real and potential conflicts of interests. Like any
financial services provider, the FSP is potentially exposed to conflicts of interest in relation to various
activities. However, the protection of our clients’ interests is our primary concern and so our policy sets out
how:
• we will identify circumstances which may give rise to actual or potential conflicts of interest entailing
a material risk of damage to our clients’ interests;
• we have established appropriate structures and systems to manage those conflicts; and
• we will maintain systems in an effort to prevent damage to our clients’ interests through identified
conflict of interest.
To achieve the objectives set out above, this policy sets out the rules, principles and standards of the FSPs
COI management procedures, by documenting them in a clear and understandable format.
This policy is applicable to the FSP, all providers of the FSP, key individuals, representatives, associates and
administrative personnel. The FSP is committed to ensuring compliance with this policy and the processes
will be monitored on an ongoing basis.
Any non-compliance with the policy will be viewed in a severe light. Non-compliance will be subject to
disciplinary procedures in terms of FAIS and employment conditions and can ultimately result in debarment
or dismissal as applicable.
Avoidance, limitation or circumvention of this policy via an associate will be deemed non-compliance.
Business structure: Private company (Pty Ltd)
Key Individuals: Eddie Theron
Representatives: Eddie Theron
Preferred product providers: Old Mutual, Allan Gray, Ninety One, Sygnia, Sanlam, Momentum, Liberty,
Brightrock, Portfoliometrix, Capital International, Just, PPS, Discovery, Hollard.
A COI means any situation in which the FSP or one of our representatives has an actual or potential interest
that may, in rendering a financial service to our clients -
• influence the objective performance of obligations to that client; or
• prevents us from rendering an unbiased and fair financial service, or
• prevents us from acting in the interests of that client.
An “actual or potential interest” includes but is no limited to:
• A financial interest, which includes any cash, cash equivalent, voucher, gift, service, advantage,
benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, valuable
consideration, other incentive or valuable consideration which exceeds R1000 per calendar year.1
• An ownership interest which means any equity or proprietary interest and any dividend, profit share
or similar benefit derived from that equity or ownership interest.
• Any relationship with a third party, meaning any relationship with a product supplier, other FSP’s,
an associate of a product supplier or an associate of the FSP. A third party also includes any other
person who, in terms of an agreement or arrangement, provides a financial interest to the FSP or its
representatives.
• An immaterial financial Interest, which is any financial interest with a determinable monetary value,
the aggregate of which does not exceed R 1 000 in any calendar year from the same third-party in
that calendar year received by –
o a provider who is a sole proprietor; or
o a representative for that representative's direct benefit;
o a provider, who for its benefit or that of some or all of its representatives, aggregates the
immaterial financial interest paid to its representatives;
The FSP and our representatives may only offer to and receive specific financial interests from a third party
which includes the following:
1. Commission as authorised under the Long-term Insurance Act (52 of 1998), the Short-term Insurance
Act (53 of 1998) and the Medical Schemes Act (131 of 1998).
1 Financial Interest excludes an ownership interest and Training, that is not exclusively available to a selected group of providers or representatives where that training is related to products and legal matters relating to (1) those products, (2)
General financial and industry information, (3) Specialised technological systems of a third party necessary for the rendering of a financial service, but excluding travel and accommodation associated with that training and (4) qualifying enterprise development contribution to a qualifying beneficiary entity.
2 It is important to note that where the same legal entity is a product supplier and FSP, this section does not apply to the
representatives of that entity. That entity is subject to the requirements set out in sections 4.4 of this report (FAIS GCOC
S3A(1)(b) and 3A(1)(bA) in respect of its representatives.
3 FAIS GCOC S3A. FAIS GCOC S1 “third party" means a product supplier, another provider, associate of a product supplier or a provider, a distribution channel and any person who in terms of an agreement or arrangement with a person referred to previously provides a financial interest to a provider or its representatives.
2. Fees as authorised under the Long-term Insurance Act (52 of 1998), the Short-term Insurance Act
(53 of 1998) and the Medical Schemes Act (131 of 1998).
3. “Other fees” specifically agreed to by the client and which can be stopped by the client at their
discretion but only if agreed in writing with the client, including details of the amount, frequency,
payment method and recipient of those fees, as well as the details of services to be provided in
exchange for the fees.
4. Fees or remuneration for services that were rendered to a third party.
5. An immaterial financial interest.
6. Any other financial interest not mentioned above for which a consideration, fair value or
remuneration that is reasonably commensurate is paid by that provider or representative, at the
time of receiving that financial interest.
The financial interest referred to in points 2, 3, and 4 above may only be offered or received by the FSP or
it’s representatives, if:
• The financial interests are proportionate (reasonably commensurate) to the service being rendered,
considering the nature of the service, the resources, skills and competencies that are reasonably
required to perform it.
• The payment of those financial interests does not result in the FSP or representative being
remunerated more than once for performing the same service.
• Any actual or potential conflicts between the interests of clients and the interests of the person
receiving those financial interests are effectively mitigated; and
• The payment of those financial interests does not impede the delivery of fair outcomes to clients.
The FSP may not offer any financial interest to a representative of that FSP –
• For 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.
• For giving preference to a specific product supplier, where a representative may recommend more
than one product supplier to a client
• That is determined with reference to the quantity of business, without also giving due regard to the
delivery of fair outcomes for clients.
In relation to delivery of fair outcomes for clients, the FSP must demonstrate that a determination of a
representative’s entitlement to a financial interest, considers measurable indicators, relating to the:
• Achievement of minimum service level standards in respect of clients
• Delivery of fair outcomes for clients; and
• Quality of the representative’s compliance with the FAIS Act.
The measurable indicators are agreed in writing between the FSP and its representative and sufficient weight
(significance) are attached to these indicators to materially mitigate the risk of the representative(s) giving
preference to the quantity of business secured for the FSP over the fair treatment of clients.
The FSP does not offer a sign-on bonus4 to any person, other than a new entrant5, as an incentive to become
a provider authorised or appointed to give advice.
4 This requirement is only applicable to CAT I providers that are authorised to give advice. Refer to the definitions section of this policy.
5 A person who has never been authorised as a financial services provider or appointed as a representative by any financial services provider.
The way in which the FSP remunerates it’s representatives and complies with these requirements, is set out
in section 6 of this policy.
To adequately manage COI, the FSP must identify all relevant conflicts timeously. In determining whether
there is or may be a COI to which the policy applies, the FSP considers whether there is a material risk of
unfair treatment or bias for the client, taking into account whether the FSP or its representative, associate
or employee:
• is likely to make a financial gain, or avoid a financial loss, at the expense of the client;
• has an interest in the outcome of a service provided to the client or of a transaction carried out on
behalf of the client, which is distinct from the client's interest in that outcome;
• has a financial or other incentive to favour the interest of another client, group of clients or any
other third party over the interests of the client;
• receives or will receive from a person other than the client, an inducement in relation to a service
provided to the client in the form of monies, goods or services, other than the legislated commission
or reasonable fee for that service.
Our policy defines possible conflict of interest or examples of conflict of interest as, inter alia,-
• between the FSP and the client.
• between our clients if we are acting for different clients and the different interests conflict
materially.
• where associates, product suppliers, distribution channels or any other third party is involved in the
rendering of a financial service to a client.
• storing confidential information on clients which, if we would disclose or use, would affect the advice
or services provided to clients.
All employees, including internal compliance officers and management, are responsible for identifying
specific instances of conflict and are required to notify the Key Individual of any conflicts they become aware
of. The Key Individual will assess the implications of the conflict and how the conflict should be managed,
acting impartially to avoid a material risk of harming clients’ interests.
To ensure that the FSP can identify, avoid and mitigate COI situations, the FSP creates awareness and
knowledge of applicable stipulations, through training and educational material. Where a COI situation
cannot be avoided, these instances are recorded on the FSP’s conflict of interest register.
The FSP ensures the understanding and adoption of the FSP’s conflict of interest policy and management
measures by all employees, representatives and associates through training on the COI policy.
The Key Individual will assess each conflict, including whether the conflict is actual or perceived, what the
value of the conflict or exposure is and the potential reputational risk. Compliance and management then
agree on the controls that need to be put in place to manage the conflict. Once a conflict of interest has
been identified it needs to be appropriately and adequately managed and disclosed, in line with the below
steps.
Where there is no other way of managing a conflict, or where the measures in place do not sufficiently
protect clients’ interests, the conflict must be disclosed to allow clients to make an informed decision on
whether to continue using our service in the situation concerned.
In all cases, where appropriate and where determinable, the monetary value of non-cash inducements will
be disclosed to clients. The Key Individual will ensure transparency and manage conflict of interests. The
client must be informed on the Conflict of Interest Policy and where they may access the policy.
The key individual or staff member in charge of supervision and monitoring of this policy will regularly
monitor and assess all related matters. The FSP will conduct ad hoc checks on business transactions to ensure
the policy has been complied with.
The Compliance Officer will include monitoring of the Conflict of Interest policy as part of his/her general
monitoring duties and will report thereon in the annual compliance report.
This policy shall be reviewed annually and updated if applicable. The compliance function is outsourced to
an external Compliance company with no shareholding in this FSP. The Compliance practice functions
objectively and sufficiently independently of the FSP and monitors the process, procedures and policies that
the FSP has adopted to avoids conflicts of interest.
Comprehensive training on the Conflict of Interest is provided to all employees and representatives as part
of specific and/or general training on the FAIS Act and GCOC.
Training will be incorporated as part of all new appointees’ induction. Ongoing and refresher training on the
FSP’s Conflict of Interest management processes and policy is provided on an annual basis.
With regard to existing third-party relationships, being the product suppliers listed in our Contact Stage
Disclosure letter, we confirm that there are no circumstances which could lead to a potential conflict of
interest. Should any conflicts arise with regard to any of these, prior to entering into any business transaction
with you, we undertake to disclose these in the registers below.
All gifts, financial interest, immaterial financial interest and any other COI situations as outlined in this policy,
must be recorded in the FSP’s COI register, attached as Annexure A.
This section of the Policy specifies the type of and the basis on which a representative of the FSP will qualify
for a financial interest that the FSP offers and motivates how that financial interest complies with the
requirements of this policy.
The FSP and its representatives earn their income in respect of financial services rendered from a) fees per
packaged service or fees per hour, or b) ongoing advice fees, or c) regulated commissions on risk products,
or d) a combination of these as agreed to by the client. These fees and/or commissions will always be
disclosed to clients.
Neither 33 Actuarial and Advisory or any of its representatives owns more than 10% of issued shares (directly
or indirectly) of any Life Assurer or Financial Product Supplier. 33 Actuarial and Advisory is not an associated company of any Life Assurer or Product Supplier, and does not earn more than 30% of its remuneration from
any Product Supplier.
The FSP caries out regular inspections on all commissions, remuneration, fees and financial interests
proposed or received in order to avoid non-compliance. This includes but is not limited to:
• Analysis of Management Information to identify trends and outliers.
We take pride therein that our advice is objective and free of external influence, but wish to disclose to you,
our valued client, that we have received the following financial interests and wish to disclose the value and
the reason for receiving the financial interests.
Date Version Detail of change or amendment Person Signature
10 January 2022 1 Original document Eddie Theron
Policy owner: Eddie Theron
(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 subparagraphs
(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. 69 of 1984),
means any member thereof as defined in section 1 of that Act;
(iii) which is not a company or a close corporation as referred to in subparagraphs (i) or (ii), means another
juristic person which would have been a subsidiary or holding company of the first-mentioned juristic
person–
(aa) had 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 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 person is not a company, of which the governing body is accustomed to act in accordance with the
directions or instructions of the person first-mentioned in this paragraph;
(ii) includes any trust controlled or administered by that person.
Fair Value
Has the meaning assigned to it in the financial reporting standards adopted or issued under the Companies
Act, 61 of 1973.
FSC Means the Financial Sector Code published in terms of section 9(1) of the Broad-Based Black Economic
Empowerment Act, (Act 53 of 2003), as amended from time to time
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, supports 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.
New Entrant
Is a person who has never been authorised as a financial services provider or appointed as a representative
by any FSP.
No-claim bonus means
Any benefit that is directly or indirectly provided or made available to a client by a product supplier in the
event that the client does not claim or does not make a certain claim under a financial product within a
specified period of time.
Measured Entity
Has the meaning assigned to it in the FSC insofar it relates to a qualifying enterprise development
contribution.
Qualifying Beneficiary Entity
Has the meaning contemplated in the FSC insofar as it relates to a qualifying enterprise development
contribution
Qualifying Enterprise Development Contribution
Has the meaning assigned to it in the FSC
Sign-On Bonus means
(a) any financial interest offered or received directly or indirectly, upfront or deferred, and with or without
conditions, as an incentive to become a provider; and
(b) a financial interest referred to in paragraph (a) includes but is not limited to–
(i) compensation for the–
(aa) potential or actual loss of any benefit including any form of income, or part thereof; or
(bb) cost associated with the establishment of a provider's business or operations, including the
sourcing of business, relating to the rendering of financial services; or
(ii) a loan, advance, credit facility or any other similar arrangement.
