CONFLICT OF INTEREST POLICY
In terms of the Financial Advisory and Intermediary Services Act, 2002, Johan Kotze Brokers is required to maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to identify, monitor and manage conflicts of interest. Johan Kotze Brokers has put in place a policy to safeguard its clients’ interests and ensure fair treatment of clients. The key information is summarised below.
2. Our objectives
Johan Kotze Brokers is an authorised financial services provider, providing to its clients advice and intermediary services on short-term insurance products. Like any financial services provider, Johan Kotze Brokers 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 conflicts.
3. Conflict of interest
Johan Kotze Brokers strives towards ensuring it is able to appropriately and effectively identify and manage potential conflicts. It may manage potential conflicts through avoidance, establishing confidentiality barriers or by providing appropriate disclosure of the conflict to affected clients.
In determining whether there is or may be a conflict of interest to which the policy applies, Johan Kotze Brokers considers whether there is a material risk of damage to the client, taking into account whether Johan Kotze Brokers 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 or group of clients 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 standard commission or fee for that service.
Our policy defines possible conflicts of interest as: conflicts of interest between Johan Kotze Brokers and the client; conflicts of interest between our clients if we are acting for different clients and the different interests conflict materially; holding confidential information on clients which, if we would disclose or use, would affect the advice or services provided to clients.
The measures Johan Kotze Brokers have adopted to manage identified conflicts are summarized below. We consider them appropriate to our efforts to take reasonable care that, in relation to each identified potential conflict of interest, we act impartially to avoid a material risk of harming clients’ interests.
Procedures: We have adopted appropriate procedures throughout our business to manage potential conflicts of interests. Our mandatories and employees receive guidance and training in these procedures and they are subject to monitoring and review processes.
Confidentiality barriers: Our mandatories and employees respect the confidentiality of client information and disclose or use it with circumspect. No such information may be disclosed to a third party without the written consent from a client.
Monitoring: The key individual in charge of supervision and monitoring of this policy will regularly provide feedback on all related matters.
Inducements: Inducements from third parties in relation to a service provided to clients are acceptable to Johan Kotze Brokers only if they are appropriately disclosed to clients and if it is either the payment of a normal fee or commission to continue the quality of our services to clients and does not impair our duty to act in the best interest of clients.
Gifts: Johan Kotze Brokers employees will not accept any gifts other than those considered normal in their line of business. Excessive gifts from clients may result in a conflict of interest, which we are committed to avoiding.
Disclosure: Where there is no other way of managing a conflict, or where the measures in place do not sufficiently protect clients’ interests, the conflict will 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.
Declining to act: We may decline to act for a client in cases where we believe the conflict of interest cannot be managed in any other way.
COMPLAINTS RULES AND PROCEDURE
1.Definition of a complaint
Section 1(1) of the Act (FAIS)
Complaint means a specific complaint relating to a financial service rendered by a financial services provider or representative to the complainant on or after the date of commencement of this Act, and in which complaint it is alleged that the provider or representative;
- has contravened or failed to comply with a provision of this Act and that as a result thereof the complainant has suffered or is likely to suffer financial prejudice or damage;
- has wilfully or negligently rendered a financial service to the complainant which has caused prejudice or damage to the complainant or which is likely to result in such prejudice or damage; or
- has treated the complainant unfairly.
2. Complaints Procedure
In terms of FAIS and the General Code of Conduct, this FSP formulated these rules and procedures regarding complaints.
- A complaints register has been implemented.
- Note the complaint in the register and import all data as stipulated in the register.
- The complaint must be lodged in writing with this FSP.
- Acknowledge receipt within 5 (five) days after receiving the complaint and inform the complainant of the details of the designated person who will handle the complaint.
- The designated person must investigate the complaint and determine whether it can be resolved immediately.
- If it can be resolved immediately, inform the client and take steps to rectify.
- If not resolved immediately, inform the complainant of the steps to be taken to investigate and/or resolve the complaint with a time frame.
- If not resolved within 4 (four) weeks after the complaint was registered, inform the client in writing thereof and inform him/her of the rights in terms of Rule 6 of the FAIS Act.
- The complainant can approach the office of the Ombud.
- The complainant has 6 (six) weeks after receiving the notice from this FSP to
Approach the Ombud with the complaint:
- Approach any other forum to resolve the complaint.
FINANCIAL SERVICE PROVIDER INFORMATION
Johan Kotze Brokers is registered with the Financial Service Board as an category 1 broker and therefore it’s representatives are authorised to provide advice regarding short-term insurance and sell personal and commercial short-term insurance products in the republic of South Africa.
Johan Kotze Brokers doesn’t receive more that 30% commission from any one insurer and also doesn’t hold any shares in any insurance company. We have a complaints resolution system in place as well as professional indemnity insurance cover.
Our commission income structure varies from 12.5% to 20% depending on which product was chosen. A policy fee of R12.00 is charged on monthly policies and R144.00 on annual policies.
Compliance officer: ComplySure CC, 45 Mossop Street, Onrusrivier, 7201
Tel: 028 3164286 | Fax: 0283164285 | Email: email@example.com
Ombudsman: P.O. Box 32334, Braamfontein, 2017
Tel: 011 726 8900 | Fax: 011 726 5501