We’re all about compliance and doing things by the book. Take a look at the rules and regulations we abide by, for the benefit of your business.

Please read these Terms and Conditions (“Terms”) carefully before using the Monitor Administrators (Pty) Ltd website / Broker Portal (the “Service”).

Your access to and use of the Service is conditioned on your acceptance of and compliance with these Terms. These Terms apply to all visitors, users and others who access or use the Website or Service.

By accessing or using the Service you agree to be bound by these Terms. If you disagree with any part of the terms then you may not access the Service.

Copyright

Content published on this website (digital downloads, images, texts, graphics, logos) is the property of Monitor Administrators (Pty) Ltd and/or its content creators and protected by international copyright laws. The entire compilation of the content found on this website is the exclusive property of Monitor Administrators (Pty) Ltd with copyright authorship for this compilation.

Links to other Web Sites

Our Service may contain links to third-party web sites or services that are not owned or controlled by Monitor Administrators (Pty) Ltd.

Monitor Administrators (Pty) Ltd has no control over, and assumes no responsibility for, the content, privacy policies, or practices of any third party web sites or services. You further acknowledge and agree that Monitor Administrators (Pty) Ltd shall not be responsible or liable, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with use of or reliance on any such content, goods or services available on or through any such web sites or services.

Advice or Offer

Nothing on this Site should be construed as a solicitation, offer, advice, recommendation, or any other service by the Company for you to acquire or dispose of any insurance or investment or to engage in any other insurance, investment or transaction.

Electronic Communication

The contents of any electronic communication and any attachments relating to the official business of the Monitor Administrators (Pty) Ltd and its subsidiaries, divisions or associates are proprietary to the Company. The information is confidential, legally privileged and protected by law.

The information is intended for the use of the addressee of the mail and if you have received a message in error, please notify the sender immediately. If you are not the intended recipient of the message, you must not disseminate, copy, review, disclose, distribute, retransmit, reproduce, use or take any action in reliance on it and immediately delete such information. The views and opinions are those of the sender and do not represent the Company’s views and opinions, nor constitute, any commitment by or obligation on the Company, unless expressly stated or agreed to in writing by the Company.

The Company does not accept liability or legal responsibility for the contents of the electronic communication, its non-delivery or incorrect delivery for whatever reason, its effect on electronic equipment and or infrastructure or its transmission in an unencrypted medium. All possible precautions to safeguard electronic communication as correct have been taken. However, this does not guarantee that the integrity of any communication has been maintained, nor that the communication is free of errors, viruses, interception or interference.

Although believed to be free of damaging code, accurate and complete, responsibility for any loss or cost arising from its receipt or use or its incomplete or inaccurate transmission is hereby excluded to the fullest extent possible.

In the event of the user sending or receiving communication to or from the Company, the user consents to sending or receiving the communication in electronic form, and that such electronic communication, notices, disclosures, contracts satisfies all legal requirements, including but not limited to the requirement that such communication should be in writing, and in particular such communication complies with Section 12 of the Electronic Communications and Transaction Act 25 of 2002 (“the Act”). Moreover the terms and conditions set out in this document shall, where applicable, be deemed to form part of any communication in terms of Section 11 of the Act.

User Account

If you are an owner of an account on this website, you are solely responsible for maintaining the confidentiality of your private user details (username and password). You are responsible for all activities that occur under your account or password. We reserve all rights to terminate accounts, edit or remove content.

Caution

Any attempt by any person to damage this site or undermine its operation may be a violation of criminal or civil laws. The Company will prosecute any such person, and reserves the right to seek damages from any such person to the full extent of the law.

Governing Law

If any dispute arises in connection with this website, that dispute will be governed by and resolved in terms of the laws of the Republic of South Africa.

Changes

We reserve the right, at our sole discretion, to modify or replace these Terms at any time. If a revision is material we will try to provide at least 30 days’ notice prior to any new terms taking effect. What constitutes a material change will be determined at our sole discretion.

Contact Us

If you have any questions about these Terms, please contact us – monitor@monitorsa.co.za

Copyright © Monitor Administrators (Pty) Ltd – All Rights Reserved.

Monitor Administrators (Pty) Ltd – Reg. No. 2003/004608/07 Authorised Financial Services Provider – 17824

TCF Mission Statement:

At Monitor Administrators, we understand the importance of enhanced transparency and discipline to increase customer confidence in order to support the sustainability of this industry. We therefore embrace the fact that all customers need to be treated fairly and this is entrenched in our culture and business practices.

TCF Principles

The principles as implemented by the company are set out below:

  • The fair treatment of customers is central to Monitor Administrators’ culture. At all times we render services honestly, fairly, with integrity and in the interests of the client.
  • Products and services marketed and sold by Monitor Administrators are designed to meet the needs of identified customer groups and targeted accordingly. We inform our intermediaries of our target market for all our products and undertake required portfolio analysis.
  • Monitor Administrators customers are given clear information and kept appropriately informed before, during and after the time of contracting. We maintain systems and procedures to ensure that any communication, verbal or written, is recorded appropriately, is retrievable and safe from destruction.
  • Where customers receive advice, the advice is suitable and takes into account the customers circumstances. Our advice, when given, is based on the product and the customer’s circumstances/needs and we ensure that it is understandable.
  • Monitor Administrators products perform as we have led our customers to expect and our service is of an acceptable standard in line with our customers’ expectations. We promote staff education/training and product awareness.
  • At Monitor Administrators, we endeavour to avoid any unreasonable post sale barriers to make changes to a product, switch provider, submit a claim or make a complaint. We provide regular transparent customer communications and distribution strategies; we manage customer expectations and claims handling practices with integrity and fairness.
FAIS – Financial Advisory and Intermediary Services Act, 37 of 2002 (‘the Act’). As a registered financial service provider, Monitor Administrators is subject to the Act.
  1. The primary aim of the Act is to protect you, our client, against improper conduct by financial service providers (FSPs).
  2. The Act makes provision for FSPs to be licensed and authorised through a government-appointed regulatory body, the Financial Sector Conduct Authority (FSCA, previously known as the Financial Services Board or FSB). The FSCA will provide you with the right of recourse should the FSP not comply with the Act.
  3. The FSB regulates members of the industry in the way they provide advice, as well as related intermediary services such as processing your insurance claims, in terms of certain financial products as defined by the Act.
  4. The FSP’s licence must be prominently displayed.
  5. The Act allows for an FSP to employ a representative under contract, to render services or give advice relating to a financial product. Representatives are not required to be licensed individually, but because they are employed by a licensed FSP, they are required to comply with certain ‘fit and proper’ requirements.
  6. FSP’s are managed by key individuals, who bring both technical competence in a particular financial product category and managerial skills to their organisations.
FSP’s with multiple key individuals or representatives are required to appoint a compliance officer, who has a set of responsibilities in terms of the Act to ensure that their organisations adhere to certain basic principles when rendering services in respect of financial products. These principles contain provisions relating to the following basic categories of information:
  1. Adequate disclosure of relevant material information to you
  2. Disclosure of actual and potential own interests to you
  3. Adequate and appropriate record keeping
  4. Avoidance of fraudulent and misleading advertising, canvassing and marketing
  5. Proper safekeeping, separation and protection of your funds and transaction documents
  6. Suitable and adequate guarantees, professional indemnity or fidelity insurance cover.

The Office of the Ombud for Financial Services Providers (‘FAIS Ombud’) was established by the FAIS Act. The FAIS Ombud’s role is to resolve disputes between financial services providers and their clients in a procedurally fair, informal, economical and expeditious manner.

The FAIS Ombud‘s jurisdiction is limited to violations which occurred on or after 30 September 2004 and to claims not exceeding R800 000.00.

For more information please see the following links:
www.fsb.co.za 
www.faisombud.co.za

Data Protection Policy

Context and Overview
Introduction

Monitor Administrators (Pty) Ltd needs to gather and use certain information about individuals.
These can include customers, suppliers, business contacts, employees and other people with whom the organisation has a relationship or may need to contact.
This policy describes how this personal data must be collected, handled and stored to meet the company’s data protection standards — and to comply with the law.

Why this policy exists

This data protection policy ensures Monitor Administrators:

  • Complies with data protection law and follow good practice
  • Protects the rights of staff, customers and partners
  • Is open about how it stores and processes individuals’ data
  • Protects itself from the risks of a data breach
Data Protection Law

The Protection of Personal Information Act 4 of 2013 (POPI) describes how organisations — including Monitor Administrators must collect, handle and store personal information.
These rules apply regardless of whether data is stored electronically, on paper or on other materials. To comply with the law, personal information must be collected and used fairly, stored safely and not disclosed unlawfully.

The POPI Act is underpinned by the following principles and states that personal data:

  1. Be processed fairly and lawfully
  2. Be obtained only for specific, lawful purposes
  3. Be adequate, relevant and not excessive
  4. Be accurate and kept up to date
  5. Not be held for any longer than necessary
  6. Processed in accordance with the rights of data subjects
  7. Be protected in appropriate ways
  8. Not be transferred outside South Africa, unless that country or territory also ensures an adequate level of protection
People, Risks and Responsibilities Policy Scope

This policy applies to:

  • The head office of Monitor Administrators
  • All branches of Monitor Administrators
  • All staff and volunteers of Monitor Administrators
  • All contractors, suppliers and other people working on behalf of Monitor Administrators

It applies to all data that the company holds relating to identifiable individuals, even if that information technically falls outside of the POPI act. This can include:

  • Names of individuals
  • Postal and Physical addresses
  • Email addresses
  • Telephone numbers
  • ID and Passport numbers
  • …plus any other information relating to individuals
Data Protection Risks

This policy helps to protect Monitor Administrators from some very real data security risks, including:

  • Breaches of confidentiality. For instance, information being given out inappropriately.
  • Failing to offer choice. For instance, all individuals should be free to choose how the company uses data relating to them.
  • Reputational damage. For instance, the company could suffer if hackers successfully gained access to sensitive data.
Responsibilities

Everyone who works for or with Monitor Administrators has some responsibility for ensuring data is collected, stored and handled appropriately.

Each team that handles personal data must ensure that it is handled and processed in line with this policy and data protection principles.

However, these people have key areas of responsibility:
The board of directors is ultimately responsible for ensuring that Monitor Administrators meets its legal obligations.

The Technical Director, is responsible for:
  • Keeping the board updated about data protection responsibilities, risks and issues.
  • Reviewing all data protection procedures and related policies, in line with an agreed schedule.
  • Arranging data protection training and advice for the people covered by this policy.
  • Handling data protection questions from staff and anyone else covered by this policy.
  • Dealing with requests from individuals to see the data Monitor Administrators holds about them.
  • Approving any data protection statements attached to communications such as emails and letters.
The IT manager, is responsible for:
  • Ensuring all systems, services and equipment used for storing data meet acceptable security standards.
  • Performing regular checks and scans to ensure security hardware and software is functioning properly.
  • Evaluating any third-party services the company is considering using to store or process data. For instance, cloud computing services.
The Managing Directoris responsible for:
  • Addressing any data protection queries from journalists or media outlets like newspapers.
  • Where necessary, working with other staff to ensure marketing initiatives abide by data protection principles.
General staff guidelines
  • The only people able to access data covered by this policy should be those who need it for their work.
  • Data should not be shared informally. When access to confidential information is required, employees can request it from their line managers.
  • Monitor Administrators will provide training to all employees to help them understand their responsibilities when handling data.
  • Employees should keep all data secure, by taking sensible precautions and following the guidelines below.
  • In particular, strong passwords must be used and they should never be shared.
  • Personal data should not be disclosed to unauthorised people, either within the company or externally.
  • Data should be regularly reviewed and updated if it is found to be out of date. If no longer required, it should be deleted and disposed of.
  • Employees should request help from their line manager or the data protection officer if they are unsure about any aspect of data protection.
Data storage

These rules describe how and where data should be safely stored. Questions about storing data safely can be directed to the Technical Director or data controller. When data is stored on paper, it should be kept in a secure place where unauthorised people cannot see it.

These guidelines also apply to data that is usually stored electronically but has been printed out for some reason:

  • When not required, the paper or files should be kept in a locked drawer or filing cabinet.
  • Employees should make sure paper and printouts are not left where unauthorised people could see them, like on a printer.
  • Data printouts should be shredded and disposed of securely when no longer required.
  • When data is stored electronically, it must be protected from unauthorised access, accidental deletion and malicious hacking attempts.
  • Data should be protected by strong passwords that are changed regularly and never shared between employees.
  • If data is stored on removable media (like a CD, DVD, flash drive etc), these should be kept locked away securely when not being used.
  • Data should only be stored on designated drives and servers, and should only be uploaded to an approved cloud computing services.
  • Servers containing personal data should be sited in a secure location, away from general office space.
  • Data should be backed up frequently. Those backups should be tested regularly, in line with the company’s standard backup procedures.
  • Data should never be saved directly to laptops or other mobile devices like tablets or smart phones.
  • All servers and computers containing data should be protected by approved security software and a firewall.
Data use

Personal data is of no value to Monitor Administrators unless the business can make use of it.
However, it is when personal data is accessed and used that it can be at the greatest risk of loss, corruption or theft:

  • When working with personal data, employees should ensure the screens of their computers are always locked when left unattended.
  • Personal data should not be shared informally. In particular, it should never be sent by email, as this form of communication is not secure.
  • Data must be encrypted before being transferred electronically.
  • Employees should not save copies of personal data to their own computers. Always access and update the central copy of any data.
Data accuracy

The law requires Monitor Administrators to take reasonable steps to ensure data is kept accurate and up to date. The more important it is that the personal data is accurate, the greater the effort Monitor Administrators should put into ensuring its accuracy.

It is the responsibility of all employees who work with data to take reasonable steps to ensure it is kept as accurate and up to date as possible.

  • Data will be held in as few places as necessary. Staff should not create any unnecessary additional data sets.
  • Staff should take every opportunity to ensure data is updated. For instance, by confirming a customer’s details when they call.
  • Monitor Administrators will make it easy for data subjects to update the information Monitor Administrators holds about them.
  • Data should be updated as inaccuracies are discovered. For instance, if a customer can no longer be reached on their stored telephone number, it should be removed from the database.
Subject Access Requests

All individuals who are the subject of personal data held by Monitor Administrators are entitled to:

  • Ask what information the company holds about them and why.
  • Ask how to gain access to it.
  • Be informed how to keep it up to date.
  • Be informed how the company is meeting its data protection obligations.
Disclosing data for other reasons

In certain circumstances, the POPI Act allows personal data to be disclosed to law enforcement agencies without the consent of the data subject.

Under these circumstances, Monitor Administrators will disclose requested data. However, the company will ensure the request is legitimate, seeking assistance from the company’s legal advisers where necessary.

Providing information

Monitor Administrators aims to ensure that individuals are aware that their data is being processed, and that they understand:

  • How the data is being used
  • How to exercise their rights
  • To these ends, the company has a privacy statement, setting out how data relating to individuals is used by the company.

Please click here to download a copy of the Act.

The Code of Banking Practice (“COBP”) is a voluntary code, setting out the minimum standards for service and conduct customers can expect from the bank, and how the bank would like to relate to customers. Monitor Administrators make use of a debit order system and is therefore directly responsible for instructions given to your bank regarding the payment of insurance premiums.

The Code will be a guide for customers to better understand their rights and responsibilities as well as the bank’s responsibilities in serving customers.

Monitor Administrators is committed to meeting the standards set out in this Code. Our relationship with customers will be guided by four key principles, namely fairness, transparency, accountability and reliability.

  1. The Code aims to promote good banking practices by setting minimum standards for banks when dealing with their customers.
  2. Increase transparency so that customers can have a better understanding of what they can reasonably expect of the banks’ products and services.
  3. Promote a fair and open relationship between banks and their customers.
  4. Foster confidence in the banking system.

Although the COBP is based on self-regulation and exists as a voluntary code of conduct, there is other legislation, which has an impact on the relationship between a bank and its clients, and therefore has an impact on the COBP.

Copies of the Code are available from us and from The Banking Association South Africa. You can also view the Code on The Banking Association’s website at www.banking.org.za or on your bank’s website.

The contact details of the relevant Ombudsman services appear on The Banking Association’s website and in section 10 of the Code.
South Africa has implemented a law that is designed to combat money laundering, which is the abuse of financial systems in order to hide and/or disguise the proceeds of crime. This law is known as the Financial Intelligence Centre Act 28 of 2001, also referred to as FICA.

FICA creates money laundering control obligations for financial institutions and professionals, such as banks, estate agents, brokers, attorneys and insurance companies.

Customer identification is a crucial element of any effective money laundering control system. We must implement reasonable measures for us to know who our customers are and to prevent criminals from using false or stolen identities to gain access to our services. As such, Monitor Administrators is obliged by FICA to report any suspicious financial requests or transactions to the Financial Intelligence Centre.

For more information please visit:
www.fic.gov.za

Monitor Adminitrators (PTY) LTD – Complaints Resolution Policy
Please note that complaints resulting from advice provided by an independent broker or another financial services provider (e.g. retail company) must NOT be referred to Monitor Administrators as this responsibility would fall on the broker or financial services provider concerned.

Please note that this Complaints Resolution Policy mainly relates to complaints regarding improper or inappropriate advice given by Monitor Administrators or its employees during the marketing and sales process. This policy does not relate to complaints regarding claims.

1. Protection of Consumers

The Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS Act) protects consumers by regulating the financial advice and intermediary services provided by a Financial Services Provider (FSP), this ensures that consumers are adequately informed about both the products they purchase and the product suppliers, thus enabling them to make informed decisions.

2. Regulation of Advice-Giving Activities

The FAIS Act requires that members appearing on the FSCA register to be equipped with the necessary skills, qualifications and experience (‘fit and proper’ requirements) to provide a financial service suited to the client’s needs. Likewise, the key individuals of Monitor Administrators have to comply with similar fit and proper requirements in order for Monitor Administrators to maintain its FAIS licence.

3. Transparency

In terms of the FAIS Act, Monitor Administrators must:
– Disclose to the client that it holds a licence to provide such service;
– Provide all the necessary information regarding the product and the supplier;
– Where appropriate and where advice was given directly to the client, provide details of remuneration.

4. Consumer Platform for Complaints

The FAIS Act also provides consumers with a platform to address their complaints in a fair and procedural manner. In terms of the Act, a complaint must relate to a financial service rendered by Monitor Administrators to the complainant, in which it is alleged that Monitor Administrators;
– has contravened or failed to comply with the FAIS 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.

5. Complaint – Defined

“… 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;”
Some guidelines and examples:

– If there are allegations that no quote or no disclosures were shown when the policy was taken out;
– Complaints about not knowing the structure of the product before taking it out;
– Complaints about not having received the policy document and therefore not knowing the features of the product;
– Negligence or delay on Monitor Administrators’ part in issuing the policy or effecting a policy change which led to financial loss;
– Complaint about not being advised of the effect that a particular change would have on the policy;
– Complaint that confidential information regarding a client was disclosed to a third party without the client’s consent;
– The client alleging that they signed or were asked to sign a blank document.

“… 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;”
Some guidelines and examples:
1. Complaint that the incorrect product was sold to the client;
2. Complaint that a product was sold without the client’s knowledge;
3. Complaint that Monitor acted without the client’s knowledge/consent e.g. Cancelled a policy without the client’s knowledge/consent;
Effected any policy change without the client’s knowledge/consent which caused prejudice to the client or;
Effected any change contrary to the client’s instructions.

4. Monitor Administrators having system problems and as a result the client is prejudiced;
5. Monitor not acting timeously on the reasonable instruction of the client, as a result of which the client was prejudiced.

“… has treated the complainant unfairly;”

Some guidelines and examples:
– Complaints that the client has been pushed from pillar to post without resolution;
– Complaints about rude behaviour;
– Complaints that a previous complaint was not handled fairly and objectively;
– Complaints that different staff provided different information when contacted about the same issue;
– Complaints that the provider promised to do one thing and then did another.

6. Monitor Administrators will deal with complaints resulting from advice provided by its:

Key individuals
Appointed representatives (internal staff/employees)

To qualify as a FAIS complaint, the answer to one of the following questions must be “yes”:
1. Has Monitor Administrators contravened or failed to comply with any provision of the FAIS Act, and that as a result thereof, the complainant has suffered or is likely to suffer financial prejudice or damage?
2. Has Monitor Administrators 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?
3. Has Monitor Administrators treated the complainant unfairly?

You will need to complete the complaint notification form, providing as much information as possible and attach copies of any relevant documentation.
This must then be posted or e-mailed to :

The Complaints Manager, Monitor Administrators (Pty) Ltd, PO Box 467, Kloof, 3630
Tel: (031) 818 0000
E-mail: monitor@monitorsa.co.za

Monitor Administrators (Pty) Ltd compliance officer can also be contacted as follows:

Independent Compliance Solutions,
Debbie Smith
Tel: 0725508238
You may expect a written response, within 36 hours of receipt of the written complaint, providing you with details of the person who will be considering your complaint and how your complaint will be handled.
You may expect a resolution of the complaint within 30 days.

If you are of the opinion that your complaint has not been adequately dealt with you may contact:

Ombudsman for Short Term Insurance

Postal Address: PO Box 32334, Braamfontein, 2017
Tel: +27 11 726 8900
Fax: +27 11 726 5501

Monitor will, on an ongoing basis, investigate the nature of complaints received and ensure that preventative measures are put in place, to avoid future occurrence of similar and other complaints.

7. The FAIS Ombudsman

The FAIS Ombudsman’s objective is to consider and dispose of complaints in a procedurally fair, informal, economical and expeditious manner with reference to what is equitable in all circumstances.

He will only proceed to investigate an officially received complaint once he has notified all interested parties of the particulars of the complaint in writing, and is satisfied that all parties are provided with the opportunity to submit a response.

The contact details of the FAIS Ombudsman are:

Physical address:

Sussex Office Park
Ground Floor, Block B
473 Lynnwood Road
cnr Lynnwood Road and Sussex Avenue
Pretoria
0081

Postal address:
P.O. Box 74571
Lynnwood Ridge
0040

Monitor Administrators (PTY) LTD – PAIA Manual

Please click here to download the Monitor Administrators PAIA Manual.

Conflicts of interest as provided for in the General Code to the Financial Advisory and Intermediary Services Act (Act 37 of 2002) (“FAIS Act”) and described in more detail in Board Notice 58 of 2010 issued by the FSCA.


Table of Contents

Chapter 1 Conflicts of Interest
  1. Purpose of policy
  2. Definition of conflict of interest
  3. Definitions contained in the General Code of Conduct
  4. Objectives with the policy
  5. Management statement on conflicts of interest
  6. Application of the definition contained in the General Code
  7. Dealing with conflicts of interest – 2003 General Code
  8. Dealing with conflicts of interest – 2010 BN 58
  9. Control measures
  10. Receipt of gifts
  11. Consequences of non-compliance
Chapter 2 Responsible Person

Appointment of person responsible for oversight over policy

Chapter 3 Documentation

Registers and forms required to facilitate functioning of policy


Chapter 1: Conflicts of Interest

1. Purpose of the policy

The General Code of Conduct for Financial Services Providers (FSP’s)requires financial services providers and their representatives to disclose to their clients the existence of actual or potential conflicts of interest.

There needs to be a common understanding of what constitutes a conflict of interest, which direct and indirect benefits need to be disclosed to consumers and how to disclose it. All providers require efficient conflict management policies to ensure that there is no unfair treatment of consumers or rendering of inappropriate financial services by providers. Disclosure of direct and indirect benefits needs to be made in a consistent and transparent manner. Providers have to avoid vague and inadequate disclosures.

2. Definition of conflict of interest

A conflict of interest involves the conflicted person to perform his duties, sell his skills or act in any manner where he does so for own benefit (interest) and to the actual or potential detriment of his employer, client or any other person. Examples are competing with your employer or selling a specific product because there is a hidden benefit for the seller, such as a kickback or undisclosed commission.

A conflict of interest in the financial services scenario is a situation in which financial or other personal considerations have the potential to compromise advice given or influence professional judgment and objectivity. An apparent conflict of interest is one in which a reasonable person would think that the professional’s judgment is likely to be compromised. A potential conflict of interest involves a situation that may develop into an actual conflict of interest. It is important to note that a conflict of interest exists whether or not decisions are affected by a personal interest.

The actual or potential existence of a conflict of interest may in itself not be an undesirable practice. It is imperative to properly disclose the nature and monetary value of such conflict to a client. Such disclosure can be made prior to rendering of financial services or in the record of advice, and should also be recorded in a register. Full disclosure allows a potential client to decide whether, in the client’s view, a conflict situation may influence advice provided. The client will therefore be better equipped to assess whether the advice given may be flawed or influenced unduly.

The General Code of the FAIS Act defines conflicts of interest as follows in Section 1:

  • 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;
  • influence the objective performance of his, her or its obligations to that client; or
  • prevent a provider or representative from rendering an unbiased and fair financial service to that client, or from acting in the interests of that client including, but not limited to:
    • a financial interest;
    • an ownership interest;
    • any relationship with a third party.

3. Definitions of concepts as contained in the General Code of Conduct

The FSCA has issued BN 58 of 2010 to eradicate any misconceptions as to what constitutes conflicts of interest and the manner of disclosure thereof.

Associate

If it is a natural person it means:

  • Spouse, life partner, child, adopted child, parent, stepparent, stepchild or spouse of any of the aforementioned.
  • Curator of the natural person.
  • Anybody in a commercial relationship with the person.

If it is a juristic person it means:

  • If a company it includes its holding company and subsidiaries.
  • If a close corporation – any member thereof.
  • Any person that may direct a company’s board of directors.
  • Any trust controlled by an associated person.

Company, subsidiary & holding company

Has the meaning ascribed to these concepts in the Companies Act.

Conflict of interest

As described in this policy: Section 2 of Chapter 1

Distribution channel

  • Support services offered by a product supplier to a provider or providers to render financial services to clients.
  • The arrangement between providers to facilitate their relationship with a product supplier.
  • The arrangement between product suppliers to facilitate their relationship with a provider or providers.

Fair value

Has the meaning ascribed to it in the Companies Act and is a financial reporting standard.

Financial interest

It includes the following:

Cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, hospitality, domestic & foreign travel, accommodation, incentive and valuable consideration.

It excludes:

  • Any ownership interest
  • Training that is not exclusive or for a selected group of persons on aspects such as product training, financial industry information sessions or information technology training relating to the industry. The company that provides the training or pays for it may however not pay for the travel to or accommodation at the training facility.

Immaterial financial interest

The maximum amount of benefits that a representative or sole provider may receive from any specific product supplier or other third party is R1000 per year. A provider with more than one representative may aggregate the amount received.

Ownership interest

Equity or a proprietary interest in a provider and that was acquired at fair value. Any dividend, profit share or similar benefit that derives from the ownership interest is included. It excludes equity held as an approved nominee on behalf of a person (as a financial service).

Third party

This includes product suppliers (insurers), other FSP’s, associate entities of product suppliers, any distribution channel and any other person that provides services to a provider on behalf of any of the aforementioned.

4. Objectives with the policy

  1. The company, from a governance perspective, wants to do business where no actual or potential conflicts of interest exists and furthermore, if there is any aspect relating to its business that could potentially give rise to a conflict of interest or where a client may perceive any aspect to be a conflict of interest, to disclose such conflict in a transparent manner and alert clients of such actual or potential conflicts of interest.
  2. The company is committed to comply with the standards and prescriptions set by the Financial Services Board and has adopted this policy
  3. The company requires its employees to be aware of what constitutes such conflicts and, through this awareness, ensure that employees do not find themselves in situations where there may be clashes between own interest and that of the company or a client.
  4. The company requires that its employees not compete with it in any manner.
5. Management statement on conflicts of interest

The management of Monitor herewith accepts the company’s responsibilities conferred by the FAIS Act and Code as well as its general obligation to transact with clients, potential clients and the public in general in an open and transparent manner.

In order to protect the interests of clients, this policy on conflicts of interest sets out to achieve:

  • the identification of circumstances which may give rise to actual or potential conflicts of interest entailing material risk of damage to client interests;
  • the establishment of appropriate structures and systems to manage any such conflicts; and
  • the maintenance of systems in an effort to prevent damage to the interests of our clients through identified conflicts of interest.
6. Application of the definition of conflicts of interest

In determining whether there is or may be a conflict of interest to which the policy applies, the company considers whether there is a material risk of damage to the client, taking into account whether the provider, 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.

The policy defines possible conflicts of interest as, amongst others:

  • conflicts of interest between the provider and the client;
  • conflicts of interest between our clients, if we are acting for different clients, and the different interests conflict materially;
  • conflicts of interest where associates, product suppliers, distribution channels or any other third party is involved in the rendering of a financial service to a client;
  • holding confidential information on clients which, if we would disclose or use, would affect the advice or services provided to clients.
7. Dealing with conflicts of interest under the General Code of Conduct of 2003

These aspects are mostly dealt with in the disclosure notices of providers, the commission disclosures made in quotes and schedules of insurance as well as in the compliance policy of the provider. Although these aspects are prescribed in general terms the onus is still on the provider to decide whether any activity constitutes a conflict of interest and how to disclose it.

3(1)(b)

A provider and a representative must avoid and where this is not possible to mitigate, any conflict of interest between the provider and a client or the representative and a client.

3(1)(c)

A provider must, in writing, at the earliest reasonable opportunity –

  • disclose to a client any conflict of interest in respect of that client, including –
    1. the measures taken, in accordance with the conflict of interest management policy of the provider referred to in subsection 3A(2), to avoid or mitigate the conflict;
    2. any ownership, interest or financial interest, other than an immaterial financial interest, that the provider or representative may be or become eligible for;
    3. the nature of any relationship or arrangement with a third party that gives rise to a conflict of interest, 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
  • inform a client of the conflict of interest management policy referred to and how it may be accessed.

3(1)(d)

The service must be rendered in accordance with the contractual relationship and with due regard to the interests of the client which must be accorded appropriate priority over any interests of the provider.

3(1)(f)

The provider must not deal in any financial product for own benefit, account or interest where the dealing is based upon advanced knowledge…. which would be expected to affect the prices of such product.

4(1)(d)(i)

In terms of a general duty to disclose details of the relationship with product suppliers to clients whether the provider holds 10% or more shares in any product supplier.

4(1)(d)(ii)

In terms of a general duty to disclose details of the relationship with product suppliers to disclose to clients whether the provider received more than 30% of its remuneration from one product supplier over a 12-month period.

7(1)(c)(vi)

A provider must, at the earliest reasonable opportunity, provide, where applicable, full and appropriate information of the following:

The nature, extent and frequency of any incentive, remuneration, consideration which will or may become payable to the provider, directly or indirectly, by any product supplier or any person other than the client, or for which the provider may become eligible, as a result of rendering of the financial service.

8. Dealing with conflicts of interest – measures under BN 58 of 2010

The following directive applies to fees and commissions payable:

  • The provider and its representatives may receive commissions authorised in terms of applicable legislation only.
  • The provider and its representatives may only receive fees authorised in terms of applicable legislation, or fees or remuneration for services rendered to a third party, if those fees are reasonably commensurate to the service being rendered.
  • The provider may only charge fees for the rendering of a service in respect of which commission or fees are not received if such fees are specifically agreed to by a client in writing. Fees may be stopped at discretion of the client. The provider will determine the fees payable and no representative has the authority to determine fees payable or enter into a fee agreement without authorisation.
  • The provider and its representatives may receive limited immaterial financial interests.
  • The provider may only hold or obtain any financial interest for a consideration or fair value that is reasonably commensurate to the value of the financial interest that is paid by the provider or representative at time of receipt thereof.

The provider will not offer any financial interest to any representative for –

  • giving preference to the quantity of business secured for the provider to the exclusion of quality service;
  • giving preference to a specific product supplier where more than one supplier can be recommended to a client;
  • giving preference to a specific product of a supplier where more than one product of that supplier can be recommended.
9. Control measures

The following measures were adopted to manage identified conflicts. These measures are necessary in dealing with any potential conflict of interest to ensure impartially and avoid a material risk of harming any clients’ interests.

  • Internal Processes:

The following measures were adopted to manage identified conflicts. These measures are necessary in dealing with any potential conflict of interest to ensure impartially and avoid a material risk of harming any clients’ interests.

  • Confidentiality barriers:

Representatives, associates and employees respect the confidentiality of client information. No such information may be disclosed to a third party without the written consent of a client.

  • Monitoring:

The key individual in charge of supervision and monitoring of this policy will regularly provide feedback on all related matters. The policy will be reviewed annually.

  • 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 must be disclosed to allow clients to make an informed decision on whether to continue using our service in the situation concerned. The monetary value of non-cash inducements will be disclosed to clients in all cases.

  • Publication:

The conflict of interest management policy is available for inspection at all offices of the provider, is referred to in the disclosure notice and published on the company’s website. It will be published in appropriate media if prescribed by the FSCA.

  • Report:

The conflict of interest policy is reported on in the annual report submitted to the FSCA.

  • Identification of conflict of interest:

Employees, representatives and associates will receive training and educational material in order to be able to identify potential and actual conflicts of interest.

  • Avoidance of conflict of interest:

This is achieved by:

  • ensuring that all employees, representatives and associates have an understanding and adopt the conflict of interest policy and control measures;
  • conducting regular inspections on all commissions, remuneration, fees and financial interests proposed or received in order to avoid non-compliance;
  • keeping a register of conflicts of interest.
10. Receipt of gifts

Any gift, where the value exceeds three hundred rand (R300), received in a consecutive 12 month period from an employee/ any external party/ FSP must be declared to their supervisor who will determine whether such gift constitutes conflict of interest.

The supervisor will decide whether the gift can be accepted or not. 2nd and subsequent gifts (from the same party/person/FSP) will also be declared and a decision will be taken whether the gift constitutes conflict of interest and if the gift can be accepted. All gifts will be noted on the registered.

11. Consequences of non-compliance

Any person that fails to adhere to the policy will be subject to disciplinary action. If found guilty on any conflict of interest an employee will be dismissed and if he or she is a representative, debarment procedures has to be instituted and the FSCA informed thereof.


Chapter 2: Responsible Person

In order to ensure that Monitor Administrators complies with the various Acts and Regulations that governs conflicts of interest and corruption and to protect the rights of whistle-blowers, the company has appointed the HR Manager  as the responsible person.

The responsible person shall maintain all registers associated with this policy, ensure that employees adhere to the prescriptions and methodologies laid down in terms of this policy, update the policy when necessary and ensure proper communication thereof to all existing and new employees.

The policy shall be updated and new measures instituted as required by changes in law and determined by the company’s operations. Changes that affect the policy will be communicated by the FSCA, regulatory authorities and the compliance officer to the company.


Chapter 3: Documentation

The following registers and documentation dealing with conflict of interest situations have been instituted and must be used by personnel at all relevant times:

  • Register of gifts given
  • Register of gifts received
  • Disclosure notice
  • Commission disclosure (quotes, presentations and policy documents)
  • Honesty and integrity undertaking
  • Conflict of interest register