Legal and Compliance
CLIENT DISCLOSURE LETTER
CGS INSURANCE BROKERS CC
Registration Number CK 2005/167850/23
FAIS Licence number 13943
WHEREAS, CGS Insurance Brokers CC is an Authorised Financial Services Provider who renders financial services to clients and,
WHEREAS, the Client wishes to take up certain services of CGS Insurance Brokers CC and,
WHEREAS, the parties wish to establish a professional relationship between them,
4A Princes Road,
P O Box 13109
All our brokers have sufficient if not more qualifications as required by the Financial Services Board.
CGS Insurance Brokers is an Authorised Financial Services Provider and the financial advisors have a combined experience of 56 years in total between them. A copy of the licence, which contains details of the financial services we are authorized to provide, as well as any exemptions, is available for inspection.
1.1 Long-Term Insurance: Category A
1.2 Short-Term Insurance: Personal Lines
1.3 Long-Term Insurance: Category B
1.4 Long-Term Insurance: Category C
1.5 Retail Pension Benefits
1.7 Pension Fund Benefits (excluding Retail Pension Benefits)
1.14 Participatory Interests in Collective Investment Schemes
1.16 Health Service Benefits
|Allan Gray Asset Managers||Bonitas Medical Aid||Coronation Asset Managers|
|Discovery Health and Life||Fedhealth Medical Aid||Fedgroup|
|FMI – Income protection||Hollard Life and short term||Keyhealth|
|Liberty Life||Marriott||Medihelp Medical Aid|
|Medshield Medical Aid||Momentum Health, Life and short term||Old Mutual Insure|
|Santam short term||Stratum Gap cover|
- We do not directly hold more than 10% of an insurer’s shares.
- We do not receive more than 30% of our remuneration from a particular insurer.
- We are remunerated for our services by being paid commission.
- I have Professional Indemnity Insurance in place.
- Please note that in accordance with legislation we keep an updated disclosure register. This register informs you, our client, of all financial and ownership interests that we may become entitled to and lists the business relationships that we have with the product suppliers. This document ensures transparency in our dealings with our clients and is available for inspection.
- We wish to advise that all information obtained or acquired about you shall remain confidential unless you provide written consent, or unless we are required by any law to disclose such information.
We are members of the Masthead Financial Advisors Association, which provides us with services such as compliance, practice management and technology support by virtue of our membership. We have a complaints process in place, a copy of which is available upon request.
Our Compliance is monitored by Masthead Distribution Services (Pty) Ltd, a compliance practice approved by the Financial Services Board. Masthead’s postal address is P O Box 856, Howard Place, 7450. The contact number is 021-686 3588.
APPOINTMENT OF CGS INSURANCE BROKERS CC:
I hereby appoint CGS Insurance Brokers CC as my authorised financial services provider to render financial advice and or intermediary services as listed hereunder. This appointment is effective as of the date of signature of this agreement and will need to be updated as and when there are any changes
SCOPE OF SERVICES:
The client instructs/appoints CGS Insurance Brokers to provide financial advice and/or intermediary
The client consents that CGS Insurance Brokers access his/her financial affairs to adequately and professionally render a financial planning service.
CGS Insurance Brokers acknowledges that in the course of rendering services to the client in terms of this authority, they shall come into possession of information of a confidential nature. CGS Insurance Brokers shall not, whether during the course of this agreement or at any time thereafter, use or disclose or allow third parties to use or disclose any of the confidential information except to the extent permitted by the client in writing or as required by law.
OBLIGATIONS OF CGS INSURANCE BROKERS:
6.1. Act honestly and fairly, and with due skill, care and diligence, in the interests of the client and to treat the client fairly in a situation of conflicting interests;
6.2. Have and employ effective resources, procedures and appropriate technological systems for the proper performance of the agreed financial services;
6.3. Seek from the client appropriate and available information regarding his financial situation, product experience and objectives in connection with the services required at date of advice;
6.4. Make adequate disclosures of relevant material information, including disclosures of costs and fees associated with the services rendered or products sold to the client;
6.5. Be responsible for adequate and appropriate record-keeping;
6.6. Comply with all relevant regulatory and statutory requirements, codes of conduct and common law requirements that impact on the client, including but not limited to FAIS and FICA.
CGS Insurance Brokers shall have no authority to:
6.1.1. Enter into contractual obligations on behalf of the client;
6.1.2. Incur any liability on behalf of the client;
6.1.3. Settle or waive any claim against or by the client;
6.1.4. Effect portfolio restructuring or switches;
Without the clients prior written consent
4. CLIENT’S OBLIGATIONS:
- Furnish CGS Insurance Brokers with all information required by us to perform the agreed services, within a reasonable period of time;
- Furnish CGS Insurance Brokers with written consent and/or completed application forms and/or transaction documentation where required;
- Inform CGS Insurance Brokers of any changes in the client’s circumstances, which information might effect a change in the client’s financial plan or portfolio, eg change in occupation, occupation content, participation in risky activities, smoking habits and traveling outside the borders of South Africa;
- The client hereby acknowledges and understands that, with regard to the completion or submission of any transaction requirement, all material facts must be accurately and properly disclosed, and that the accuracy and completeness of all answers, statements or other information provided by or on behalf of the client, are the client’s own responsibility.
Where the client has not provided all information requested by CGS Insurance Brokers or where CGS Insurance Brokers has been unable to conduct an analysis there may be limitations on the appropriateness of the advice provided. In this respect it shall be the responsibility of the client to take particular care to consider on his/her own whether the advice is appropriate considering the client’s objectives, financial situation and particular needs.
The parties agree that CGS Insurance Brokers shall be remunerated for the financial services rendered in the following manner:
CGS Insurance Brokers shall only receive payment from the product provider as compensation for the introduction of the client to purchase a financial product. Such commission will be payable in accordance with product rules of the particular product provider. Any reduction in the percentage of commission negotiated between the parties shall be recorded on the application form for the purchase of such financial product and subject to regulatory legislation where applicable, for example the Long Term Insurance Act.
Commission received on completion of medical aid business is 3% of premium with a maximum payment of R85.00 per month excluding VAT.
Commission on short term products is between 10% and 20% of premium, depending on the item insured
Asset based fee:
The fee shall be based on the size of the investment, which shall comprise of an initial fee and an ongoing fee, expressed as a percentage of the assets invested or as a percentage of the contribution.
- Upfront Commission : 1.50 %.
- Ongoing Commission : 0.50 %.
CGS Insurance Brokers’ appointment shall remain in force until terminated by either party on giving the other party 30 days written notice of termination. It shall not be required of such party to furnish reasons for the termination.