Introduction

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This policy outlines a suitable, effective and sustainable approach to the identification and management of conflicts of interest (“COI”). The policy aims to comply with the best practice and statutory requirements as per the General Code of Conduct for Financial Services Providers and Representatives published in Board Notice 80 of 2003 as amended by Board Notice 58 of 2010 as well as other applicable requirements as set out in the Financial Advisory and Intermediary Services Act, 37 of 2002 (“FAIS”).

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Purpose

The purpose of this Conflict of Interest Management Policy is primarily to provide mechanism for the identification and management of Conflicts of Interest that may arise in rendering financial services to our clients. We have put this Policy in place to safeguard our clients’ interests and ensure we treat them fairly. The objective of the conflict of interest management Policy is to provide a framework within which we can address the areas where conflicts of interest may arise.

 

The purpose of this policy is:

I. to provide guidance on the behaviours expected in accordance with Squirrel away Pty Ltd standards.

II. to promote transparency and to avoid or mitigate any business-related COI that may arise between Squirrel Away Pty Ltd, its clients, vendors and/or employees respectively.

III. to ensure fairness in the interests of employees and Squirrel Away Pty Ltd.

IV. to document the process for the disclosure, approval and review of activities that may amount to actual, potential or perceived COI.

V. to provide a mechanism for the objective review of personal outside interests.

 

Squirrel Away Pty Ltd is committed to ensuring that all business is conducted in accordance with good business practice. To this end Squirrel Away Pty Ltd conducts business in an ethical and equitable manner and in a way, that safeguards the interests of all stakeholders to minimize and manage all real or potential conflict of interest (“COI”). Squirrel Away Pty Ltd and its representative must therefore avoid (or mitigate where avoidance is not possible) any COI between Squirrel Away Pty Ltd and a client or its representative and a client.

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Definition

For purposes of this policy, the following words and/or phrases are defined herein:

 

“Conflict of interest” means any situation in which Squirrel Away Pty Ltd or its representatives 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 Squirrel Away Pty Ltd or its representatives 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

 

i. a financial interest;

ii. an ownership interest;

iii. any relationship with a third party (“third party”) means

a) a product supplier,

b) another provider,

c) an associate of a product supplier or a provider;

d) a distribution channel;

e) any person who in terms of an agreement or arrangement with a person referred to in paragraphs (a) to (d) above provides a financial interest to a provider or its representatives.)

 

FAIS” means the Financial Advisory and Intermediary Services Act, 37 of 2002. “Financial interest” means any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic and foreign travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration, other than –

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i. an ownership interests

ii. training, that is not exclusively available to a selected group of providers or representatives on products and legal matters relating to those products; general financial and industry information; specialized technological systems of a third party necessary for the rendering of a financial service; but excluding travel and accommodation associated with that training.

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“Immaterial financial interest” means any financial interest with a determinable monetary value, the aggregate of which does not exceed R1 000 in any calendar year from the same third party in that calendar year received by –

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a) a provider who is a sole proprietor; or

b) a representative for that representative’s direct benefit;

c) a provider, who for its benefit or that of some or all of its representatives, aggregates the immaterial financial interest paid to its representatives.

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“Representative” means duly appointed representative and/or representative under supervision of Squirrel Away Pty Ltd.

“Ownership interest” means

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a) any equity or proprietary interest, for which at fair value was paid by the owner at the time of acquisition, other than equity or an proprietary interest held as an approved nominee on behalf of another person; and

b) includes any dividend, profit share or similar benefit derived from that equity or ownership interest.

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“Provider” means Squirrel Away Pty Ltd “Employees” means full-time and part-time employees, whether temporary or permanent and includes representatives and directors. “Product Supplier” means any natural or juristic person, partnership, trust, or organ of state that issues a product

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4. Procedures

Squirrel Away or its representatives may only receive or offer financial interest from or to a third party as determined by the Commissioner of Financial Services Providers from time to time, and as set out in Annexure A hereto. Squirrel Away may not offer any financial interest to its representatives for giving preference to the quantity of business secured for the provider to the exclusion of the quality of the service rendered to clients; or giving preference to a specific product supplier, where a representative may recommend more than one product supplier to a client; or giving preference to a specific product of a product supplier, where a representative may recommend more than one product supplier to a client.

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4.1 Dealings with intermediaries (FSPs)

4.1.1 The entertainment of intermediaries is limited to a sum of R1,000 per annum. This limit applies to the individual representative at an FSP if the expense is for the direct benefit of the representative. If the benefit is for the direct benefit of the FSP, however, then no further benefit may be paid to that FSP or any representative of that FSP.

4.1.2 An employee who has an interest in an intermediary that transacts business with Squirrel Away Pty Ltd must disclose this interest. The disclosure of the interest does not necessarily cure the conflict and Squirrel Away may, at its discretion, require further steps from the employee.

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4.2 Identifying conflicts of interest

In order to identify whether you have a conflict of interest, a representative should ask the following questions:

4.2.1 Do I have my client’s best interest at heart, or am I acting in my own best interest?

4.2.2 Do I have Squirrel Away’s best interest at heart, or am I acting in my own best interest?

4.2.3 Am I acting professionally?

4.2.4 Am I acting independently?

4.2.5 Am I acting objectively?

4.2.6 Are my interests aligned with that of Squirrel Away

4.2.7 Am I likely to make a financial gain, or avoid a financial loss, at the expense of the client?

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4.3 Avoiding conflicts of interest /Resolving COI or potential COI:

Key individuals and representatives of Squirrel Away are expected to avoid all COI or potential COI. Where not possible, mitigate and disclose.

4.3.1 Once a potential conflict of interest has been identified, we evaluate it and manage it appropriately.

4.3.2 Our Compliance and management teams then agree on the controls that need to be put in place to manage the conflict.

4.3.3 We’ve put the following measures in place to manage potential conflict of interest:

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• Training – We educate our employees about this Policy and monitor their adherence. All our employees are educated on the general code of conduct applicable to financial services providers as well as this Policy.

• Repercussions for non-compliance – We deal strictly with non-compliance with this Policy and offenders will be subject to disciplinary procedures in terms of both FAIS and their employment contract.

• Monitoring – We conduct ad hoc checks on business transactions to ensure compliance with the Policy.

• No circumvention tolerated – No person may avoid, limit or circumvent, or attempt to avoid, limit or circumvent, compliance with this Policy, either directly or by association.

• Executive review – We’ll review and, if necessary, update this policy annually.

• Personal accountability – All employees and individuals subject to this Policy are responsible for identifying specific instances of conflict and notifying Squirrel Away management or the Compliance team of any conflicts they discover. If an employee is in breach of this Policy, we may institute disciplinary action against them (in accordance with our HR policy).

• Gifts and entertainment policy – We have an internal ‘gift’ policy to ensure that we maintain the highest standards of ethics and impartiality.

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We consider the controls above appropriate to enable us to act impartially in each instance of a potential conflict and avoid harming clients’ interests. Where necessary, our Compliance team is responsible for managing and updating the Policy to ensure that it remains effective.

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4.4 Potential COI that could affect Squirrel Away

• Directorships or other employment;

• interests in business enterprises or professional practices;

• Share ownership;

• Beneficial interests in trusts;

• Personal Account Trading;

• Professional associations or relationships with other organizations;

• Personal associations with other groups or organizations, or family relationships;

• Front running;

• Rebates;

• Kickbacks; and

• Commission

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Examples of potential COI scenarios include, but are not limited to the following:

• Using influence to secure a contract for a service provider in which you hold an interest;

• Soliciting financial interest to influence or unfairly advance the interests of a third party;

• Accepting benefits from service providers or contractors;

• Setting up business in direct competition with Squirrel Away; and

• Giving preference to the quantity of business which you undertake rather than the quality thereof.

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4.5 Insider Trading

The term “insider trading” describes circumstances where an individual, who has price sensitive information, deals in a related security or financial instrument before the information is made available to the rest of the market. Insider trading creates conflicts of interest.

 

The individual is abusing their knowledge and so placing themselves in a better position than the rest of the market, which conflicts with the concept of market fairness. A representative that commits insider trading is additionally placing themselves in a better position than Squirrel Away and/or its clients, so creating a conflict of interests between themselves and Squirrel Away and/or its clients.

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4.6 Disclosure of COI:

At the earliest reasonable opportunity, Squirrel Away and its representative must, in writing, disclose to a client any COI or potential COI in respect of that client including –

• Measures taken to avoid or mitigate the conflict;

• Any ownership interest or financial interest that the provider or representative may be or become eligible for;

• The nature of the relationship or arrangements with a third party that gives rise to a COI in sufficient detail to enable the client to understand the exact nature of the COI.

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At the earliest reasonable opportunity, Squirrel Away and its representative must, in writing, inform a client of the Conflict of Interest Management Policy and how it may be accessed.

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Notification of an actual or potential COI should be made to a person with responsibility for the issue or area, such as the relevant management team, supervisor, head of the department or key individual. In accordance with an employee’s obligation to act in the best interest of his or her employer, it is not permissible for employees to engage in conduct that would amount to a COI with Squirrel Away.

 

Staff that fail to disclose a potential or actual COI in accordance with this policy may be liable to disciplinary procedures as governed by relevant industrial awards or agreements.

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5. Housekeeping document

Records pertaining to identified or potential conflicts of interests e.g., the gift register, the conflicts of interest register, and any other applicable records, and mitigation action must be kept for a period of at least five years from date of identification.

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i. Ownership and ultimate responsibility:

a) This document is owned and maintained by Squirrel Away. The ultimate responsibility for this document, the contents thereof and compliance remains with the Key individuals, of Squirrel Away who is responsible for creating an ethical environment.

 

ii. Updates, review and approval:

a) Squirrel Away COI policy shall be reviewed on an annual basis and updated if necessary. This policy is approved by Sibongile Maputla.

iii. Adoption and implementation:

a) Every staff member must have a copy of the Conflicts of interest Management Policy. If a potential COI arises, the transaction must first be discussed with management before entering the transaction.

iv. Non-compliance with this document:

a) Non-compliance with this policy and the procedures described in it may be misconduct and employees may be subject to disciplinary action that may lead to dismissal.

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6. Implementation

This policy will be made available to all employees on the SharePoint intranet platform and the compliance team will monitor adherence to this policy

7. List of all Squirrel Away associates:

Outsourced Compliance Service

Origen Software

Automated Outsourced

Service Oxford Risk

8. Names of any third parties in which Squirrel Away hold an ownership interest: Not Applicable

9. Names of any third parties that holds an ownership interest in Squirrel Away Not Applicable

10. List nature and extent of ownership insert referred to in point 8 and 9.

11. Conclusion

All representatives of Squirrel Away including key individuals and management are required to be dedicated to upholding the highest level of integrity and ethical conduct in all of their activities and relationships with all stakeholders.

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Annexure A- Accepted financial interest as amended

The Commissioner of Financial Services Providers issued Board Notice 58 of 2010 (BN 58) under section 15 of the Financial Advisory and Intermediary Services Act, 2002 (FAIS). BN 58 amends the General Code of Conduct for Authorised Financial Services Providers and Representatives under FAIS and determines that a financial services provider or its representatives may only receive or offer financial interest from or to a third party as follows:

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i. Commission authorised under the Long-term Insurance Act or Short-term Insurance Act;

ii. Commission authorised under the Medical Schemes Act;

iii. Fees authorised under the Long-term Insurance Act, the Short-term Insurance Act or the Medical Schemes Act, if those fees are reasonably commensurate to a service being rendered;

iv. Fees for the rendering of a financial service in respect of which commission or fees referred to in sub-paragraph (i), (ii) or (iii) is not paid, if those fees –

aa. are specifically agreed to by a client in writing; and

ab. may be stopped at the discretion of that client.

v. fees or remuneration for the rendering of a service to a third party, which fees or remuneration are reasonably commensurate to the service being rendered;

vi. subject to any other law, an immaterial financial interest*; and

vii. a financial interest, not referred to under sub-paragraph (i) to (vi), for which a consideration, fair value or remuneration that is reasonably commensurate to the value of the financial interest, is paid by that provider or representative at the time of receipt thereof.

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