COMPLIANCE
The financial services sector in South Africa has strict legislation in place to ensure product reliability and regulatory compliance on the part of Financial Services Providers.
At AGM Group we believe that stringent compliance processes protect our clients, stakeholders and safeguard good business practices. We are completely committed to comply with the legislation and to always act with due skill, care and diligence and that is why we have internal policies and procedures designed to prevent and detect violations of applicable legislation, rules and ethical standards by employees and other stakeholders.
Compliance Policy
IMPORTANT: The information on this website does not take into account the personal, financial or other circumstances, needs, objectives or requirements of its visitors. All information provided is of a factual and general nature only and cannot be construed as the provision of advice in terms of the Financial Advisory and Intermediary Services Act, 2002 (‘FAIS’).
AGM MAPSURE (Pty) Ltd is a company incorporated in terms of the laws of South Africa under registration number: 1998/14646/07.
AGM Mapsure is registered as a Financial Services Provider with the Financial Services Board under FSP number 23034.
Complaints Policy
As a registered Financial Services Provider, AGM is committed to providing its clients with a service of the highest professional and ethical standards. As required by FAIS and in order to facilitate an efficient system by which our clients can communicate with us, AGM subscribes to the following complaints policy and procedure.
What is set out below constitutes the official complaints policy and internal complaint resolution system and procedures for AGM Mapsure (Pty) Ltd (“AGM”) as required by the Financial Advisory and Intermediary Services (“FAIS”) Act 37 of 2002.
AGM is committed to an internal complaint resolution system and procedure based on the following underlying principles:
Fairness by ensuring that resolution of a complaint will be effected in a manner which is fair to both the client and AGM;
Transparency and visibility ensuring that clients have full knowledge of the procedures for resolution of their complaints;
Adequate training of all relevant staff including imparting and ensuring full knowledge of the provisions of the legislation with regard to the resolution of complaints;
Ease of accessibility to complaints mechanisms through the provision of multiple mechanisms at AGM’s business premises, and through the postal system, fax, telephone and/or electronic means;
Appropriate maintenance of and commitment to an efficient internal complaint resolution system with sufficient resources and an adequately maintained register of complaints.
DEFINITION OF “COMPLAINT”
“Complaint” means a specific complaint relating to a financial service rendered by AGM to the complainant on or after the date of commencement of the FAIS Act and in which complaint it is alleged that AGM:
has contravened or failed to comply with a provision of 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.
Procedure For Lodging A Complaint
AGM ’s complaints procedure is in line with the provisions of the FAIS General Code of Conduct as contained in the Financial Advisory and Intermediary Services Act 37 of 2002, the Policyholder Protection Rules, 2004 (Short Term Insurance Act 53 of 1998) and section 13 of the SAIA Code of Conduct. The way in which a client can lodge a complaint and the time frames attached thereto are set out in the statutory disclosure documents forming part of the client’s policy documentation and this information is also made available to the client whenever a claim is rejected or a complaint is not resolved to the satisfaction of the client.
Any client who wishes to lodge a complaint against AGM or any of its employees must lodge such complaint in writing.
The complaint must provide full details of the circumstances and events to which the complaint relates and be accompanied by relevant supporting documentation.
The client is entitled to make a written complaint related representations within 90 days of notification of a claim rejection decision.
All complaints will be entered into a formal complaints register.
Non-routine serious complaints will be handled by appropriately senior staff with adequate expertise, training and experience to resolve the matter expeditiously.
The client will be kept informed of the progress of the complaint on a regular basis and at least every 14 days.
Complaints Procedure:
AGM will acknowledge receipt of the complaint in writing within 48 hours of receipt of the complaint.
AGM will endeavor to investigate and respond promptly to any complaint.
AGM will notify the complainant in writing of the outcome of the resolution of the complaint within 42 days of receipt of the complaint. Where the complaint is not finalised within 21 days of receipt thereof and in cases where further information, assessments or investigations are required, a reasonable timeframe, not exceeding 30 days, will be agreed with the client.
Where the complaint is resolved in the favour of the client, a full and appropriate level of redress will be offered to the client without delay.
If an outcome is not favourable to the complainant, full written reasons will be furnished and the client will be given the opportunity to rectify any incorrect information. Where a client wishes to have a decision regarding a complaint reviewed, the client’s request will be dealt with on the same basis as a newly lodged complaint.
Should the complaint not be resolved to the complainant’s satisfaction within 45 days of lodging such complaint, at any time within 6 months following the 90 day period referred to above, the client may pursue the following avenues:
- Consult with an Attorney to pursue the matter by way of legal action.
- For rejected claims, contact the Ombudsman for Short Term Insurance at:
T: 011 726 8900 or 0860 726 890 F: 011 726 5501 info@osti.co.za
Physical Address: Sunnyside Office Park 5th Floor, Building D 32 Princess of Wales Terrace Parktown
Postal Address: P.O. Box 32334 Braamfontein, 2017
T: 012 470 9080 F: 012 348 3447 info@faisombud.co.za
Physical Address: Eastwood Office Park Baobab House, Ground Floor Corner Lynnwood Road & Jacobson Drive Lynnwood Ridge, 0081
Postal Address: P.O. Box 74571 Lynnwood Ridge, 0040
THE FAIS OMBUD WILL GENERALLY DECLINE TO INVESTIGATE A COMPLAINT:
If a period of more than 3 years has passed since the act, omission or event which resulted in the complaint
If proceedings have been instituted by the complainant in any court relating to the complaint.
If there are reasonable grounds to believe that a more appropriate dispute resolution process is available.
AGM will arrange for its Compliance Officer to inspect the complaints register from time to time and monitor effective complaint resolution and compliance with the above complaints process. All complaints will be followed-up at an operational level to ensure avoidance of similar occurrences that might give rise to complaints and to improve services, systems and procedures where necessary. Complaints records will be maintained for a minimum period of 5 years together with an indication of whether or not such complaint was resolved and all cases of non-compliance with the legislation and the reasons for such non-compliance.
Conflict of Interest Management Policy
FSP name: AGM Mapsure (Pty) Ltd FSP number: 23034
INTRODUCTION
In terms of the Financial Advisory and Intermediary Services Act, 2002, AGM Mapsure (Pty) Ltd (“AGM ”) 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 AGM has put in place a policy to safeguard its clients’ interests and ensure fair treatment of clients. The key information is summarised below. Detailed information can be obtained on request from the provider, compliance officer or key individual who is responsible to monitor and manage conflict of interest on behalf of AGM .
DEFINITIONS
The following terms are defined for ease of reference thereto and in terms of the meaning afforded to the said terms by the Financial Advisory and Intermediary Services Act 37 of 2002 as follows:-
“conflict of interest” – Any situation in which AGM or any of AGM ’s employees and representatives may have an actual or potential interest that may, in rendering a financial service to a client –
Influence the objective exercise of AGM ’s obligations to a client, or
Prevent AGM from rendering an unbiased and fair financial service, or from acting in the interest of the client.
“interest” – Includes but is not limited to a financial interest, ownership interest or any relationship with a third party.
“financial interest” – Means any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration,
Other than
An ownership interest
Training, that is not exclusively available to a selected group of providers on products and legal matters relating to those products, general financial and industry information, specialised technological systems of a third party necessary for the rendering of a financial service, but excluding travel and accommodation, associated with that training.
“immaterial financial interest” – Means any financial interest with a determinable monetary value, the aggregate of which does not exceed R1000.00 in any calendar year from the same third party in that calendar year received by –
A provider who is a sole proprietor
A representative for that representative’s direct benefit; or
A provider, who for its benefit or that of some or all of its representatives, aggregates the immaterial financial interest paid to its representatives.
“ ownership interest” – Means any equity or proprietary interest for which the fair value was paid by the owner at the time of acquisition, other than equity or a proprietary interest held as an approved nominee on behalf of another person.
Includes: any dividend, profit share or other benefit derived from that equity or ownership interest.
“associate” –
A natural person (spouse, life partner or civil union partner, a child (including a step child, child born out of wedlock and a adopted child), a parent or stepparent and any person legally responsible for that person);
Juristic persons –if a company, all subsidiaries, holding companies and group subsidiaries and other juristic persons and group holding companies and group subsidiaries
Persons directing or instructing any type of juristic person; and
Trusts controlled and administered by the person.
“third party” – Includes: product suppliers, another provider, associates of product suppliers and providers and distribution channels.
OUR OBJECTIVES
AGM is an authorised financial services provider. Like any financial services provider, AGM 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 identify the 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 of control to manage those conflicts; and how
We will maintain systems in an effort to prevent damage to our clients’ interests through identified conflicts of interest.
CONFLICT OF INTEREST
AGM 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 and 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, AGM considers whether there is a material risk of damage to the client, taking into account whether AGM or a AGM 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 conflicts of interest as, inter alia:
conflicts of interest between AGM 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.
MANAGEMENT
Specific monetary measures AGM focuses on include:
the fact that it only receives commissions authorised in terms of applicable legislation; and
AGM does not offer any financial interest to any representative or employee 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
The measures AGM has adopted to manage identified conflicts are further 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 interest. Where considered necessary, our representatives, associates and employees receive guidance and training in these procedures and they are subject to monitoring and review processes. There are specific measures and consequences in place for non-compliance with our conflict of interest policy.
Confidentiality Barriers: Our representatives, associates 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 of a client.
Monitoring: The key individual or compliance officer 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. In all cases, where appropriate and where determinable, the monetary value of non-cash inducements will be disclosed to clients. To date no such circumstances have arisen.
Publication: We will publish our conflict of interest management policy in appropriate media and ensure that it is easily accessible for public inspection at all reasonable times.
Report: The provider, compliance officer or key individual will include a report on the conflict of interest management policy in the annual compliance report submitted to the Registrar.
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.
PARTICULAR MANAGEMENT MEASURES
Identification of conflict of interest:
- where relevant and appropriate, create awareness and knowledge of applicable stipulations of the General Code of Conduct and relevant legislation relating to conflict of interest, through training and educational material;
Avoidance of conflict of interest::
- ensure understanding and adoption of conflict of interest policy and management measures by all employees, representatives and associates;
- do regular inspections on all commissions, remuneration, fees and financial interests proposed or received in order to avoid non-compliance;
- keep a register of conflict of interest – at present none have been identified.
CONSEQUENCES OF NON-COMPLIANCE WITH THE POLICY BY US AS BROKER, EMPLOYEES AND REPRESENTATIVES
In the event of non-compliance with the abovementioned terms of the Policy, in addition to any civil or criminal consequences, employees and representatives will be subject to appropriate disciplinary action. To date there have been no non-compliance events.
A LIST OF ALL AGM ASSOCIATES
The following entities are associates of AGM :
AGM Mapsure Risk Management (Pty)Ltd
AGM Mapsure Financial Consultants (Pty)Ltd