It is my/the advisor/intermediary’s duty as an authorised financial services provider/representative to inform you, as a valued client, of some of your principle rights in terms of the legislation that governs the financial services industry:
I. As a client of the financial services industry you have a right to a full analysis of your financial objectives before entering into any financial services related transaction.
II. As an authorised financial services provider, we are compelled to perform this analysis with the necessary due skill, care and diligence and then in consultation with you, prioritise your needs and provide you with objective advice to address these needs.
III. At JVC Insurance Brokers, we embrace these requirements as being in the interest of our valued clients and thefinancial services industry as a whole. As a client you do however have the right to specify which needs you require to be focused on. We respect this right, but should you decide to consult with us only regarding certain needs, we require that you take full cognisance and responsibility for focused need specific advice as there may well be needs in your personal financial planning which require more urgent attention than the need being addressed at your request.
The services that we offer you must be rendered in accordance with the contractual relationship between us, the financial services provider and you, the client, or in accordance with your reasonable requests or instructions. Therefore, the purpose of this document is to mutually agree to the specific service that you expect from me, the adviser and FSP, and to enable me to give you a copy of this service offer.
In return for the services set out in this document, you, the client, agree to the following methods of adviser/broker remuneration:
Commission
JVC is remunerated in the form of commission payable by the product supplier as disclosed on the existing policy schedule or in the case of new business, on the applicable final quotations. You agree to that your advisor is remunerated by way of regulated commission payable by the product supplier.
The advisor/intermediary will be entitled to this commission on the following terms and conditions:
The amount of initial and/or on-going commission will be fully disclosed to you, the client, prior to implementation of any financial solution or product.
The advisor will be entitled to this commission as compensation for the financial service rendered to the client.
Short term insurance: Advice/Broker and Risk Management Fees
The intermediary in this role, acts as an agent for the customer and ensures that any advice provided meets the customer’s needs, circumstances and best interests. JVC insurance brokers Advice/Broker and Risk management fee is specifically reflected in our fee schedule.
This fee is separately disclosed. This fee is also separate from the premium contribution amount or any other product charges and is calculated as a flat fee in relation to the premium charged. It is an ongoing fee and charged in accordance with your elected method of premium payment (either monthly or annually).
Our advice/broker and Risk Management fees are charged for upfront product advice which involves making recommendations and proposing and guiding a customer about the suitability of a product according to his/her identified needs. This includes advice on replacing a product or a product switch. In addition to identifying a suitable type of product, up front product advice would also entail a selection of a specific product and/or product supplier, depending on the range of offerings the adviser has access to. These fees are also charged for Risk planning. This involves advice on structuring and arranging a customer’s financial resources to meet his/her financial needs and circumstances. In the short-term insurance space, this can be described as risk planning, including risk finance consulting, loss control advice and surveys and risk management advice which includes the ongoing review of the customers’ needs and circumstances.
Ongoing advice is also provided. This involves providing remuneration on changes to product solutions during the life of the product in response to changing market conditions or changed customer needs and circumstances. This would include recommendations in relation to the variation of any term or condition applying to a financial product, or the termination of any product. A recommendation to maintain an existing product without any change is also part of this service.
In the interest of efficiency and service delivery, JVC Insurance Brokers has been mandated by your Insurer to carry out administrative and selective claims functions on their behalf, for which a fee is payable. This amount is included in your monthly short-term insurance policy premium and reflects in your policy schedule. Financial Planning Advice Fees
An initial advice fee, relating to financial planning (excluding that of short-term insurance planning), of R0.00 is payable for professional time spent by the advisor for: gathering your information, conducting an analysis and preparing your recommendation, for the services rendered by the advisor, sourcing a range of quotes/ consulting markets for suitable financial product solutions. Providing suitable advice outside of the of specific product advice.