Sanlam Umbrella Solutions (SUS) has become the first financial services provider to publish answers to a ground-breaking series of questions developed earlier this year to guide South Africans when selecting the umbrella fund which best fits their needs.
David Gluckman (pictured), managing director of SUS – the division of Sanlam Employee Benefits which runs the Sanlam Umbrella Fund – explains that in March 2008, the Financial Services Board (FSB), in conjunction with SUS, launched the ’21 Questions’ booklet as part of its consumer education drive. “The purpose was to enable umbrella fund clients to ask the right questions when choosing an umbrella fund. Specifically it called for them to investigate whether they were getting a fair deal with regard to member representation, communication, investment returns and financial advice.
“The booklet was a tool for all financial services companies, trustees, principal officers, employers and employees to use and contained no answers because the aim was for it to be applicable across the industry and non-prescriptive. SUS has now developed a set of answers which, we believe, shows that our product meets the very highest standards in each single relevant area,” he said.
Pointing to key aspects of the Sanlam body of answers, Gluckman says that detailed biographies and qualifications are included of the Sanlam Umbrella Fund’s trustees and principal officer as well as its day-to-day managers. “This allows the individual researching us as a potential fund choice to fully understand who will be representing his or her rights.
“In addition, the answers offer an in-depth explanation of our processes of governance, which we are extremely proud of. Member representativity is a key feature of the fund and this is also fully outlined. We also offer best practice explanations for member communication procedures, joint forum structures and procedures, investment strategy choices and much more.”
Gluckman believes that the FSB’s 21 questions has contributed meaningfully to a drive within the umbrella solution industry to offer simpler, more comprehensive and more transparent information which puts the power of choice in the hands of the individual ‘lay’ person - whether that be an employer selecting an umbrella fund on behalf of his company or an employee reviewing the choices on offer.
“We hope that the answers provided by SUS are a useful tool in demonstrating what the individual should expect from an umbrella fund provider,” concludes Gluckman.
Full answers to SUS’s answers to the 21 Questions, can be found at: www.sanlamumbrellafund.co.za
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