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Launch of the SAIFAA due diligence process & program

10 October 2017 SAIFAA

Hi Investment Product Providers,

It is now two years (September 2015) since the original launch of the unique concept of an Independent Financial Advisor Association “adding-value” Due Diligence Tool Process and Program during a set of the yet to be formalised SAIFAA first Conferences.

As per the absolutely still relevant attached Bruce Cameron Personal Finance editorial dated 26th September; the FAIS Act and the Treating Customers Fairly (TCF) regulatory regime is to protect the interests of clients and the proposed SAIFAA Due Diligence concept is now ready to implement following the eventual Registration of SAIFAA in May 2017.

During August 2017 we started, via the SAIFAA Living, Life & Hybrid Annuity Crisis Forums, to accept applications from interested Founder Members (FM’s) currently totalling 136 and based on our historical PRAPA Practice Data information it appears that we need to request up to 80 different Investment Service Provider Companies, with whom our FM’s place their clients and their trust with as far as Investment Products and Services are concerned, to provide SAIFAA with answers to the attached 28 Due Diligence Process Tool Questionnaire.

The attached Due Diligence Process Tool Objectives and Reasons set out our rational and as of today our next steps as set out below we invite your company to partake in for the ultimate benefit of our FM’s, their clients and our industry.

Once you and your team have read the attached documentation please provide us with your answers to the following questions:-

• Is your company prepared to provide the answers to the 28 Due Diligence Process Tool Questions in a “to be advised” format to be loaded onto our SAIFAA Website (please do not supply your answers as we are preparing the FM Only Access portal)?
• What do think of the 28 Questions that we have prepared and are there any obvious omissions or shortfalls that should be considered within the parameters and objectives that we are trying to achieve (We at SAIFAA are of the opinion that whilst operating under their “individual” FAIS Act Licences, IFAs can delegate functions but they cannot delegate their FAIS Act Licence responsibilities and that we are of the opinion that whilst operating under their “individual” FAIS Act Licences, IFAs can delegate functions but they cannot delegate their FAIS Act Licence responsibilities)?

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Many legacy RAs allow an insurer to take up to 30% of the accumulated capital upon early exit. “This is just one of countless examples of shocking product design that is 100% engineered by insurers to extract punitive fees from clients...".

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