Addsure embraces a regulatory environment for financial services providers. Addsure subscribes to a high standard of ethics and compliance with a view to providing clients with a top-quality service by an experienced and professional team.
Addsure is registered with the Financial Services Board (FSB) as a financial services provider in terms of The Financial Advisory and Intermediary Services Act (FAIS Act). Addsure’s licence registration number is 15269.
What is a financial services provider?
It means any person other than a representative who as a regular feature of the business of such person:
- Furnishes advice, or
- Furnishes advice and renders any intermediary service, or
- Renders an intermediary service.
“Intermediary service” means ….subject to subsection (3) (b), any act other than the furnishing of advice performed by a person for, or on behalf of, a client or product supplier:
- The result of which is that a client may enter into, offers to enter into or enters into any transaction in respect of a financial product with a product supplier, or
- With a view to:
- Buying, selling or otherwise dealing in (whether on a discretionary or non-discretionary basis) managing, administering, keeping in safe custody, maintaining or servicing a financial product purchased by a client from a product supplier or in which the client has invested;
- Collecting or accounting for premiums or other moneys payable by the client to a product supplier in respect of a financial product, or
- Receiving, submitting or processing the claims of a client against a product supplier.
What is the Financial Services Board (FSB)?
The FSB is the regulatory body for the Financial Services Industry that ensures financial planners are properly trained and that they adhere to pre-determined industry standards in terms the advice and financial services they provide.
Key Individuals and Representatives in terms of FAIS legislation:
What is a Key Individual?
It means any natural person responsible for managing or overseeing ; either alone or together with other so responsible persons.
In terms of FAIS legislation: “’Key individual’ in relation to an authorised financial services provider or a representative, carrying on business as:
- A corporate unincorporated body, a trust or a partnership, means any natural person responsible for managing or over seeing, either alone or together with other responsible persons, the activities of the body, trust or partnership relating to the rendering of any financial service; or
- A corporate body or trust consisting of only one natural person as member, director, shareholder or trustee, means any such natural person.
A key individual must therefore:
- Manage or oversee,
- Alone or with another approved key individual,
- The activities of the FSP which the key individual is appointed for.
Where a single key individual does not meet all the requirements, an FSP may have more than one key individual and amongst them they will meet the requirements. The activities of the FSP refer to the rendering of an intermediary service and/or advice relating to the financial products the FSP is licensed for (category and subcategories).
What is a Representative?
The Financial Advisor, i.e. the person who is registered and qualified to provide you with financial advice.
In terms of FAIS legislation: It means any person, including a person employed or mandated by the first mentioned person, who renders a financial service to a client for or on behalf of a financial services provider, in terms of conditions of employment or any other mandate, but excludes a person rendering clerical, technical, administrative, legal, accounting or other service in a subsidiary or subordinate capacity which service:
- Does not require judgement on the part of the latter person, or
- Does not lead a client to any specific transaction in respect of a financial product in response to general enquiries.
What is FAIS legislation?
The FAIS Act:
- Aims to protect the client of the financial services provider or intermediary by prescribing how financial services, i.e. advice and intermediary services, in respect the client’s policy or investment should be rendered to the client.
- Aims to protect the client or policyholder by prescribing how financial services, i.e. advice and intermediary services, in respect of his policy or investment, should be rendered to him.
- Regulates the financial services industry, decreeing that advisers have licenses in order to operate lawfully.
- Requires Addsure, as intermediary, to carefully consider which product is suitable for our clients and to provide services in an honest, fair way with due skill and care.
Addsure’s Financial Advisors (Key Individuals and Representatives) can be found below:
- Michael Addison (Key Individual and Representative)
- Brian Addison (Key Individual and Representative)
- Bruce Gibson (Representative)
- Rian Pienaar (Representative)
- Marietjie Pienaar (Representative)
- Emmy Myburgh (Representative)
The Addsure Team
Addsure’s Financial Advisors are located in Johannesburg, Durban and Cape Town. We are experienced and knowledgeable in Sectional Title, Homeowners Associations and community scheme living insurance and risk.
Addsure’s Panel of Experts are often asked to offer an expert opinion on an insurance claims case or underwriting scenario. Questions are put to all advisors and all individual opinions are summarised as one, or a divided, opinion.
Addsure advisors write regular blogs and articles, posted on the Addsure website www.addsure.co.za, and other leading industry publications. We have been interviewed on radio and for press articles, and have been invited as expert speakers at various conferences and seminars. Our advisors are widely recognised as the leading industry experts in the fields of insurance and sectional title management.
In addition, we also host Addsure training workshops for clients (Managing Agents, Bodies corporate, Homeowner Associations and interested owners) as part of the advice process and education or risk mitigation objective.
The advisors are supported by experienced Claims and Administration Teams.
Addsure’s systems are specifically designed for Sectional Title Insurance processes.
Our culture of TCF (Treating Customers Fairly)
Addsure fully embraces the fair treatment of clients. We are acutely aware that we have to protect our clients, not just their assets.
As a client-centric practice, we focus on providing the highest standard of independent advice when we recommend financial products and assist clients during the claims process.
With Addsure, you have an experienced and well-resourced team are at the customers disposal.
1. Clients are confident that they are dealing with Financial Services Providers (FSPs) where the fair treatment of clients is central to the FSP’s culture.
2. Financial services and products rendered to clients are designed to meet the needs of clients.
We follow a two-prong approach in respect of the buildings insurance, fidelity insurance and liability insurance:
1. Community scheme legislation, rules and regulation
2. Property risks, financial risks and liability risks
Each scheme has its own set of needs and dynamics which an experienced advisor can determine.
It’s a team effort! Both the trustees and the financial advisor need to disclose and seek out what they need to ensure comprehensive cover for all owners in the scheme.
Trustees need to disclose all issues such as past history, existing problems matters currently being attended to and underlying risks to the financial or insurance advisor. On their part, the insurance advisor must identify risks related to the property that may affect the responsiveness of the recommended product.
3. Clients receive clear information and are kept appropriately informed before, during and after the time the financial service is rendered.
Most importantly, our commitment to delivering sufficient and clear information is evident in our clear policy wording, policy schedules, comparative quotations and schedules of replacement. Our cloud software – ATON – was developed with the express goal to bring service and information faster and closer to owners.
4. Where clients receive advice, it is fit and proper. It also takes their circumstances into account.
To that end, we have developed specific software and resources to further elevate our service levels. We follow best practice standards when it comes to our advice process, suitability and comparative analysis, and records of advice. Addsure’s Letter of Advice (LOA) format and related documentation have become the community scheme industry standard and complies fully with the FAIS Act Regulations GCoC (Financial Advisory and Intermediary Act Regulations General Code of Conduct).
5. Clients have products that perform as expected and the service is at an acceptable standard.
Addsure works with established products and evaluates new products in terms of policy wording as well as performance and response. As leading specialists in the field of community scheme insurance in South Africa, we provide constant feedback to our principal suppliers of products and services about service delivery, responsiveness and whether product performance is up to standard.
6. Clients do not face unreasonable post-sale barriers to change product, switch provider, submit a claim or make a complaint.
Claims service is paramount and there should never be barriers in place as far as claim submission is concerned, particularly in the community scheme environment. Complaint processes are easy and community schemes have a broad choice of platforms to ensure appropriate channeling of complaints.
Addsure and the Six Step Advice Process
Step 1: Establishing and defining the professional relationship between parties as well as specific the roles and responsibilities.
Parties involved in any one matter can include the insurer (insurance company), underwriting manager (UMA), insurance advisor (broker), managing agent, trustee, owner, tenant and sometimes even more parties.
It is for this reason that records of advice must be kept in writing and should be available in a transparent manner. Introductions from advisors and advice dispensed should be properly recorded by the trustees. Any advice needs to be offered in writing so that managing agents can act as transient agents rather than insurance agents in delivering the written advice to the trustees. The trustees are obliged to act on behalf of the collective of owners in a community scheme.
First and foremost, we advise that a suitably qualified and experienced specialist in the field of community scheme insurance is appointed to provide professional guidance.
Step 2: Gather relevant information and determine needs and goals.
Step 3: Analysis and evaluation of the client’s financial status and needs.
The advisor may now be aware of a valuation document that sets out the values of retaining walls and could have been handed relevant engineer’s reports which allows the advisor to obtain quotes and advise on the needed cover for these – usually excluded – walls. This provides the advisor with various quotes and options from the product providers at their disposal.
Step 4: Develop and submit a financial plan with recommendations and alternative proposals.
Owners in community schemes need to know how to access the insurance information that affects their property asset and be sure that trustees are looking after their best interests in respect of the scheme’s insurance. The best way to achieve this is for the advisor to provide the scheme with written advice based on a market comparative analysis. This written Letter of Advice, or LOA, should be available to all, tabled annually at a trustees’ meeting and recorded in the meeting minutes.
Step 5: Implement the proposed recommendations.
Finally, the policy renewal should then be renewed just ahead of its 12-month anniversary.
Step 6: Monitor the recommendations and revise the plan.
Fidelity needs will change as financial needs change and this aspect should be discussed at the AGM. Addsure’s ATON system provides for ongoing records of advice, records of valuations and noting changes to policy conditions during the period of insurance.
The Financial Intelligence Centre Act (FICA) focuses on detecting the source of criminally derived funds. Addsure has a duty in terms of this legislation to verify client details and to report suspicious or unlawful account or financial activities such as money laundering, fraud and terrorist financing.
Addsure’s FICA internal rules are strictly adhered to.
Complaints Resolution Policy
In terms of FAIS, all financial service providers must have an internal complaints resolution process to deal with clients who complain about financial services rendered by a financial service provider or its representatives (financial planners).
Addsure’s complaint resolution policy can be downloaded HERE
Conflict of Interests Policy
Addsure’s Conflict of interests policy can be downloaded HERE
Access to Information Act
A copy of Addsure’s PROATIA is available upon request. Contact firstname.lastname@example.org.
We adhere to NAMA’s Code of Conduct.
Addsure deals mainly with the Sectional Tile Industry and as such, deal with managing agents, trustees and owners, all of which have varying interests in policies and the financial advice dispensed.
Addsure is aware of new POPI legislation (Protection of Personal Information) which is due to be brought into effect.
Notwithstanding the new legislation, Addsure takes client personal information very seriously. We can only share information about policies with the body corporate’s appointed managing agent or upon request from trustees who can identify themselves. Owners in schemes who have no permission from trustees and/or the managing agent, will be referred back to the body corporate’s mandated administrator for policy information.