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.

Statutory Information

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:

  1. Furnishes advice, or
  2. Furnishes advice and renders any intermediary service, or
  3. 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:

  1. 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
  2. With a view to:
    1. 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;
    2. Collecting or accounting for premiums or other moneys payable by the client to a product supplier in respect of a financial product, or
    3. Receiving, submitting or processing the claims of a client against a product supplier.

Click here to view a copy of Addsure’s licence.


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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:

  1. 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
  2. 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).


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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:

  1. Does not require judgement on the part of the latter person, or
  2. Does not lead a client to any specific transaction in respect of a financial product in response to general enquiries.

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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:

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.


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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.

TCF outcomes

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.

Addsure will only deal with financially sound FSPs and those who are able to provide a good standard of service. Clients assess Addsure as company as well as the way in which they are treated based on the service they receive from the FSP, even though Addsure is only the intermediary. Therefore, we ensure that principal FSPs are able to deliver the appropriate service and claims promise according to their product offerings.


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2. Financial services and products rendered to clients are designed to meet the needs of clients.

Addsure specializes in community scheme insurance and financial services. Accordingly, we gear our services to cater for community scheme clients. We find and acquaint ourselves with the best available products and work with the respective product providers (registered FSPs) to deliver the best suited products to customers following to fit and proper advice.

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.


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3. Clients receive clear information and are kept appropriately informed before, during and after the time the financial service is rendered.

Addsure developed and invested in processes and systems which set a very high standard in terms of this outcome. Our booklet, the Sectional Title Insurance Guide, was first published in 2005. It provides trustees and owners with clear and concise information about community scheme insurance. We also provide workshops and training on community scheme risks and products, and publish regular articles on matters affecting customers. Our weekly blog is a good example of our commitment to share information and keep our clients informed.

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.


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4. Where clients receive advice, it is fit and proper. It also takes their circumstances into account.

Professional advice to community schemes clients is a very strong area of Addsure’s service delivery.

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).


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5. Clients have products that perform as expected and the service is at an acceptable standard.

The community scheme insurance market has become quite competitive which ensures good quality products at reasonably low premiums.

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.


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6. Clients do not face unreasonable post-sale barriers to change product, switch provider, submit a claim or make a complaint.

Our clients have no barriers if and when they wish to switch products. We encourage changing products or switching service providers where this is in the best interest of the client.

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.


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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.

In the community scheme environment, one cannot only take a view on the FSP and the customer, but rather assist defining the roles of all concerned.

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.


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Step 2: Gather relevant information and determine needs and goals.

Our two-phased approach requires the meeting of the minds of both trustees and insurance advisor. The legislative requirements coupled with rules and regulations of community schemes provide the basis of needs. The trustees will need to provide the broker with any other relevant information such as sectional plans, information on servitudes, historical maintenance problems, building defects, etc. An experienced broker will start off with a visit to the property and follow up with recommendations based on their assessment of relevant risks. With all the information at their disposal, the adviser can set out the relevant advice.


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Step 3: Analysis and evaluation of the client’s financial status and needs.

The financial advisor will use the information gathered to set out the type of cover needed to cover the identified risks. The needs will be based on the three standard needs, namely buildings cover, fidelity and liability. It may also include other risks such as vehicle cover, gym equipment, restaurant or medical equipment cover and so on.

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.


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Step 4: Develop and submit a financial plan with recommendations and alternative proposals.

During this step, our structured Letter of Advice (LOA), Renewal Pack (RP) and Schedule of Replacement Values (SRV) forms a set which becomes part of the scheme’s financial plan. We populate the LOA with expanded information to clarify the advice provided advice. This is further supported by The Sectional Title Insurance Guide and more information on our website related to the dispensed advice.

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.


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Step 5: Implement the proposed recommendations.

Firstly, the trustees should acknowledge the LOA and confirm their grasp of its contents. Next, they need to confirm acceptance of the broker’s recommendations and instruct implementation as per the decision taken at the trustee meeting. Following this, the broker instructs the principal underwriting manager or insurer to issue the policy or endorsement and follows up by delivering all the relevant schedules and policy wordings.

Finally, the policy renewal should then be renewed just ahead of its 12-month anniversary.


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Step 6: Monitor the recommendations and revise the plan.

The policy is not static and should change as and when the owner’s needs change. The sum insured should be revised once valuations are done or as requested by the owners.

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.


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FICA compliance

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 brian@addsure.co.za.

NAMA

We adhere to NAMA’s Code of Conduct.

General

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.