1. Introduction

The Financial Advisory and Intermediary Services Act, No 37 of 2002 (FAIS) has as its main purpose to regulate financial advice and protect the consumer, furthermore it aims to enhance the integrity of the financial services industry. The purpose of these Standard Terms and Conditions as amended from time to time (“STCs”) is therefore to establish and define a clear professional and contractual agreement between LifeCheq (Pty) Ltd, FSP no: 46514 and company registration number 2015/332737/07 (“the FSP”) and any person or firm, including but not limited to companies, cooperatives, close corporations, sole proprietors, trusts, partnerships and associations, to whom the FSP renders services (“the Client”) .

The FSP acts in an advisory capacity and as an intermediary between the Client and the companies that provide the financial services products (“Product providers”). The FSP does not have any of its own financial services products.

2. Application and term of these STCs

2.1. These STCs apply to all the services provided by the FSP to unless otherwise agreed in writing.

2.2. These STCs prevail over any other terms and conditions which the Client may seek to apply to LifeCheq (including without limitation the standard trading terms of the Client** unless otherwise agreed in writing.

2.3. These STCs may be translated into multiple languages. If there are any conflicts between the different language versions of these STCs, the English version will prevail.

2.4. These STCs apply from the date on which they are accepted by the Client, whether orally, in writing, by signature or by way of any other form of electronic transaction or data message.

2.5. Without derogating from the generality of clause 2.4, it is specifically recorded that these STCs may become binding on any Client who indicates his/her acceptance of the STCs by checking an online checkbox to that effect on the FSP’s website during any online registration, sign-up or similar process.

2.6. These STCs will apply to the relationship between the FSP and the Client until the relationship is terminated by either party in writing. In the event of cancellation, the Client will remain liable for any fees due and payable for services rendered up to that point.

3. FSP’s business information

3.1. In terms of FAIS the provider of the advice must provide the Client with confirmation of their business information and FSB license particulars. That information is available on the FSP’s website at the following link: www.lifecheq.co.za. or in hard/soft copy upon request. Accordingly the Client hereby acknowledges that the FSP has provided the Client with all of the information as required in terms of FAIS, including business information, the FSP license and licensed areas of financial expertise. The Client hereby confirms receipt thereof.

3.2. Furthermore the Client acknowledges that:

3.2.1. he/she has been informed that the FSP licensed in terms of FAIS to give advice is LifeCheq Pty Ltd (“LifeCheq”**.

3.3. The Client instruct any credit bureau or other similar organisation that has information about me or their credit worthiness to release such information to the Company. The client consent to the Company disclosing information about how he/she pay my Credit Agreement or the termination of the agreement to credit bureaux.

4. Client information and warranties

4.1. All Client information will be treated confidentially, unless the FSP is legally obliged to disclose such information or in order to give effect to the Client’s instructions. The Client hereby:

4.1.1. Warrants that he/she is the lawful owner of any and all funds paid or transferred by him/her to the FSP;

4.1.2. Warrants that he/she has the legal capacity required to empower and authorise him/her to accept these STCs in terms of clauses 2.4 and 2.5, and that these STCs constitute an agreement that is valid, binding and enforceable against it in accordance with its terms;

4.1.3. Acknowledges and consents to LifeCheq acquiring their personal information in any survey and during their financial advice discussions;

4.1.4. Consents to LifeCheq using their personal information for the purpose of developing the financial advice service offering;

4.1.5. Undertakes to provide all of the relevant and material information to enable the FSP to provide an appropriate service to the Client and to comply with any requirements under FAIS and other relevant legislation;

4.1.6. Warrants that the origin of any funds paid or transferred by him/her to the FSP in terms of any transaction that may be concluded between the parties shall comply with all legislative requirements, particularly the Financial Intelligence Centre Act; and

4.1.7. Acknowledges that he/she has and will fully consider all of the relevant and material information disclosed to them by the FSP before signing this and any other relevant documentation.

4.1.8. If he/she has an existing financial advisor (either directly or through family**, then this fact as well as the client’s intentions to continue or discontinue the relationship with this financial advisor has been fully disclosed to LifeCheq, and that the client is engaging LifeCheq in good faith.

5. Financial service offered to the Client and the implications of such service offered

5.1. It is in the Client’s best interest to request a full and holistic financial needs analysis. The advice and/or intermediary services offered to the Client by the FSP over the duration of the professional relationship will include the following:

5.1.1. An initial consultation to gather information to produce a report detailing a financial roadmap for how the Client should best go about achieving their personal life goals (“The LifeCheq Plan”). This information gathering consultation is done at no fee payable by the Client.

5.1.2. A follow up consultation during which the LifeCheq Plan will be presented back to the client. The LifeCheq Plan incorporates a financial needs analysis (“FNA”).

5.1.3. Other financial services in accordance with the Client’s specific instructions, subject to the conditions of clause 3

5.1.4. Recommendations and solutions based on the information supplied to the FSP by the Client and in accordance with the Client’s priorities as agreed between the parties.

5.1.5. Upon completion of the initial consultation, if the Client intends to proceed with a follow-up consultation, a planning fee of R950 is payable. This fee is waived should the client proceed with signing up for the LifeCheq service as outlined in 5.2. If the Client does not proceed with signing up for the LifeCheq service, then this fee is payable within 30 days of the initial consultation.

5.1.6. Should the client choose not to proceed with the LifeCheq ongoing service upon completion of the LifeCheq plan, this agreement serves as authorization to invoice the client for the planning fee of R950.

5.1.7. Upon completion of the two consultations, the FSP will offer the client the opportunity to continue the relationship with the FSP and sign up for the LifeCheq service, or to work on the basis of a once-off planning engagement.

5.1.8. Should the Client wish to sign up for the LifeCheq service, the terms in 5.2 shall apply. The planning fee (as set out in 5.1.5) is waived for clients that sign up for the LifeCheq service.

5.1.9. Should the Client wish to work on the basis of a once-off planning engagement, the terms in 5.3 shall apply.

5.1.10. The Client is under no obligation to continue with the LifeCheq service or work on a once-off engagement, and may decide not to continue with the LifeCheq service.

5.2. Terms of the LifeCheq Service

5.2.1. The Client is entitled to two annual reviews with LifeCheq, comprising an update of the client’s LifeCheq plan to include the Client’s updated circumstances, goals and changes in the external environment that may impact the Client’s financial life.

5.2.2. At least one annual review will be at initiated by LifeCheq. The Client has the option of requesting a second review.

5.2.3. LifeCheq reserves the right to charge for additional reviews beyond the second review, if in its sole opinion, these reviews do not reflect material or unexpected changes in the Client’s financial life. These charges will be in line with LifeCheq’s standard rates as updated from time to time.

5.2.4. The Client will also have access to the LifeCheq Service team and Advice team for ad-hoc queries and administrative support on any issues or transactions relating to the LifeCheq plan. The Client will not be charged any additional fees for the implementation of the LifeCheq plan.

5.2.5. LifeCheq will on a best efforts basis proactively identify changes in the economic environment, financial services product landscape, tax and regulatory environment and make additional recommendations to the Client from time to time.

5.2.6. The Client will also receive exclusive research that LifeCheq produces from time to time for the sole use for LifeCheq’s Clients, and be invited to LifeCheq Exclusive Events intended solely for LifeCheq clients and their guests.

5.2.7. The Client has the option of accepting the LifeCheq service with or without tax services.

5.2.8. The Client may cancel the LifeCheq service at any time after 6 months have elapsed without any penalties, by informing LifeCheq in writing of his/her desire to do so. Upon cancellation, the Client will neither be charged any further service fees by LifeCheq, nor receive the services covered in 5.2.1 to 5.2.7.

5.2.9. Should the client proceed with the LifeCheq monthly service and receive access to their LifeCheq plan, the client will pay the relevant LifeCheq service by debit order, which will be calculated for the client based on the outcome of the LifeCheq plan and will be communicated to the client during the follow up consultation. The client acknowledges that taking up the LifeCheq service agreement serves as authorisation to issue and deliver payment instructions to the bank account supplied as per FICA documentation for collection against the Client’s account at the Client’s bank. The Client acknowledges that all payment instructions issued by the FSP shall be treated by the Client’s bank as if the instructions had been issued by the client personally. This authorisation is valid until this agreement has been terminated in writing with no less than 20 days notice.

5.2.10. Payment of the debit order will commence on the 26th or the 1st of the month following the follow up consultation. If that day falls on a Saturday, Sunday or recognised South African public holiday, the payment day will automatically be the very next ordinary business day. Further, if there are insufficient funds in the nominated account to meet the obligation, the FSP is entitled to track the Client’s account and re-present the instruction for payment as soon as sufficient funds are available in the Client’s account.

5.2.11. The Client understands that the withdrawals hereby authorised will be processed through a computerised system provided by the South African Banks and that details of each withdrawal will be printed on the Client’s bank statement. Each transaction will contain a number, which must be included in the said payment instruction and if provided to the Client should enable the Client to identify the Agreement. The Client shall not be entitled to any refund of amounts which have been withdrawn while this authority was in force and which were legally owing to the FSP.

5.2.12. The Client acknowledges that on cancellation, further engagements with LifeCheq will be treated as a once-off engagement, and billed on an hourly rate basis.

5.3. Terms of a Once-off engagement with LifeCheq

5.3.1. If the Client requests access to or a copy of the LifeCheq plan and does not take up the LifeCheq service covered in 5.2, then the Client may request LifeCheq to provide services on a once-off basis.

5.3.2. Further work on the implementation of the LifeCheq plan, or further updates to the LifeCheq plan will be charged to the Client in line with LifeCheq’s standard hourly rates as updated from time to time.

5.4. The FSP shall maintain and provide the Client with a Record of Advice (“ROA”** as required in terms of the FAIS Act along with the FNA. The ROA is intended to complement the corporate governance procedures and legislative requirements applicable to FSP’s and to provide the Client with a written summary of the content of the advice provided and shall be confirmed in writing and acknowledged by both parties.

6. Client responsibilities

6.1. It is the Client’s sole responsibility to action any of the needs that have been identified by the FSP.

6.2. The Client undertakes to provide the FSP with appropriate and relevant information, which would be required to establish the Client’s needs and objectives.

6.3. The Client acknowledges that should they elect to conclude a transaction that differs from that recommended by the FSP, there may be risks involved and the Client should take particular care whether the advice is appropriate considering their objectives, financial situation and particular needs.

6.4. The Client agrees to record their acceptance of the advice or final proposal in writing before or at the same time of the final implementation of the financial product solution.

6.5. The Client warrants that they are acting in good faith in seeking the services of LifeCheq in their personal capacity solely for the purposes of obtaining personal financial advice and will not attempt in any way either acting solely or with others, directly or indirectly to duplicate or reverse engineer LifeCheq’s proprietary processes, advice methodology, business model, software or financial models.

7. Risk disclosure

7.1. The Client hereby acknowledges that the FSP cannot be held responsible for:

7.1.1. Recommendations made by the FSP, which are not implemented by the Client;

7.1.2. Any specific financial need and/or objective, which was not disclosed to the FSP by the EClient; 7.1.3. rrors in the implementation of the advice or recommendations provided by the FSP where the implementation is carried out by another provider.

7.2. In the event that the Client requests or instructs the FSP not to do a comprehensive financial needs analysis, but render a specific financial service, the Client understands that:

7.2.1. A full analysis will then not be undertaken by the FSP in accordance with such instruction.

7.2.2. As a result, there may be limitations on the appropriateness of the advice or product provided; and

7.2.3. The Client should take particular care to consider on their own whether the advice or product is appropriate considering their objectives, financial situation and particular needs. While the FSP will endeavor to explain in clear language the benefits and costs of any financial products recommended, the client should refer to the original documentation from the financial product providers and not rely on any documentation from the FSP as a substitute for the product provider documentation.

8. Third party referrals

8.1. The FSP may not directly be able to (due to FSB licensing** or want to render services in certain disciplines. The FSP undertakes to make it clear which services and disciplines it will address and where possible direct the Client to other affiliated service providers who can assist with those not addressed.

8.2. In the event that the FSP should refer the Client to a third party for advice, intermediary services and/or other professional services, the FSP undertakes to take all reasonable steps to ensure that the third party is adequately licensed with the FSB and / or other regulatory bodies. However, it is understood that the FSP cannot be held responsible for the recommendations, guidance, proposals, intermediary services or professional services that are provided to the Client by such third party, as this constitutes a separate agreement between the Client and the third party. The Client also maintains complete independent choice whether to use the third party recommendation.

9. Intellectual Property

The financial service offering offered by LifeCheq and received by the Client is the intellectual property of LifeCheq. All changes to this offering whether made as a result of an interaction with the Client or otherwise are also the intellectual property of LifeCheq. The financial service offering includes: the advice process, the content of the advice, LifeCheq owned websites, financial models, software, financial data, all analysis and interpretation of financial product data, all models (financial or otherwise** used to generate the advice, marketing and advertising. The Client undertakes not to attempt in any way either acting solely or with others, directly or indirectly to duplicate or reverse engineer LifeCheq’s proprietary processes, advice methodology, business model, software or financial models.

10. Disclaimer

Should the Client not accept the advice or implement the recommendations made by the FSP, including the recommendations of a third party provider, the Client hereby indemnifies the FSP against any financial loss or disadvantage that the Client and related parties or any connected third party may suffer as a result.

11. Remuneration

11.1. Remuneration to The FSP will be paid in the form of commission paid by product providers and regulated by long term and short term insurance acts and FAIS and/or by fees paid directly by the Client to the FSP.

11.2. The Client acknowledges that the FSP is entitled to a commission, upfront and/or on-going, for the professional services rendered, which amount will be fully disclosed, via an official quote of the product supplier, to the Client prior to the implementation of any financial product concerned.

12. Terms of the agreement

It is recorded and agreed that this agreement will serve as the basis for financial services rendered to the Client under the FAIS Act and the subsequent instructions by the Client will be subject to the terms and conditions as set out in this agreement, unless the agreement is expressly cancelled by either party.

13. Variation of these STCs

The FSP may, at any time and without notice, add to, vary or amendment these STCs provided that any such addition, variation or amendment will not cause the FSP to deviate in any way from its obligations and duties in terms of FAIS.

14. Domicilium citandi et executandi

14.1. The FSP chooses as its domicilium citandi et executandi for all purposes under the agreement, whether in respect of court processes, notices or other documents or communications of whatsoever nature 306, 1 Thibault Square, 17 Hans Strijdom Avenue, Cape Town, 8001.

14.2. The Client chooses as its domicilium citandi et executandi for all purposes under the agreement, whether in respect of court processes, notices or other documents or communications of whatsoever nature the address he/she provided to the FSP, orally, in writing or in any other electronic form (including a data message submitted through an online registration, sign-up or similar process** on the date on which these STCs become valid in terms of clause 2.4 or any other address advised to the FSP by the Client in writing thereafter.

14.3. Any notice or communication required or permitted to be given in terms of this agreement shall be valid and effective only if in writing but it shall be competent to give notice via the below chosen e-mail addresses.

Company Disclosure

LifeCheq (Pty) Ltd (“LifeCheq”) is licensed with the Financial Services Board (FSB) in terms of the Financial Advisory and Intermediary Services Act (“the Act”) to render advice and intermediary services under FSP number 46514.

Address: 306, 1 Thibault Square, Cape Town 8001, Tel: 021 286 1714 Email: operations@lifecheq.co.za

As an authorised Financial Services Provider, we may not request or induce you as the Client to waive any right or benefit conferred on you as the Client or in terms of any prowaiver by provision of the General Code of Conduct, or recognise, accept or act on any such waiver by you as the Client.

Financial Advisor Disclosure

Your advisor’s name is Dylan Flint, a representative of LifeCheq who has been in practice since November 2015.

Dylan’s qualifications:

  • BBusSci (Actuarial Science), University of Cape Town
  • MSc. (Financial Mathematics), University of Cape Town

Dylan has extensive experience in the Financial Services industry. Prior to joining LifeCheq, he was a senior manager at Old Mutual, in his role as Head of Quantitative Development.

LifeCheq holds a category I FSP license and Dylan is authorised to provide financial services with respect to the following products:

(Both Advice and Intermediary Services)

1.1 Long-term Insurance: Category A 1.2 Short-term Insurance: Personal Lines 1.3 Long-term Insurance: Category B 1.4 Long-term Insurance: Category C 1.5 Retail Pension Benefits 1.6 Short-term Insurance: Commercial Lines 1.7 Pension Fund Benefits (excluding retail pension benefits) 1.14 Participatory interests in Collective Investment Schemes 1.20 Long-term Insurance: Category B2

LifeCheq does not own more than 10 % of issued shares directly or indirectly of any Assurer or Financial Product provider. Furthermore, it is not an associated company of any assurer or product provider and has not earned more than 30 % of my total commission from any one product provider/company within the past 12 months.

LifeCheq can offer products from the following providers: Old Mutual, Sanlam, Liberty, Momentum, Discovery, BrightRock, PPS, Allan Gray, Sygnia, Prescient.

The FSP earns its income from commission that the product providers pay over to LifeCheq in respect of financial services rendered with respect to products offered by these Product Providers.

LifeCheq does have Professional Indemnity Insurance cover of R5 000 000.00 arranged with AON which can be seen on request.

LifeCheq has a conflict of interest policy, which is available on written request.

FAIS Complaints Process

If at any time you do have a complaint or a compliance related query, please do not hesitate to contact LifeCheq who will assist you and provide you with full details of the complaints handling process, if so required. The contact details are:

Tel: 021 286 1712 E-mail: operations@lifecheq.co.za

Should the complaint not be resolved to your satisfaction, you may forward such complaint to the office of the Ombud for Financial Service Providers. The contact details are as follows:

Physical Address: Eastwood Office Park, Baobab House, Ground Floor, Lynnwood Ridge, 0081 Postal Address: PO Box 74571, Lynwood Ridge, 0040

Customer Contact Division: 0860 324 766 or 012 470 9080 E-mail: info@faisombud.co.za

Please note that, if you wish to lodge a complaint with the FAIS Ombud against LifeCheq or a LifeCheq Representative, you will need to show that you have already attempted to resolve the matter directly with LifeCheq.

Moonstone Compliance (Pty) Ltd is the businesses compliance officer and is represented by: Deon Harmse

Moonstone Compliance can be contacted at: Physical address: 25 Quantum Street, Technopark, Stellenbosch, South Africa Tel No: 021-8838000