Old Mutual

WHY CONSIDER AN OLD MUTUAL REFERRAL AGREEMENT?

Are you providing ADVICE and are you ACCREDITED to provide ADVICE as part of your profession?
Would you like to diversify your current INCOME STREAM(S)?
Want to enhance your CUSTOMER VALUE PROPOSITION with access to industry-leading RESOURCES?

WHY IT MAKES SENSE TO CONSIDER AN INDEPENDENT CONTRACT?

ARE YOU EXPECTED AND ACCREDITED TO PROVIDE FINANCIAL ADVICE AS PART OF YOUR PROFESSION?

• ACCOUNTANT
• HR PRACTITIONER
• ATTORNEYESTATE AGENT
• BUSINESS OWNER
• TRUSTEE

UNDERSTANDING THE LEGISLATIVE RISKS

1. Do you have a clear understanding what FINANCIAL ADVICE includes?
2. What is defined as a FINANCIAL PRODUCT?
3. What’s needed to COMPLY?
4. What does NON-COMPLIANCE mean?

FINANCIAL ADVICE INCLUDES?

Advice means, subject to section 3(a) any recommendation, guidance or proposal of a financial nature furnished, by any means or medium, to any client or group of clients: 

1. In respect of the purchase of any financial product
2. In respect of the investment in any financial product
3. On the variation of any term or condition applying to the financial product, on the replacement of any such product, or on the termination of any purchase of or investment in any such product and irrespective of whether such advice:
   a. Is furnished in the course of, or incidental to, financial planning in connection with the affairs of a client; or
   b. Results in any such purchase, transaction, replacement or termination.

DEFINITION: FINANCIAL PRODUCT

(a) shares in a company other than a “share block company”
(b) participatory interest in one or more collective investment schemes (known as Unit Trust)
(c) a long term or short-term insurance contract
(d) a benefit provided by a pension fund organisation     
(e) a foreign currency denominated investment, including a foreign currency deposit
(f) a health service benefit provided by a medical scheme
(i) any combined product containing one or more of the financial products referred to above

WHAT’S NEEDED TO COMPLY?

• LICENSE
• FIT & PROPER STATUS
  • Qualifications and various other examinations (product specific, class of business and regulatory examinations and continued professional development (CPD))
  • Honesty & Integrity
  • Sound financial standing
  • Operational requirements
• RESOURCES
  • Staff
  • Compliance
• PROCEDURES
  • Philosophy & planning process
• TECHNOLOGICAL SYSTEM
  • Terminology of particular art or subject

WHAT HAPPENS IF ONE DOES NOT COMPLY?

• Practicing as a financial adviser or intermediary without a license
• Failure to keep adequate records
• Failure to meet accounting and audit requirements
• After being declared an undesirable practice, carries on business
• Fails to rectify or reinstate something as ordered in terms of the Act
  • It is a criminal offence
  • A fine of R10 000 000 or imprisonment of a period up to 10 years

DIVERSIFIED INCOME STREAM

Diversify your income without additional costs OR regulatory OR compliance requirements.

ENHANCED CUSTOMER VALUE PROPOSITION

• Financial Planning
  • Help to draft a tax-effective estate plan or assistance to select an appropriate retirement vehicle.
• Wealth Creation
  • Guidance on investment fund selection – Should a money market OR property OR equity (local or foreign) OR bond or diversified investment be recommended?
• Wealth Protection
  • Ensuring relevant personal and business risks are covered.

ACCESS TO RESOURCES

• Industry-leading estate planning experts.
• Access to industry-expertise, including Healthcare, Employee benefit, Short-Term, Risk and Investment solutions and experts.

ENSURING BUSINESS CONTINUITY

• Liability and property risks
• Health and retirement risks of employees
• What if someone who crucial to business operation dies or becomes disabled?

BENEFITS OF A REFERRAL AGREEMENT

• Old Mutual covers your advice risks where advice has been provided
• Knowledgeable and creditable business partners
• Entering into a legal contract with Old Mutual and the Old Mutual accredited adviser
• One accredited adviser working with your customers

OLD MUTUAL AWARDS

OLD MUTUAL – WHAT WE DO?

	Innovative life assurance based solutions, addressing both protection & savings needs	We provide our range of financial solutions to individuals small & medium-sized businesses corporates institutions across various market segments & geographies
	Our offerings include transactional products, policy-backed lending, unsecured lending and debt consolidation
	Short term insurance solutions through Old Mutual Insure
	Growing our customers’ savings & wealth, through active or direct asset management with Old Mutual Investment Group; or the selection of funds for customers to invest in through multi-managers

WHY CONSIDER A REFERRAL AGREEMENT WITH OLD MUTUAL PERSONAL FINANCIAL ADVICE?

• Opportunity to offer holistic financial planning
  • Enhancing your value proposition and include financial planning
• Limit legislative and advice risks
  • Ensure compliance and transfer the advice risks
• Additional services to business clients
  • For many business owners their business is their retirement plan – help them to diversify with added tax benefits
  • Offer business estate plans
• Build up an annuity income stream
• Access to additional resources
  • E.g. legal adviser to provide estate planning, business assurance reports, retirement planning and investment planning and trust audits

THANK YOU