Legal

Sweidan and Co, FSP Number 2078


1. Introduction

In terms of the General Code of Conduct for Authorised Financial Services Providers and Representatives (General Code), Board Notice 80 of 2003 and subordinate legislation to the Financial Advisory and Intermediaries Services (FAIS) Act, 37 of 2002, Sweidan and Co is required to maintain and operate an effective organisational and administrative arrangements with a view to taking all reasonable steps to identify, monitor and manage conflict of interest in respect of their clients.

Sweidan and Co has put in place a policy to safeguard its clients' interests and also ensure a fair treatment of its clients which policy is available on request from the FSP, Compliance Officer and Key Individual who is responsible to monitor and manage conflict of interest on behalf of Sweidan and Co.


2. The FSP's Objectives

Sweidan and Co is a category I authorised financial services provider, providing to its clients a financial service which includes advice and/or intermediary services in respect of the following approved products:

No. Category Description Advice Intermediary Service
1.1 Long-Term Insurance: Category A
1.2 Short-Term Insurance: Personal Lines
1.20 Long-Term Insurance: Category B1
1.3 Long-Term Insurance: Category B2
1.4 Long-Term Insurance: Category C
1.5 Retail Pension Benefits
1.6 Short-Term Insurance: Commercial Lines
1.7 Pension Fund Benefits
1.14 Participatory Interests in Collective Investment Schemes
1.16 Health Service Benefits

The nature of the above financial services provided by Sweidan and Co potentially exposes this FSP to conflicts of interests in respect of its clients and hence this Conflict of Interest Policy has been put in place to:


3. Important definitions in respect of what a Conflict of Interest is

A Conflict of Interest is defined in section 1(1) of the General Code and subordinate legislation to the FAIS Act, means: any situation in which a provider or a representative has an actual or potential interest that may, in rendering a financial service to a client:

  1. influence the objective performance of his, her or its obligations to that client, or
  2. prevent a provider or representative from rendering an unbiased and fair financial service to that client, or from acting in the interests of that client,

Including but not limited to:

  1. a financial interest;
  2. an ownership interest,
  3. any relationship with a third party

A financial interest is any: cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, foreign or domestic travel, hospitality, accommodation, sponsorship or any other incentive or valuable consideration; other than :

  1. an ownership interest or
  2. training on:
    • 2.1. products and legal matters related to the products,
    • 2.2. general financial and industry information,
    • 2.3. specialised technological systems of a third party required for the rendering of a financial service (excluding costs of training and accommodation associated with        the training).

Ownership interest is:

  1. any equity or proprietary interest for which fair value was paid by the owner at time of acquisition (other than equity or proprietary interest held as a nominee)
  2. includes any dividend, profit share or similar benefit derived from that equity or ownership interest.

An Associate: in the case of a company, as “any subsidiary or holding company of that company, any other subsidiary of that holding company and any other company of which that holding company is a subsidiary.”

A third party is a product supplier, another provider, an associate of a product supplier or a provider, a distribution channel or any person acting in terms of an agreement or arrangement with any of the above, provides a financial interest to a provider or its representatives.

An Immaterial financial interest is any financial interest that has a determinable monetary value, the aggregate of which does not exceed R1, 000.00 in any calendar year, received from a particular third party by: a sole proprietor, a provider, for its benefit or for some or all of its representatives’ benefit, aggregates the immaterial financial interest paid to its representatives.

Sweidan and Co strives toward ensuring it is able to appropriately and effectively identify and manage potential conflicts through avoidance, establishing confidentiality barriers and providing appropriate disclosure of the conflict to affected clients.

Sweidan and Co identifies a conflict of interest where there is a material risk of damage to a client, taking into account whether the FSP, or a representative or employee of the FSP:

Our policy defines possible conflicts of interests as:


4. Management of Conflict of Interests

Section 3A of the General Code of Conduct for Authorised Financial Services Providers and Representatives, Board Notice 80 of 2003 and subordinate legislation to the Financial Services and Intermediaries Services Act, 37 of 2002 deals specifically with financial interest and conflict of interest management policy.

Sweidan and Co focuses on the following monetary measures:

Sweidan and Co will not offer any financial interest to a representative for:

Sweidan and Co must ensure that we act impartially in respect of the identification of each conflict of interest to avoid material risk of harming client's interests and to this end the following measures have been adopted:


5. Application of this Conflict of Interest Policy

Sweidan and Co:


6. Consequences of Non-Compliance

Due to the stringent reporting requirements, all applicable penalties including fines and suspension of the financial services provider’s licence may be applied for non-compliance.

Sweidan and Co regards breach of this Conflict of Interest as a material breach of any employment or mandated contract the consequences of which will be a disciplinary enquiry which could result in dismissal and/or debarment due to staff no longer being fit and proper due to honesty and integrity being placed in question.



izimali Logo
+27 031 267 5060
melini.moodley@sweidan.co.za
70 Buckingham Terrace, Westville, 3629, South Africa