International Investment Option

Transcription

1 January 2012 International Investment Option Terms and Conditions Momentum Wealth International Limited Registered address: La Plaiderie House, La Plaiderie, St Peter Port, Guernsey, Channel Islands, GY1 1WF Registered in Guernsey No Postal address: PO Box 166, La Plaiderie House, La Plaiderie, St Peter Port, Guernsey, Channel Islands, GY1 4HE Switchboard +44 (0) Facsimile +44 (0) Momentum Wealth International Limited is licensed by the Guernsey Financial Services Commission to conduct Investment Business Momentum Wealth International Limited is an authorised Financial Services Provider pursuant to the Financial Advisory and Intermediary Services Act No. 37 of 2002 in South Africa A member of the MMI Holdings Group wealth international

2 Contents Page 1. Introduction to Momentum Wealth International 3 2. Important Information 4 3. Terms & Conditions 6 Wealth International International Investment Option - Terms and Conditions January 2012 Page 2 of 26

3 Introduction This document has been issued by Momentum Wealth International Limited (hereafter Momentum Wealth International ), a company incorporated in Guernsey on 12 April 1996, with registered number whose registered office is La Plaiderie House, La Plaiderie, St Peter Port, Guernsey GY1 1WF. Momentum Wealth International is owned by MMI Holdings Limited a company incorporated in South Africa and listed on the Johannesburg Stock Exchange. Momentum Wealth International is licensed by the Guernsey Financial Services Commission to conduct investment business. In addition, Momentum Wealth International is an authorised financial service provider pursuant to the Financial Advisory and Intermediary Services Act No. 37 of 2002 in South Africa. Professional Experience of Momentum Wealth International Momentum Wealth International commenced business in 1999 and is domiciled in Guernsey, one of the world s premier international financial services centres. Guernsey has notable economic and political stability and comprehensive financial legislation ensuring a high standard of regulation and investor protection. Momentum Wealth International has operations in Guernsey and South Africa with a dedicated workforce of over 50 people. Whilst our client services and administration teams are based in South Africa, we offer all our services through Guernsey, and Momentum Wealth International is licensed by the Guernsey Financial Services Commission (GFSC). The primary objective of the GFSC is to regulate and supervise services in Guernsey, with integrity and efficiency, and in so doing help to uphold the international reputation of Guernsey as a finance centre. Our investment platform offers flexible, simple and cost effective solutions to investors wishing to diversify their investment portfolios internationally. We offer insurance and investment solutions and years of experience in offering a wide range of truly offshore investment funds, all denominated in various foreign currencies and managed by more than 200 Fund Managers from around the world. The Board of Momentum Wealth International Momentum Wealth International has a constituency of 5 Directors, who between them hold many years of financial services industry experience in various international jurisdictions. The Directors are responsible for the overall management and control of Momentum Wealth International. Etienne Gouws is based in South Africa. He joined the Momentum Group as a Junior Actuarial consultant in 1994 and has been with the Momentum Group ever since. He currently holds the position of Chief Executive Officer: Momentum Wealth. He holds a BSc Degree in actuarial science from the University of Johannesburg and is a professional member and Fellow of the Institute of Actuaries (FIA). Stefan Jordaan is resident in Guernsey and is the Managing Director of Momentum Wealth International. He has 16 years experience in the financial services industry and 13 years with the Momentum Group. He previously held the positions of Marketing Manager in South Africa and later headed up distribution in the Middle East and Asia. He is a member of the Institute of Directors and the Chamber of Commerce in Guernsey. Stefan holds an Investment Management Certificate from the CFA Society of the United Kingdom and an Advanced Post Graduate Diploma in Financial Planning from the University of the Free State, South Africa. Marisa Meyer is resident in Guernsey and is the Operations Director of Momentum Wealth International. On completion of her BCom degree in Marketing & Communication Marisa joined the Momentum Group in 1998 as part of the dealing team in Momentum Wealth South Africa. Her involvement with the Momentum Group enabled her to gain a vast experience of the finance industry whilst she worked for both Momentum and Momentum Wealth International in their London, South Africa and Guernsey offices for more than eleven years. In July 2008, Marisa moved back to Guernsey when she joined the Close Fund Services team as Operations Director to supervise the design, development and implementation of their business operating model and rejoined Momentum Wealth International in May Marisa is also a member of the Institute of Directors and the Chamber of Commerce in Guernsey. Joseph Pieterse is based in South Africa. He has more than 18 years experience in the financial services industry; six of these years where he worked in the United Kingdom, during which time he was primarily involved in setting up the international business operations of Momentum Wealth International. He has a Masters degree in business management. Robert Rhodes is resident in the United Kingdom and is the Chief Operating Officer of Momentum Global Investment Management Limited, an Investment Manager. He serves as a non-executive Director of Momentum Wealth International and is a director on the boards of various Luxembourg investment funds. He has an honours degree in business science and more than 15 years experience in investment operations. Regulatory History of Momentum Wealth International 1999: Investment Services in Guernsey were provided by Ansbacher (Guernsey) Limited, a bank licensed by the Guernsey Financial Services Commission to conduct investment business under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 and a member of the FirstRand Group, a financial services group listed on the Johannesburg Stock Exchange. Wealth International International Investment Option - Terms and Conditions January 2012 Page 3 of 26

4 September 2001: Ansbacher (Guernsey) Limited became a branch of Ansbacher (Jersey) Limited, which was granted a licence to conduct investment business under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 on 12/09/2001 by the Guernsey Financial Services Commission. Simultaneously in September 2001: At this time Ansbacher (Jersey) Limited changed its name to Ansbacher (Channel Islands) Limited. The investment services were then offered by Ansbacher Investment Services Guernsey, a division of Ansbacher (Channel Islands) Limited, Guernsey Branch. October 2004: the investment services business was transferred from Ansbacher Investment Services Guernsey to RMB International (Guernsey) Limited, which was granted a licence to conduct investment business under the Protection of Investors (Bailiwick of Guernsey) Law, 1987 on 30/09/04 by the Guernsey Financial Services Commission. February 2005: RMB International (Guernsey) Limited changed its name to RMB Investment Services Limited. July 2007: RMB Investment Services Limited was granted authorisation as a Financial Services Provider pursuant to the Financial Advisory and Intermediary Services Act No. 37 of 2002 by the South African Financial Services Board. December 2010: RMB Investment Services Limited s parent company, Momentum Group Limited, merged with Metropolitan Holdings Limited and FirstRand Limited unbundled its shareholding in the merged South African listed company (MMI Holdings Limited) directly to its shareholders. June 2011: RMB Investment Services Limited changed its name to Momentum Wealth International Limited, which remains licensed by the Guernsey Financial Services Commission to conduct investment business under the Protection of Investors (Bailiwick of Guernsey) Law, 1987, and authorised as a Financial Services Provider pursuant to the Financial Advisory and Intermediary Services Act No. 37 of 2002 by the South African Financial Services Board. Important Information Investment Instruction Form could lawfully be used without contravention of any registration or other legal requirement. Neither these Terms and Conditions nor any of the documents that may be provided by Momentum Wealth International in connection with the International Investment Option Service should be distributed or circulated by the recipient to any other person unless such distribution or circulation complies with the laws or regulations to which the recipient of these Terms and Conditions are subject. It is the responsibility of any person wishing to make an application for an International Investment Option to satisfy himself as to the full observance of the laws of any regulatory territory in connection therewith, including obtaining requisite governmental or other consents and observing any other formalities required to be observed in such territory. Momentum Wealth International is required by law to verify the identity of, and obtain certain information from, prospective investors to comply with measures aimed at the prevention of money laundering and countering terrorist financing. Prior to the commencement of the International Investment Option Service, the Client will need to provide Momentum Wealth International with such information as to enable Momentum Wealth International to discharge its duty to obtain sufficient evidence of the Client s identity. By way of example, the Client will be required to produce a copy of a current passport or identification card duly certified by a public authority such as a notary public, together with evidence of the Client s permanent residential address. The Client s Financial Adviser will be able to provide the Client with further information concerning this requirement. Momentum Wealth International may be required to provide copies of such evidence to the nominee company appointed by Momentum Wealth International (hereafter, the Nominee ) to comply with measures aimed at the prevention of money laundering and countering terrorist financing in Guernsey. The International Investment Option Service will not commence until such time as Momentum Wealth International has received and is satisfied with all the information and documentation required to verify the Client s identity. Neither the International Investment Option Service, nor the Strategic Portfolios that are offered within the International Investment Option Service are collective investment schemes. Each investor will hold a separate portfolio of units or shares in the underlying investment funds. No person receiving a copy of these Terms and Conditions may treat the same as constituting an invitation or offer to him to manage his investments or to invest in any of the investment funds in the Fund List or any New Funds, nor should he, in any event, use any of the accompanying Application Forms or any Investment Instruction Form in connection with the International Investment Option Service unless, in the relevant territory, such an invitation or offer could lawfully be made to him or such Application Form or You are reminded that past performance of any investment is not necessarily a guide to the future. You may not get back the full amount of your investment. Fluctuations in the value of the underlying securities and the income from them and changes in interest rates mean that the value of your International Investment Option Portfolio and any income arising from it may fall as well as rise and is not guaranteed. Deductions of charges and expenses mean that you may not get back the amount you invested. The fees charged by Momentum Wealth International and the underlying Fund Managers are not guaranteed to remain at current levels and may change in the future. The risks inherent in investments that are higher risk investments are greater than for other investments. Such Wealth International International Investment Option - Terms and Conditions January 2012 Page 4 of 26

5 higher risk investments may be subject to sudden and large falls in value. You could get back nothing at all. Higher risk investments include, but are not limited to, investments in smaller companies (even in developed markets), investments in emerging markets, investments in single country debt, investments in equity investment funds and investments in high yield or non-investment grade debt. There can be no assurance that the performance of the investment funds that you invest in within your International Investment Option will achieve your objectives. Your International Investment Option Portfolio may contain shares or units in investment funds that invest internationally. The value of your investment may therefore be subject to exchange rate fluctuations. Changes in the rates of exchange between currencies may cause your investment and the income arising from it to go down or up. If an investment fund within your International Investment Option Portfolio suspends dealings, your investment may be difficult to realise and it may be difficult to obtain reliable information about the value of your investment or the extent of the risks to which your International Investment Option Portfolio may be exposed. Whilst the investment fund may be listed on an exchange, you should be aware that this might not provide an effective trading market for such investment. If an investment fund within your International Investment Option Portfolio is a non-daily dealing investment fund, your investment may be difficult to realise other than on one of the investment fund s dealing days and it will not be possible to obtain reliable information about the value of your investment other than as at the valuation points associated with the investment fund s dealing days. If an investment fund within your International Investment Option Portfolio is an investment fund that is not an approved collective investment scheme in South Africa, the relevant investment fund may not be subject to the same regulatory regime, in some or in all respects, including any compensation arrangements, as is applicable to investment funds that are available to the general public in South Africa. Certain non-approved collective investment schemes may permit a greater degree of leverage than is permitted with investment funds that are available to the general public in South Africa. Accordingly, the underlying volatility of the investment fund will be significantly greater than would have been the case without the permitted leverage. Whilst this leverage gives the investment fund the ability to participate in high returns associated with greater exposure, it also gives increased exposure to the risk of loss. The contents of these Terms and Conditions are important and should be read carefully before completing and signing either the Application Form or any Investment Instruction Form. These Terms and Conditions, together with the signed Application Form, the International Investment Option Brochure and every signed Investment Instruction Form, constitute the Client s contract with Momentum Wealth International and set out the basis upon which Momentum Wealth International will establish and administer the Client s International Investment Option. The terms of the Agreement may be amended from time to time, but Momentum Wealth International will give you notice of any proposed amendment in accordance with Clause14.1 of these Terms and Conditions. Should you wish to examine the personal data that Momentum Wealth International has in connection with you or otherwise exercise your data protection rights under the Applicable Data Protection Law, you should write to the Momentum Wealth International Data Protection Officer or equivalent at Momentum Wealth International s office. If you have any doubt about the suitability of applying for the International Investment Option Service or purchasing shares or units in any investment fund, you should seek advice from your Financial Adviser. Wealth International International Investment Option - Terms and Conditions January 2012 Page 5 of 26

6 Terms and Conditions In these Terms and Conditions the following words and expressions shall, where not inconsistent with the context, have the following meanings respectively: Account Currency - US Dollars, Sterling or Euros or such other currency, where Momentum Wealth International has informed the Client that Momentum Wealth International will accept an Initial Payment or Additional Payment in such other currency (as the case may be); Additional Payment - any amount in an Account Currency paid from time to time by the Client into one of Momentum Wealth International s Client Investment Accounts for the purpose of increasing the Client s Portfolio, such amount being at least USD7,500 (or the equivalent amount in another currency) or such greater amount as may be required by any relevant Fund; Agreement - together, these Terms and Conditions, the Application Form, the Brochure, and any Investment Instruction Form, each as amended and/or supplemented from time to time; Annual Administration Fee - the fee charged to the Client s Portfolio by Momentum Wealth International for administration at an annualised rate, calculated daily and recoverable monthly; Applicable Data Protection Law - all applicable laws and regulations in connection with data protection that apply to Momentum Wealth International, including the prevailing rules, regulations, requirements, practices, determinations and guidelines of any governmental or regulatory body or organisation; Applicable Law - all applicable laws and regulations, including the prevailing rules, regulations, requirements, practices, determinations and guidelines of any governmental or regulatory body or organisation; Application Form - the International Investment Option Application Form completed and signed by the Client; Associate - a holding company, sister company or subsidiary of Momentum Wealth International and any other subsidiary of such holding company and any person who alone or with an Associate (as so defined) is entitled to exercise or control the exercise of twenty per cent or more of the voting power at any general meeting of Momentum Wealth International or such holding company or subsidiary; and "associated" and "association" shall be construed accordingly; Bank - an appropriately licensed banking institution as may be appointed by either Momentum Wealth International or the Nominee (as the case may be) from time to time; Brochure - the International Investment Option Brochure amended and/or supplemented from time to time, including any documents referred to as inserted therewith; Business Day - any day on which banks in Guernsey, South Africa and the jurisdiction of Momentum Wealth International are open for business (excluding Saturdays, Sundays and public holidays); Business Days shall be deemed to end at 4 p.m. (Guernsey time); Cash Account - a generic term for the interest bearing account(s) (if applicable and available) in respect of the Portfolio maintained for transactions, including the phasing-in of investments, redemptions, the payment of fees, disbursements, and recurrent redemptions. An account specifically provided for under these Terms and Conditions, as held in such Account Currency in a bank, savings, money market account or unitised money market fund as Momentum Wealth International may determine; A minimum of two percent of the Portfolio must be maintained in a Cash Account at all times; Cash Rate - the interest rate in relation to the relevant currency that shall apply from time to time to the credit balance in a Cash Account (if appropriate), the credit balance in a Distribution Account (if appropriate) or the credit balance in a Fee Deposit Account (if appropriate) (all in the relevant currency) within the Client s Portfolio (such rate being the interest rate which shall be determined from time to time by Momentum Wealth International based upon the short-term interest rates in the relevant currency that shall be available at the relevant time), which rate shall be available upon request from the Client s Financial Adviser; Client - the person named as the Client in the duly completed Application Form; Contractual Interest - a right of ownership held by a Contract Owner in the International Investment Option pursuant to this Agreement; Contract Owner - a person reflected in the records of Momentum Wealth International as holding a Contractual Interest; Discretionary Manager - the external or internal discretionary investment manager, if any, selected and appointed to make discretionary investment decisions on behalf of the Client relating to the assets included in the Portfolio, except as otherwise provided under the terms of the International Investment Portfolio; An Internal discretionary investment manager refers to the Company itself or its duly authorised appointee, who shall, despite anything to the contrary elsewhere contained, act as the Company s appointee (and not the Contract Owner s appointee); Distribution Account - the Cash Account in the relevant Account Currency within the Client s Portfolio that shall have been opened by Momentum Wealth International in the Wealth International International Investment Option - Terms and Conditions January 2012 Page 6 of 26

7 name of the Nominee to hold distributions received in the relevant currency from Funds and/or New Funds within the Client s Portfolio; EU Resident - a person who is resident for tax purposes in any European Union member country; Fee Deposit Account - the Cash Account in the relevant Account Currency within the Client s Portfolio that shall have been opened by Momentum Wealth International in the name of the Nominee to hold credit balances in the relevant currency for the purposes of paying the annual fees referred to in these Terms and Conditions; Fee Deposit Currency - either the currency specified by the Client in the Application Form as the Account Currency denomination of the Fee Deposit Account that is to be created within the Client s Portfolio pursuant to these Terms and Conditions or the currency subsequently specified in writing by the Client to Momentum Wealth International as the Account Currency denomination of the Fee Deposit Account that is to be created within the Client s Portfolio pursuant to these Terms and Conditions; Fee Deposit Percentage - the percentage part of the Initial Payment or Additional Payment indicated by the Client in his Application Form or his Investment Instruction Form as being the percentage part of the Initial Payment or Additional Payment that is to be allocated initially to the Fee Deposit Account within the Client s Portfolio; Fee Schedule - the schedule of fees that the Financial Adviser may use to explain the fees applicable to the Contract and Financial Adviser; Financial Adviser - the Client s appointed Financial Adviser from time to time that is authorised by the Client to receive information and communications from Momentum Wealth International or the Client, and convey it respectively to the Client or Momentum Wealth International. Any reference to a Financial Adviser shall be deemed to include the intermediary firm which such Financial Adviser represents; Fund - any unit trust, mutual fund or investment fund included in the Fund List as amended from time to time; Fund List - the list of unit trusts, mutual funds and other investment funds, provided to the Financial Adviser to assist with Fund selection, listing all the Funds available to investors on the International Investment Option Service and published by Momentum Wealth International from time to time; Fund Manager - the designated manager and/or the administrator (as the context requires) of a Fund/New Fund; Guernsey Resident - a person who for the purposes of the Income Tax (Guernsey) Law 1975, as amended, is resident in Guernsey, Alderney or Herm; Initial Advice Fee - the fee payable from the Initial Payment or Additional Payment to the Financial Adviser for financial planning and advice relating to the initial or additional investment; Initial Payment - the amount in an Account Currency payable by the Client in connection with the duly completed Application Form, being at least the Minimum Investment; International Core Portfolio - a limited selection of preferentially priced international Funds; International FundShop - the balance of international Funds available on the Fund List that are not available within the International Managed Solutions or International Core Portfolio segments; International Investment Option - the investment and portfolio administration service provided by Momentum Wealth International pursuant to this Agreement; International Managed Solutions - a limited range of actively managed risk profiled fund of funds provided by Momentum Wealth International or an Associate; Interest-bearing Account/s - one or more Interest-bearing accounts held in the name of the Nominee, with such institutions and in such account types, and subject to such interest rates, as Momentum Wealth International may in its sole discretion select, taking into account the interests of the Client and the purpose for which that account has been opened. Despite anything to the contrary contained in this Agreement, any reference to Momentum Wealth International utilising an Interest-bearing Account or unitised money market fund shall not preclude Momentum Wealth International, if so requested by the Client, from using a noninterest bearing account on his behalf; Investment Instruction Form - either a International Investment Option instruction form completed and signed either by the Client or on behalf of the Client or a written instruction signed either by the Client or on behalf of the Client (as the case may be); Licensees (Conduct of Business) Rules the Licensees (Conduct of Business) Rules 2009 as issued by the Guernsey Financial Services Commission pursuant to the Protection of Investors (Bailiwick of Guernsey) Law 1987, as amended; Managed Portfolio - a pre-determined selection of Funds prepared and offered by an external Discretionary Manager from time to time to meet the investment objectives specified for that Managed Portfolio; Minimum Investment - either USD25,000 or the equivalent amount in another currency or such other amount as determined by Momentum Wealth International and notified to the Client from time to time; Wealth International International Investment Option - Terms and Conditions January 2012 Page 7 of 26

8 Minimum Value - USD25,000 (or currency equivalent) or such other amount as determined by Momentum Wealth International and notified to the Client from time to time; Momentum Group - means Momentum Group Limited, a company incorporated in South Africa, and its affiliates and subsidiaries (including Momentum Wealth International), which are ultimately owned by MMI Holdings Limited a company incorporated in South Africa, and listed on the Johannesburg Stock exchange; Momentum Wealth International Client Investment Account - any one of the non-interest bearing client accounts in the name of Momentum Wealth International at the Bank that shall have been opened by Momentum Wealth International and designated by Momentum Wealth International as being an account that will receive Initial Payments and Additional Payments; Momentum Wealth International Data Protection Officer - the employee at Momentum Wealth International whom the Client should contact in order to exercise the Client s rights under the Applicable Data Protection Law; New Fund - any new unit trust, mutual fund or investment fund not in the Fund List that the Client may select; Nominee - the nominee company appointed by Momentum Wealth International to hold client assets and client monies; Non-Daily Fund - any Fund or New Fund whose shares, units or tradeable interests do not entitle the holder of such shares, units or tradeable interests to redeem such shares, units or tradeable interests on every Business Day; Notification Day - the last Business Day upon which the Fund Manager of the relevant Fund or New Fund will accept subscription instructions from the Nominee in connection with a dealing day of the relevant particular Fund or New Fund; Ongoing Advice Fee - the fee, if any, payable by Momentum Wealth International to the Financial Adviser during the term of the contract in accordance with the Client s instructions in the Application Form or Investment Instruction Form to pay for ongoing financial planning and advice services rendered for the Client s benefit, and recovered from the Client s Portfolio; Phase-in Fund - the Fund or New Fund identified either in the Application Form or the relevant Investment Instruction Form as being the recipient of a Phase-in Sum; Phase-In Sum - the part of the Initial Payment (or the part of the Additional Payment) that the Client indicates either in the Application Form or the relevant Investment Instruction Form is to be invested in either the Shares of a Non-Daily Fund or the Shares of a Fund that is subject to the provisions of Clause below; Portfolio - the portfolio of the Client to which the International Investment Option Service described in this Agreement relates; Quarter Day - 1 January, 1 April, 1 July and 1 October of each year; Share - shares, units or other tradeable interests issued by either a Fund or a New Fund; Specified Currency - the currency specified by the Client either in the Application Form or in an Investment Instruction Form as the currency into which the Client wishes the value of the Portfolio to be converted in the valuation statements provided; Strategic Portfolio - a pre-determined selection of Funds prepared and offered by Momentum Wealth International, as internal Discretionary Manager, from time to time to meet the investment objectives specified for that Strategic Portfolio; Taxation - all forms of taxation, whenever imposed, including, without limitation, income tax, capital gains tax, corporation tax, inheritance tax, national insurance, stamp duty, stamp duty reserve tax, value-added tax and all statutory, governmental or municipal impositions, duties and levies and all related penalties, charges, costs and interest; and "Taxes" shall be construed accordingly; Trading Account - the bank account in the name of the Nominee within the Client s Portfolio used to facilitate payments to and from Fund Managers and Cash accounts; Transactional Bank Charge - the fee charged to this International Investment Option contract in respect of cash investment, withdrawal and switch instructions received, from the Client, to cover banking charges incurred by Momentum Wealth International. US National - a person who is a resident, national or citizen of the United States of America; and "US Person" has the meaning contained in Regulation S of the US Securities Act of 1933 as amended. Section 1: Interpretation 1.1 References to Clauses are to the clauses of these Terms and Conditions. 1.2 The headings to the Clauses of these Terms and Conditions are for convenience only and shall not affect the construction or interpretation thereof. 1.3 Where the context of these Terms and Conditions requires, any reference to "person" this shall include natural and legal persons, including corporate bodies; any reference to one gender includes the other genders and the neuter; and any reference to the singular shall include the plural, and vice versa. Wealth International International Investment Option - Terms and Conditions January 2012 Page 8 of 26

9 1.4 Any reference to a statutory provision shall include that provision as from time to time modified or reenacted before or after the date of this Agreement or of any subordinate legislation made from time to time there under. Section 2 - Commencement 2.1. This Agreement shall come into effect on the Business Day upon which Momentum Wealth International accepts the Application Form. 2.2 Momentum Wealth International shall not accept the Application Form unless: The Application Form has been duly completed and signed by or on behalf of the Client; and Momentum Wealth International has completed such verification procedures, as it shall consider necessary in order to comply with any Applicable Law, whether relating to the prevention of money laundering or otherwise, and its internal policies provided that Momentum Wealth International may refuse to accept any Application Form without giving reasons. 2.3 For the purposes of the Licensees (Conduct of Business) Rules 2009, the Client will be categorised as a retail client unless Momentum Wealth International notifies the Client otherwise in writing prior to the commencement of this Agreement. Retail clients are afforded the highest level of protection under the Licensees (Conduct of Business) Rules 2009 and in the event the Client is categorized as a professional client or an eligible counterparty (as those terms are defined in the aforesaid rules), the Client may request a different categorisation affording the Client a higher level of protection. Section 3 - Investment 3.1 Once the Application Form has been accepted, and this Agreement has come into effect, within 5 Business Days the Client shall transfer the Initial Payment into one of Momentum Wealth International s Client Investment Accounts. 3.2 The Initial Payment, and any Additional Payment, should be made by telegraphic transfer (or equivalent electronic transfer) to one of Momentum Wealth International s Client Investment Accounts or by way of an existing fund stock transfer, or existing contract transfer. 3.3 No confirmation of receipt of the Client s Application Form, any Investment Instruction Form, the Initial Payment or any Additional Payment will be sent to the Client. 3.4 If the Application Form has been accepted by Momentum Wealth International, upon the receipt of the Initial Payment or Additional Payment in one of Momentum Wealth International s Client Investment Accounts, Momentum Wealth International shall transfer the relevant sum to the Trading Account to be held by the Nominee on the Client s behalf pending investment. All sums held in the name of the Nominee on behalf of the Client will be segregated from the Nominee s own assets and, as client money, will be held by the Nominee in accordance with the Licensees (Conduct of Business) Rules No interest will be paid on any amounts held by the Nominee in the Trading Account pending investment. 3.5 Subject to Clauses 3.6, 3.7, 3.8, 3.9, 3.10, 3.11 and 3.16 below, Momentum Wealth International will invest the Initial Payment and any Additional Payment in the Shares (via the Trading Account), the Fee Deposit Accounts and other Cash Accounts (if applicable) specified in the Application Form or the relevant Investment Instruction Form within three Business Days of receipt by Momentum Wealth International of cleared funds in respect of such payment. 3.6 Subject to Clauses 3.7, 3.8, 3.9, 3.10, 3.11 and 3.16 below, where the investment of any part of the Initial Payment or any part of any Additional Payment necessitates a foreign exchange transaction Momentum Wealth International will invest the relevant part of the Initial Payment or Additional Payment (as the case may be) in the relevant Shares (via the Trading Account), the Fee Deposit Accounts and other Cash Accounts (if applicable) within five Business Days of receipt by Momentum Wealth International of cleared funds in respect of such payment. 3.7 Momentum Wealth International or any Associate is hereby authorised and instructed by the Client to undertake or arrange for the Bank to undertake all foreign exchange transactions necessary to make any investment in any Fund or New Fund or any withdrawal in accordance with these Terms and Conditions. It is hereby acknowledged by the Client that any such foreign exchange transactions may be effected on normal banking terms and that Momentum Wealth International and/or any Associate shall be entitled to retain any benefit arising out of such transaction without liability to account to the Client or any other person except insofar as is required by Applicable law. 3.8 No investment shall be required to be made by Momentum Wealth International until Momentum Wealth International has received cleared funds in one of Momentum Wealth International s Client Investment Accounts in respect of the relevant Initial Payment or Additional Payment. It is the Client s responsibility to liaise with his Financial Adviser and, Wealth International International Investment Option - Terms and Conditions January 2012 Page 9 of 26

10 if necessary, to review the scheme particulars of the relevant Funds in order to ensure that at least the minimum investment levels for subscriptions into a particular Fund are complied with in respect of that Client subscription. The Client hereby indemnifies Momentum Wealth International for any losses in respect of any Client instruction that infringes a subscription rule of the Fund, and without obligation on Momentum Wealth International s part to notify the Client of the occurrence of such infringement. The Client hereby authorises Momentum Wealth International to take such corrective action deemed necessary in its sole discretion in order to rectify or mitigate such subscription breach, but without obligation to do so. 3.9 No investment shall be required to be made by Momentum Wealth International until the aggregate amount received in cleared funds by Momentum Wealth International from all clients is at least equal to the minimum amount required to make an investment in a Fund. Cash will be retained in the Trading Account and no interest will be paid on such amounts held by the Nominee in the Trading Account pending investment Notwithstanding any of the foregoing, the Client acknowledges and agrees that the terms and conditions relating to investments in the Funds (including, without limitation, dealing frequencies and notice periods) may not be the same as these Terms and Conditions and Momentum Wealth International accepts no responsibility whatsoever for losses arising from any mismatch between these Terms and Conditions and the terms and conditions relating to investments in the Funds (including, without limitation, dealing/timing mismatches) Notwithstanding the receipt of cleared funds by Momentum Wealth International, where either the Application Form or an Investment Instruction Form contains an instruction concerning a New Fund, it is hereby acknowledged by the Client that Momentum Wealth International may, in its sole discretion, refuse to purchase or subscribe for Shares in the New Fund where Momentum Wealth International (or any Associate) is not satisfied that an adequate arrangement or agreement exists between Momentum Wealth International and the fund manager of the New Fund for investments in the New Fund. Investments shall be made within five Business Days of an agreement/adequate arrangement being reached between Momentum Wealth International (or Associate) and the Fund Manager of the New Fund Until the Initial Payment or any Additional Payment has been invested on behalf of the Client, it will be held in a Trading Account, with the Bank, in the name of the Nominee that is segregated from Momentum Wealth International s own assets. Except in the circumstances set out in Clause 6 below, no interest will be paid on any amounts held by the Nominee pending investment (other than amounts held in a Fee Deposit Account or a Distribution Account) Momentum Wealth International categorises all Funds on the Fund List into three segments, namely International Managed Solutions, International Core Portfolio and the International FundShop with the Annual Administration Fee varying according to each segment International Managed Solutions provides access to a limited range of actively managed, risk profiled, solution-based international fund of funds, managed by fully or partially owned subsidiaries of the MMI Holdings Group aiming to provide solutions for growth over various medium to long-term time horizons. No Annual Administration Fee is charged on Funds in the International Managed Solutions segment of the International Investment Option International Core Portfolio provides access to a range of preferentially priced Funds across a broad range of asset classes including Cash and Fixed Income Funds, Absolute Return and Balanced Funds and Equity and Specialist Funds, from the industry s leading international investment managers. Preferential fees are levied on the International Core Portfolio in the form of tiered Annual Administration Fees. These tiered Annual Administration Fees decrease on a percentage basis as the investment amount increases. Rebates received from the Fund Managers on Funds included in the International Core Portfolio will, subject to Momentum Wealth International s sole discretion, either be offset against this tiered Annual Administration Fee or, may be paid to the Client s Financial Adviser as an Ongoing Advice Fee International FundShop contains the balance of Funds on the Fund List that are not included within the International Managed Solutions and International Core Portfolio Segments. International FundShop contains more than 1000 Funds including direct asset class Funds such as equity or bond Funds, fund of funds, and alternative strategy funds that invest into alternative strategies to normal longonly funds including techniques such as shortselling, arbitrage, hedging and leverage. The Annual Administration Fee on International FundShop is levied on a tiered basis and is typically higher than the Annual Administration Fee charged on Funds in the International Core Portfolio segment. This tiered Annual Administration Fee percentage decreases as the investment amount increases. Rebates received from the Fund Managers on Funds included in International FundShop will, subject to Momentum Wealth International s sole discretion, either be offset against this tiered Annual Administration Fee or, may Wealth International International Investment Option - Terms and Conditions January 2012 Page 10 of 26

11 be paid to the Client s Financial Adviser as an Ongoing Advice Fee Momentum Wealth International may, from time to time, review the Funds contained in International Managed Solutions, International Core Portfolio and International FundShop ( the segments ) and may in its sole discretion re-categorise Funds between the segments resulting in either an increase (subject to clause 11.12) or decrease of the Annual Administration fee Subject to Clauses 3.6 and 3.11 above, any instruction given by the Client to Momentum Wealth International to switch from one or more Funds and New Funds to one or more other Funds and New Funds shall be deemed to be an instruction to make a withdrawal pursuant to Clause 9 below. Momentum Wealth International will reinvest the relevant redemption proceeds as an Additional Payment in the relevant Shares, the Fee Deposit Account (if applicable) and the Cash Accounts (if applicable) within eight Business Days after the receipt in cleared funds by Momentum Wealth International of all the redemption proceeds from the relevant Fund or New Fund in respect of such deemed withdrawal. If the terms and conditions of a Fund or New Fund state that redemptions shall be settled by the Fund / New Fund making two or more partial redemption payments, Momentum Wealth International will only reinvest the relevant redemption proceeds following the receipt from the relevant Fund / New Fund in cleared funds of the final partial redemption payment. Momentum Wealth International will hold all earlier partial redemption payments received from the relevant Fund / New Fund in a non-interest bearing account in the relevant currency pending the receipt of the final partial redemption payment Monies transferred to the Trading Account for which a buy instruction has not been received by Momentum Wealth International will, within seven Business days of receipt, be transferred to the Client s Cash Account No interest will be paid on any amounts held in any Momentum Wealth International Client Investment Account. If any amounts are sent to one of Momentum Wealth International s Client Investment Accounts before Momentum Wealth International has confirmed that it is satisfied with the information and documentation that it has received in connection with the Client s Application Form, Momentum Wealth International shall be entitled, at its absolute discretion, to return any such amounts to the source from which such amounts came. Section 4 - The International Investment Option Service 4.1 Momentum Wealth International agrees that it shall administer the Client s Portfolio and shall, as the Client s agent, make or realise investments in accordance with the Application Form and the Investment Instruction Forms received by Momentum Wealth International from the Client from time to time and the provisions of this Agreement Subject to Clause 5 below, the Client shall be solely responsible for deciding which Shares (whether in Funds or New Funds), Cash Accounts (if applicable) and Distribution Accounts (if applicable) are to be included in his Portfolio. In addition, the Client shall be solely responsible for selecting the Shares and/or Strategic Portfolio and/or Managed Portfolio that are to be held in the Client s Portfolio. The Client shall also be solely responsible for deciding the Account Currency denomination of the Fee Deposit Account. Momentum Wealth International does not give any guarantee or accept any responsibility for the performance of any Fund or any New Fund or any Portfolio as a whole. 4.2 In addition to deciding which of the Funds listed in the Fund List to include in his Portfolio, the Client may request in either an Application Form or an Investment Instruction Form that Momentum Wealth International purchase or subscribe for Shares in such other unit trusts, mutual funds or investment funds, including unregulated collective investment schemes, as the Client may select for inclusion in his Portfolio. Within five Business Days of the receipt of the relevant Application Form or Investment Instruction Form, Momentum Wealth International will either notify the Client s Financial Adviser that it is unable to process the request or notify the Client s Financial Adviser that it (or any Associate) will attempt to secure the necessary trading relationship with the Fund Manager of the relevant unit trust, mutual fund or investment fund and purchase or subscribe for the Shares or units in accordance with the terms of this Agreement. It is hereby acknowledged by the Client that, without prejudice to the provisions of Clause 13 below, Momentum Wealth International shall incur no liability in respect of any matter or losses or costs arising out of either the failure of Momentum Wealth International (or any Associate) to secure the necessary trading relationship with the relevant Fund Manager or Momentum Wealth International s failure to purchase or subscribe for the Shares requested by the Client. 4.3 The International Investment Option Service does not include the provision of advice on matters of Taxation and the Client hereby agrees that Momentum Wealth International shall not be required to have regard to such matters in providing services under this Agreement. Wealth International International Investment Option - Terms and Conditions January 2012 Page 11 of 26

12 4.4 The Client agrees that Momentum Wealth International may accept instructions from the Client. The Client further agrees that Momentum Wealth International may accept instructions from such other persons as the Client shall identify as being persons authorised to send instructions to Momentum Wealth International in the Application Form or otherwise in writing. Except as otherwise specifically agreed, Momentum Wealth International shall be entitled to assume that there are no limitations on the authority of any such person. 4.5 Momentum Wealth International may determine how to exercise voting rights arising in connection with any Shares in the Client s Portfolio, as Momentum Wealth International considers, in its opinion, to be necessary or desirable for or incidental to the administration of the relevant Portfolio. The exercising of such rights, without prior reference to the Client, may be carried out collectively for the Client and other clients of Momentum Wealth International or any Associate where Momentum Wealth International considers in its opinion that such action is in the best interests of all the clients concerned, provided that any apportionments of units arising from aggregated transactions shall be carried out to at least the fourth decimal point of a Share rounded down, and Momentum Wealth International shall be entitled to any over- recoveries. 4.6 The relationship between Momentum Wealth International and the Client is as described in this Agreement and neither the relationship nor the services to be provided by Momentum Wealth International nor any other matter will give rise to any fiduciary or equitable duties on the part of Momentum Wealth International or any Associate which would either prevent or hinder any Associate in acting in a dual capacity (either as principal or agent) in respect of investments sold or purchased by or for the Client or prevent or hinder Momentum Wealth International or any Associate otherwise acting as provided in this Agreement. 4.7 The Client acknowledges that Momentum Wealth International is part of the MMI Holdings Group, a group of companies that provide diverse financial services, including life insurance services, employee benefit services, health insurance services and asset management services. The Client further acknowledges that Momentum Wealth International may be the Fund Manager of any of the Funds on the Fund List and shall be entitled to separate remuneration therefor. 4.8 Where conflicts of interest are unavoidable and provided the Client s interests are placed before its own, Momentum Wealth International may without prior reference to the Client effect any transaction in investments in which Momentum Wealth International or any Associate has or will have: directly or indirectly, a material interest of any description or a relationship of any description with another person such as to place it in a position where its duty to or interest in relation to that other person conflicts with its duty to the Client; acted in the same transaction as both an agent for the Client and also as an agent for any other person, which may be a Client of Momentum Wealth International or an Associate. 4.9 Momentum Wealth International shall be entitled to carry out any apportionments of Shares arising from aggregated transactions to at least the fourth decimal point of a Share rounded down, and Momentum Wealth International shall be entitled to any over- recoveries Momentum Wealth International shall be entitled to carry out any apportionments of client money arising from aggregated transactions to the second decimal point of the relevant currency rounded down, and Momentum Wealth International shall be entitled to any over- recoveries Momentum Wealth International shall use commercially reasonable endeavours to ensure all accounts referenced hereto as interest-bearing shall be interest-bearing, however, such accounts shall at all times be subject to the Bank s policy and regulations relating to the payment of interest (if any) Momentum Wealth International is registered as a Financial Services Provider with the Financial Services Board (FSB) in terms of the Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS). In terms of FAIS Momentum Wealth International is required to verify that the Financial Adviser s authorisation by the FSB (if applicable) is current and appropriate for the corresponding product category. Should the Financial Adviser not be appropriately licensed, this will result in Momentum Wealth International refusing to accept the Client s Application Form / Investment Instruction Form until such time as the Financial Adviser is appropriately licensed or the Client appoints an alternative appropriately licensed Financial Adviser. The Client acknowledges that it is the Client s responsibility to ensure that advice is obtained from an appropriately licensed Financial Adviser, and the Client indemnifies Momentum Wealth International against any loss that the Client may suffer as a result of the Financial Adviser not being appropriately licensed The Client acknowledges that the funds in the Fund list can be selected from: Wealth International International Investment Option - Terms and Conditions January 2012 Page 12 of 26