PPS LIVING ANNUITY APPLICATION FORM

Transcription

1 PPS LIVING ANNUITY APPLICATION FORM PROFESSIONAL PROVIDENT SOCIETY INVESTMENTS PROPRIETARY LIMITED ( PPS INVESTMENTS ) CLIENT SERVICE CENTRE CONTACT DETAILS TEL: (0860 INV PPS) FAX: admin@ppsinvestments.co.za WEBSITE: Please complete the form in BLOCK LETTERS Please indicate all options selected with a [X] Please initial any amendments made to this application form Please note, Investment Option(s) refer to the underlying unit trusts within your portfolio The cut-off for receipt of instructions is 14:00 General Terms, Conditions and Declarations are available on the PPS Investments website Please note, this is a fillable form. Please print, sign where required and send to the details above for processing. All fields in red are compulsory. A CONTACT PERSON FOR OUTSTANDING REQUIREMENTS Name and surname Telephone number Capacity B PERSONAL DETAILS OF POLICYHOLDER New policyholder Existing policyholder Client number (if existing policyholder) Title Surname First name(s) of birth (1986/10/6) Identity or passport number PPS member number Country of passport issued Gender Male Female Home language English Other (please specify) Nationality South African Other (please specify) Income tax reference number Income tax office Physical address Postal code Postal address Postal code Please note, at least one contact number is required Telephone number (home) Telephone number (work) Cellphone number Preferred communication method Post PAGE 1 OF 9 A policy issued by PPS Insurance Company Limited under the Long-term Insurance Act, No. 5 of 1998 February 017

2 C ACTING ON BEHALF OF THE INVESTOR C1. Guardian / persons with Power of Attorney acting on behalf of the investor. Proof to be sent to PPS Investments. Title Surname First name(s) Identity or passport number Relationship to the investor C. Mandate for dealing with the discretionary FSP acting on behalf of the investor. Proof to be sent to PPS Investments. I have entered into a full / limited discretion mandate with the Advisory Practice (FSP) captured in Section O. Yes No I authorise PPS Investments to accept instructions submitted by the FSP on my behalf. Yes No Please send us a copy of the signed mandate. D PENSION DETAILS Lump sum contribution (minimum R100,000) of deposit / transfer These may be estimates. Source of funds Pension Fund Provident Fund Retirement Annuity Fund Please note: The Administrator requires proof of transfer or deposit before this application can be processed. Electronic transfers may not reflect immediately. Phasing-in details Lump sum investments can be made directly into the Investment Option(s) of your choice or can be phased in over a period of time. If this option is selected, all monies should be invested in the PPS Enhanced Yield Fund and will be phased into your selected Investment Option(s). Investment to be phased in Yes No If Yes, please select phase-in period 3 months 6 months 1 months Phase-ins will be generated on the 9 th of the month, and priced on the 10 th. Should either of these days fall on a weekend or public holiday, the process will take place on the following business day. E TRANSFERRING FUND DETAILS Please ensure that a copy of this completed application form is forwarded to the transferring fund before sending it to PPS Investments. Transfer from another insurer (Dir 135) Registered name of transferring fund Fund type Retirement Annuity Pension Fund Provident Fund Preservation Pension Fund Preservation Provident Fund Contact person Telephone number Please note: The PPS Living Annuity is a member annuity. It may only be purchased where the rules of the transferring retirement fund specifically allow for such an annuity. PAGE OF 9

3 GF BANK DETAILS FOR ANNUITANT The following bank details will be used for all payments. A cancelled cheque or recent bank statement (not older than three (3) months and clearly displaying your name and the bank s logo) must accompany this application form as confirmation of these details. Any changes to your banking details in future must be forwarded in writing to PPS Investments together with proof thereof. Title Initials Surname Identity or passport number Bank Account number Branch Branch code Type of account Current Savings Transmission I, the undersigned, request and authorise PPS Investments to arrange to deposit the monies payable to the bank account specified above. Signature of policyholder G ANNUITY DETAILS AND ANNUITY PAYMENT A living annuity allows you to set your income level (within limits). The level of income you select is not guaranteed for the rest of your life. It is therefore important to consider that your income level may be too high and may not be sustainable if you live longer than expected. This may result in your capital being depleted before your death. It is your responsibility (in consultation with your financial adviser) to ensure that the income you select is at a level that would be sustainable for the rest of your life. You need to carefully manage the income you draw relative to the investment return on your capital in order to achieve this. The table on page 4 can be used as a guide: Years before your income will start to reduce Investment return per annum (before inflation & after all fees).50% 5.00% 7.50% 10.00% 1.50%.50% Annual income rate selected at inception 5.00% 7.50% 10.00% 1.50% 15.00% % Source: ASISA Standard of Living Annuities It is important to note that the table above assumes that you will adjust the percentage income you select over time to maintain the same amount of real income (i.e. allowing for inflation of 6% per annum). Once the number of years in the table above has been reached, your income will reduce fast in the subsequent years. Please ensure that your financial adviser has explained both the advantages and the risks of the living annuity when compared to a conventional annuity (where the insurer carries the full investment risk and the risk of you living longer than expected). The table is a general guideline and should be considered taking into account each policyholder s financial situation and all other sources of income. It is an indicative guideline only, to assist you in making informed decisions in respect of your annuity. PAGE 3 OF 9

4 Income must be paid from A specific Investment Option All Investment Option(s) proportionally Frequency of income Monthly in arrears Quarterly in advance Half-yearly in advance Yearly in advance Regular income payments will be made on the 8 th day of the respective month. Should this day fall on a weekend or public holiday, the payment will be made on the following business day. First income payment to be made on the 8 th of (month) Annuity for pension considerations received by PPS Investments on or before the 14th of the month will be paid at the end of that month. Annuity for pension considerations received after the 14th of the month will only be paid at the end of the following month. Selected percentage.5% 5% 10% Other % OR Selected rand value (Gross of tax) Apply special tax rate Yes No If yes, specify rate % If a lower rate than the legislated rate is applied for, a tax directive will be required annually and must be submitted by the policyholder to PPS Investments. H INVESTMENT OPTION(S) I hereby apply to invest in the Investment Option(s) indicated below, which are made available by PPS Investments. For a comprehensive list of available Investment Option(s), please refer to the Investment Option Schedule available on or from the PPS Investments Client Service Centre and indicate your selection in the table below. The available Investment Option(s) may change from time to time. 1 Investment Option Lump sum investment % Total 100% PAGE 4 OF 9

5 I BENEFICIARY NOMINATIONS You may nominate beneficiaries who may receive a benefit upon your death. If you elect to review and make changes to the nomination of any beneficiaries, a signed instruction must be received before your death. Beneficiary alterations received after your death will be treated as invalid. If no beneficiary is nominated, the proceeds may be payable to your estate subject to legislative requirements. Beneficiary 1 Beneficiary Surname First name(s) Relationship Gender ID / Passport number Percentage Postal address Contact number Beneficiary 3 Beneficiary 4 Surname First name(s) Relationship Gender ID / Passport number Percentage Postal address Contact number If there are additional beneficiaries, please attach this information on a separate signed page. Please ensure the total percentages nominated are equal to 100%. J COMPULSORY COMPLETION BY POLICYHOLDER Are you married? Yes No If yes, are you married in community of property? Yes No If yes, have you nominated a beneficiary other than your spouse? Yes No If yes to all the above, you require your spouse s written consent. Name of spouse Signature of spouse PAGE 5 OF 9

6 HK TRANSFER OF EXISTING LIVING ANNUITY Transferor s details - The transferor is the person in whose name the existing Investment Option(s) are registered. Title Initials Surname Identity or passport number Details of transactions required I hereby instruct the management company(ies) specified below to transfer the Investment Option(s) held in my name to an account held by PPS Investments. Management company Name of Investment Option Investment number at relevant % of investment to be management company transferred Investment Option(s) must be switched after transfer (If no selection is made, the funds will remain in the transferred Investment Option(s)) Yes, switch according to the Investment Option(s) selected in Section H No I hereby instruct PPS Investments to make the necessary arrangements to effect this transfer. I further declare that my estate is not insolvent and has not been sequestrated. Signature of transferor Signature of guardian (if applicable) L TERMS, CONDITIONS AND DECLARATIONS I understand and agree to be bound by the provisions of this application form. If on the date of signature of this application form an updated application form exists and fees and General Terms, Conditions and Declarations differ, the updated application form, fees and General Terms, Conditions and Declarations will apply. I understand and agree that: It is my responsibility to ensure that my personal and contact particulars are correct. If this is not the case, or in the event that my personal and / or contact particulars change, it is my responsibility to inform PPS Investments in writing of the incorrect particulars or the change in particulars. PPS Investments may use all personal and contact information provided to PPS Investments by me in order to facilitate my tracing in respect of any unclaimed benefits. I also agree that PPS Investments may share all personal and contact information with any third party, or obtain any contact and personal information from any third party, in order to facilitate my tracing in respect of any unclaimed benefits. The information contained herein is correct. If this application form is signed in a representative capacity, I have the necessary authority to do so and this transaction is within my powers. I will have fourteen (14) days after receipt of the policy confirmation to report any errors to PPS Investments. I am acting for my own account. I have considered the suitability of this product and made my decision to enter into this policy without relying on any communication from PPS Investments, whether written, oral or implied, as advice or a recommendation to enter into this policy. I understand that information and explanations relating to the terms of a policy are not to be considered advice or a recommendation to enter into any transaction. PPS Investments will not be responsible for any failure, malfunction or delay of any networks, electronic or mechanical device or any other form of communication used in the submission, acceptance and processing of applications and / or transactions. PPS Investments will not be liable to make good or compensate any policyholder or third party for any related damages, losses, claims or expenses. I am aware of the PPS Investments Investment Option Schedule (available on which details the Investment Option(s) available on the PPS Investments platform and sets out the fees which may be applicable to my policy (including administration fees, asset management fees and any rebates allocated by the management companies of the respective Investment Option(s)). The General Terms, Conditions and Declarations are available on or on request from the PPS Investments Client Service Centre on or at clientservices@ppsinvestments.co.za. Application The PPS Living Annuity is a PPS Investments product issued under the life licence of PPS Insurance Company Limited ( PPS Insurance ) under the provisions of the Long-Term Insurance Act, No.5 of 1998 in the name of the policyholder. An approved administrator appointed by PPS Investments from time to time administers the PPS Living Annuity. The current administrator is PPS Investments Proprietary Limited ( the Administrator ), who is a licensed Financial Services Provider and may change from time to time. PAGE 6 OF 9

7 I hereby apply for a PPS Living Annuity and agree to be bound by the Terms, Conditions and Declarations contained in this application form as well as PPS Investments General Terms, Conditions and Declarations (as amended from time to time). This application does not create any obligation for PPS Investments until it has been accepted in writing by PPS Investments. I understand and agree that this application, together with my policy confirmation and PPS Investments General Terms, Conditions and Declarations as well as any other related documents provided by me and accepted by PPS Insurance, will govern the legal relationship between myself and PPS Insurance. You cannot cancel your PPS Living Annuity as there is no cool-off period. You can, however, transfer your living annuity to another registered longterm insurer at any stage. Product Terms, Conditions and Declarations I confirm that I have noted the following: The value of my policy will increase or decrease as the market values of the underlying securities in my chosen Investment Option(s) fluctuate. I understand that I carry this investment risk. PPS Investments does not provide any guarantees in relation to any investment performance. Investment Options are generally medium to long-term investments. The value of the units in these Investment Option(s) may increase or decrease and past performance is not necessarily a guide to future performance. I am aware of the impact that a downturn in the market will have on my capital. I realise that my capital may be eroded in order to maintain my required level of income. I am aware of the income restrictions imposed by the Commissioner of the South African Revenue Service ( SARS ) in circular RF 1/96 (or its amendment or replacement), particularly that income levels may only be reviewed annually on the income anniversary date. PPS Insurance has the right to reduce the pension level if it is required for compliance with any legislation or directives issued by regulatory authorities, which may be in force from time to time. I have the right to transfer my PPS Living Annuity to another insurer. Such a transfer will be subject to the provisions of Directive 135A read with Directive 135 issued by the Registrar of Long-term Insurance or a replacement thereof or supplement thereto. I have the right to convert my PPS Living Annuity to a conventional life annuity administered by another insurer. If my PPS Living Annuity is transferred to such other insurer for this purpose, the conversion will be subject to the provisions of Directive 135 issued by the Registrar of Longterm Insurance or any replacement thereof or supplement thereto. I will be obligated to draw an income of between.5% and 17.5% per annum of the policy value at the anniversary date. These limits are set by SARS and may change from time to time. The repurchasing of the underlying Investment Option(s) will generate income. I am not allowed to transfer the ownership of my PPS Living Annuity to another person, or to pledge the right to the benefits and annuity payments I receive from my PPS Living Annuity to anyone else. I am not allowed to borrow money from my PPS Living Annuity. I understand that should the value of the assets in my PPS Living Annuity be less than R50,000 (if I took a cash withdrawal at retirement) or R75,000 (if no cash payment was received), I may withdraw the total value of my policy should I wish to. Upon my death, PPS Investments must be notified and this notification should include all relevant information and documentation. The tax consequences of my PPS Living Annuity are as follows: Annuities (i.e. regular income payments) are taxed at my marginal tax rate. In terms of current legislation, the investment returns generated by my PPS Living Annuity are not subject to tax. Should a beneficiary elect to take my remaining capital as a lump sum upon my death, this lump sum will be taxed at my tax rate in the year of my death. Income tax, if applicable, will be deducted at source in accordance with the relevant tax rates determined by SARS. The onus is on me to provide tax directives where applicable. ML CLIENT DECLARATION I hereby confirm that I,, have read and understood: The General Terms, Conditions and Declarations; The Minimum Disclosure Documents of the chosen fund(s) including, but not limited to, the Total Expense Ratio (TER) and Transaction Cost (TC) applicable to my investment available on the PPS Investments website In the case of Customised Solutions, the Minimum Disclosure Document of the underlying funds can be obtained from the respective Managers. The Effective Annual Cost disclosure available from my financial adviser, the PPS Investments website or from the Client Services Centre. Opportunity to share in profits If you re not already a holder of a PPS provider product, the Accidental Death product opens your door to a PPS Profit-Share Account into which you ll be paid a portion of our profits from your investments with us. With the Accidental Death product, a tax-free cash lump sum of up to R could be payable to your beneficiaries in the event of your accidental death. Ask your financial adviser for more information on this product or request information directly by ticking the box below. I do not have a financial adviser and would like to receive an application form and explanatory brochure directly. Signature of investor PAGE 7 OF 9

8 NL FINANCIAL ADVICE FEES I acknowledge that I did not receive any financial advice. I will be noted as a PPS Investments No Financial Adviser policyholder. I acknowledge that I have received financial advice from the financial adviser whose details are completed in the section below. This is my appointed financial adviser and I agree to the payment of advice fees as follows: Initial lump sum fee (incl. VAT) Ongoing fees per annum (incl. VAT) Max. 1.5% (excl. VAT) Max. 1% (excl. VAT) (There is no initial fee on section 37 transfer) Fees must be paid from A specific Investment Option All Investment Option(s) proportionally The Administrator will pay ongoing advice fees to your financial adviser on your behalf and will recover these fees from your policy. These fees will therefore accrue to the Administrator as an additional fee over and above the administration fee applicable to your investment in terms of PPS Investments fee structure. OL FINANCIAL ADVICE DETAIL AND DECLARATION Financial adviser name Financial adviser institution Financial adviser code Contact number FSP licence number VAT status Registered Not registered VAT number An accountable institution includes, but is not limited to, the following list of institutions: a bank, long-term insurer, management company registered in terms of the Collective Investment Schemes Control Act, a person who carries on the business of rendering investment advice or investment brokering services (including a public accountant who carries on such a business), member of a stock exchange licensed under the Securities Services Act No.36 of 004 and a person who has been approved or who falls within a category of persons approved in terms of the Financial Advisory and Intermediary Services Act No. 37 of 00. If this section is completed by an accountable institution acting on behalf of the client, the supporting documentation as described in FICA requirements on needs not be submitted to the Administrator (but this may be requested where it is deemed necessary). A copy of ID and proof of bank account details are still required. To ensure fair outcomes for investors, we (as the product supplier) are required to ensure appropriate sharing of responsibility between ourselves and you (the financial adviser). As such, we request that you provide the following assurance to us: I confirm that I have concluded the analysis necessary to provide appropriate advice (which is both suitable for the investor and takes into account their circumstances) with respect to the product suppliers products considered and selected. I declare that I am a licensed Financial Services Provider and have made the disclosures required in terms of the Collective Investment Schemes Control Act, No. 45 of 00; the Financial Advisory and Intermediary Services Act, No. 37 of 00; and all subordinate legislation to the investor. I acknowledge and confirm that, in my capacity as the primary accountable institution (with the Administrator being the secondary accountable institution), I have established and verified the identity of the investor in accordance with section 1 of the Financial Intelligence Act, 001 ( the Act ) and will keep records of such identification and verification according to the provisions of section of the Act. I warrant that I have explained all fees to the investor, including but not limited to the Effective Annual Cost (EAC), that relate to this investment and I understand and accept that the investor may withdraw his / her authority for payment of advice fees in writing to PPS Investments. I declare that I have requested and recorded the policyholder s response with regards to replacement and that the client is aware of the possible detrimental consequences of the replacement of the policy. I further declare that I explained the following to the policyholder: The meaning of replacement; That a replacement is potentially prejudicial; The levying / deduction of a termination charge; and That where a replacement is considered, the policyholder is legally entitled to comprehensive information regarding the consequences of replacement. Signature of financial adviser PAGE 8 OF 9

9 PL DETAILS OF THE PPS LIVING ANNUITY AND SUPPORTING DOCUMENTATION PPS Living Annuity bank account details Account name PPS Living Annuity Bank FNB Branch RMB Corporate Banking - Cape Town Branch code Account number Reference Contact number first, followed by your name and surname For example: John Smith Supporting documentation Copy of a bar-coded ID bearing ID number and photograph Proof of bank details (e.g. bank statement or cancelled cheque not older than three (3) months) Compliance department PPS Investments Tel: (0860 INV PPS) PPS House Fax: Boundary Terraces Website: 1 Mariendahl Lane compliance@ppsinvestments.co.za Newlands 7700 Please do not hesitate to contact us if you are not satisfied with this policy or the services from PPS Investments. A complaint must be submitted to the Compliance Officer. The contact address of the Compliance Officer is the same as the address above. PPS Investments will acknowledge the complaint in writing and will inform you of the contact details of the person addressing your complaint. The Ombud for Financial Services Providers If you are not satisfied with the response from PPS Investments or the Administrator or if you have a complaint about the advice given by your financial adviser, you have the right to address your complaint in writing to the Ombud for Financial Services Providers: The Ombud for Financial Services Sussex Office Park PO Box Ground Floor, Block B Lynwood Ridge 473 Lynnwood Road Cnr Lynnwood Road & Sussex Ave, 0040 Lynnwood, 0081 Telephone: / Facsimile: / info@faisombud.co.za Website: The Ombud is legally empowered to investigate and adjudicate complaints in a procedurally fair, economical and expeditious manner. PPS Investments (Pty) Ltd, PPS Multi-Managers (Pty) Ltd, PPS Investment Administrators (Pty) Ltd and PPS Insurance Company Ltd are licensed financial services providers. PPS Management Company (RF) (Pty) Ltd is a licensed collective investment scheme manager. PPS House, Boundary Terraces, 1 Mariendahl Lane, Newlands, 7700 Website: clientservices@ppsinvestments.co.za PAGE 9 OF 9