Liberty Linked Investment Platform

Transcription

1 The terms and conditions below are entered into by and between the investor (the Investor ) and Liberty Linked Investment Platform (Pty) Ltd (Registration number 2013/054471/07), an authorised administrative financial services provider, herein after referred to as the Administrator. The Investor hereby appoints the Administrator to administer the investments on behalf of the Investor. This document sets out the terms, conditions and disclosures associated with the administration of investments on behalf of the Investor. 1. Definitions a. Administrator This is the company which administers the investment on behalf of the Investor, namely Liberty Linked Investment Platform (Pty) Ltd, registration number 2013/054471/07, an authorised administrative financial services provider. It is referred to in this document as the Administrator. b. Business day A business day is any day other than a Saturday, Sunday or South African public holiday. In this document a day and a business day have the same meaning. c. Investor The person or legal entity (including a trust) which has invested in the available investments offered by the Administrator. This document addresses the Investor as you. d. Investment Manager The company that administers the portfolios of a Collective Investment Scheme in terms of the Collective Investment Schemes Control Act, also known as unit trusts. e. Investment account The Investor s account through which the unit trusts are administered. f. STANLIB Multi-Manager ( SMM ) The discretionary investment manager that the Investor appoints to administer the investments in the Liberty Multimanager portfolio range. Any reference to Investment Manager throughout these shall also include reference to STANLIB Multi-Manager ( SMM ). LISP T&C 10/2014 1

2 2. What are you, the Investor, responsible for? a. You must provide accurate and true information to the Administrator in the investment confirmation form, other supporting documentation and all instructions submitted to the Administrator. Failure to do so may result in the Administrator rejecting your application, or any subsequent instruction. Financial advice b. The Administrator does not provide financial advice. It is therefore your responsibility to appoint a financial adviser if you require financial advice. It is also your responsibility to negotiate any fees that may be charged for financial advice with your financial adviser. c. You are allowed to change your financial adviser or the fees you have agreed with him/her at any time. You need to inform the Administrator in writing of this change by completing the relevant form. Making investments d. Lump sum investments must be paid to the Administrator electronically, by EFT, direct deposit or by a unit transfer from another financial service provider. e. You may make additional lump sum investments at any point in time. You may also make regular investments via debit order. Unit Trust portfolio f. In conjunction with your financial adviser, you must select a portfolio of unit trusts that suit your risk profile and investment objectives. Certain unit trusts may be subject to availability. i. You need to monitor your selection of unit trusts in conjunction with your financial adviser to ensure that it continues to meet your investment objectives. The Administrator does not take responsibility for your selection. ii. You are allowed to phase-in your initial lump sum investment over a 3, 6, 9 or 12 month period. The initial lump sum investment will then be invested into the Standard Bank Money Market portfolio and gradually invested into the selected unit trusts over the specified period. iii. You may also phase-in additional lump sum investments not collected by debit order. If there is an existing phase-in arrangement, the existing phase-in arrangement will be terminated. The balance remaining in the phase-in account will be added to the new phase-in arrangement and processed in accordance with the new phase-in instruction. iv. You hereby acknowledge the risks associated with your chosen portfolio of investment, such as political, currency, regulatory, settlement, market, taxation and credit risk. You are therefore responsible for managing these risks in accordance with your risk profile, with the assistance of your financial adviser. v. You may switch between unit trusts available on the Liberty Linked Investment Platform. When units are switched between unit trusts, units are sold out of the specified existing unit trusts and new units bought in the specified new unit trusts. If the unit balance in the existing unit trust drops below the required minimum, the remaining balance may also be switched out of the relevant unit trust. If you switch unit trusts, you may be liable for Capital Gains Tax. Your financial adviser will be able to advise you. 2

3 Realising some or all of your investment g. If you decide to withdraw some or all of your investment, units will be sold from the selected unit trusts. If no selection is made, the withdrawal will be processed proportionally from your available unit trusts. i. If you have more than the minimum investment amount (as determined by the Administrator from time to time) in your account, you may withdraw some funds on a regular basis. You may specify which fund you would like the withdrawal to take place from and the frequency of the withdrawal. If no fund is specified, we will process the withdrawal proportionately from your funds. Should the remaining balance in the specified unit trust drop below the required minimum (as determined by the Administrator from time to time), the Administrator may withdraw the full remaining balance proportionately from the remaining unit trusts. Details of the current minimum amounts are contained in the Benefit and Charges Schedule. ii. You may decide to increase (or decrease), on an annual basis, the amount you withdraw regularly. iii. Any withdrawals will only be paid into the Investor s bank account or other investment in your name at the discretion of the Administrator. General h. You may transfer ownership of some or all of the units in your Investment Account to another legal entity or natural person. This may result in the payment of Capital Gains Tax. i. You may cede some or all of the units in your Investment Account as security (collateral cession), but it will be your responsibility to manage the cession and to provide the Administrator with all the necessary requirements to record the cession. j. It is your responsibility to notify the Administrator of: i. any errors on your Investment Account; and You have 14 days after receipt of any investment documentation or confirmation from the Administrator to report any errors to the Administrator. ii. any changes in personal details. You need to inform the Administrator of any changes in banking or contact details, including postal and addresses, and provide supporting documentation where appropriate. k. You may vote in any ballot which will affect the unit trusts you invested in. The Administrator will not vote on your behalf. 3. What is the Administrator responsible for? a. The Administrator may accept or reject your application, or any subsequent instruction, depending on the accuracy, completeness or other considerations of the information provided. The Administrator may reverse an instruction if it decides that the circumstances justify it. 3

4 Processing of instructions / transactions b. The Administrator is responsible for processing your instructions. The Administrator will only process an instruction once all supporting documentation is received and requirements are met. Unit prices are calculated at the close of each business day and thus the price for a particular day will only be available on the following business day. Instructions received before the cut-off for a particular day (12:30) will be processed as set out in the tables below. The processing timelines for various transactions are given below: i. Lump sum investment Lump sum investments will be made within 5 business days after the Administrator has received and accepted all the required documentation and the total investment amount has been received in the Administrator s bank account, by business cut-off for a particular day. ii. Regular investment via debit order You may select to invest regularly via debit order on any day of the month. The Administrator will collect debit orders on your selected date, provided we have received all the required documents at least 5 business days before your selected date. If we haven t received all requirements in time, we may only start collecting from your selected day of the following month and invest it at the unit price of the next business day. If your selected date is not a business day the Administrator will collect the investment on the next business day. The Administrator needs to receive the instruction by 12:30, 5 business days before the selected date. Any instructions received after the cut-off date may only be processed the following month. If a debit order on your account fails, we will let you know and try to collect again the following month. If it fails for a second time, we will cancel the debit order. The Administrator reserves the right to collect any debits that are unpaid after a transaction has occurred. iii. Buying, selling and switching between unit trusts from the same Investment Manager The table below shows the timeline for buying and selling units in a unit trust, and for switching between unit trusts administered by the same Investment Manager. Business cut-off to receive all requirements and money to reflect in our bank account is 12:30 Buy or sell units Unit price received from Investment Manager Show on investor statement Before 12:30 (Day 1) Day 3 The price at close of Day 3 Day 5 After 12:30 (Day 1) Day 4 The price at close of Day 4 Day 6 Although the selling of the units will show on your statement within 6 days if you make a withdrawal, it may take longer for the payment to show in your bank account. 4

5 iv. Switching between unit trusts from different Investment Managers Liberty Linked Investment Platform The process for switching units between different Investment Managers takes slightly longer, because units have to be sold out of one Investment Manager and the money received in the Administrator s bank account before new units can be bought from the new Investment Manager. Business cutoff to receive all requirements and money to reflect in our bank account is 12:30 Administrator sells units Administrator receives money from the Investment Manager Administrator pays money to new Investment Manager Investment Manager buys units Show on investor statement Before 12:30 (Day 1) Day 3 Price of close of Day 3 Day 5 Day 5 Day 5 Price at the close of Day 5 Day 7 After 12:30 (Day 1) Day 4 Price of close of Day 4 Day 6 Day 6 Day 6 Price at the close of Day 6 Day 8 v. Regular withdrawals You may select any day of the month to receive a regular payment. If the selected day is not a business day, the payment will take place on the next business day. The Administrator needs to receive all instructions by 12:30 6 days before payment day for payment to take place that month. Any instructions received after the cut-off date may only be processed for the following month s payment date. Business cut-off to receive and accept instruction is 12:30 Sale of units Price date units sold Payment made to investor Income shows in bank account 6 days before payment day 2 days before payment day 2 days before payment day Payment day 1 day after payment day vi. Withdrawal When submitting an instruction for a withdrawal from your Investment Account, you may specify which unit trusts you would like to draw from. Alternatively, units will be sold proportionately from your available unit trusts. Business cut-off to receive and accept instruction is 12:30 Administrator sells units Administrator receives money from the Investment Manager Administrator pays money to investor Show on investor bank account Before 12:30 (Day 1) After 12:30 (Day 1) Day 3 Price of close of Day 3 Day 4 Price of close of Day 4 Day 5 Day 5 Day 7 Day 6 Day 6 Day 8 5

6 When you withdraw some or all of your units in your Investment Account, payment will be made to you only. Proceeds from the sale of any units will be paid once the proceeds from all Investment Managers have been received. All payments are made in South Africa in South African Rand, via electronic fund transfer only, into a current, transmission or savings account held in your name or other investment in your name at the discretion of the Administrator. vii. Phasing-in Phase-ins are scheduled at your selected frequency, from the date your money is received in the Administrator s bank account. If the date is not a business day it will take place on the next business day. The Administrator needs to receive the instruction by 12:30 5 days before the scheduled phase-in day. Any instructions received after the cut-off date may be processed the following month. viii. Processing sequence If the Administrator receives an instruction while another transaction is in progress, the instruction may be delayed until the initial transaction has been completed. ix. Third party and delays caused by external factors The processing timelines above may be subject to delays caused by third parties or any other occurrences beyond the control of the Administrator. The Administrator therefore does not guarantee the above processing timelines in these circumstances and cannot be held liable for losses as the result of such delays. Communication c. The Administrator may communicate with the Investor in the following ways: i. The Administrator will furnish you with the relevant tax certificates by either or post. ii. The Administrator will facilitate any communication (such as balloting) to you or your financial adviser from the Investment Managers of your selected unit trusts. iii. Your financial adviser may obtain or receive information relating to your investment from the Administrator on your behalf. By entering into a mandate with your financial adviser, you consent to your financial adviser receiving such information. iv. Statements of your Investment Account will be sent to you on a quarterly basis by or post. v. Any other information relating to your investment will be made available to you upon request. General d. The Administrator has appointed an independent company, Liberty Linked Investment Platform Nominee (Pty) Ltd, approved by the FSB to hold the assets in safe custody on your behalf. This ensures that no one has access to your assets except you. e. The Administrator is insured against fraud, negligent or dishonest behaviour. 6

7 f. If for any reason a unit trust you selected is no longer available, the Administrator will give you written notice. The Administrator will ask you to select an alternative from the remaining unit trusts. If you do not select another unit trust within the time period given by the Administrator, the Administrator will switch your investment from the affected unit trust to the Standard Bank Money Market Fund. g. Bank interest earned by the Administrator in its bank account on deposits made by you will be added to your Investment Account if it is in the Administrator s bank account for more than 24 hours. h. Any income distribution made within a unit trust will be re-invested automatically, net of dividend withholding tax. i. Should the balance in any of your chosen unit trusts fall below the minimum required balance, the Administrator reserves the right to transfer the remaining balance to the rest of your unit trusts proportionately. j. The Administrator may amend its terms and conditions. Please contact your financial adviser, the Call Centre on or for the latest version of these. 4. Charges and Fees If a charge or fee is levied, this is passed on to you by reducing the underlying investments of the Investment Account by the same amount. Your choice of unit trusts and their associated class will determine certain aspects of the charging structure. Where applicable, these fees and charges are levied proportionately across all unit trusts of the Investment Account. You may choose to have your platform charge and ongoing financial advice fees deducted monthly from a nominated unit trust. This is known as your nominated fee unit trust. If the nominated fee unit trust does not have sufficient funds to pay the fees, the Administrator will deduct charges and fees proportionately from the remaining unit trusts. The Administrator may be required to change the charging structure due to a change in legislation (including any tax or new tax legislation), practice, or interpretation of any legal or regulatory authority. We will communicate with you should this happen. a. General charges and fees There are three types of charges and fees that may be deducted from your investment on either an initial or on-going basis: Platform charges Portfolio charges and Financial advice fees 7

8 Type of charge/fee Initial charges and fees On-going charges and fees Platform charges There is no initial Platform charge. This is determined by looking at the overall assets you have invested with Liberty Group Limited in an Evolve product and those invested with the Liberty Linked Investment Platform. The overall investment value is used to determine the platform charge applicable on the total amount invested on the Liberty Linked Investment Platform according to the table below. The on-going platform charge is deducted from your investment monthly by the sale of units from the unit trusts. Overall investment Platform charge 2 value 1 (excl VAT) p.a. Up to 0.50% R1 million From R1 million (inclusive) up to R3 0.35% million More than or equal to 0.25% R3 million The platform charge is not levied on any money you might invest in Standard Bank Money Market even though this still counts towards your GateWay assets in order to determine the level of the platform charge which would apply as per the table above. Portfolio charges Advice fees The Investment Manager/SMM may deduct an initial portfolio charge from each investment amount before the purchase of units. The charge is based on the amount invested in the portfolio. It is charged on some unit trusts as indicated in the benefit proposal and fee schedule. You and your financial adviser need to agree on a fee for initial financial advice. This may range from 0% to 5% (plus VAT) of your investment. The Administrator will deduct this charge before the investment is made. This is what the Investment Manager/SMM charges for the on-going management of the investment. The portfolio charge may be flat or performance related. This charge is included in the unit price received from the Investment Manager. Details of these charges can be found on the Benefits and Charges Schedule. There are other expenses that unit trusts incur that are included in the published price of the unit trust. You and your financial adviser need to agree on a fee for on-going financial advice. This may range from 0% to 1% per annum (plus VAT) of your investment value and is deducted monthly by the sale of units from the unit trusts. Assets invested in Standard Bank Money Market are excluded from your investment value used to calculate on-going advice fees. 1 Any assets associated with the Investor invested in a Liberty Evolve Investment Plan, Retirement Annuity Plan, Pension Preserver Plan or Provident Preserver Plan and those invested on the Liberty Linked Investment Platform. 2 Applicable on the total assets invested on the Liberty Linked Investment Platform. In other words, if an investor has an overall investment value of R3.1 million (of which R1.1 million is invested on the Liberty Linked Investment Platform), a platform charge of 0.25% applies to the full R1.1 million invested on the Liberty Linked Investment Platform. 8

9 b. Other charges i. Exit charge The proceeds of the sale of any units will be reduced by a unit trust exit charge, if the Investment Manager charges one. ii. Switching charge The Administrator does not charge fees for switching between unit trusts. However, the Investment Manager(s) may levy unit trust exit charges and/or initial portfolio charges. iii. Termination charge There is no termination charge when you withdraw your investment. iv. Charges for additional investment There are no charges for additional investments into your Investment Account. However, some portfolios may have an initial portfolio charge levied by an Investment Manager as described in the table above. Remember that any initial advice fee you have agreed with your adviser will also be deducted from additional investments. c. Value added tax may be added to any charges and fees relating to your investment, as applicable. d. The quarterly statement will indicate all the applicable fees for your investment for the applicable period. Statements for periods of different lengths may be requested from the Administrator s internet facility. e. Any charges or fees associated with your investment may change from time to time. The Administrator will inform you when: New or additional charges or fees are added, There is a change in the method of calculation to any: initial platform charge on-going platform charges switching charge exit charge termination charge, which leads to an increase in fees. 5. Benefits a. Your investment accumulates in an Investment Account, comprising of units invested in one or more unit trusts. When you decide to withdraw your investment, you will receive the units valued at the next available unit price. Refer to section 2b for details of processing times and cut-off times on disinvestment. b. If you were to pass away, your Investment Account will form part of your estate the Administrator will only act on instructions received from the executor of your estate. The Administrator must therefore be notified of your death in writing. The notification should include: i. your personal details, ii. identity number, iii. a certified copy of the death certificate, iv. appointment letter/certificate of the executor and your Investment Account number. 9

10 6. Liberty Multimanager portfolios Liberty Multimanager portfolios are managed by STANLIB Multi-Manager, so the following applies: a. STANLIB Multimanager ( SMM ) is an authorised financial services provider and is licensed to provide discretionary financial services in respect of participatory interests in one or more collective investment schemes. b. You hereby confirm your appointment of SMM as your Discretionary Investment Manager to administer the investments in the Liberty Multimanager portfolio range, with effect from the date of signature to the Investment Confirmation agreement, in accordance with the terms and conditions defined herein. c. You accordingly authorise SMM to manage participatory interests in collective investment schemes you hold through the Liberty Multimanager portfolio range and SMM shall exercise its discretion in the management of these investments on your behalf. d. Where SMM receives funds for investment in Liberty Multimanager portfolios from you via Liberty, SMM undertakes to invest all cash received within 24 hours of notification of deposit of such cash. e. SMM is responsible for compensating you for any loss or damage which you may suffer solely where such loss or damage arises directly out of the dishonesty or negligence on the part of SMM or any person employed by SMM in carrying out SMM's duties. SMM is not however responsible for any other loss or damage, which you may suffer. f. Your Liberty Multimanager investments will be registered in the name of a nominee company approved by the Financial Services Board in terms of the Financial Advisory and Intermediary Services Act, The Administrator has appointed Liberty Linked Investment Platform Nominee (Pty) Ltd to hold the Investor s investments on his/her behalf. g. SMM may vote on your behalf in respect of your Liberty Multimanager investments. h. You authorise SMM to exercise all voting rights attached to the Collective Investment Scheme portfolios managed on your behalf, specifically to exercise a vote in a ballot conducted by a Collective Investment Scheme Management Company in respect of investments in Liberty Multimanager portfolios. i. You specifically authorise all cash accruals (including dividends and interest) that SMM received on your behalf shall be re-invested into your Liberty Multimanager investments. j. If there are any changes to the provisions of your appointment of SMM or SMM s management of the Liberty Multimanager portfolios, these changes must be made in writing and form a new agreement between SMM and yourself. k. Either you or SMM are entitled to terminate your agreement at any time by giving 60 (sixty) calendar days written notice. 7. Exclusions a. The Administrator does not take responsibility for the financial advice provided to you by your financial adviser. The Administrator does not provide financial advice. 10

11 b. The Administrator does not take responsibility for losses suffered by you due to any of the following: i. errors made by Investment Managers; ii. investment, market, currency, liquidity or any other risk inherent in the underlying investments; iii. changes in tax or legislation; iv. delays in the processing or the rejection of an application because the financial adviser is either not an authorised Financial Services Provider or does not have a contract with the Administrator; v. financial advisers acting beyond the scope of their FSB license; vi. unauthorised instructions given by the financial adviser; vii. the failure of any networks or electronic or mechanical devices; viii. financial advisers misrepresenting or communicating incorrect details of your investment to you, where the Administrator has provided the correct information about your investment to your appointed financial adviser either via telephone, , fax or a secure website; ix. the Administrator acting correctly on information sent electronically; x. acting on incorrect information where you have failed to notify the Administrator of any changes to such information; xi. the delayed sale of units in a unit trust due to ring-fencing: Ring-fencing is the separation and delayed sale of units in a unit trust. Large sale of units in a unit trust above certain thresholds may cause ring-fencing. This ensures that the sale of a large number of units will not force the Investment Manager to sell the underlying investments at a price in the market which could have a negative impact on investors. The Administrator may delay the payment or reinvestment of the proceeds of the sale of units c. The Administrator will carry out instructions at the earliest possible opportunity, subject to legislation, its own administration procedures and any unit trust limitations. The Administrator does not accept responsibility for delays in processing instructions as a result of extraordinary events that cause disruptions. 8. Personal Information Collecting, processing and sharing your personal information Personal Information means information relating to an identifiable, natural or juristic person, including but not limited to, information relating to race, gender, sex, marital status, nationality, ethnic or social origin, colour, sexual orientation, age, physical or mental health, religion, belief, disability, language, birth, education, identity number, telephone number, , postal or street address, biometric information and financial, criminal or employment history as well as correspondence sent by the person that is implicitly or explicitly of a private or confidential nature or further correspondence that would reveal the contents of the original correspondence; and Process means any operation or activity, whether automated or not, concerning personal information, including: collection, receipt, recording, organisation, collation, storage, updating or modification, retrieval, alteration, consultation, use, dissemination by means of transmission, distribution or making available in any other form, merging, linking, as well as blocking, degradation, erasure or destruction of information. Processing will have a similar meaning. 11

12 a. The Administrator is required by various laws to collect some of your personal information. Without your personal information we may be unable to start or continue to provide services to you. b. You authorise the Administrator, its staff and certain third-party service providers to collect, process, further process and share your information. c. We may be required to: i. collect, process and share your relevant personal or financial information from you to help us service and process instructions on your investment. ii. collect, process and share information through the Financial Services Exchange (Pty) Ltd, trading as Astute, and through certain registers and databases maintained by and on behalf of the Association of Savings and Investment SA. iii. to share your information with any third party service provider contracted to us or any appointed financial adviser, either through us or through Astute in order to provide services to you. d. The Administrator will only collect, share and process information as permitted by law. e. The Administrator undertakes to keep it confidential, secure and only for as long as it is needed for business purposes. f. Note that this authorisation extends beyond your death but only applies for the purposes above and therefore may partially limit your right to privacy. You are entitled to request access to the information we have collected, processed and shared. g. The Administrator may at certain times send you relevant information about its products and services. If you do not want to receive any such information, you need to notify us. We may also use your nonpersonal, de-identified information for statistical purposes. 9. Complaints a) If you are not satisfied with this investment or the services from the Administrator, you can write to the compliance officer at the address below. Remember to include all supporting documents. The Administrator will acknowledge the complaint in writing and will inform you of the contact details of the person who should be able to resolve it. b) You may refer to our website for a detailed explanation of the complaints procedure process: c) If you are not satisfied with the response from the Administrator, or if you have a complaint about the advice given by a financial adviser in respect of this investment, you can write to the Ombud for Financial Service Providers. Postal address: The Ombud for Financial Services Providers PO Box 74571, Lynnwood Ridge 0040 Toll-free: info@faisombud.co.za 12

13 10. Contact details Liberty Linked Investment Platform (Pty) Ltd Physical address 1 Ameshoff Street Braamfontein Johannesburg South Africa, 2001 Postal address PO Box Johannesburg 2000 Telephone numbers (call centre) +27 (0) (foreign investors) address (queries) Website Compliance department info@liberty.co.za llip.compliance@liberty.co.za