etfsa INVESTOR SCHEME APPLICATION FORM COVERING LETTER Investors can transact (buy, sell, switch, transfer, etc.) on any of the Exchange Traded Products (ETPs) listed on this website through the etfsa Investor Scheme. About etfsa.co.za etfsa.co.za is the FSB registered trading name of M F Brown (a registered Financial Services Provider FSP No. 39217). M F Brown is licensed to provide financial services in the following categories: Collective Investment Schemes; Shares & Securities; Retail Pension Benefits; and Short-term Deposits. etfsa.co.za has no conflict of interest with any other financial services provider or financial product supplier. etfsa.co.za, its logo and slogan are registered trademarks. M F Brown maintains Professional Indemnity Insurance as required by the Financial Advisory and Intermediary Services Act (2002) and has successfully completed the Level One Regulatory Examinations. For advice and information on the ETFs/ETNs available on the etfsa.co.za website, please contact: Mike Brown Tel: 011 561 6653 Fax: 011 388 4674 Email: info@etfsa.co.za. Please ensure if you have used the services of the etfsa.co.za website or the Call Centre 0861 383 721 that you fill in the application form marked etfsa on the right hand side of the first and subsequent pages of the application form. If this is not provided to you by the administrator, please contact etfsa.co.za at info@etfsa.co.za. Administration of the etfsa Investor Scheme Investors who invest in ETFs/ETNs through etfsa.co.za will have their investments administered by Automated Outsourcing Services (Pty) Ltd, an authorized Financial Services Provider (No 650) who will register all ETFs/ETNs owned by etfsa Investor Scheme clients under the clients own name on the JSE/STRATE securities register. The Investor, or where applicable, his authorized signatory, by appending his signature to this application form states and declares that he/she has read and understood the terms and conditions pertaining to this investment product and the investment media selected and warrants that such authorisation shall form the basis of the contract, which is to be entered into with Automated Outsourcing Services (Pty) Ltd. How to invest Complete application form either online or download and print. If you are investing a lump sum, a copy of the deposit slip or proof of electronic payment must be submitted together with the application form. The following documents must be submitted with the application form: o Clear copy of ID document o A clear copy of proof of residence document o Proof of South African banking details (must reflect bank name, acc. holder s full name and bank acc. no.) No internet and credit card banking details will be accepted. refer to FICA documentation checklist attached to this application form. Application forms may be emailed to queries@etfsa.co.za or faxed to 011 388 6845. For any queries on the administration of the etfsa Investor Scheme, please contact: Tel: 0861 383 721 (0861 ETFSA1) International Tel: +27 11 561 6687 Email: queries@etfsa.co.za Fax: 011 388 6845 FEE SCHEDULE applicable to all ETFs/ETNs (ETPs) in the etfsa Investor Scheme Annual administration fee (calculated daily and deducted quarterly): Transaction Fees Total Investment Per Fund Fee R0 to R100 000 0,80% R100 000 to R250 000 0,75% R250 000 to R1 000 000 0,70% R1 000 000 to R3 000 000 0,50% R3 000 000 or more 0,45% Debit order fee: R3,50. Debit order rejection fee: R110 Stock brokerage fees 0.10% (buying and selling) and Nominal JSE/Strate and Investor Protection fees (plus VAT) will be charged. All fees quoted are exclusive of VAT. VAT will be levied where applicable. A marketing fee which forms part of the annual administration charge is paid by the administrator to etfsa Investor Scheme. This marketing fee is not an additional charge, it forms part of the annual administration fee of 0,45% to 0,80%. etfsa.co.za Disclaimer The Exchange Traded Products (ETPs) contained herein are Collective Investment Schemes in Securities (CIS)and/or JSE listed securities which are generally medium to long-term investments that contain elements of risk and can be affected by market values, interest rates, exchange rates, volatility, dividend yields and issuer credit ratings. The price of ETFs/ETNs can go up as well as down and past performance is not necessarily a guide to the future. The ETPs herein are listed on the Johannesburg Stock Exchange Limited and trading in ETP securities will incur trading and settlement costs. ETP securities are traded at ruling prices and can engage in scrip lending. The information and opinions provided herein are of a general nature and do not constitute investment advice. Whilst every care has been taken, no representation, warranty or undertaking, expressed or implied, is given as to the accuracy or completeness thereof. All opinions and information on this website may be changed at any time without notice. etfsa.co.za is the trading name of M F Brown, which is a registered Financial Services Provider (FSP No. 39217). Professional Indemnity Insurance is maintained.
The Home of Exchange Traded Funds Investors can buy, sell, switch and transfer, any of the Exchange Traded Products offered through the etfsa Investor Scheme. ABOUT etfsa etfsa.co.za is the FSB registered trading name of M F Brown (a registered Financial Services Provider FSP No. 39217). M F Brown is licensed to provide financial services in the following categories: Collective Investment Schemes; Shares & Securities; Retail Pension Benefits; and Short-term Deposits. etfsa.co.za has no conflict of interest with any other financial services provider or financial product supplier. etfsa.co.za, its logo and slogan are registered trademarks. M F Brown maintains Professional Indemnity Insurance as required by the Financial Advisory and Intermediary Services Act (2002) and has successfully completed the Level One Regulatory Examinations. For advice and information on the ETFs available on the etfsa.co.za website, please contact: Mike Brown Telephone 011 561 6653 Fax 011 388 4674 Email info@etfsa.co.za INVESTMENT ADMINISTRATION Investors who invest in Exchange Traded Products offered through etfsa.co.za will have their investments administered by Automated Outsourcing Services (Pty) Ltd, an authorised Financial Services Provider. The Investor, or where applicable, his authorised signatory, by appending his signature to the application form states and declares that he/she has read and understood the terms and conditions pertaining to this investment product and the investment media selected and warrants that such authorisation shall form the basis of the contract, which is to be entered into with Automated Outsourcing Services (Pty) Ltd. HOW TO INVEST Please note the important information regarding how to invest contained on page one of the investment application form appended to this covering letter. IMPORTANT CONTACT DETAILS Contact Centre Telephone 0861 383 721 Email queries@etfsa.co.za Switchboard Telephone 011 561 6687 Fax 011 388 6845 Email queries@etfsa.co.za Physical Address 5 Philips Street Ferndale Randburg South Africa 2194 Postal Address ETFSA PO Box 4769 Randburg South Africa 2125 ETFSA DISCLAIMER The Exchange Traded Products (ETPs) contained herein are Collective Investment Schemes in Securities (CIS) which are generally medium to long-term investments that contain elements of risk and can be affected by market values, interest rates, exchange rates, volatility, dividend yields and issuer credit ratings. The price of ETFs/ETNs can go up as well as down and past performance is not necessarily a guide to the future. The ETPs herein are listed on the Johannesburg Stock Exchange Limited and trading in ETP securities will incur trading and settlement costs. ETP securities are traded at ruling prices and can engage in scrip lending. The information and opinions provided herein are of a general nature and do not constitute investment advice. Whilst every care has been taken, no representation, warranty or undertaking, expressed or implied, is given as to the accuracy or completeness thereof. All opinions and information on this website may be changed at any time without notice. etfsa.co.za is the trading name of M F Brown, which is a registered Financial Services Provider (FSP No. 39217). Professional Indemnity Insurance is maintained. 1 ETFSA V3.4 2013
THE SECURITIES INVESTMENT PLAN NEW BUSINESS APPLICATION FORM IMPORTANT INFORMATION 1 Please send documents to the administrator by either Fax 011 388 6845 Email queries@etfsa.co.za 2 Automated Outsourcing Services (Pty) Ltd, an authorised Financial Services Provider, is the administrator of the Securities Investment Plan. 3 The responsibility of transmitting the documents to Automated Outsourcing Services (Pty) Ltd lies with the sender. 4 No application form is considered complete without all required fields being completed and the required documentation being submitted. The Administrator may reject an application due to incomplete or insufficient documentation. 5 Lump sum investments will only be processed upon proof of deposit of funds into the relevant inflow bank account associated with this product. 6 The Administrator has appointed www.etfsa.co.za as an authorised marketer of the Securities Investment Plan. The Administrator has entered into a commercial agreement with the authorised marketer where fees are paid to the authorised marketer. These fees are disclosed in Section 8 of this application form and investors are required to agree to these fees. 7 The Terms and Conditions of the Securities Investment Plan, set out in Section 11, form part of this application. FICA CHECK LIST FOR AN INDIVIDUAL INVESTOR Should you wish to invest in the name of a Minor, Company, Close Corporation or Partnership, please see FICA Documentation Checklist in Section 10 (Part Three) of this application form. Clear Copy of Your ID Document Clear Copy of Your Proof of Residence. (Proof of residence older than 3 months will not be accepted) Clear Copy of Your Proof of South African Banking Details (Must reflect bank name, account holder s full name and bank account number) No internet and credit card banking details will be accepted. Clear Copy of the Proof of Deposit if Investing Lump Sum. This application form consists of three parts. PART 1 SEND TO THE ADMINISTRATOR Sections 1 9 of the Securities Investment Plan Application Form Fund Selection Table PART 2 TO REMAIN WITH THE INVESTOR Section 10: FICA Documentation Checklist PART 3 TO REMAIN WITH THE INVESTOR Section 11: Terms & Conditions of the Securities Investment Plan ETFSA V3.4 2013 2
PART 1 SEND TO THE ADMINISTRATOR SECTION 1: INVESTOR DETAILS Investor Type Individual Company CC Trust Partnership Other Title Mr Ms Mrs Dr Prof The Hon First Name or Trading Name (If a legal entity) Surname/Registered Name Company/Trust Registration Number Identity/Passport Number Resident of South Africa Yes No Date of Birth Gender Male Female Income Tax Number (if applicable) Withholdings Tax Status Exempt Not Exempt (Refer to Section 18) Occupation VAT Registration Number (if applicable) Residential/Trading Address Code Postal Address Code Office Telephone Number Facsimile Number Cell Phone Number Email Address SECTION 2: THIRD PARTY APPLICANT/AUTHORISED REPRESENTATIVE OF A LEGAL BODY (If you are opening an account for a person other than yourself, the name of this person, in whose name the investment is made is filled in under Section 1. The details of the authorised representative who is responsible for the investment must be filled in under Section2.) First Name Surname Identity/Passport Number Gender Male Female 3 ETFSA V3.4 2013
Office Telephone Number Facsimile Number Cell phone Number Email Address SECTION 3: PARENT/LEGAL GUARDIAN (Where an investment is made on behalf of a minor, the particulars of the parent or legal guardians must be furnished here.) First Name Surname Identity/Passport Number Gender Male Female Office Telephone Number Facsimile Number Cell Phone Number Email Address SECTION 4: PREFERRED METHOD OF COMMUNICATION Please send all communication (including quarterly statement) via Email Post SECTION 5: GENERAL INVESTMENT DETAILS Source of Funds Salary Policy Donation Saving Investment Inheritance Other (Please Specify) Minimum Recurring Contribution R300.00 per Security. Minimum Lump Sum Investment of R1 000.00. Lump Sum payments should be made to the Investors Independent Custodian Trust (Pty) Ltd inflow account. Account Name IIC Inflow Account Bank ABSA Bank Randburg Branch Code 505705 Account Number 4074464183 ETFSA V3.4 2013 4
SECTION 6: INVESTMENT DETAILS KEY Balanced Commodity Equity Exchange Traded Fund BL CO EQ ETF Exchange Traded Note Intl Fixed Income Intl Money Market Property ETN INT-FI INT-MM PR SA Equity SA Fixed Income SA Money Market SA-EQ SA-FI SA-MM Fund Type Class Debit Order Annual Increase Lump Sum ABSA Capital New Funds erafi Financial ETF EQ R % R New Funds erafi Industrial ETF EQ R % R New Funds erafi Overall ETF EQ R % R New Funds erafi Resource ETF EQ R % R New Funds Equity Momentum ETF EQ R % R New Funds GOVI ETF FI R % R New Funds ILBI ETF FI R % R New Funds MAPPS Growth ETF BL R % R New Funds MAPPS Protect ETF BL R % R New Funds SWIX 40 ETF EQ R % R New Funds TRACI (3 Months) ETF SA-MM R % R New Funds New Gold ETF CO R % R New Funds New Plat ETF CO R % R New Funds New Rand ETF EQ R % R New Funds New SA ETF EQ R % R New Wave Currency Note Euro ETN INT-MM R % R New Wave Currency Note Pound ETN INT-MM R % R New Wave Currency Note Dollar ETN INT-MM R % R New Wave Silver Precious Metal Note ETN CO R % R New Wave Platinum Precious Metal Note ETN CO R % R New Funds Shari ah Top 40 ETF EQ R % R Deutsche Bank db x-trackers DJ Eurostoxx 50 ETF EQ R % R FTSE 100 ETF EQ R % R MSCI Africa Top 50 ETN EQ R % R 5 ETFSA V3.4 2013
Fund Type Class Debit Order Annual Increase Lump Sum Deutsche Bank db x-trackers continued MSCI China ETN EQ R % R MSCI Emerging Markets ETN EQ R % R MSCI Japan ETF EQ R % R MSCI UK ETF EQ R % R MSCI USA ETF EQ R % R MSCI World ETF EQ R % R Grindrod Bank PrefEx ETF EQ R % R Proptrax SAPY ETF PR R % R Proptrax Ten ETF PR R % R Investec Z-GOVI ETF FI R % R Nedbank BettaBeta EWT 40 ETF EQ R % R BGreen ETF EQ R % R RMB RMB Coal ETN CO R % R RMB Inflation X ETF FI R % R RMB MidCap ETF EQ R % R RMB Oil ETN CO R % R RMB Top 40 ETF EQ R % R SATRIX Satrix 40 ETF EQ R % R Satrix DIVI ETF EQ R % R Satrix FINI ETF EQ R % R Satrix INDI ETF EQ R % R Satrix RAFI ETF EQ R % R Satrix RESI ETF EQ R % R Satrix SWIX ETF EQ R % R ETFSA V3.4 2013 6
Standard Bank Africa Commodity Basket ETN CO R % R Africa Equity ETN EQ R % R Copper ETN CO R % R Corn ETN CO R % R Gold Linker ETN CO R % R Oil ETN CO R % R Palladium Linker ETN CO R % R Platinum Linker ETN CO R % R Silver Linker ETN CO R % R Wheat ETN CO R % R Stanlib Stanlib 40 ETF EQ R % R Stanlib Property ETF PR R % R Stanlib Swix 40 ETF EQ R % R Please note that: Distributions of less than R100.00 per security, will automatically be re-invested; Special conditions may apply to certain securities. (Section 11, clause 21 of the Terms & Conditions of this application form). Debit Order Information (please mark selection) Investment Intervals Monthly Quarterly Half Yearly Annually Annual Increases are limited to whole percentage increments only. No fractionalised percentage increments or monetary amounts will be accepted. Debit Order Date 25 th of the Month 3 rd of the Month Distribution Instructions Reinvest Payout SECTION 7: INVESTOR BANK DETAILS (This bank account must be in the name of the investor or legal guardian in the case of a minor as per Section 3) Investor Bank Details (This bank account must be a South African bank account in the name of the investor or the investor s legal guardian in the case of a minor.) Name of Account Holder Name of Bank Account Number Branch Name Branch Code Account Type Tick box if debit order bank details are the same as the investor bank details above 7 ETFSA V3.4 2013
Name of Account Holder Name of Bank Account Number Branch Name Branch Code Account Type Debit Order Authority 1 I/We hereby request, instruct and authorise Automated Outsourcing Services (Pty) Ltd, its successors or its assignees ( the Administrator ) to draw against my/our account with the bank noted above (or any bank or branch to which I/we may transfer my/our account). 2 I/We understand that all such withdrawals from my/our bank account shall be treated as though they have been signed by me/us personally. 3 I/We agree to pay any bank charges and costs relating to the debit order authority, including debit order rejection fees. 4 I/We acknowledge that I/we may cancel this authority by giving the Administrator not less than 10 business days written notice. 5 I/We agree that receipt of this instruction by the Administrator shall be regarded as receipt thereof by my/our bank. 6 I/We acknowledge that in order to activate the debit order, the Administrator must receive the debit order authority at least 10 business days prior to the first debit order date. Please note that the debit order instruction will be accepted upon the signing of this authority by the bank account holder. Signature of Bank Account Holder Date Print Initials and Surname SECTION 8: INVESTOR DECLARATION Important Note to Investors This section contains very important information. Please make sure that you have read and understood this section and all the terms and conditions that apply to this investment before signing this application form. While all the terms and conditions in this application form are important, certain terms and conditions in section 11 alert the Investor to specific risks, responsibilities and restrictions and are set out in bold. These sections in bold explain various restrictions, risks and responsibilities including when Automated Outsourcing Services (Pty) Ltd will and will not be liable for losses that an Investor may suffer, the Investor s responsibilities and certain financial risks associated with this product. Information on the time that transactions will take is also included in bold. General 1 The Investor confirms that the Investor is making this application for investment into the Securities Investment Plan ( the Plan ) without obtaining financial advice or assistance from a Financial Services Provider. 2 The Investor confirms that the Investor has obtained and is aware of and understands all the product information relating to the Plan and the investments underlying the Plan, including the risks associated with the investment, commissions and fees applicable to the investment and the Investor s responsibilities. 3 The Investor confirms that the Investor has not received any advice in respect of this application from Automated Outsourcing Services (Pty) Ltd. 4 The Investor, or where applicable, the Investor s authorised signatory, by appending his/her signature hereto, states and declares that he/she has read, understood and accepted the terms and conditions pertaining to this investment and will be bound by such terms and conditions. 5 The Investor warrants that all information provided and statements made by the Investor in this application form are true and correct. 6 The Investor acknowledges that it is the Investor s responsibility to ensure the receipt of any instruction and/or document by the Administrator. 7 The Investor acknowledges that there are certain requirements in terms of the Financial Intelligence Centre Act, 2001 which need to be complied with before this investment may be processed. 8 The Investor warrants that the money which he/she is investing is not derived from the proceeds of unlawful activities, as defined in the Prevention of Organised Crime Act, 1998. ETFSA V3.4 2013 8
9 The Investor consents to receiving reports from the Administrator on an annual basis, in the event that the value of the investments held under the Plan at any time is less than R1 000, on the basis that the Investor is able to access information regarding the investment continuously via electronic means made available by the Administrator. Fees and Charges The Investor acknowledges that the following fees and charges apply to investments made in the Plan: 1 An Annual Administration Fee, payable to the Administrator, shall be calculated as a percentage of the daily market value of the investments held by the Investor under the Plan and deducted quarterly, in accordance with the terms and conditions in section 11 of this Application Form. A Marketing Fee of 18.75% of the Annual Administration Fee may be paid by the Administrator to an authorised marketer as remuneration for the marketing of funds listed on this application form. The rate (excluding VAT) at which the fee will be charged will be determined in accordance with the table below. Market Value of Investments Rate per Annum On the first R100 000 0.80% On the amount from R100 001 R 250 000 0.75% On the amount from R250 001 R1 000 000 0.70% On the amount from R1 000 001 R3 000 000 0.50% On the amount over R3 000 000 0.45% 2 A Debit Order Administration Fee which is currently R3.50 (excluding VAT) shall be deducted per collection from the payer s bank account. 3 A Stock Broker Fee which is currently set at 0.10% of the value of the transaction (excluding VAT) shall be charged by the brokerage through which the transaction is conducted for all purchase and sale transactions. 4 A nominal Investor Protection Levy shall be charged by the Johannesburg Stock Exchange for all purchase and sale transactions. 5 A nominal STRATE fee shall be charged by STRATE on all purchase and sale transactions. 6 A fixed Debit Order Rejection Fee which is currently R110.00 (excluding VAT) shall be charged by the Administrator per debit order rejection. 7 A fixed Transfer Out Fee which is currently R250.00 (excluding VAT) shall be charged by the Administrator per security transferred out of the Plan. Further conditions applicable to fees and charges Fees and charges specified above are subject to the terms and conditions contained in the application form. Fees and charges are subject to change (see terms and conditions). VAT will be levied on fees and charges. Signature of Investor or duly authorised person/s for minor investors Date Print Initials and Surname Date Signature of third party applicant or authorised representative of a legal body (if Section2 of this application form is applicable). Print Initials and Surname SECTION 9: ADMINISTRATOR CONTACT DETAILS Contact Centre Telephone 0861 383 721 Email queries@etfsa.co.za Switchboard Telephone 011 561 6687 Email queries@etfsa.co.za Fax 011 388 6845 Physical Address 15 Philips Street Ferndale Randburg South Africa 2194 Postal Address PO Box 4769 Randburg South Africa 2125 PART 2 On next page 9 ETFSA V3.4 2013
PART 2 TO REMAIN WITH THE INVESTOR SECTION 10: FICA DOCUMENTATION CHECKLIST Due Diligence Requirements New Applicants must send the following applicable FICA documents Together with a fully completed New Business Application form. Additional or updated documentation may be requested in certain circumstances. Please ensure that the information provided on the FICA documentation is clear and certified if a copy. All FICA documents must be less than 3 months old except for income tax forms property insurance policy schedules. INDIVIDUAL Identification Clear copy of one of the following: Current valid passport National identity card or document Confirmation of address Clear copy of one of the following, confirming name and address: A utility bill A council tax bill/assessment An income tax form/extract (NB: a printout off e-filing is not acceptable proof of residence) A property insurance policy schedule A most recent lease/rental agreement Making a credit reference agency search or seeking a bankers reference Affidavit Related due diligence Proof of South African Banking details either: Cancelled Cheque or Bank Statement (no internet or credit card statement accepted) A letter from Bank confirming banking details Proof of Income Tax Number INVESTING IN NAME OF MINOR Minor Certified copy of birth certificate Legal Guardian as per individual requirements TRUST Identification Trustees as per individual requirements, or company requirements for corporate trustees Extract of Trust Deed pages showing name of Trust, parties to the Trust and signature pages Letter of Authority from Master (SA Trust) or Foreign Regulator (Foreign Trusts) to Trustees Confirmation of address Trust as per individual requirements Trustees as per individual requirements Related due diligence Authorised signatory list including specimen signatures Proof of Banking details as per individual requirements Proof of VAT registration (if applicable) Proof of Income Tax Number INVESTOR CLUB AND STOKVEL Copy of constitution/founding document Copy of register of participants Letter electing and authorising person to act on behalf of the club/stokvels Representative as per individual requirements Administrator reserves the right to request FICA documents for all participants ETFSA V3.4 2013 10
COMPANY Identification Certificate of Incorporation (CM1, CM22 and CM29) Board resolution authorising the investment (and/or approval to act as trustee if a corporate trustee) Directors as per individual requirements All shareholders holding 25% or more of voting rights at a general meeting as per individual requirements Confirmation of address Company CM1, CM22 and CM29 Directors as per individual requirements Name(s) and address(es) of all directors All shareholders holding 25% or more of voting rights at a general meeting as per individual requirements Related due diligence Authorised signatory list including specimen signatures Proof of Banking details as per individual requirements Proof of VAT registration (if applicable) Proof of Income Tax Number PARTNERSHIP Identification Latest Annual Reports and Accounts Resolution of the partners to invest All Partners as per individual requirements Confirmation of address All Partners as per individual requirements Related due diligence Authorised signatory list including specimen signatures Proof of Banking details as per individual requirements Proof of VAT registration (if applicable) Proof of Income Tax Number CLOSED CORPORATION Identification Founding Statement and Certificate of Incorporation Resolution of the members to invest Members as per individual requirements Confirmation of address Close Corporation CK1 and CK2 Members as per individual requirements Related due diligence Proof of Banking details as per individual requirements Proof of VAT registration (if applicable) Proof of Income Tax Number Source of funds (the proceeds to be invested need to have been accumulated and invested legitimately): Declaration on the application advising how the funds have legitimately arisen (from which legitimate activity, event or circumstances) PART 3 On next page 11 ETFSA V3.4 2013
PART 3 TO REMAIN WITH THE INVESTOR SECTION 11: TERMS AND CONDITIONS OF THE SECURITIES INVESTMENT PLAN These terms and conditions apply to investments made through the Securities Investment Plan. DEFINITIONS The following terms have the meanings given to them below: Administrator means Automated Outsourcing Services (Pty) Ltd (company registration number 1997/013802/07), trading as Itransact, an administrative financial services provider licensed in terms of FAIS; or such other party that may be appointed to administer the Plan in terms of clause 16.3; Application Form means the New Business Application Form of which these terms and conditions are a part; Business Day means any calendar day which is not a Saturday, Sunday or official public holiday in South Africa; Cash Fund means the bank account held in the name of the Nominee Company through which transactions in Securities under the Plan are settled; FAIS means the Financial Advisory and Intermediary Services Act, No. 37 of 2002, as amended or replaced from time to time; FICA means the Financial Intelligence Centre Act, No. 38 of 2001, as amended or replaced from time to time; Investor means an investor in whose name the Administrator has opened an account under the Plan, in accordance with these terms and conditions and includes a natural person, a legal person, the trustee(s) of a trust and a partnership; Nominee Company means Investors Independent Custodian (Pty) Ltd, a nominee company which is approved to operate in the STRATE environment and which is approved in terms of FAIS to act as independent nominee for the Administrator; Plan means the Itransact Securities Investment Plan, more fully described in clause 2; Quarterly means at three-month intervals during the calendar year; Securities means the shares and other financial instruments which are listed on a stock exchange and made available to Investors by the Administrator from time to time through the Plan and includes securities in exchange traded products. 2 THE SECURITIES INVESTMENT PLAN 2.1 The Plan allows for Securities to be purchased, sold and transferred in accordance with these terms and conditions. 2.2 Securities acquired under the Plan will be held in the name of the Nominee Company, for the benefit of the Investor. The Nominee Company will maintain a register recording the beneficial ownership of all Securities held in its name. 2.3 The Nominee Company will keep a record of the amount held in the Cash Fund which is attributable to each Investor. 2.4 The Administrator performs all administration functions in respect to the Plan. The Administrator is entitled to delegate any administration function to a suitable third party. 3 INVESTING IN THE PLAN General conditions that apply to making investments in the Plan: 3.1 This application for investment will not be accepted until all the details and documentation requested in the Application Form have been supplied to the Administrator, any outstanding requirements in terms of this application and in terms of any law have been met to the Administrator s satisfaction and in the case of a lump sum investment, the full amount to be invested has been received in the specified bank account. 3.2 The Administrator reserves the right, in its sole discretion, to decline an application for investment. 3.3 The Administrator will advise an applicant, using the contact details provided in the Application Form, that an Application Form has been received and if there is any outstanding information and/or documentation. Once the application has been accepted, the Administrator will open an account in the name of the Investor and funds received will be invested in accordance with these terms and conditions. The Administrator will inform the Investor, within 7 days, of the Investor s account number and will provide details of the Securities purchased. 3.4 If in any instance funds are received from an Investor or prospective Investor, but information and/or documentation is outstanding, if such outstanding information and/or documentation is not provided within 14 Business Days of notification by the Administrator of the outstanding item(s), funds will be returned to the Investor and the application (whether for a new or additional investment) will be cancelled. 3.5 Investments in the Plan are subject to such minimum investment amounts as determined by the Administrator from time to time. The minimums that currently apply are set out in section 5 of the Application Form. 3.6 The cut-off times and timing standards applicable to investments in the Plan are set out in clause 20. Regular investments by debit order: 3.7 Investments in the Plan may be made by debit order, subject to the following: 3.7.1 Should the Investor wish to invest a fixed sum regularly in the Securities via debit order, the appropriate sections on the Application Form authorising the debit order, must be completed. Accounts will be debited on either the 3rd or the 25th day of the calendar month, unless the applicable day is not a Business Day, in which case the debit order will operate on the next Business Day. 3.7.2 A debit order instruction will be loaded for the next scheduled debit order run in the month that the Application Form has been submitted, but subject to clause 3.7.3. ETFSA V3.4 2013 12
3.7.3 Debit order instructions must be received by the Administrator at least 10 Business Days prior to the desired action date. Instructions received after that period will be processed in the following month. 3.7.4 Any Securities acquired on behalf of the Investor will only be held for the benefit of the Investor after the debit order has been cleared by the Investor s bank. Should such amount not be cleared within 40 days of the debit order having been submitted, any Securities acquired will be sold by the Administrator and any loss incurred on such sale will be recovered from the Investor by the Administrator, together with the rejection charge referred to below. 3.7.5 Debit orders that are rejected by the Investor s bank will attract a rejection charge which charge will be charged by the Administrator to the Investor. The amount of such rejection charge is set out in section 8 of the Application Form, but this amount is subject to such increase as the Administrator may determine from time to time. Furthermore, when the debit order is re-submitted, the price at which the selected Securities are purchased will be the price applicable on the day that the debit order is resubmitted. Lump sum investments: 3.8 Lump sum investments may be made. Should the Investor wish to invest a lump sum in any of the Securities, the appropriate sections of the Application Form must be completed and proof of payment of funds (together with such other requirements as may be stipulated by the Administrator from time to time) must be provided to the Administrator. Additional investments: 3.9 Once an account has been opened by the Administrator in the Investor s name, the Investor may make additional contributions and/or adjust his/her level of contributions by completing the applicable Additional Investment Form, which is available from the Administrator. Conditions that apply to the purchase of Securities through the Plan: 3.10 All investments made pursuant to this application will be subject to the rules and/or conditions that govern the investment in question, as determined from time to time by law and/or by the investment provider/product supplier. Such rules and/or conditions may be obtained from the investment provider/product supplier. 3.11 Securities cannot be sub-divided and a fraction of a Security cannot be purchased. Where the Administrator is unable to acquire whole Securities, any cash balances will be held in the Cash Fund and interest, at the rate paid from time to time on the account, will accrue for the Investor s benefit on such balances. On a Quarterly basis, such cash balances shall be used to buy the maximum number of Securities that can be purchased, after accruing for any fees and costs payable (see section 8 of the Application Form). Note, however, that there are certain exceptions to this Quarterly process (see clause 21). 3.12 The Administrator will arrange for the purchasing of Securities through the brokerage selected by the Administrator from time to time for this purpose. Orders from Investors for the purchase of identical Securities are aggregated. The cost per Security to each Investor is that Investor s proportionate share of the total cost of acquiring the identical Securities purchased under the Plan on the relevant Business Day, (including all applicable fees and charges as set out in section 8 of the Application Form). 3.13 The Administrator usually arranges for the acquisition of Securities through the market at the best offer price available at the time the order is placed. Prices at which Securities are acquired cannot be guaranteed or determined in advance and no price limits on orders can be accepted. 4 THE FINANCIAL INTELLIGENCE CENTRE ACT In terms of FICA, the Administrator is required to satisfy itself of the identity of a client before entering into a business relationship or concluding a single transaction with a client. In order to achieve this, the Investor will be required to provide certain information of a personal and financial nature. The FICA documentation required is detailed in the FICA Documentation Checklist appended to the Application Form and the Administrator may require the Investor to provide such additional information as may be required from time to time in order to satisfy the requirements of FICA and/or any internal rules or procedures that the Administrator may have in this regard. 5 INTEREST ON NEW INVESTMENTS AND DISPOSALS 5.1 No interest shall be payable to the Investor in respect of any funds received for investment into the Plan, unless the funds have not been processed for investment by the time that one completed Business Day after the receipt of the funds and all the information and documentation required by the Administrator has expired. 5.2 Should the Investor dispose of any Securities, no interest shall be payable on the proceeds of the sale of the Securities if such proceeds are paid to the Investor before the end of the first complete Business Day after receipt of the proceeds by the Nominee Company. 5.3 No interest shall be payable to the Investor during the execution of any switch instruction unless the Administrator does not adhere to the timing standards set out in clause 20.5. 5.4 Any interest that becomes payable to an Investor shall be paid at the call rate earned in the applicable bank account on the funds in question. 6 REPORTING TO INVESTORS 6.1 Statements will be provided to Investors as required by FAIS. The Investor may request a statement from the Administrator at any time. Statements can also be accessed via electronic means made available by the Administrator. 6.2 Quarterly statements are evidence of the Investor s ownership of the Securities acquired under the Plan and should be retained indefinitely. The statements will also record the price at which Securities have been bought and sold for the Investor s benefit and should be retained for tax purposes. 13 ETFSA V3.4 2013
6.3 Should the Administrator not receive any notification within 30 days of any statement having been sent to the Investor that the statement contains errors or is not a true reflection of the Investor s investment, the Administrator shall be entitled to regard the statement as being correct in every way. 6.4 Tax certificates reflecting taxable income, capital gains and/or capital losses, as applicable for the financial year, will be sent to Investors by the Administrator annually. 7 DISTRIBUTIONS 7.1 Distributions accrue to the Investor as and when they are declared. The Investor may elect to reinvest distributions or to have distributions paid out, by marking the appropriate box in the Application Form. The Investor may change his/her election by written instruction to the Administrator or on completion of new instructions on the Administrator s Additional Investment Form. 7.2 Where the Investor has elected to have distributions paid out, the Administrator will, subject to clause 7.3 and after accruing for any fees and costs payable (see section 8 of the Application Form), transfer the funds electronically to the Investor s bank account. The Investor s bank details must be provided in the applicable section of the Application Form to facilitate this process. Distribution payments will be made within 7 Business Days after the distribution payment has been received by the Nominee Company. Where payment cannot be made, for example, due to incorrect banking details having been provided, the distributions will be held in the Cash Fund until correct banking details have been provided. No payment will under any circumstances be made into a third party s bank account or into a foreign bank account. 7.3 Distributions of less than an amount determined by the Administrator from time to time (the current amount is set out in section 6 of the Application Form) will be automatically reinvested, but clause 7.5 will apply. 7.4 Where distributions are to be reinvested, a realignment process is followed on a Quarterly basis and, subject to clause 7.5, the amount held in the Cash Fund for the benefit of the Investor is used to buy the maximum number of Securities that can be purchased, after accruing for any fees and costs payable (see section 8 of the Application Form). Note, however, that there are certain exceptions to the Quarterly realignment process (see clause 21). 7.5 In all instances, no Securities will be purchased unless and until the cash balance held for the Investor s benefit in the Cash Fund is sufficient to purchase at least one Security. Any balance of un-invested cash will be held in the Cash Fund, with interest accruing at the rate paid from time to time on the account, for the benefit of the Investor and added to future contributions for later investment on a Quarterly basis. 8 SALE OF SECURITIES 8.1 Subject to the conditions and restrictions described in these terms and conditions, the Administrator will procure the sale of all or part of any holding of Securities within the Plan upon receiving a written and signed instruction to do so from the Investor, on the Administrator s Repurchase Form. 8.2 A 40 day holding period applies to Securities bought by debit order and such Securities may not be sold until such holding period has expired. 8.3 The Administrator will not procure the sale of Securities which have a market value of less than an amount which is determined by the Administrator from time to time and reflected on the Administrator s Repurchase Form, unless all Securities held by the Investor under the Plan are being redeemed. 8.4 If a sale instruction is received for an Investor s entire holding where investments are made by debit order, such debit order will continue unless cancelled at the Investor s instruction. 8.5 The Administrator cannot arrange for the sale of any Securities held outside the Plan. 8.6 The Administrator will procure the sale of all of the Securities for which sale instructions have been received from an Investor, through the brokerage selected by the Administrator from time to time for this purpose, at the best bid price available at the time the order is placed. Prices cannot be guaranteed or determined in advance and no price limits on orders can be accepted. The proceeds of sale due to each Investor will be his or her proportionate share of the total proceeds realised from the sale of identical Securities on that Business Day, less the applicable fees and charges as set out in section 8 of the Application Form. 8.7 See clause 20.4 for cut off times and timing standards that apply. 8.8 No payment will be made into a third party s bank account or into a foreign bank account under any circumstances. 8.9 If the market value of the Securities held under the Plan will fall below an amount which is determined by the Administrator from time to time and reflected on the Administrator s Repurchase Form, as a result of the sale of Securities, a full redemption of all Securities held under the Plan will automatically be processed. 9 TRANSFER OF SECURITIES OUT OF THE PLAN Securities may be transferred out of the Plan to another registered custodian or a stock broking custody account. In order to do this, a written and signed instruction on the Administrator s CSDP Transfer Form must be provided to the Administrator and a transfer out fee (see section 8 of the Application Form) must be paid. Investors transferring Securities out of the Plan should note that Securities not held by the Nominee Company cannot be sold through the Plan and will have to be sold through a brokerage and the applicable charges paid. 10 CESSION OF SECURITIES Outright cession/transfer of ownership: 10.1 The Investor may transfer the beneficial ownership of the Securities held for his/her benefit within the Plan to another person (who will then become an Investor, if he/she is not already an Investor); provided that a written and signed instruction on the ETFSA V3.4 2013 14
Administrator s Transfer Form has been submitted to the Administrator, stating the beneficiary s existing Plan account details (if applicable). If the beneficiary is not an existing Investor, this instruction must be accompanied by a fully completed Application Form together with all supporting documentation required by the Administrator. In addition, any fees and charges that apply (see section 8 of the Application Form) have to be paid. 10.2. When an Investor transfers the beneficial ownership of all Securities held for his/her benefit under the Plan to another person, any balance held for the Investor s benefit in the Cash Fund will be paid to the Investor. Security cessions: 10.3 Security cessions are permitted. Any cession of the Investor s rights must be in writing and signed by the Investor. The Administrator will only note the cession in its records and act in accordance therewith on receipt of written notification of the cession from the Investor together with such additional information as the Administrator may require. 11 SWITCHING SECURITIES 11.1 In order for an Investor to switch from one Security to another, the Administrator s Switch Form must be completed and provided to the Administrator. 11.2 A switch involves a sale and purchase in the market. 11.3 All fees and charges applicable to sales and purchases will apply (see section 8 of the Application Form). 11.4 See clause 20.5 for cut off times and timing standards that apply. 12 RIGHTS OF BENEFICIAL OWNERS OF SECURITIES 12.1 The Investor hereby confirms that the Administrator shall not be required to provide the Investor with any information that any product supplier, including, but not limited to a collective investment scheme or listed company, is obliged to disclose in terms of any law. Annual financial statements and documentation relating to other official announcements by Security providers can, however, be requested by the Investor as if he/she was a registered holder of Securities outside of the Plan. Investors have the same rights in respect of Securities held for their benefit via the Plan as direct holders of Securities. 12.2 The Investor will be timeously notified by the Administrator of any matters or proposals requiring his/her attention as the beneficial owner of Securities held via the Plan. 13 FEES AND CHARGES 13.1 The fees and charges specified in section 8 of the Application Form are charged by the Administrator and other parties involved in transactions. 13.2 The fees charged by the Administrator may be varied by it, on three months prior written notice to the Investor. The Administrator will notify the Investor of changes to any fees or charges charged by other parties. 13.3 The annual administration fee, as specified in section 8 of the Application Form, shall be calculated as a percentage of the daily market value of each Security held by the Investor under the Plan and deducted Quarterly from the cash balance held for the benefit of the Investor in the Cash Fund. If there are insufficient funds held for the benefit of the Investor in the Cash Fund, the minimum number of Securities will be sold to pay this fee. Securities will be sold across an Investor s holdings, in proportion to such holdings. Should the Investor wish to withdraw his/her investment from the Plan, either through the sale or transfer of Securities, the Administrator will recover the pro rata portion of the annual administration fee due. This will be done before the Securities are transferred or before the realisation proceeds are paid out. 13.4 In the event of an Investor transferring Securities held under the Plan out of the Plan, a transfer out fee as set out in section 8 of the Application Form will be charged per Security. This fee is due and payable to the Administrator upon instruction for the transfer. 13.5 The Administrator reserves the right to pass on or charge the Investor with, any duty or tax payable on or in respect of transfers into or out of the Plan where there is a change of beneficial ownership. 13.6 If, in any instance, there are insufficient funds held for the benefit of the Investor in the Cash Fund to pay any fee or charge, the Administrator shall be entitled to realise Securities held by the Investor under the Plan in order to pay such fee or charge. In such instance, Securities will be sold across an Investor s holdings, in proportion to such holdings. 14 TERMINATION OF PARTICIPATION BY THE INVESTOR 14.1 Investors may close their Plan account at any time by giving a written and signed instruction acceptable to the Administrator. If notice to terminate a debit order is received on or after a debit order action date, the debit order will proceed and the contribution received will be invested. 14.2 In the event that an Investor cancels a debit order investment into the Plan, the Investor s existing investment in the Plan will continue unless the Administrator is instructed to close the Investor s Plan account in terms of clause 14.1. 15 DEATH OF AN INVESTOR On the death of an Investor, the Securities will form part of the Investor s deceased estate. No beneficiary nominations may be made. On receipt of notice of death of the Investor, the Administrator will only act on instructions from the executor of the deceased estate, as appointed by the Master of the High Court and will only do so once it has been provided with certified copies of the Investor s death certificate and the Letters of Executorship, together with any other information or documents that the Administrator may require. 15 ETFSA V3.4 2013
16 TERMINATION OF THE PLAN BY THE ADMINISTRATOR, CHANGE OF ADMINISTRATOR AND ALTERATIONS TO THE PLAN 16.1 The Administrator may terminate the Plan by giving at least three months prior written notice to all Investors. At the end of the period of notice, the Administrator will close all Plan accounts and transfer the respective Securities to the Investor s custodian account free of charge, where such custodian has been nominated by an Investor. Where no custodian has been nominated, the Securities will continue to be held by the Nominee Company. All cash balances attributable to an Investor will be paid to the Investor. If payments continue to be made to the Administrator after the termination date, the Administrator will hold such payments on account until instructions are received from the Investor. 16.2 The Administrator may amend the terms and conditions of the Plan on three months written notice to Investors; provided that this does not apply to fees and charges which are dealt with in section 8 of the Application Form and in clause 13. 16.3 The Administrator may appoint another party to administer the Plan in its place in which case all its rights and obligations under the Plan will be ceded and assigned to such new Administrator, without obtaining the Investor s consent. Any such change will be communicated to Investors. 16.4 If, for any reason, further investments in any Security are suspended or a Security ceases to be listed on a stock exchange the Administrator will, as soon as reasonably possible, inform the Investor of the suspension or delisting, as the case may be and the Investor s contributions which would otherwise have been invested in the affected Security will be held in the Cash Fund until alternative instructions are received or in the case of a suspension, until such suspension is lifted. In all instances the Administrator shall deal with suspended or delisted Securities held under the Plan as required by and subject to the requirements of any applicable law, stock exchange and/or regulator. 17 RISKS AND RESPONSIBILITY 17.1 The Administrator is not in a position to give advice as to whether direct investment in Securities or participation in the Plan is suitable for any Investor. The Investor acknowledges that no reliance has been placed on advice given by the Administrator and that the Administrator acts solely as executor of all instructions given. 17.2 The Administrator cannot be held liable for any loss that may be suffered by the Investor, except for loss which results directly from the Administrator s own negligence, fraud or wilful misconduct. The Investor indemnifies the Administrator against any claims and/or losses arising from the performance of the Administrator s functions in respect of the Plan, unless such claim and/ or loss is directly attributable to the Administrator s negligence, fraud or wilful misconduct. 17.3 The Administrator shall not under any circumstances whatsoever be liable for any indirect or consequential cost, damage, loss or liability, unless this limitation is not permitted by law. 17.4 It is always the Investor s responsibility to ensure that any instruction and/or documentation sent to the Administrator is actually received by the Administrator. 17.5 If the Administrator can prove that it has sent any information or document to the Investor, using contact details provided by the Investor, the Administrator shall not be liable should such information or document not be received by the Investor. 17.6 The Administrator shall not be liable for any loss that the Investor may suffer as a result of any act or omission of any third party which provides the Securities or is otherwise involved in the transactions that take place under the Plan. The Investor specifically acknowledges that the Administrator does not control and cannot be held responsible for any time calculation standards, practices and procedures of such third parties or their delaying any sale or their refusal to allow sales at a specific date or price. 17.7 The Administrator shall not be liable for any loss caused by a delay in executing any instruction or transaction where such delay results from a cause which is beyond the reasonable control of the Administrator. 17.8 The Administrator does not in any way guarantee the performance of the investments. 17.9 As with all stock exchange investments, the market price of Securities will fluctuate according to market conditions, general sentiment and other factors. The price at which Securities trade on the applicable stock exchange and the income derived from Securities may go up or down and the Investor has no guarantee that he/she will recoup the original amount invested. Past performance is no guarantee of future returns. The Investor should consult a professional advisor if he/she requires assistance or advice. 17.10 The value of investments in foreign currency may fluctuate materially due to changes in exchange rates. 17.11 The onus rests with the Investor to ensure that no legislation or law in the Investor s jurisdiction is contravened as a consequence of investing in the Plan. 18 TAXATION CONSEQUENCES 18.1 Investors should seek their own professional tax advice. The Investor acknowledges that no advice has been received from and no representations have been made by the Administrator in relation to the tax consequences of investing in the Securities held under Plan. 18.2 The Administrator cannot be held responsible for any tax, duty or levy of whatever nature imposed by any local, provincial, national or other authority which impacts on the Investor s investment in the Plan. The Investor shall be liable to pay any such tax, duty or levy and where required to do so, the Administrator shall withhold any such tax, duty or levy and pay it to the relevant authority. 18.3 Withholdings Tax on Dividends is a tax on local dividends received by the beneficial owner of a share. The rate at which tax will be withheld will be 15% unless exemption has been received from the South African Receiver of Revenue. If exemption has been received the rate may be less than that of 15%. If any of your investments such as a Collective Investment Scheme receives ETFSA V3.4 2013 16