Chartered Wealth Solutions (Pty) Ltd (FSP No.: 13909), Chartered Financial Planning (Pty) Ltd (FSP No.: 38005), Chartered Wealth Solutions (Eastern Cape) (Pty) Ltd (FSP No.: 12985), Chartered Invest (Pty) Ltd (FSP No.: 44865), Chartered Employee Benefits (Pty) Ltd (FSP No.: 24323) have adopted the below Conflict of Interest Management Policy with the following policy regulations in our commitment to rendering an ethical and transparent service to our clients.
Should you wish to view the annexures referred to in this policy please email email@example.com
In terms of Section 3A(2) every provider, other than a representative, must adopt, maintain and implement a conflict of interest management policy which complies with the provisions of the Financial Advisory and Intermediary Services Act, 37 of 2002.
In terms of the General Code of Conduct a provider and a representative must avoid, and where this is not possible, mitigate any conflict of interest between the provider and a client, or a representative of the provider and his, her or its clients.
The FSP and its representatives are committed towards acting within the best interests of our clients and to avoid all conflict of interests in relation to the provision of financial services. Where we are unable to avoid a conflict of interest, we will take all necessary precautions to ensure that any actual or potential conflict of interest is mitigated and adequately disclosed to our clients.
In order to ensure the continued demonstration of our commitment, management has adopted a Conflict of Interest Management policy to provide for the effective management of any actual or potential conflicts of interest that may arise wholly or partially, in relation to the provision of financial services.
The purpose of the Conflict of Interest Management Policy is therefore to:
The primary responsibility for the identification of a conflict of interest rests with the representatives, employees and individual members of the governing body of the FSP.
Throughout the process of rendering a financial service to a client, a representative must apply his or her mind to answering the following questions:
If the answer to all three questions is “no”, then there is no conflict of interest associated with the financial service and the representative may proceed.
If the answer to any one of the three questions is “yes”, the representative must proceed to answer the following additional questions:
If the answer to any one of these questions is “yes”, an actual or potential conflict of interest will have been identified.
The definition of a Conflict of Interest incorporates the following terminology:
It is generally understood that the word “objective” refers to a situation where an individual’s personal feelings or opinions are completely removed from the equation. The “objective performance” of an FSP or representative’s obligations therefore implies a situation where financial services are rendered without any untoward influences.
The word “bias” or “biased” is understood to mean a form of prejudice towards a particular person or viewpoint, whereas the word “fair” or “fairness” indicates a situation of just circumstances or being treated on an equal footing. An unbiased financial service therefore implies a financial service that does not lend itself to a particular persuasion, where no reasonable justification for such persuasion can be found. Similarly, a fair financial service implies a situation where the same conclusion or outcome will consistently present itself given the exact same set of circumstances.
Subject to section 3A(1)(c) of the General Code of Conduct, the FSP and its representatives may only receive or offer the following “financial interest” from or to a “third party”:
The FSP will not offer any financial interest to its representatives for:
The FSP has implemented the following internal controls to identify actual or potential conflicts of interest that may arise:
Once an actual or potential conflict of interest has been identified, the following procedures will be followed in order to determine whether the conflict of interest is avoidable:
It is acknowledged that while disclosure alone will often not be enough, disclosure must be treated as an integral part of managing conflicts of interest. The FSP is therefore committed to ensure that clients are fully informed about actual or potential conflicts of interest in relation to the provision of financial services.
The FSP has adopted the following disclosure measures:
The measures implemented towards ensuring the FSP’s continued compliance with the Conflict of Interest Management Policy rests with the governing body of the FSP. The FSP’s appointed Compliance Officer will monitor the FSP’s continued compliance with the policy on an ongoing basis. The FSP has adopted the following internal controls and processes:
Where there is reason to believe that an employee or representative has failed to disclose an actual or potential conflict of interest via the proper communication channels, the FSP will proceed to investigate and take any appropriate steps it deems necessary to limit any financial prejudice that may be suffered by the FSP, its clients or any other third party.
Where an investigation concludes that an employee or representative of the FSP has indeed failed to disclose an actual or potential conflict of interest, the FSP shall immediately take appropriate disciplinary steps and corrective actions against such employee or representative. Any failure by an employee to comply with the Conflict of Interest Management Policy will be considered serious form of misconduct and a dismissible offence.
Chartered Wealth Solutions is an authorised financial services provider
(FSP no. 13909)