South African Independent Financial Advisors Association

WHY SAIFAA? Guiding Principles To promote the value of “independent advice” in a modern financial services market and the critical role of independent advisors in delivering this advice. To be recognised as the “voice of the independent advisor community” with a mandate to represent this community with the regulator and the media.

WHY SAIFAA? Guiding Principles To promote the value of “independent advice” in a modern financial services market and the critical role of independent advisors in delivering this advice. To be recognised as the “voice of the independent advisor community” with a mandate to represent this community with the regulator and the media.

THE VALUE OF ADVICE International Longevity Centre (UK - July 2017) The ‘affluent but advised’ accumulated on average £12,363 (or 17%) more in liquid financial assets than the affluent and non-advised group, and £30,882 (or 16%) more in pension wealth (total £43,245) The ‘just getting by but advised’ accumulated on average £14,036 (or 39%) more in liquid financial assets than the just getting by but non-advised group, and £25,859 (or 21%) more in pension wealth (total £3 ..9,895) Source: www.ilcuk.org.uk

THE VALUE OF ADVICE International Longevity Centre (UK - July 2017) The ‘affluent but advised’ accumulated on average £12,363 (or 17%) more in liquid financial assets than the affluent and non-advised group, and £30,882 (or 16%) more in pension wealth (total £43,245) The ‘just getting by but advised’ accumulated on average £14,036 (or 39%) more in liquid financial assets than the just getting by but non-advised group, and £25,859 (or 21%) more in pension wealth (total £39,895) Source: www.ilcuk.org.uk

WHY SAIFAA? Membership Eligibility Any financial advisor working for an independently owned Category I or Category II FSP # “independently owned” meaning free to structure its business for the benefit of its clients # selling any portion of the equity in the business to a product supplier will likely disqualify the advisor from being independent

WHY SAIFAA? Membership Eligibility Any financial advisor working for an independently owned Category I or Category II FSP # “independently owned” meaning free to structure its business for the benefit of its clients # selling any portion of the equity in the business to a product supplier will likely disqualify the advisor from being independent

THE CURRENT MARKET IN SA 11 117 Authorised FSPs (30 June 2017) Source: FSB and Financial Services Intelligence

THE CURRENT MARKET IN SA 161 243 Representatives (30 June 2017) IFA’s - CIS and Ret. Pension: 4 800 (31 March 2017) Source: FSB and Financial Services Intelligence

RETAIL DISTRIBUTION REVIEW Categories of Intermediary Product Supplier Agent (PSA) Not licensed in his/her own right, but authorised to provide advice on a product supplier’s license Registered Financial Advisor (RFA) A firm or individual (sole proprietor) licensed to provide advice - not a product supplier

WHY SAIFAA? “The Association for Savings and Investment South Africa (ASISA) represents the majority of the country's asset managers, collective investment scheme management companies, linked investment service providers, multi-managers and life insurance companies.”

WHY SAIFAA? “The Financial Planning Institute of Southern Africa (FPI), a South African Qualifications Authority recognised professional association for financial planners in South Africa. It is the only institution in South Africa to offer the CFP , as well as an approved examination body for the FAIS Regulatory Examinations.” ®

WHY SAIFAA? “Driven by the desire to make a difference, we apply our expertise and experience to develop and deliver unique compliance, risk management, practice management and business intelligence services that achieve results both now and in the future. With our finger on the pulse of the industry, we are aware of the needs of independent financial advisors (IFAs) and larger financial institutions, and strive to support and keep them in business. We aim to stay relevant and respond to the requirements of an ever- changing regulatory environment.”

WHY SAIFAA? “Represents intermediaries across a broad spectrum including employee benefits, short term insurance, financial planning and medical schemes.”

INITIAL EXECUTIVE COMMITTEE Derek Smorenburg Cape Alex Babich Gauteng Peter Cut Dries du Toit Harrie Kalligiannis John Kinsley Johann Kruger Kagisho Mahura Bertie le Roux

MISSION STATEMENT “work in progress” Our mission is to be the voice of the Independent Advisor in South Africa particularly relating to regulatory, media and product issues. We will help develop a sustainable independent advice industry that is relevant to the divergent needs of investors in our country and will strive to ensure that our members act in a professional manner at all times, with due care for the interests of the investing public.

AGENDA Default Regulations and Living Annuities - David Gluckman Challenges, risks and solutions for living annuities - Marc Thomas Sharpening your living annuity game - Christo Lineveldt Low cost with predictability, the perfect marriage - Meyer Coetzee The Bold Living Annuity - Mark Lapedus Conclusion - Derek Smorenburg