Legal

Conflict of Interest Management Policy

How Purple Plum Distribution Services (Pty) Ltd t/a Bekker Investments identifies, avoids, manages and discloses conflicts of interest.

1. Definitions

Conflict of interest means any situation in which a person has an actual or potential interest that may, in rendering a financial service to a client, influence the objective performance of their obligations towards that client, or prevent them from rendering an unbiased and fair financial service — including but not limited to a financial interest, an ownership interest, or any relationship with a third party.

Employee — all directors and full-time employees; all temporary contracted employees; and all employed or contracted representatives, including independent financial advisors and tied agents.
Fair value — the amount for which an asset could be exchanged, or a liability settled, between knowledgeable, willing parties in an arm's-length transaction.
Financial interest — any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship or other incentive, other than an ownership interest or permitted training (excluding travel and accommodation associated with that training).
Immaterial financial interest — any financial interest with a determinable monetary value not exceeding R1 000 in any calendar year from the same third party.
Ownership interest — any equity or proprietary interest for which fair value was paid at acquisition (other than as an approved nominee), including any dividend, profit share or similar benefit derived from it.
Third party — a product supplier; another provider; an associate of a product supplier or provider; a distribution channel; or any person who provides a financial interest to a provider or its representatives.

2. Introduction

The provider is committed to ensuring that all business is conducted in accordance with the standards of good corporate governance. The manner in which the provider conducts business is based on integrity and ethical, equitable behaviour. This policy aims to emphasise the interests of all stakeholders by minimising and managing all actual or potential conflicts of interest.

3. Objective

Bekker Investments (FSB 42759) is an authorised financial services provider and is potentially exposed to conflicts of interest across various activities. The protection of our clients’ interests is our primary concern: we will identify circumstances that may give rise to an actual or potential conflict entailing a material risk of damage to clients’ interests; we have established appropriate structures and systems to manage such conflict; and we maintain systems to prevent damage to clients’ interests through identified conflict.

4. Managing the Risk of Conflicts

4.1 Identifying conflicts

No person may avoid, limit or circumvent — or attempt to — compliance with this policy via an associate, third party or any arrangement involving them.

Bekker Investments and its representatives may only receive or offer the following financial interest from or to a third party:

Commission authorised in terms of the Long-term Insurance Act (No. 52 of 1998);
Fees authorised in terms of the Long-term Insurance Act, where reasonably commensurate to a service rendered;
Fees for a financial service where such commission or fees are not paid, if specifically agreed to by the client in writing and able to be stopped at the client's discretion;
Fees or remuneration for a service to a third party, reasonably commensurate to the service rendered;
Subject to other legislation, an immaterial financial interest;
A financial interest for which consideration, fair value or remuneration reasonably commensurate to its value is paid at the time of receipt.

The provider may not provide travel and accommodation associated with training, nor offer training to an exclusive group of FSPs only. The provider shall not offer any financial interest to representatives for giving preference to the quantity of business over quality of service, or for giving preference to a specific product supplier or product where more than one could be recommended.

4.2 Avoidance of conflicts

Once an actual or potential conflict has been identified, steps must be taken to avoid it wherever possible. Where avoidance is not possible, steps must be taken to mitigate it, and it must be disclosed to all impacted parties.

4.3 Disclosure of conflicts

Bekker Investments and its representatives must, at the earliest reasonable opportunity, disclose to a client any conflict of interest in respect of that client. Disclosure must be made in writing and contain, among other things:

The measures taken to avoid or mitigate the conflict;
Any ownership or financial interest (other than immaterial) that the provider or its employees may become eligible for;
The nature of any relationship or arrangement with a third party giving rise to the conflict, in sufficient detail for the client to assess whether to proceed;
Notice of the existence of this policy and how it may be accessed.

5. Processes & Procedures to Ensure Compliance

The Compliance Officer is responsible for managing and updating this policy;
The onus is on individuals subject to this policy to avoid creating conflicts and, where unavoidable, to mitigate and properly disclose them;
All employees must identify specific instances of conflict and notify the Compliance Officer;
A central register records conflicts of interest, the persons involved and the controls implemented;
Measures ensure continuous monitoring of compliance, and identified non-compliance is assessed with recommended mitigation;
All employment contracts include the necessary termination and/or sanction clauses to manage the risk of conflicts.

6. Accessibility of the Policy

This policy is made available on the Bekker Investments website and the National Compliance website, so that it is easily accessible for inspection by employees, clients and third parties at all reasonable times.

7. Training & Awareness

8. Consequences of Non-Compliance

The FAIS Act provides for penalties where a person is found guilty of contravening or failing to comply with the Act — up to R1 million or imprisonment for up to 10 years. The Registrar of FAIS may refer instances of non-compliance to an Enforcement Committee that may impose administrative penalties, and the Registrar has the power to revoke the licence of an FSP.