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Is the commencement date 1/7/03 or later? No - No FICA compliance obligation Yes Is the Policy a Retirement Annuity? Yes - No FICA compliance obligationNo.

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Presentation on theme: "Is the commencement date 1/7/03 or later? No - No FICA compliance obligation Yes Is the Policy a Retirement Annuity? Yes - No FICA compliance obligationNo."— Presentation transcript:

1 Is the commencement date 1/7/03 or later? No - No FICA compliance obligation Yes Is the Policy a Retirement Annuity? Yes - No FICA compliance obligationNo - Is the premium more than Single – R50 000 Annual – R25 000 Monthly – R2 083,34 No – Is the surrender value more than 20% of all premiums paid? Yes – No FICA compliance obligation Yes No – No FICA compliance obligation Is the policy collaterally ceded? FICA COMPLIANCE LOANS AND SURRENDERS YesNo Is the Cessionary an JSE listed company e.g. Standard Bank? Yes - No FICA compliance obligation FICA documents required No

2 Is Commencement Date 1/7/03 Or Later? No – No FICA compliance obligation Yes Is the Policy a Retirement Annuity? Yes – No FICA compliance obligation No – Does the increase cause premiums to exceed Single - R50 000 Annually - R25 000 Monthly - R2 083,34 No – No FICA compliance obligation Yes – FICA documents required FICA COMPLIANCE AD-HOC PREMIUM INCREASES

3 NEW BUSINESS / ABSOLUTE CESSIONS Is the policy a Retirement Annuity? Yes – No FICA compliance obligation No – Is the premium more than Single – R50 000 Annual – R25 000 Monthly – R2 083,34 No – No FICA compliance obligation Yes – Is the surrender value in the first three years more than 20% of all premiums paid e.g. pure investment policies? Yes – FICA documents required FICA COMPLIANCE No – No FICA compliance obligation

4 CLIENT SERVICES – LIBERTY CONSULTANTS DOCUMENTS REQUIRED FICA Documents required: Checklist with the declaration signed by Consultant Documents marked on checklist Other Documents required If the FICA conditions for identification are not present, the consultant need only forward (where applicable): A letter by client requesting an Ad-Hoc Premium Increase Cession Form for Absolute Cessions Policy Loan Form for Loans Surrender Form for Surrenders Application form for new business New Business/Absolute Cessions Conditions: If current premiums are More than R2 083,34 p.m./ R25 000 p.a./R50 000 single premium and surrender value is more than 20% of the total premiums paid Loans/Surrenders Conditions If policy surrendered or a loan taken out within its first three years, where: The original premiums are equal to or less than R2 083,34 p.m. / R25 000 p.a. R50 000 single premium and the surrender value at the time of surrender is more than 20% of the total premiums paid and Commencement Date 1/7/03 or later Conditions Where a Cessionary on a Security Cession, surrenders a policy, and the Cessionary is not listed on the stock Exchange, e.g. Standard Bank FICA COMPLIANCE SUMMARY Ad hoc Increases Conditions If increase causes premiums to exceed R2 083,34 p.m.; R25 000 p.a.; R50 000 single premium and Commencement Date 1/7/03 or later WHEN FICA DOCUMENTS ARE REQUIRED (RA’S EXCLUDED) Annexure 8.2 New Business and Servicing Flow

5 CLIENT SERVICES – BROKERS DOCUMENTS REQUIRED FICA Documents required: Checklist with the declaration signed by broker Other Documents required If the FICA conditions for identification are not present, the broker need only forward (where applicable): A letter by client requesting an Ad-Hoc Premium Increase Cession Form for Absolute Cessions Policy Loan Form for Loans Surrender Form for Surrenders Application form for new business New Business/Absolute Cessions Conditions: If current premiums are More than R2 083,34 p.m./ R25 000 p.a./R50 000 single premium and surrender value is more than 20% of the total premiums paid Loans/Surrenders Conditions If policy surrendered or a loan taken out within its first three years, where: The original premiums are equal to or less than R2 083,34 p.m. / R25 000 p.a. R50 000 single premium and the surrender value at the time of surrender is more than 20% of the total premiums paid and Commencement Date 1/7/03 or later Conditions Where a Cessionary on a Security Cession, surrenders a policy, and the Cessionary is not listed on the stock Exchange, e.g. Standard Bank FICA COMPLIANCE SUMMARY Ad hoc Increases Conditions If increase causes premiums to exceed R2 083,34 p.m.; R25 000 p.a.; R50 000 single premium and Commencement Date 1/7/03 or later WHEN THE FICA DOCUMENT IS REQUIRED (RA’S EXCLUDED)


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