1. Treating Customers Fairly
Flagship Asset Management (Pty) Ltd is committed to ensuring that the Financial Services Board’s initiative of “Treating Customers Fairly” (TCF) is embedded in all areas of our business.
Our clients are our most valuable asset and our aim is to :
- Endeavour to meet our clients’ expectations of achieving returns in line with the fund objectives.
- Endeavour to meet our clients’ expectations of high quality service.
Our TCF Policy is centred around the Financial Services Board’s guidelines and the six outcomes produced:
- Outcome 1: Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.
- Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
- Outcome 3: Customers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
- Outcome 4: Where consumers receive advice, the advice is suitable and takes account of their circumstances.
- Outcome 5: Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.
- Outcome 6: Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.
- When advice is given, we will prepare a Record of Advice detailing all relevant information required by the client to make an informed decision.
- We will disclose all costs and risks involved with any product associated with Flagship.
- When advice is given, we will make sure that the client understands the Record of Advice and any risks associated with any product recommended.
- We will perform full due diligence on instruments purchased for all our funds taking into account, inter alia, fundamental research.
- We will keep supporting documentation to verify any material (> 5%) buy/sell decisions.
- We will disclose all costs and risks involved with the fund.
- We will ensure that all Conflicts of Interests (if applicable) are clearly disclosed to enable the client to make an informed decision.
- We will ensure that all client communications are clear, concise and free of jargon.
- We will ensure that all Authorised Representatives are fully aware of the composition of our funds.
- We will listen to client feedback and will deal with any complaints timeously.
- Where applicable, we will ensure that a mandate is signed between ourselves and the client detailing the extent of our discretionary services.
- We will send a quarterly report to all clients detailing progress made during the quarter on investments.
- We will ensure that authority is obtained for Personal Trading Accounts and that no such trading takes place until authority has been obtained.
- Where a breach of mandate has taken place we will rectify the situation so that the client is not prejudiced.
- We will ensure that no insider trading takes place.
- We will ensure that detailed fund fact sheets are produced monthly for funds being managed, clearly detailing composition, costs and performance.
2. Complaints Policy
Flagship Asset Management (Pty) Limited is committed to providing clients with a diversified and innovative investment service. We believe there is no room for error with other people’s money.
If you are not satisfied with this investment or the services of Flagship, you may submit a written complaint, together with supporting documents, to Simon Hudson (email: email@example.com). Flagship will acknowledge the complaint in writing and will inform you of the contact details of the persons involved in the resolution thereof.
If you are not satisfied with the response from Flagship, you have the right to contact the Ombud for Financial Service Providers:
FAIS Ombud, PO Box 74571, Lynnwood Ridge 0040
Tel: 0860 324 766 or 012 470 9080 / 012 470 9080
Fax: 012 348 3447
The Ombud is legally empowered to investigate and adjudicate complaints in a procedurally fair, economical and expeditious manner.
A copy of our internal complaints resolution procedure is available to clients on request.
Flagship respects your privacy. We shall take all reasonable steps to protect your personal information and to keep it confidential.
In general, you can visit our website without having to divulge any personal information. However, while using this website you may provide information about yourself or it may be collected by us.
Access to your personal information held by us may be requested by you or third parties. The Promotion of Access to Information Act, No. 2 of 2000, regulates and sets out the procedure for such a request and under what circumstances such access may be refused.
Use of Information
Personal information is used as is appropriate in the normal course of business to provide the products and services you have requested. We may retain any information for purposes of investment transaction processing and administration, to monitor our site or to communicate directly with you.
Sharing of Information
All personal information supplied to us or collected by us is kept strictly confidential and will not be passed on or sold to third parties. We will disclose or report personal information if and when required to do so by law or any regulatory authority, and to our employees or agents who require such information to carry out their duties.
Security of Information
We take all reasonable steps to protect your personal information. We can however not guarantee the security of any information you transmit to us electronically as it is susceptible to interception and monitoring. You shall bear all risk of transmitting information in this manner.
Electronic Communications and Records
By communicating with us by electronic means or visiting this website, you consent to receiving communications electronically and agree that all agreements, notices, disclosures and all other communications transmitted by electronic means satisfies any legal requirement, including but not limited to the requirement that such communication should be “in writing.”
Any dispute of whatsoever nature relating to or arising out of any use of the website, whether directly or indirectly, shall be governed by the laws of the Republic of South Africa, and shall be subject to the exclusive jurisdiction of the courts of the Republic of South Africa.
All information on this website is the property of Flagship Asset Management (Pty) Limited. It may not be copied, viewed, downloaded, reproduced, sold or distributed without Flagship’s prior written consent, save for personal, non-commercial purposes.
5. Conflicts of Interest
The General Code of Conduct for Financial Services Providers and Representatives (the “Code”) published in terms of the Financial Advisory and Intermediary Services Act, No. 37 of 2002 (“FAIS”), requires every Financial Services Provider (“FSP”) to adopt, implement and maintain a Conflict of Interest Management Policy.
All Employees and Associates of Flagship Asset Management (Pty) Ltd, as a FAIS registered FSPs, (“Flagship”), must perform their duties independently and act in the best interests of Flagship’s existing and potential clients (“Clients”).
Flagship has introduced reasonable mechanisms to identify Conflicts of Interest between:
Itself, Employees and Clients; and
between different Clients.
In considering potential Conflicts of Interest, Flagship considers: (i) the structure and business activities of Flagship; and (ii) any proposed new business activities of Flagship.
Flagship is obliged to render unbiased and fair financial services to Clients. Accordingly, we must take all reasonable steps to avoid any business activities and/or practices that may create Conflicts of Interest between Flagship and Employee interests, and the interests of Clients. In the event that it is not possible to avoid a Conflict of Interest, Flagship will take all reasonable steps to mitigate the impact as well as appropriately disclosing any such Conflict of Interest to Clients.
Purpose of this Policy
The purpose of this Conflicts of Interest Management Policy is primarily to provide mechanisms for the identification and management of Conflicts of Interest that may arise in the rendering of financial services to Clients.
Application of the Policy
This Conflicts of Interest Management Policy applies to all Employees and must be read together with the related policies listed below, some of which reflect specific categories of Conflicts of Interest:
- Gifts and Inducements;
- Outside Interests and Personal Account Investing;
- Insider Trading;
- Code of Ethics;
- Order Execution;
- Transaction Costs Disclosure;
- Counterparty and Credit Risk;
- Proprietary Trading (note: while Flagship has a policy in place, it does not engage in any proprietary trading);
Mechanisms through which Flagship identifies and manages actual or potential Conflicts of Interest:
- All Employees are required to report any potential or actual Conflicts of Interest to the Compliance Department. The onus is on every Employee to comply with this Policy.
- The Compliance Committee will investigate any potential or actual Conflicts of Interest to determine whether such conflicts are conflicts as contemplated in FAIS or any other applicable legislation. The Compliance Committee, in conjunction with senior management, will determine whether such Conflicts of Interest are avoidable or unavoidable conflicts.
- If a Conflict of Interest is identified as being avoidable, then Flagship will adopt the necessary internal procedures to ensure that the activity that gives rise to the avoidable conflict, is avoided.
- If a Conflict of Interest is identified as being unavoidable, the Compliance Committee, in conjunction with senior management, will establish a strategy to mitigate the risk of such Conflict of Interest impacting negatively on Flagship’s ability to render fair and unbiased services to affected Clients.
- Flagship will disclose any specific Conflict of Interest impacting a Client to such impacted Client, together with the mitigation strategy employed.
Guidelines in relation to Financial or Ownership Interests
No Employee may accept/give a Financial Interest or Ownership Interest from/to a Third Party, other than an Immaterial Financial Interest (refer to the Gifts and Inducements Policy).
Flagship may not offer any Financial Interest to an Employee which incentivizes such Employee to:
- Give preference to the quantity of business over quality of service rendered to Clients;
- Give preference to a specific product supplier in the event that it is possible to recommend more than one supplier to a Client; and/or
- Give preference to a specific product in the event that it is possible to recommend more than one product to a Client.
- No Employee may directly or indirectly refer any actual or potential item of designated investment business to another person on their own initiative or on instruction from Flagship, if it is likely to conflict with any duty that Flagship owes to its Clients or any duty which such recipient firm owes to its Clients.
Representative’s entitlement to Financial Interest
As consideration for providing services to Clients, Representatives are entitled to remuneration by salary and other benefits in terms of their contracts of employments. No Employee may receive a Financial Interest that leads to a potential Conflict of Interest between the Employee and any Clients;
No Employee may be remunerated in such a way that encourages that Employee to contravene this Policy.
Management of Conflicts of Interest
Once an actual or potential Conflict of Interest has been identified, it must be reported to the Compliance Department in the prescribed manner.
The Compliance Committee will keep a record of all actual or potential Conflicts of Interest in the Conflicts of Interest Register.
The Compliance Committee is responsible for monitoring Flagship’s adherence to the Conflicts of Interests Management Policy (as well as adherence to the policies relating to the identified categories of potential Conflicts of Interests).
All Representatives and Key Individuals are required to declare on an annual basis that they have complied with the Conflicts of Interests Management Policy and related policies.
The Conflicts of Interests Management Policy and related policies are reviewed annually, and where necessary, updated to ensure that the provisions remain sufficient to identify, assess, evaluate and mitigate Conflicts of Interest.
Consequences for non-compliance
If any Employee fails to comply with the contents of this Policy or avoids same through any means, it will be regarded as a breach of his/her employment contract. This will potentially render the individual liable to sanction under both the FAIS Act and Flagship’s disciplinary procedures.
Training of relevant Policies
All Employees must know and understand the Conflicts of Interest Management Policy as well as the policies relating to the identified categories of potential Conflicts of Interests. Appropriate training will be provided to all Employees on a periodic basis.
Acceptance and Publication of the Conflicts of Interest
The Board has adopted this Conflicts of Interest Management Policy as well as the policies relating to the identified categories of potential Conflicts of Interest.