The South African investment market continues to increasingly offer an ever wider range of investment products. In this environment with the introduction of the FAIS act it is important that the investor receives qualified advice.
Independent financial advisors should be the first port of call when clients are considering liquidating investments and not the life companies or other product providers.
It follows that IFA`s need a third party to price potentially surrendered / restricted policies or investments where liquidity is low or non-existent on normal endowments and many structured products. Why accept what the product provider is offering?
By providing clients with an alternative could mean thousands of rands back into the pockets of investors. Yieldcap aims to bridge the gap between surrender value and a fair market value. We assess each investment individually and provide the IFA with a yes / no answer first time.
YieldCap`s advantage
• 25 years collective experience and product insight • Covers a wide spectrum of products • Online access to RSA`s largest assurer for quick and accurate analysis • Access to independent capital base
Product offering
• Quicker turnaround times than surrendering • E-mailed quotation to IFA on assessment • Assessment available for compliance purposes • Holistic and independent advice on product as required • Dedicated solutions driven team
Fee structure
The IFA receives a referral fee on every successful transaction. The standard fee is 1.5% (VAT inclusive) on the purchase value of the transaction, but is negotiable depending on the transaction. The fee is payable within 48 hours after finalisation of transaction and receipt of all original documentation.
Benefit to FSP
• Free service • Generate revenue where previous revenue was Zero • Independent 3rd party assessment for FAIS compliance • Improved service offering and client credibility / retention • Cash generated and monthly release potentially reapplied in core area of client need
Benefit to FSPs client
• Independent advice provided • Immediate cash flow release on restricted investments • Premium above surrender values • Monthly cash flow premium burden removed (where applicable) • Payment within 48hrs on receipt of sellers documents
