If you love reading the fine print, you’ve come to the right place. Here you will find all the terms and conditions that govern your use of the Fedgroup website, app, portal or any of our products and services.
Do you always dot your i’s and cross your t’s? So do we! Here’s everything you need to know before making an investment decision.
Terms And Conditions of a Participation Bond investment: The following Terms and Conditions are disclosed in terms of the rules for the administration of a Collective Investment Scheme in Participation Bonds.
The FedBond Fund ("the Fund") forms part of FedBond Nominees (Pty) Ltd ("the Nominee Company") and is managed by Fedgroup Participation Bond Managers (Pty) Ltd (“the Manager”). Both companies are wholly owned subsidiaries of Fedgroup Holdings (Pty) Ltd (”Fedgroup”).
The Fund, the Nominee Company and the Manager are governed inter alia by the Collective Investment Schemes Control Act 45 of 2002 (“the Act”) and subordinate legislation issued by the Financial Sector Conduct Authority from time to time.
Investments in the Fund must remain invested for a period of no less than 5 years.
Notwithstanding clause 3 above, all or part of the investment may be repurchased by the Manager within the initial 5-year period, provided that the repurchases will only be effected three calendar months after receipt by the Manager of written notice and all necessary documentation as determined by the Manager. Early withdrawals may be allowed at the discretion of the Manager. The investor will be required to motivate such a request and provide supporting evidence thereof.
The Manager will charge a reasonable early cancellation fee depending on whether the investment is being repurchased by the Manager or whether the investment is being transferred to a third party.
The early cancellation fee shall be calculated as the specified percentage of the capital amount repurchased or transferred.
The early cancellation fee may be varied by the Manager from time to time.
No Manager Repurchase fee shall be charged in respect of any participatory investment interest that has been earned and reinvested by the Investor.
The Manager does not charge any fees for withdrawal from the Tax-Free Investment Option.
After the initial 5-year term has passed, there is no maturity date to investments and funds are therefore allowed to remain invested indefinitely. After the expiry of the 5 years referred to in clause 2, the investment is regarded as a Matured Participation Bond and, as such, the Investor will receive the ruling rate of interest applicable to Matured Participation Bonds at that time.
Interest payable by the Mortgagors may fluctuate and therefore interest payable to Investors invested in the Tax-Free Option may also fluctuate. Interest payable to Investors invested in the Growth Option and Income Options will not fluctuate.
Re-invested participatory interest will be regarded as a separate (new) investment made at the current prevailing rate at the time of the reinvestment.
After the expiry of the 5 years referred to in clause 2, the Investor may, conditional upon the Managers consent, withdraw all or part of his or her investment, subject to receipt by the Manager of 3 calendar months’ written notice and other documentation as may be required by the Manager.
The Investor may sell, cede or encumber (“transfer”) his or her participatory interest within the initial 5-year period. Such transfer is only enforceable against the Manager if the Manager has confirmed in writing that such transfer has been noted. The Manager is only obliged to note such transfer provided that:
When an investor passes on, the executor of the estate or another representative in possession of a letter of authority will provide the instructions on the disposal of the benefit.
In terms of the requirements of the Collective Investment Schemes Control Act, investments in the Fund are subject to availability and the Fund may be closed to new investments from time to time. Investment applications received during periods of no availability will not be accepted and any investment received will be refunded to the Investor without interest.
Interest and capital will only be paid into a bank account in the name of the Investor. Third party payments are not allowed.
Investments are secured by all the participation mortgage bonds included in the Fund and the debt owing under such bonds is owed to the Investors pro rata to their investments and not to the Manager or the Nominee Company. Neither the Manager nor the Nominee Company guarantees the repayment of debt.
Interest paid by Mortgagors to the Manager, (less the Manager’s administration fees, which shall be determined and subsequently communicated by the Manager from time to time), is paid by the Manager to the Investor monthly in advance or reinvested, if so chosen.
At intervals of not more than 3 months, the Manager will furnish the Investor with a statement of account disclosing the amount of capital invested in the Fund and indicating how the net amount of interest paid has been calculated.
Investments greater than R25 million are subject to additional Terms and Conditions. Please contact the Manager to obtain further information in this regard.
Both the Manager and the Nominee Company hold professional indemnity insurance and fidelity cover.
All Employees or subsidiaries of Fedgroup may invest in the Fund.
Complaints may be lodged as per the Complaints Resolution Policy published on our website. Visit our Complaints page for more information.
The investor is responsible for providing the Manager with correct and up to date information. Should information become outdated or invalid, any scheduled payments may be suspended. Unpaid funds will remain in a non-interest-bearing account until either the payment can be made or the Manager, at its own discretion, reinvests the unpaid funds back into the Fund.
The Manager subscribes to the principles and standards set by the Association for Savings and Investment South Africa (ASISA). The standard regarding unclaimed funds is followed, including the tracing of investors of unclaimed funds and the passing on of administrative, management and tracing fees directly to the investments.
The investor hereby consents to the Manager sharing their personal information, for administrative purposes, between subsidiaries of Fedgroup and with external tracing companies should tracing of unclaimed investments be required.
The investor warrants that the investment as per Section 2 of this application form is obtained from legitimate sources, and that the investor has complied with and will continue to comply with all legislation, including but not limited to money laundering and income tax legislation.
The Manager reserves the right to update these terms and conditions.
Effective date: 26 July 2022
The Fedgroup Tax-Free Savings Account (TFSA) is a tax-free investment by virtue of section 12T of the Income Tax Act and offers a guaranteed effective annual return which is calculated in accordance with regulation 10A.
You can invest up to the prescribed maximum amount per tax year and lifetime total in more than one tax-free investment with different product providers. It is your responsibility to ensure that you do not exceed these limits if you invest with more than one provider and if it is exceeded, there will be a 40% tax penalty.
You can transfer your tax-free investment between different product providers and the transfer must be made within ten business days after you requests the transfer. Fedgroup must, however, refuse to transfer any amount in respect of your tax-free investment during the last 10 business days of any tax year as required in terms of the regulations and these transfer instructions will be processed in the following tax year.
Fedgroup may only transfer your tax-free investment directly to another product provider. A transfer into any account which is not a tax-free savings account will be considered a withdrawal and reinvesting this transfer amount into another tax-free savings account will have an impact on your annual and lifetime limits.
A product provider may refuse to accept any transfer of any amount in respect of a tax-free investment.
A product provider that transfers any amount in respect of a tax-free investment must issue a certificate as prescribed in the regulations.
A product provider who is unable to transfer any amount in respect of a tax-free investment is disqualified from accepting any further tax-free investment amounts.
There is no set term for your investment in the Fedgroup TFSA Endowment. You may withdraw all or part of your investment and no fees are charged for a withdrawal. Ideally, you would want your contributions to remain invested in a Tax-Free Savings Account for as long as possible, in order to benefit from the tax-free return benefits.
You confirm that you understand the rules set by National Treasury and SARS in respect of Tax-Free Savings Accounts and the consequences of non-adherence to these rules.
Complaints may be lodged as per the Complaints Resolution Policy published on our website. Visit our Complaints page for more information.
You are responsible for providing Fedgroup with correct and up-to-date information.
Fedgroup subscribes to the principles and standards set by the Association for Savings and Investments South Africa (ASISA). The standard regarding unclaimed monies is followed, including the tracing of investors of unclaimed monies and the passing on of administrative, management and tracing fees directly to the investment.
You consent to Fedgroup sharing your personal information, for administrative purposes, between subsidiaries of Fedgroup and with external tracing companies, should the tracing of unclaimed monies be required.
You warrant that the investment is obtained from legitimate sources and that you have complied with and will continue to comply with all applicable legislation, including but not limited to those related to money laundering and income tax.
By agreeing to these terms and conditions, you consent to Fedgroup using any form of electronic communication to communicate and transact with you, to receive instructions from you and issue statements of account. You warrant that you understand the risks related to electronic communication and transactions. No additional costs will be levied by Fedgroup for electronic communication and transactions. Where Fedgroup transacts with you by telephone, the telephone calls are recorded and retained, along with other relevant electronic communication and transactions, for a period of five years. Fedgroup reserves the right to verify the identity of any person involved in any form of communication related to your investment.
Fedgroup reserves the right to update these terms and conditions, which may be required as a function of legislative and regulatory updates. The latest terms and conditions, as well as additional information, can be obtained free of charge at www.fedgroup.co.za.
Fedgroup is obliged by regulation to collect information around your tax residency and in certain circumstances we are obliged to share information about your account(s) with SARS.
The following terms and conditions are disclosed in terms of the rules for the administration of a collective investment scheme in Participation Bonds.
The Fedbond Fund (the Fund) forms part of Fedbond Nominees Pty Ltd (the Nominee Company) and has been managed by Fedgroup Participation Bond Managers Pty Ltd (the Manager) since January 1991. Both companies are wholly owned subsidiaries of Fedgroup Financial Holdings Pty Ltd (Fedgroup).
The Fund, the Nominee Company and the Manager are governed inter alia by the Collective Investment Schemes Control Act 45 of 2002 (the Act) and subordinate legislation issued by the Financial Sector Conduct Authority from time to time.
Terms and conditions specific to Participation Bonds:
In terms of the Act, investments in the Fund are subject to availability and the Fund may be closed to new investments from time to time. Investment applications received during periods of no availability will not be accepted and any investment received will be refunded to the investor without interest.
Investments are secured by all the Participation Mortgage Bonds included in the Fund and the debt owing under such bonds is owed to the investors pro rata to their investment balance and not to the Manager or the Nominee Company. Neither the Manager nor the Nominee Company guarantees the repayment of the debt.
Upon the Manager’s consent, the Investor may cede, transfer or encumber his or her investment, subject to the following:
The Manager may refuse the request if, once the investment is ceded, transferred or encumbered in favour of more than one person, the resultant investment held by each person will be less than the minimum requirement of the Manager. Where an investment (or a portion thereof) is ceded, transferred or withdrawn during the course of the month, the Manager will recover the interest paid in respect of that month, on a pro-rata basis.
Interest paid by the bondholders to the Manager (less the Manager’s administration fees, which shall be determined and subsequently communicated by the Manager from time to time), is paid by the Manager to the investor monthly in advance, or reinvested, at the investor’s discretion. Where an investment is made during the course of the month, the first payment of monthly interest will be made on a pro-rata basis.
At intervals of not more than three months, the Manager will furnish the investor with a statement of account disclosing the amount of capital invested in the Fund and indicating how the net amount of interest paid has been calculated.
Interest and capital will only be paid into a bank account in the name of the Investor. Third-party payments are not permitted.
Terms and conditions specific to Tax-Free Savings:
The investor may withdraw all or part of his or her investment, subject to receipt by the Manager of five days’ written notice and such other documentation as may be required by the Manager. No fees are charged for a withdrawal. Please refer to each fund fact sheet for all information pertaining to your selected portfolio(s), including fees, minimums, benchmarks and mandate details.
Tax-Free Investment is only available to SA taxpayers.
The annual contribution limit is R36 000 and lifetime contribution limit is R500 000. It is the investor’s responsibility not to exceed these limits. If the investor contributes more than the limit, a tax penalty may be payable to SARS in respect of the year of assessment in which that excess is so contributed.
The investor warrants that they understand the rules set by National Treasury and the South African Revenue Services in respect of Tax-Free Investments and the consequences of non-adherence to these rules.
No Tax-Free Investment transfers to and from another service provider will be allowed before 1 March 2016. By agreeing to these terms and conditions, the investor consents to the Manager using any form of electronic communication to communicate and transact with the investor, to receive instructions from the investor and issue statements of account. The investor warrants that he or she understands the risks related to electronic communication and transactions. No additional costs will be levied by the Manager for electronic communication and transactions. Where the Manager transacts with the investor by telephone, the telephone calls are recorded and retained, along with other relevant electronic communication and transactions, for a period of five years. Fedgroup reserves the right to verify the identity of any person involved in any form of communication related to the investment.
Interest payable by the bondholders may fluctuate and therefore interest payable to investors in Tax-Free Savings may also fluctuate.
Both the Manager and the Nominee Company hold adequate levels of professional indemnity insurance and fidelity cover.
All employees or subsidiaries of Fedgroup may invest in the Fund.
Complaints may be lodged as per the Complaints Resolution Policy published on our website. Visit our Complaints page for more information.
The investor is responsible for providing the Manager with correct and up-to-date information. Should information become outdated or invalid, any scheduled payments may be suspended. Unpaid monies will remain in a non-interest-bearing account, until either the payment can be made or the Manager, at its own discretion, reinvests the unpaid monies back into the Fund.
The Manager subscribes to the principles and standards set by the Association for Savings and Investments South Africa (ASISA). The standard regarding unclaimed monies is followed, including the tracing of investors of unclaimed monies and the passing on of Administrative, management and tracing fees directly to the investment.
The investor hereby consents to the Manager sharing his or her personal information, for administrative purposes, between subsidiaries of Fedgroup and with external tracing companies, should the tracing of unclaimed monies be required.
The investor warrants that the investment, as per Section 2 of the application form, is obtained from legitimate sources and that the investor has complied with and will continue to comply with all applicable legislation, including but not limited to those related to money laundering and income tax.
The Manager reserves the right to update these terms and conditions, which may be required as a function of legislative and regulatory updates. The latest terms and conditions, as well as additional information, can be obtained free of charge at www.fedgroup.co.za
The manager is obliged by regulation to collect information around your tax residency and in certain circumstances we are obliged to share information about your account(s) with SARS.
The Fedgroup Income Plus Fund shall be a Domestic Fixed Interest Varied Specialist portfolio. The primary investment objective of the Fedgroup Income Plus Fund is to earn a higher level of income over and above that achieved by a traditional Money Market Fund. The Investments to be included in the portfolio will be assets in liquid form; non-equity securities, including fixed interest, interest-bearing securities; and listed and unlisted derivative instruments.
The Fedgroup Worldwide Flexible Fund aims to maximise long-term total returns by investing across a wide spectrum of asset classes, in both local and foreign markets. The Investment Manager has substantial flexibility to vary the asset allocation between various markets, asset classes and countries, to reflect the changing economic and market conditions.
The Fedgroup Large Cap Equity Fund is to invest at least 80% of the market value in large market capitalisation shares in the FTSE/JSE Large Cap Top 40 index and have a minimum equity exposure of 80%. The portfolio may invest in listed and unlisted instruments as allowed by the Act and is suitable for investors seeking long-term capital growth.
The investor acknowledges and understands that Fedgroup cannot provide the investor with advice. Any information and opinions that may be provided by Fedgroup is of a general nature and are not intended to address the circumstances of any particular individual or entity. Fedgroup is not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. The investor should not act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation.
In order to offer you this product, we have to process your personal information. We will share your information with other service providers. This includes information about your product and payments. We do this to manage your investment. We will treat your personal information with caution and have put reasonable security measures in place to protect it. By signing this application, you agree to the processing and sharing of your personal information.
Fedgroup endeavours to provide accurate and timely information but make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of any information or opinions. Fedgroup does not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only. In the event that the investor decides not to appoint a financial advisor, the investor indemnifies Fedgroup from any loss or damage that the investor may suffer as a result of investing or transacting with Fedgroup without the advice of a financial advisor.
Collective Investment Schemes in securities (Unit Trusts) are generally medium to long-term investments. The value of participatory interests (units) may go down as well as up and past performance is not necessarily a guide to the future. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Unit trusts are traded at ruling prices and the Manager can engage in borrowing and scrip lending. Forward pricing is used. Trading of participatory interests on an exchange may incur additional costs, including brokerage fees, administration fees and uncertified securities tax. Non-quantifiable deductions included in the net asset value price may include brokerage fees, MST, auditor’s fees, bank charges, trustee fees and custodian fees. Fedgroup is a member of the Association for Savings and Investment SA (ASISA).
I/We have read and understand the MDD and complaints process were disclosed and are available at www.fedgroup.co.za.
I/We have read, understand and agree to be bound by the provisions of this mobile application and its processes. If, on the date of a finalised investment on the mobile application, an updated wording or process exists and the fees are different on that investment, the fees on the updated wording or process will apply.
I/We understand and/or warrant that:
I am/we are acting for my/our own account and that I/we have made my/our independent decisions to enter into the investment and as to whether the investment is appropriate or proper for me/us, based upon my/our own judgment, and upon advice from such advisors as I/we may deem necessary. I/We warrant that I am/we are not relying on any communication from Fedgroup, whether written, oral or implied as investment advice or as a recommendation to enter into the investment. It is understood that information and explanations relating to the terms of an investment shall not be considered investment advice or a recommendation to enter into the investment. I/we warrant that I/we have not received from Fedgroup any assurance or guarantee as to the expected return on this investment. I/we indemnify and hold Fedgroup harmless against any claim of whatsoever nature, which I/we may have resulting from conducting business telephonically, via the online services (including email), or by way of facsimile. I/We hereby consent to Fedgroup taking any security precautions it may deem necessary for it to proceed with my/our application.
I/We authorise Fedgroup Collective Investments Schemes (Fedgroup) to accept instructions by facsimile or email and hereby waive any claim that I/we may have against Fedgroup and indemnify Fedgroup against any loss incurred as a result of Fedgroup receiving and/or acting upon such communication. The Financial Advisor authorises Fedgroup Collective Investment Schemes to accept instructions by facsimile or email and waives any claim against Fedgroup and indemnify Fedgroup against any loss incurred as a result of Fedgroup receiving and/or acting upon such communication. Fedgroup will not be held responsible for any failure, malfunction or delay of any networks, any electronic or mechanical device, or any other form of communication used in the submission, acceptance and processing of this application form, or any other instruction or transaction. Fedgroup will not be liable to make good or compensate the Investor or third party for any damages (whether direct or consequential), losses, claims or expenses resulting from such failure, malfunction or delay, and the Investor and Financial Advisor indemnifies Fedgroup accordingly.
I/We hereby acknowledge that I/we have the right and responsibility to conclude a discretionary investment mandate in terms of Board Notice 79 of 2003 of the Financial Advisory and Intermediary Services Act No 37 of 2002 with a Financial Advisor and that, if this appointment occurs, Fedgroup is authorised to act on any written instructions received from a financial advisor relating to investments into the Fedgroup Funds.
View Unit Trusts documentation
The Fedgroup Money Market Fund shall be a Local Money Market portfolio. The investment objective of the portfolio is to provide a medium whereby investors can obtain undivided participation in a diversified portfolio of money market instruments and assets in liquid form. The primary performance objective of the portfolio is to obtain as high level of current income as is consistent with preservation and liquidity.
The Investor acknowledges and understands that Fedgroup cannot provide the Investor with advice. Any information and opinions which may be provided by Fedgroup are of a general nature and are not intended to address the circumstances of any particular individual or entity. Fedgroup is not acting and do not purport to act in any way as an advisor or in a fiduciary capacity. The Investor should not act upon such information or opinion without appropriate professional advice after a thorough examination of a particular situation. Fedgroup endeavours to provide accurate and timely information but make no representation or warranty, express or implied, with respect to the correctness, accuracy or completeness of any information or opinions. Fedgroup does not undertake to update, modify or amend the information on a frequent basis or to advise any person if such information subsequently becomes inaccurate. Any representation or opinion is provided for information purposes only. In the event that the Investor decides not to appoint a financial advisor, the Investor indemnifies Fedgroup from any loss or damage which the Investor may suffer as a result of investing or transacting with Fedgroup without the advice of a financial advisor. Collective Investment Schemes in Securities (Unit Trusts) are generally medium to long-term investments. The value of participatory interests (units) may go down as well as up and past performance is not necessarily a guide to the future. Fluctuations or movements in exchange rates may cause the value of underlying international investments to go up or down. Unit trusts are traded at ruling prices and the Manager can engage in borrowing and scrip lending. Forward pricing is used. Trading of participatory interests on an exchange may incur additional costs, including brokerage, administration fees and uncertified securities tax. Non-quantifiable deductions included in the net asset value price may include brokerage fees, MST, auditor’s fees, bank charges, trustee and custodian fees. Fedgroup is a member of the Association for Savings & Investment SA (ASISA).
I/We have read, understand and agree to be bound by the provisions of this mobile application and its processes. If, on the date of a finalised investment on the mobile application, an updated wording or process exists, and the fees are different on that investment, the fees on the updated application wording or process will apply.
I/We understand and/or warrant that:
I am/we are acting for my/our own account and that I/we have made my/our independent decisions to enter into the investment and as to whether the investment is appropriate or proper for me/us, based upon my/our own judgment, and upon advice from such advisors as I/we may deem necessary. I/We warrant that I am/we are not relying on any communication from Fedgroup, whether written, oral or implied as investment advice or as a recommendation to enter into the investment. It is understood that information and explanations relating to the terms of an investment shall not be considered investment advice or a recommendation to enter into the investment. I/we warrant that I/we have not received from Fedgroup any assurance or guarantee as to the expected return on this investment. I/we indemnify and hold Fedgroup harmless against any claim of whatsoever nature, which I/we may have resulted from conducting business telephonically, via the online services (including email), or by way of facsimile. I/We hereby consent to Fedgroup taking any security precautions it may deem necessary for it to proceed with my/our application.
I/We authorise Fedgroup Collective Investments Schemes (Fedgroup) to accept instructions by facsimile or email and hereby waive any claim that I/we may have against Fedgroup and indemnify Fedgroup against any loss incurred as a result of Fedgroup receiving and/or acting upon such communication. The Financial Advisor authorises Fedgroup Collective Investment Schemes to accept instructions by facsimile or email and waives any claim against Fedgroup and indemnify Fedgroup against any loss incurred as a result of Fedgroup receiving and/or acting upon such communication. Fedgroup will not be held responsible for any failure, malfunction or delay of any networks, any electronic or mechanical device, or any other form of communication used in the submission, acceptance and processing of this investment, or any other instruction or transaction. Fedgroup will not be liable to make good or compensate the Investor or third party for any damages (whether direct or consequential), losses, claims or expenses resulting from such failure, malfunction or delay, and the Investor and Financial Advisor indemnify Fedgroup accordingly.
I/We hereby acknowledge that I/we have the right and responsibility to conclude a discretionary investment mandate in terms of Board Notice 79 of 2003 of the Financial Advisory and Intermediary Services Act No 37 of 2002 with a Financial Advisor and that, if this appointment occurs, Fedgroup is authorised to act on any written instructions received from a financial advisor relating to investments into the Fedgroup Funds.
View Unit Trusts documentation
This document sets out the policy terms and conditions which govern the insurance policy between the policyholder and the insurer, Fedgroup Life Limited (“Fedgroup”). Fedgroup, is a subsidiary of Fedgroup Financial Holdings (Pty) Ltd a licensed controlling company. It must be read in conjunction with the investment statement, the application form for the policy and all information received in support of the application. These documents, collectively, constitute the entire policy between Fedgroup and the policyholder.
Act: Long-Term Insurance Act 52 of 1998 and Insurance Act 18 of 2017, as amended or substituted from time to time.
Beneficiary for ownership: A natural person, or a Trust which itself has only natural person beneficiaries, nominated by the policyholder to become the owner of the policy in the event of policyholder’s death.
Beneficiary for proceeds: A party nominated by the policyholder to receive a benefit from the policy in the event of the death of the policyholder.
Business day: Any day, other than a Saturday, Sunday, or official public holiday in the Republic of South Africa.
Contribution/s: The investment amount/s that you pay to Fedgroup, for the policy benefits, in terms of this policy.
Fedgroup: Fedgroup Life Limited, with registration number 2007/018003/06, is a licensed life insurer and an authorised financial services provider, authorised to render financial services in respect of life policies.
Investment account: The account that we use to keep record of your investment amount.
Life Insured: The person on whose life this policy is issued.
Our, us or we: Unless indicated differently, ‘our’, ‘us’ and ‘we’ collectively refer to Fedgroup.
Policy: This document, including all addendums, and any schedules, application forms, or amendments hereto.
Policyholder: The person entitled to be provided with the policy benefits under the policy.
Proceeds: The proceeds payable is the investment account on the date of death less any charges and/or fees subject to legislative limits.
Restriction period: Means the period during which there are legislated restrictions on the policy, in terms of the Act. These restrictions apply to the five years of your policy.
SARS: The South African Revenue Service.
Units: The units (participatory interests) issued to you by Fedgroup, constituting your participation in a portfolio.
You, your, yours: The policyholder.
The Fedgroup Endowment Policy is governed by the Act and the Income Tax Act. The Act governs all insurance policies and places some restrictions on the policies and provides for some form of protection.
An endowment policy has four parties that are relevant. It is the policyholder, the life insured, the beneficiary and the insurance company. In terms of the Act and the policy contract, the insurance company will pay out the insured amount in the event of the insured event taking place in respect of the life insured.
The Fedgroup Endowment Policy is a pure investment policy with a life insured, issued by Fedgroup, in terms of the Act. This means that only the proceeds (market value of the investment account, less fees, tax, and charges) are paid when the policy ends. These proceeds are the policy benefits. The value of the proceeds is determined once the units of the underlying investments of the investment account are sold, and the applicable fees, taxes and charges have been deducted.
Your policy starts after Fedgroup has received and accepted your application and the money is invested.
The policyholder has chosen to invest in Fedgroup portfolio/s (“the Portfolio”), as indicated in the Fedgroup Endowment application form.
Certain constraints may however affect Fedgroup’s ability to invest into this portfolio. These are factors such as market availability, legislative issues, or changes in business practice.
Should any of these constraints apply to the portfolio selected, Fedgroup will notify the policyholder in writing. Fedgroup will invest the investment account of the policy and/or any future contributions in an interest-bearing account. Interest earned on the investment account and contributions will accrue to the policyholder.
The Fedgroup Endowment Policy is suitable to an individual investor who falls within a high-income tax bracket, seeking a tax-efficient investment return. The policy is appropriate should an investor wish to invest a lump-sum contribution, for an investment period of five years, without requiring access to investment amount/s more than once during the five-year period.
The term of the policy is five years.
An endowment policy is a long-term insurance policy. The parties to the endowment policy are the policyholder, life insured, beneficiary and the insurer. It is a contract entered into between the policyholder and the insurer whereby the insurer undertakes to make a payment either to the policyholder upon maturity or to the nominated beneficiaries in the event of death of the life insured.
Beneficiary nominations are made according to the rules governing each product and its category. Where the policy matures, it will always pay out to the policyholder. The beneficiary nomination will only be relevant when the life insured passes away.
The appointment or removal of a beneficiary will not be binding on Fedgroup unless it is recorded by Fedgroup. Therefore, policyholders must ensure that their nominated beneficiaries are up to date at all times. The table below summarises the information noted above and outlines the beneficiary appointment scenarios available.
Policyholder
Life Insured
Beneficiaries
Individual
Policyholder is the only life insured. No other nominations can be made.
One beneficiary for ownership allowed OR many beneficiaries for proceeds.
Trust
All beneficiaries of the trust will be the lives insured.
Applicable to listed beneficiaries of the trust.
Only applicable to individuals:
The policyholder nominates a beneficiary for ownership:
The policyholder nominates beneficiaries for proceeds:
Only applicable to trusts:
Fedgroup will communicate with the claimant once we have been notified of the death event. If the claimant does not respond to our correspondence, we will assume that the claimant's contact details have changed and will take all steps that can be fairly expected to locate the claimant, according to the Standard on Unclaimed Assets prescribed by the Association for Savings and Investment South Africa (ASISA), as available on the website www.asisa.co.za .
We will take these steps between three years and ten years after the notification of the death event. Any administrative and locating costs will be deducted from the benefit amount, and these costs will be disclosed if a payment occurs. The benefit amount will earn interest from the date on which the claim is admitted. The interest is equal to the growth of an investment account with stable growth rates and with no equity exposure.
Fedgroup determines the unit price daily by dividing the net market value of the assets of the portfolio by the total number of units in the portfolio at that date. The net market value is determined after due allowance has been made for interest, income, costs, fees, and any applicable tax.
Fedgroup will operate an investment account for the policy.
The value of the investment account at any time is equal to the number of units held in the investment account multiplied by the unit price.
Fedgroup calculates the number of units added to the investment account by dividing the contribution/s by the unit price.
Fedgroup will deduct any charges that may arise from the investment account by deducting units at the unit price.
All investment income, net of taxes and expenses, derived from assets in the portfolio forms part of the portfolio and is re-invested therein.
All the fees and charges payable under the policy are set out in the application form. The fees and charges must be explained to you by your financial advisor. With your signature to the application form, you acknowledge, declare, and confirm that you understand what fees and charges are payable.
All fees and charges are subject to change, and Fedgroup will give you and/or your financial advisor written notice of such change.
Payment of contributions:
Termination of recurring contributions:
Changing recurring contributions:
A single withdrawal is allowed in the restricted period subject to liquidity within the investment portfolios and to the maximum percentage and applicable notice period as specified in your signed quote.
Fedgroup may insist that you fully withdraw the amount under the policy if the remaining value in your Investment Account after a withdrawal is less than an amount Fedgroup may determine from time to time.
Loans
The policy may not be used as security for any loan from Fedgroup, and Fedgroup does not permit or provide loans secured by the policy.
Cession of the Policy
The rights and benefits under this policy may be ceded or pledged as security to a third party, subject to the following conditions:
Any cession must be in writing, duly executed in accordance with South African law, and must be formally notified to Fedgroup in a manner prescribed by Fedgroup.
A cession does not transfer ownership of the policy but grants the cessionary limited security rights, enforceable only upon the cedent's proven default on the underlying obligation.
The rights of the cessionary are strictly subject to all existing policy terms and conditions, including but not limited to:
A cession does not create any additional right to access or accelerate payment under the policy and may not override or vary the product rules or terms of the policy in any way.
Fedgroup reserves the right to decline or delay payment where:
In the event of a conflicting claim or legal uncertainty, Fedgroup may, at its sole discretion, elect to:
The policyholder may increase or reduce recurring contributions at any time subject to legislative limits and Fedgroup’s practices at the time.
However, should the recurring contributions be stopped or reduced, the policy will be made paid up and/or paid back to the policyholder should the investment account (after charges and fees) remain below the amount prescribed by legislation.
A payment from an annuity policy to the policyholder does not result in gross income and is not subject to income tax in the hands of the investor. It is deemed a capital amount. This does not mean that the annuity is tax-free – it is subject to income tax and capital gains tax during the investment term in the hands of the insurance company. Section 29A of the Income Tax Act provides for the five- fund approach, which is the tax regime applicable to insurance companies.
The five funds and relevant tax consequences are as follows:
Individual Policyholder Fund - Investment policies
Policyholder
Individuals
Trusts (with individual beneficiaries)
Income Tax
30%
Effective CGT
12%
Risk Policy Fund – risk policies
Policyholder
All risk policies as defined
Income Tax
27%
Effective CGT
22.4%
Company Policyholder Fund
Policyholder
Company or CC
Income Tax
27%
Effective CGT
22.4%
Untaxed Policyholder Fund
Policyholder
Tax exempt entities and all retirement funds
Tax exempt entities and all retirement funds
Tax exempt entities and all retirement funds
Income Tax
Nil
Effective CGT
Nil
Corporate Fund (insurance company’s funds)
Income Tax
27%
Effective CGT
22.4%
An endowment policy’s payout to the policyholder is a capital amount. Paragraph 55 of the Eighth Schedule to the Income Tax Act provides for an exclusion in respect of the proceeds from long-term insurance policies in particular circumstances.
In the case of this endowment policy, the proceeds will be excluded for CGT purposes if payable to the original beneficial owner, his/her spouse, beneficiaries, nominees, deceased estate or to a former spouse of that original beneficial owner.
The policyholder and life insured are the same person: upon the death of the life insured where no beneficiaries are nominated, the policy will be included as a deemed asset in the estate of the deceased.
Where the policyholder is a trust and there are constantly multiple lives insured on the policy, the annuity policy will only cease when the contractual maturity date is reached and the policyholder opts for maturity, or the policyholder surrenders the policy. Therefore, no estate duty consequence will be experienced in this instance – as long as there is a surviving life insured on the policy. If the last surviving life insured dies, the policy will become due and payable to the trust, in which case the proceeds will be a deemed asset in the estate of the life insured. In this instance where the trust was the premium payer, the estate will enjoy a deduction equal to all premiums paid by the trust plus 6% per annum, in determining the dutiable estate.
This section provides protection for long-term insurance policies in the event of the insolvency of the policyholder’s estate. This section was amended by the Financial Services General Laws Amendment Act 15 of 2013. For the protection to apply, the following requirements must be met:
The policy benefits must be payable to a person that is also the life insured under the policy or the spouse of that life insured (unless stipulated otherwise in the Act), and
The policy must have been in force for at least three years.
Where these initial requirements are met, the policy benefits or any assets acquired exclusively with those policy benefits shall be protected against creditors of that person’s insolvent estate:
During his/her lifetime, or
Upon his/her death, if survived by a spouse, child, stepchild or parent and the policy benefits are paid to the spouse, child, stepchild, or parent upon that person’s death.
The person claiming the protection will always have the burden of proof to prove that the protection applies in their specific circumstances. The protection shall apply for a period of five years from the date on which the policy benefits were provided. The protection does not apply if the policy was ceded as security for a specific debt or where it can be shown that the policy was taken out with the intention to defraud creditors.
It is important to note, that where a policy is payable to a nominated beneficiary of a policy – so the insurance company is contractually bound to make payment to that party.
This section refers to the regulations to the Act that imposes certain restrictions on certain long-term insurance policies. This is a complex piece of legislation which is often misinterpreted.
The purpose of the restrictions imposed on annuity policies are to ensure that long-term insurance companies do not compete with banking products and that they remain true to their long-term insurance license conditions. The restrictions can be summarised as follows:
Endowment policies have a minimum term of five years. This is referred to as the restriction period and it commences on the inception date of the policy.
You can make a minimum lump-sum investment of R100 000 or a minimum monthly recurring investment of R3 000. The increase in premium is restricted and if this restriction is exceeded, a new restriction period will commence (also referred to as the extended restriction period). The practical implication is that the five-year restriction period will restart from the date the excess premium is paid into the policy. To prevent a new restriction period, the total premium received during a premium period (a 12-month period starting on the day that the first premium was received) may not exceed the higher of the total value of the premiums during any one of the two annual premium periods immediately preceding that premium period by more than 20%.
The following example will illustrate the point:
A policy commenced on 1 January 2020 with a monthly premium of R10 000 without escalation.
The contractual maturity date is 1 January 2025. During the term of the policy, the policyholder wishes to inject ad hoc single premium payments into the policy. This table will illustrate the impact thereof on.
The restriction period
Period 1
Period 2
Period 3
Premium period (12 months from date of first premium)
Year
Jan 2020 – Jan 2021
Jan 2021 – Jan 2022
Jan 2022 – Jan 2023
Contractual premium
R10 000 pm
R10 000 pm
R10 000 pm
Total annual premium
R120 000 pa
R120 000 pa
R120 000 pa
Ad hoc premium
R50 000
R100 000
R100 000
Date
1 June 2015
1 May 2016
1 April 2017
Total annual premium paid
R 170 000 pa
R 220 000 pa
R 220 000 pa
Impact of the 20% Rule
A premium period may not exceed the higher of the total value of the premiums received by the long-term insurer during any one of the two premium periods immediately preceding that premium period, by more than 20%.
Previous premium period against which to measure the restriction.
Years’ premium + 20% (in this case only year 1): R170 000 + 20% = R204 000 max. Premiums permitted in year 2
Years’ premiums + 20% (in this case year 2). R220 000 (actual premium paid) + 20% = R264 000 max. Premiums permitted in year 3.
Maximum ad hoc allowed
Unlimited
R204 000 – R120 000 = R84 000 < R100 000 Therefore, restricted amount is exceeded
R264 000 – R120 000 = R144 000 > R100 000 Therefore, restricted amount is not exceeded
19. Legislation which governs the policy
The following are some of the main Acts and regulations that govern your investment and the parties to this policy. Amendments to or replacement of the legislation and directives issued by regulatory authorities may change the terms and conditions of your policy.
Long-term Insurance Act 52 of 1998
Insurance Act of 2017
Income Tax Act 58 of 1962
Financial Intelligence Centre Act 38 of 2001
Financial Advisory and Intermediary Services Act 37 of 2002
Protection of Personal Information Act 4 of 2013
The policyholder acknowledges that Fedgroup requires your personal information, as defined in the Protection of Personal Information Act of 2013 (‘POPIA’).
The policyholder guarantees that all information given to Fedgroup at any time is complete and true. Information that affects Fedgroup’s decision to provide benefits is known as material information.
Where any material information is not fully disclosed or is found to be untrue, Fedgroup may decide not to pay any claims, benefits or cancel the policy.
The policyholder has 31 days to object to any terms and conditions of the policy. Any objections must be sent to Fedgroup in writing within 31 days of receiving the investment statement. The investment statement is considered to have been received 10 days after the policy issue date.
After receiving any objections, and subject to any law, Fedgroup may take any of the actions below:
If no objection is sent within 31 days of receiving the policy, the policyholder is bound by the policy terms and conditions. The policyholder then gives up the right to object to the policy terms and conditions later.
The policyholder acknowledges that Fedgroup may be required to share and collect certain personal information to assist them service, assess risks and consider claims for the benefits under the policy or any other proposal or change in any insurance made by the policyholder.
Fedgroup is limited by legislation to only collect and process information that specifically relates and is relevant to the policy and is accountable for this information. Fedgroup undertakes to keep your personal information safe and obey any legal requirements about protecting your personal information as per POPIA. Fedgroup will keep your personal information confidential and will not share it except in the circumstances explained in this document.
Fedgroup will keep your personal information for as long as it is required to:
The policyholder authorises Fedgroup’s staff, representatives, and certain subcontractors to:
By agreeing to these terms and conditions, the policyholder consents to Fedgroup using any form of electronic communication to communicate and transact with the policyholder, to receive instructions from the policyholder and issue statements of account. The policyholder warrants that he/ she understands the risks related to electronic communication and transactions. No additional costs will be levied by Fedgroup for electronic communication and transactions. Where Fedgroup transacts with the policyholder by telephone, the telephone calls are recorded and retained, along with other relevant electronic communication and transactions, for a period of five years. Fedgroup reserves the right to verify the identity of any person involved in any form of communication related to the investment.
The policyholder consents to the debiting of their bank account, in the event that any lump-sum needs to be recovered from their bank account or warrants that the necessary consent has been obtained to debit the bank account nominated by or on behalf of the policyholder, wherever it may be held inside the Republic of South Africa, for any amounts due in terms of the policy. Should the bank details change at any time, the policyholder undertakes to notify Fedgroup of such change and warrants that they have the necessary authority to do so.
The policyholder warrants that all contributions invested with Fedgroup is obtained from legitimate sources and that the policyholder has complied with and will continue to comply with all applicable legislation, including but not limited to those related to money laundering and income tax.
Responsibilities of Fedgroup:
Fedgroup reserves the right to update these terms and conditions, which may be required as a function of legislative and regulatory updates. The policyholder will be informed timeously, in writing, of any relevant changes. The latest terms and conditions, as well as additional information, can be obtained free of charge.
Roll up your sleeves and dig into the inner workings of making money while doing something big. Here are all the terms and conditions related to our Impact Farming product.
EFFECTIVE DATE: 25 SEPTEMBER 2020
Impact Farming refer and earn rules
We will not, regardless of the circumstances or causes, be liable under these Referral Programme Terms for any consequential, special, indirect or other damages (including, without limitation, lost profits or punitive damages), whether based in contract, delict or otherwise, even if we have been advised of the possibility of such damages. This limitation will apply to the maximum extent permitted by applicable law. The Referrer/Referee expressly agrees that if we are found liable to the Referrer/Referee, regardless of the foregoing limitations, our maximum aggregate liability to the Referrer/Referee, whether arising from breach of warranty, breach of contract, negligence, or on any other legal basis, will not exceed the Referral Bonus.
EFFECTIVE DATE: 4 NOVEMBER 2022
Do you always dot your i’s and cross your t’s? So do we! Here’s everything you need to know before completing a group benefits application.
Updating an authorised signatory
Provide authorisation for your financial advisor to submit instructions on your behalf
Declaration by employer
Declaration by participating employer
Do you want to ensure your loved ones are taken care of, down to the last detail? So do we. Here’s everything you need to know about our Beneficiary Care.
Beneficiary Fund Ts and Cs
Investment Control Trust Ts and Cs
Preparation requires discipline, endurance and knowledge. Before you hit the hills be sure to read the fine print.
The following conditions of entry apply to all entering the Fedgroup Trails.
All participants are required to read and acknowledge the indemnity board and complete the event indemnity form before entering the venue.
You agree to exhibit appropriate behaviour at all times, including obeying all laws, event rules and you understand that your entry may be voided if through your actions or behaviour, in the opinions of the organisers, you have broken these rules or brought the venue into disrepute. You further understand that the trail owners, sponsors and associated entities and its affiliates or contractors reserve the right to reject any entry without having to justify their actions.
All trail users under the age of 18 must have a parent or legal guardian read and accept the participant’s waiver on their behalf. You represent that you are the parent or authorised guardian of any children aged 17 and under (minors) accompanying you and provide these acknowledgements and disclaimers on behalf of yourself and all such accompanying minors. All trail users agree to wear a helmet at all times on the trails.
All trail users agree to exhibit appropriate behaviour at all times, including obeying all laws, trail rules, signage and directions of officials and they understand that their usage may be voided if, through their actions or behaviour, in the opinions of the officials/owners, they have broken these rules or brought the venue into disrepute. They further understand that the officials/owners reserve the right to reject any entry without having to justify their actions.
Some parts of the venue are not open to participants and visitors as part of Fedgroup Trails for safety and other reasons. Fedgroup Trails visitors must not enter fenced- or marked-off or private areas, or areas to which access is denied.
You grant permission to the trail owners, sponsors and associated entities to use your photograph, video, multimedia and/or likenesses of you captured during the use of the venue by the trail owners, sponsors and associated entities and its affiliates or contractors without payment and/or compensation to you. These items become the sole property of the trail owners, sponsors and associated entities to use for any legitimate purpose, including but not limited to promoting advertising and marketing activities.
By entering this venue, you agree to the following disclaimer:
You are warned, acknowledge and accept that “Fedgroup Trails” is a recreational venue, which could be inherently dangerous and involves risks and dangers, both known and unknown, natural and man-made which may result in loss or damage to your property, personal injury or even death. Knowing this to be the case, if you choose to enter the venue, you do so entirely at your own risk and to the extent permitted by law, you release and indemnify the trail owners, sponsors and associated entities, (and its officers, employees, agents, sponsors and contractors) from and against any claim or liability of any nature in relation to injury or death, from you or any third party which might arise from entry to the “Fedgroup Trails” by you and any accompanying persons and/or minors regardless of how the damage, injury or death is sustained or caused.
You understand that the trail owners, sponsors and associated entities and its affiliates or contractors reserve the right to alter the advertised venue, to postpone, reschedule or cancel events and or entrance to the venue if conditions warrant it or otherwise at the trail owners, sponsors and associated entities and its affiliates or contractors’ sole discretion, including for the following reasons: if natural or man-made emergencies make administering the event unreasonable due to pandemics, weather conditions, natural disaster, acts of God, terrorism, war or any other reason (at the organiser’s sole discretion), and that your membership fee will be non-refundable.
You acknowledge that any property or equipment (without limitation) that you bring onto Fedgroup Trails is at your own risk and you release the Coordinators (and its officers, employees, agents, sponsors and contractors) from and against any claim or liability in relation to loss of or damage to such property, even where such loss or damage is caused by negligence, default or breach of contract by the Coordinators (or its officers, employees, agents, sponsors and contractors).
Vehicles parked on the property are done so entirely at your own risk.
In addition, you agree that the Coordinators and any sponsor of this event may use the information contained in this entry form for purposes connected with the event or in the case of the Event Directors any other event promoted or conducted by them, and to provide details of other products, services and events to you from time to time by post and direct email to the postal and email address provided in the entry form. You understand that you have rights under the Privacy Act 1993 to access and correct any information held about you. In addition, you may unsubscribe from this database at any time.
The participant unconditionally and irrevocably indemnifies and holds harmless the trail owners, sponsors and associated entities and its successors, employees, officers, suppliers, contractors, agents, consultants, directors and shareholders against all and any losses, claims, proceedings, actions, damages, (direct, consequential or otherwise), liability, demands, expenses, legal costs (on an attorney and own client basis), medical costs or other costs howsoever arising out of, based upon, or in connection with (directly or indirectly) the participants’ participation in the competition, to the maximum extent permitted by law.
If a participant contravenes these Ts & Cs or any event rules or conditions of entry, the participant’s membership may be cancelled in the discretion of the trail owners, sponsors and associated entities.
The laws of the Republic of South Africa govern the venue and all persons entering into it.
The trail owners, sponsors and associated entities and its affiliates or contractors reserve the right to cancel or alter any aspect of the venue at any time at its sole discretion without liability.
Members and visitors understand and agree that in order to offer the venue; the trail owners, sponsors and associated entities and its affiliates or contractors must collect and use personal information about the members and visitors. This is conducted under the terms of applicable privacy statements.
These terms and conditions are subject to change according to the trail owners, sponsors and associated entities and its affiliates or contractors’ discretion
Any reference to the organisers shall includ3 the following operating entities:
Please be advised that by activating your membership for ‘Fedgroup Trails’ you accept that you are subject to the cancellation terms below.
You hereby understand and acknowledge that all fees and associated costs (including optional product purchases and donations), paid for “The Fedgroup Trails” venue are NOT REFUNDABLE FOR ANY REASON, under any circumstances, including but not limited to injury, a scheduling conflict, and/or event cancellation.
If the venue is closed due to weather conditions, natural disaster, acts of God, terrorism, war or any other reason deemed reasonable by the trail owners, sponsors and associated entities and its affiliates or contractors, no refunds will be issued.
Terms and conditions govern the awarding and utilisation of the prizes in various competitions.
Impact Farming survey competition Ts and Cs
Card sorting exercise competition Ts and Cs
Fedgroup Golf Day Hole-In-One Policy
These Terms and Conditions ("Ts and Cs") govern the awarding and utilisation of the prize awarded as part of the Fedgroup golf day raffle. By participating in this raffle and accepting the prize, you agree to comply with these Ts and Cs.
Prize description: The prize consists of an Impact Farming investment with a total value of R1750. This investment comprises 5 nursery saplings and 5 moringa trees. These investments will become part of the winner's portfolio and can only be accessed through the Fedgroup App.
Accessing your investment:
Returns and information:
General Terms and Conditions:
By entering this raffle, you acknowledge that you have read, understood, and agreed to these Terms and Conditions. Fedgroup reserves the right to assess and verify the eligibility of the winner and to disqualify any entrant or winner who breaches these Ts and Cs.
This competition shall run throughout the golf day held on 7 October 2023. The winner will be announced shortly thereafter and notified via email. The winner must redeem their prize by following the steps outlined in “Accessing your investment” hereinabove by no later than three months after receiving the prize. Failure to redeem your prize by this date will result in a forfeiture thereof and the draw will be taken again.