The consulting fee payable to each participating employer’s appointed consultant is a matter of negotiation between the participating employer and the consultant. A standard consulting fee is payable monthly to each participating employer’s FAIS-accredited financial adviser for providing the Contracted Benefit Consulting and Contracted Financial Advisory services. The Trustees have approved the following standard intermediary remuneration scale per participating employer for the full range of contracted services:
- Calculated using total retirement contributions including insured benefit premiums paid through the Fund,
- Annualised amount determined on commencement based on the following scale:
- This annualised amount is expressed and charged as a percentage of salaries or, on request from the intermediary, as a flat Rand amount per member per month. This fee is payable each month subject to the receipt of employer’s contributions and updated member schedules.
- Example of fee payable on a fund with an annual premium income (API) of R500 000:
Review of consulting fees
Consulting fees are not subject to review as part of the annual revision process, but can be reviewed at any time by negotiation and agreement between the Contracted Benefit Consultant, the Contracted Financial Adviser and the Participating Employer. Any consulting fee reviews are thereafter implemented by way of the Fund’s formal amendments process. Should an intermediary elect to have the consulting fees expressed and charged as a percentage of salaries, the fees will automatically increase as salaries increase on a monthly basis. Any agreed change in consulting fees will only be implemented on receipt of a signed amendment document, mailed to the following e-mail address: Acceptances4UmbrellaFunds@sanlam.co.za
Consulting fee split
It is permissible for the Contracted Benefit Consulting and Contracted Financial Advisory service to be provided by different FAIS-accredited advisers, in which case the standard consulting fee will be split between these two contracted advisers, and the agreed split advised to Sanlam. Alternatively an employer can opt to have Sanlam provide the Contracted Benefit Consulting services, in which case Sanlam will retain 50% of the standard consulting fee for providing such services, and the remaining 50% of the standard consulting fee will be paid to the chosen Contracted Financial Adviser. It is recognised that some participating employers might wish to negotiate a tailored consulting service with their advisers. In such cases the Trustees are prepared to allow the option of a negotiated consulting fee in lieu of the standard consulting fee scale, provided that a contract is signed by both the participating employer and financial adviser, and that it includes all of the Trustees’ requirements for Contracted Benefit Consulting and Contracted Financial Advisory services. This negotiated consulting fee is also payable monthly, and can be expressed as a flat Rand amount per member per month or a flat percentage of salaries. For members on the Comprehensive Option who choose to invest some or all of their monies via Glacier, the member can authorize payment of additional advisory fees which will be paid separately by Glacier on behalf of the member.
Payment options
Sanlam Financial Adviser: Consulting fees are paid using the KommAgt system via the intermediary’s Sanlam commission code. It remains the responsibility of the adviser to supply Sanlam Umbrella Fund with his/her correct commission code. Sanlam Broker: Consulting fees are paid using the KommAgt system via the intermediary’s Sanlam commission code, or are paid into the banking account of the brokerage (or an individual’s account in the case of a sole proprietor), if requested. Confirmation of banking details must then be provided by way of a bank statement header, or cancelled cheque. Independent Broker: Consulting fees are paid into the banking account of the brokerage, or an individual’s account in the case of a sole proprietor. Confirmation of banking details must be provided.
Time line for payment of consulting fees
Consulting fees are paid only once the relevant participating employer’s monthly contributions are received and successfully captured on the administrator’s platform.