THE BIG IFA CHALLENGE & MAJOR INDUSTRY DISRUPTOR
The ‘Next Major Immediate Disruptor’ facing all Financial Advisors in SA is Default Regulations that are effective in respect of all Members of Pension, Provident Funds and Retirement Annuities (R/As) (i.e. Retirement Funds) as from March 2019.
In terms of this legislation, all Trustees of Retirement Funds will have to offer members:-
- A default In Fund Preservation Option in the event of withdrawal prior to retirement – i.e. resignation.
- A trustee-endorsed annuity strategy upon retirement.
- Access to retirement benefits counselling at no cost to the member.
- Have to offer all their Fund Members ‘DEFAULT IN & OUT-OF-FUND OPTIONS’ on withdrawal with institutional Preservation and Annuity Products via various “counselling and guidance” services!
The first question is whether the current 100 Plus SAIFAA Members, who have many of their almost 35 000 Individual Clients as Members of Retirement Funds well as the Tens of Thousands of Fund Members of their 1 136 Employee Benefit Consultancy Pension & Provident Funds (as Benefit Consultants)will have any opportunities and rights to take part within this process?
The second question is how prepared are Financial Advisors (Independent & Product Supplier Agents) when their Clients who are members of Retirement Funds are approached via counselling and guidance services?
We are busy approaching a wide range of Umbrella & Retirement Annuity Funds to present as co-sponsors their answers, opinions and views at a set of SAIFAA 2019 Workshops covering the following SIX VITAL EXAMPLE QUESTIONS (to be advised) on dates, times and venues in CT, JHBG & KZN as per the In & Out-of-Fund’ Workshops Invitation.