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Is the commencement date 1/7/03 or later?

FICA COMPLIANCE LOANS AND SURRENDERS. Is the commencement date 1/7/03 or later?. No - No FICA compliance obligation. Yes. Is the Policy a Retirement Annuity?. Yes - No FICA compliance obligation. No - Is the premium more than Single – R50 000 Annual – R25 000 Monthly – R2 083,34.

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Is the commencement date 1/7/03 or later?

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  1. FICA COMPLIANCE LOANS AND SURRENDERS Is the commencement date 1/7/03 or later? No - No FICA compliance obligation Yes Is the Policy a Retirement Annuity? Yes - No FICA compliance obligation No - Is the premium more than Single – R50 000 Annual – R25 000 Monthly – R2 083,34 Yes – No FICA compliance obligation No – Is the surrender value more than 20% of all premiums paid? No – No FICA compliance obligation Yes Is the policy collaterally ceded? Yes No No Is the Cessionary an JSE listed company e.g. Standard Bank? FICA documents required Yes - No FICA compliance obligation

  2. FICA COMPLIANCE AD-HOC PREMIUM INCREASES Is Commencement Date 1/7/03 Or Later? No – No FICA compliance obligation Yes Is the Policy a Retirement Annuity? Yes – No FICA compliance obligation No – Does the increase cause premiums to exceedSingle - R50 000Annually - R25 000Monthly - R2 083,34 No – No FICA compliance obligation Yes – FICA documents required

  3. FICA COMPLIANCE NEW BUSINESS / ABSOLUTE CESSIONS Is the policy a Retirement Annuity? Yes – No FICA compliance obligation No – Is the premium more than Single – R50 000 Annual – R25 000 Monthly – R2 083,34 No – No FICA compliance obligation Yes – Is the surrender value in the first three years more than 20% of all premiums paid e.g. pure investment policies? No – No FICA compliance obligation Yes – FICA documents required

  4. Annexure 8.2 New Business and Servicing Flow FICA COMPLIANCESUMMARY CLIENT SERVICES – LIBERTY CONSULTANTS DOCUMENTS REQUIRED • FICA Documents required: • Checklist with the declaration signed by Consultant • Documents marked on checklist • Other Documents required • If the FICA conditions for identification are not present, the consultant need only forward (where applicable): • A letter by client requesting an Ad-Hoc Premium Increase • Cession Form for Absolute Cessions • Policy Loan Form for Loans • Surrender Form for Surrenders • Application form for new business WHEN FICA DOCUMENTS ARE REQUIRED (RA’S EXCLUDED) • New Business/Absolute Cessions • Conditions:If current premiums are • More than R2 083,34 p.m./ R25 000 p.a./R50 000 single premium • and surrender value is more than 20% of the total premiums paid • Loans/Surrenders • Conditions If policy surrendered or a loan taken out within its first three years, where: • The original premiums are equal to or less than R2 083,34 p.m. / R25 000 p.a. R50 000 single premium • and the surrender value at the time of surrender is more than 20% of the total premiums paid • and Commencement Date 1/7/03 or later • Conditions • Where a Cessionary on a Security Cession, surrenders a policy, and the Cessionary is not listed on the stock Exchange, e.g. Standard Bank • Ad hoc Increases • Conditions • If increase causes premiums to exceed R2 083,34 p.m.; • R25 000 p.a.; R50 000 single premium • and Commencement Date 1/7/03 or • later

  5. FICA COMPLIANCESUMMARY CLIENT SERVICES – BROKERS DOCUMENTS REQUIRED • FICA Documents required: • Checklist with the declaration signed by broker • Other Documents required • If the FICA conditions for identification are not present, the broker need only forward (where applicable): • A letter by client requesting an Ad-Hoc Premium Increase • Cession Form for Absolute Cessions • Policy Loan Form for Loans • Surrender Form for Surrenders • Application form for new business WHEN THE FICA DOCUMENT IS REQUIRED (RA’S EXCLUDED) • New Business/Absolute Cessions • Conditions:If current premiums are • More than R2 083,34 p.m./ R25 000 p.a./R50 000 single premium • and surrender value is more than 20% of the total premiums paid • Loans/Surrenders • Conditions If policy surrendered or a loan taken out within its first three years, where: • The original premiums are equal to or less than R2 083,34 p.m. / R25 000 p.a. R50 000 single premium • and the surrender value at the time of surrender is more than 20% of the total premiums paid • and Commencement Date 1/7/03 or later • Conditions • Where a Cessionary on a Security Cession, surrenders a policy, and the Cessionary is not listed on the stock Exchange, e.g. Standard Bank • Ad hoc Increases • Conditions • If increase causes premiums to exceed R2 083,34 p.m.; • R25 000 p.a.; R50 000 single premium • and Commencement Date 1/7/03 or • later

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