Conflict of Interest (COI) Management Policy
This document embodies the conflict of interest management policy for D and D.
“Conflict of interest” means any situation in which officers of D and D or its employees has an actual or potential interest that may, in rendering a financial service to a client influence the objective performance of his, her or its obligations to that client; or prevent D and D; its officers or its employees from rendering an unbiased and fair financial service to that client, or from acting in the interests of that client, including, but not limited to...
RMCP (Risk Management and Compliance Programme) in terms of the Financial Intelligence Act
Short summary below
1.1 Policy overview and purpose
The Financial Intelligence Centre Amendment Act, 2017 (“the FIC Act”), together with the Prevention of Organised Crime Act, 1998 (“POCA”) and the Protection of Constitutional Democracy against Terrorist and related activities Act (“POCDATARA”) form the statutory framework to combat money laundering and suppress the financing of terrorism in South Africa. A money laundering offence may be described as the performing of any act in connection with property by a person who knows or ought reasonably to have known that the property is or forms part of the proceeds of unlawful activities and that may result in concealing or disguising the nature, source, location, disposition or movement of the proceeds of the crime, the ownership thereof or any interest anyone may have in respect thereof or enabling or assisting a person to avoid prosecution or to remove or diminish the proceeds of crime.
Regulation requires an accountable institution such as D and D the Cycle (Pty) Ltd (“D and D”) to understand its exposure to money laundering and terrorist financing risks. By understanding and managing money laundering and terrorist financing risks, D and D, as an accountable institution, endeavours to protect and maintain the integrity of the business, while also contributing to the integrity of the South African financial system. The RMCP sets out the approach of D and D towards money laundering and financing of terrorist activities and how the related risks are managed.
The Risk Management & Compliance Programme (“RMCP”) encompasses the processes and procedures employed by D and D Limited to identify, assess, monitor, mitigate and manage any risks related to money laundering and the financing of terrorist activities.
1.2 Policy Scope
This policy applies to D and D the Cycle (Pty) Ltd as an accountable institution.
An accountable institution is any person or entity as described in Schedule 1 of the Financial Intelligence Centre Act No. 38 of 2001 who must ensure adherence to the legal requirements and responsibilities as set out therein. An accountable institution can be split into two distinct categories:
Primary Accountable Institution: These institutions are responsible for verifying and keeping record of the identities of their clientele.
Secondary Accountable Institutions: These institutions rely on the adherence of the Primary Accountable Institutions and as such, are not required to verify the identities of the Primary Accountable Institution’s clients
1.3 Risk-Based Approach
The FIC Act incorporates a risk-based approach into the anti-money laundering regulatory framework. The risk-based approach requires D and D to identify and assess the ML/TF risks it can reasonably expect to face in the course of its business. These risks may arise from various factors, such as clients, products and services, delivery channels and geographic locations. D and D should then apply its knowledge and understanding of the ML/TF risks to develop control measures to prevent, mitigate or manage those risks.
D and D follows a risk-based approach to client identification and verification regarding the type of information by means of which it will establish clients’ identities and the means of verification of such information. Application of a risk-based approach implies that D and D can accurately assess the risk involved. It also implies that D and D can take an informed decision based on its risk assessment as to the appropriate methods and levels of verification that should be applied.
D and D applies simplified measures where lower risks have been identified and enhanced measures where higher risks are identified. To assess the risk factors, D and D makes use of a risk framework which forms part of the institution’s policies and procedures to address money laundering and terrorist financing. All D and D clients will be assigned a risk rating as determined by Annexure A: D and D Client Risk Rating. D and D relies on both its own control environment and the control environment of the appointed administrator to mitigate the risks of potential financial crime.
1.4. Money laundering is a multi-faceted process, but often takes place in 3 stages as follows:
The placement stage – is where cash derived from a criminal activity is first placed into the system through a financial institution or is used to buy an asset.
The layering stage – is the criminal’s first attempt to conceal or disguise the source of the ownership of the funds.
The integration stage – is where money is integrated into the legitimate economic and financial system and is assimilated with all other assets in the system.
1.5. The goals of money laundering
- To place illegal money in the formal financial system without arousing suspicion.
- To transfer and/or move money around in a series of complex transactions, so it becomes difficult to trace its original source. Authorised FSPs are therefore encouraged to implement proactive measures designed to determine suspicious transactions, file reports, and minimise the likelihood of their business being used as conduits to launder money.
D and D is an authorized financial services provider (‘FSP’), licensed in terms of the Financial Advisory and Intermediary Services Act (the FAIS Act) and an approved administrator in tems of section 13B of the Pension Funds Act. We always appreciate client feedback, which we use to improve our offering to you. The purpose of this document and the complaints management process is to set out procedures on how to lodge a complaint and to ensure that we are able to resolve all complaints.
Treating customers fairly policy
The management and all who work at TheCycle Group (“TheCycle”) are committed to providing the highest possible level of service in satisfying or exceeding the requirements of our clients. This level of service is achieved through quality management and by ensuring the fair treatment of all clients, irrespective of their allocation size with TheCycle. Clients are core to the continued success and growth of our business and delivering optimal customer outcomes are imperative to this.
Treating Customers Fairly (TCF) is an outcomes based approach designed to ensure that specific, clearly articulated fairness outcomes for financial services customers are delivered by regulated financial institutions. TheCycle aims to illustrate that we deliver the six outcomes to our clients throughout the product life cycle, from product design, management, reporting, servicing and complaints handling.
Protection of Personal Information Act
THE CYCLE has always been committed to provide an appropriate level of security and privacy for personal information about current, past and prospective data subjects (which would include customers, intermediaries, business partners and employees) that comes into its possession or custody.