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

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?
Yes FICA documents required
No No FICA compliance obligation
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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 (RAS EXCLUDED)

• New Business/Absolute Cessions
• ConditionsIf 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