Frequently Asked Questions
For Financial Service Providers
All your client set-up and support questions answered
This FAQ serves to help our Financial Service Provider (FSP) partners better understand the process of setting up a relationship with Investec Wealth & Investment (W&I). We want to work with you to ensure your clients benefit from the investment services we offer, whilst ensuring compliance with all regulatory obligations.
Where do I find details of the investment services offered by W&I?
At the outset of a new relationship with an FSP partner we provide a copy of the W&I document titled “Investment services for Financial Service Providers”. This document introduces W&I and the investment services we offer to our FSP partners and their clients.
Does the FSP require a regulatory license?
Our FSP partners must be registered with the Financial Services Board with a Category 2 licence and for product sub-categories that include 2.5 or with a Category 1 license and sub categories that include 1.8.
All representatives authorised to deal with W&I on behalf of the FSP must be registered under the above product sub-categories. Advisory services are also available for FSP’s who do not hold the above stated licences. Please contact your Investment Manager to discuss these offerings.
What support services do we offer our FSP partners?
Our intention is always to make it easy to do business with W&I by offering services and processes designed to support our FSP partners.
We understand that some of our FSP partners' clients would prefer to carefully consider W&I and the investment services we offer before either committing themselves to a meeting or investing with us. In addition to the document titled “Investment services for Financial Service Providers”, we also assist our FSP partners by providing more detailed factual information on our services for the purpose of being included in client’s documentation as required.
In addition to our core investment services, we have developed focused marketing materials and reporting options, all of which are aimed at enhancing this partnership approach.
What investment research information is available to the FSP and their client?
Beyond the day-to-day interaction, we proactively collaborate with our FSP partners by placing our well-disciplined research capability at their disposal through regular publications and meetings. This helps bring the financial services community together to ensure our partners and clients truly understand our investment strategy.
Who do I contact at W&I when I have a query?
Each FSP partner is assigned a dedicated Investment Manager and support team. We further ensure regular review dialogues and investment service education sessions with our FSP partners. These sessions address both individual client cases, the overall adviser relationship, and service issues.
What documentation must the FSP supply to W&I prior to starting business?
A dedicated Investment Manager will guide you through our account opening process. The FSP will be required provide a copy of their FSP licence detailing approved products and will need to complete and sign the following documentation in order for us to open a local account:
- FSP agreement
- FSP application and due diligence form, applicable mandate and schedules
- FICA information and documentation
- Resolution detailing persons authorised to act on behalf of the FSP
In respect of opening an offshore account, we will require the FSP to complete and sign an additional due diligence questionnaire, as well as supply any extra documentation as may be required by the chosen jurisdiction.
Does W&I meet with the FSP’s clients?
This is determined by the FSP. In our experience the new client process is most effective when our Investment Manager and our FSP partner meet with the potential client together to explain their respective roles and the features and benefits of the service. We also appreciate that some of our FSP partners prefer to remain the only point of contact for their clients, and we are happy to adhere to this.
Do all initial investments need to be made in cash?
We understand that not all clients have only cash to invest. We can facilitate the transfer of existing share portfolios from a previous stock broker if required.
How does W&I measure performance?
All of our mandates are measured against an appropriate benchmark and performance is reviewed on an ongoing basis. It is the responsibility of our FSP partners to select the appropriate investment service and suitable strategy for their client in terms of the client’s financial objectives and their appetite and tolerance for risk.
How are fees calculated, shared and paid?
We facilitate fees for our FSP partners. Please refer to the Fee Schedule for Financial Service Providers. Under current regulations we share management and advisory fees as specified in the agreement with the FSP.
Fees are calculated quarterly in arrears based on the value of the portfolio on the last Friday of February, May, August and November, at the rate agreed in the Financial Service Providers agreement. All fee payments are inclusive of any applicable VAT.
What about brokerage and other charges?
Brokerage will apply on trades according to a sliding scale. Please refer to the fee schedule.
What about performance fees?
We do not charge performance fees on our discretionary mandates.
What documentation does the FSP require to open accounts for their clients?
All documentation required to open an account is available on our website. Alternatively, we are happy to send our FSP partners the required documentation.
Where the FSP holds a FAIS Category 1 licence and the regulator requires the FSP’s client to have a direct relationship with W&I, we will require that the client signs our Discretionary/ Non-Discretionary mandate, an application form, financial assessment questionnaire and applicable schedules.
Where the FSP holds a FAIS Category 2 licence we require the FSP to send us a copy of their mandate with the client. Both FSP categories further need to furnish us with a completed sub account form together with a Schedule 4 exemption for FICA purposes.
Once all documentation has been received and accepted by the designated Investment Manager the new account will be set up and an account reference allocated. The Investment Manager will guide our FSP partner through any questions which may arise during the process.
For local investment via a platform, the broker consultant for the platform should be able to provide the relevant documentation. Alternatively, your designated Investment Manager can guide you through the process.
To enable us to set up an offshore account for the client of an FSP partner, we will require the client to complete and sign a client agreement which will furnish us with the relevant KYC documentation.
Once all documentation has been received and accepted by the designated Investment Manager, the new account will be set up and an account reference allocated. The Investment Manager will guide our FSP partner through any questions which may arise during the process.
Are all the clients of the FSP automatically accepted?
Once all documentation has been provided to us and we have completed all necessary procedures to ensure compliance with FICA and FAIS and, where applicable, additional legislation (as may be required in the jurisdiction where the applicant wishes to invest), we shall, at our discretion, accept the applicant as a client of W&I.
Where do clients of the FSP deposit funds for Investment?
When transferring cash in favour of a new client account please use the following account details and ensure the client’s account number is included as a reference.
Bank: First National Bank
Account name: Investec Securities Limited - Trust Account
Account number: 620 339 42021
Branch name: Corporate Account Services
Branch number: 255 005
Reference: Client Account Number
Bank details differ depending on the currency transferred. Kindly contact your Investment Manager for the applicable details.
What client reporting do W&I offer?
We will provide monthly statements and online access to the client. The FSP will also receive online access to view client accounts and obtain information for the benefit of their clients. Clients and the FSP are able to view both their local and offshore portfolios seamlessly, through one login.
Are the FSP’s client’s details kept confidential?
All clients referred to W&I by our FSP partners are ring-fenced and therefore inaccessible to the greater business. Other than information applicable to the particular client’s account, no client shall receive unsolicited communication from a W&I employee.
Who is the Investment Manager for my area?