FAIS Disclosure

FAIS Disclosure

Important info for all Ethico Brokers’ Clients

Ethico Brokers (Pty) Ltd
Dynamix House, 19 Kroton Street, Weltevreden Park 1709
PO Box 6436, Weltevreden Park 1715
[t] 0861 070 070
[f] 086 688 0261

Our license to transact

Reference number: FSP 6578


Business as a Financial Services Provider:

Categories of license:

Category 1:    

1.2   Short term insurance: Personal lines
1.6   Short term insurance: Commercial Lines


We have a written mandate to represent various insurers and will only present terms to you where we have such an agreement.        

Our Compliance Officer:

Name:               Bronwen Allan
Company:         Moonstone Compliance
Address:           1st Floor, Valerida Centre, Piet Retief St, Stellenbosch
Practice No:      188      
Tel:                   021 883 8000
Fax:                  086 601 9872
E-mail:             BAllan@moonstonecompliance.co.za

How do we get paid for what we do?

Generally we receive a commission from the insurer with whom we place your insurances.  The level of these commissions vary depending upon product type and range from 7.5% for SASRIA, 12,5% for motor and to 20% for all others.  Any fees due by you to us will be pointed out to you when we provide you with a quote or renewal terms and will also be shown on your policy schedule.

As a client, should you feel that your rights have been prejudiced, or you have been aggrieved in any way, you have the right to lodge a complaint. A copy of the complaints process is available upon request

Name:              Judy de Sá
Address:          Dynamix House, 19 Kroton Street, Weltevreden Park 1709
E-mail:             judy@ethico.co.za
We make every effort to ensure that at all times we act in your best interests and in no way allow our own interests, potential or actual, to influence our objective performance and the delivery of unbiased and fair financial service to you. In furtherance of this objective, we want to ensure you fully understand the various interests we have, be they ownership, financial or relationships with third parties. There are a number of entities with whom we can have a relationship of this nature and a summary of these is provided as follows.

Financial Service Providers:

We are an FSP and act as your broker/intermediary. There may be circumstances where we have a relationship with another Broker (FSP) that you need to be aware of

Underwriting Manager / Administrator: 

They are appointed either by a product provider (insurer) or the broker to manage a specific type of product on their behalf. They are also licensed financial service providers.

Product Provider / Supplier:

This is your insurer.

Each of the above may well have companies that are associated with them with whom we have    a relationship. These could be subsidiary or holding companies or certain natural persons such as spouse, children, parent. Where these relationships exist you need to be made aware of them.

See Quotation or Annexure for information on Product Suppliers: Name, Physical and Postal Address, Telephone details, Name and Contact details of their Compliance Department

Distribution Channel:

These are arrangements with any of the above or combination of these that provides support or services to us in our role of providing a financial service to you.


Any other person:                   

If there are any other persons that provide us with a financial interest as part of the delivery of the financial service.

What represents an Ownership or Financial Interest?

Ownership: Actual equity that was paid for.     
Financial Interest: Cash, or its equivalent, vouchers, gift service, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration.  
Any combination of these relationships and/or ownership or financial interests may present a potential conflict and as such we need to ensure that you are aware of these.
We also confirm that no staff are incentivised to give preference to any specific insurer and/or product and where incentives based on volumes of business are in place, these are supported by an assessment of the quality of business sold and procedures followed.

Do we have a shareholding in any insurer and/or cell captive arrangement? No
Do we receive more than 30% of our income from any insurer or cell captive? Yes. We receive more than 30% of our income from Mutual and Federal and MUA

Do we have a relationship with any product / supplier that provides a financial interest other than ownership? No

Do we have a relationship with any other FSP that provides an ownership or financial interest? Yes, details can be obtained from judy@ethico.co.za

Do we have a relationship with any other distribution channel that provides an ownership, financial interest or support service? Yes. PWV Insurance Brokers, an authorised financial services provider, performs policy administration on behalf of Ethico.

Do we have a relationship with any other person that provides an ownership or financial interest? No

Immaterial Financial Interest:
It is generally accepted practice within our Industry that “entertainment” is provided by the product provider to the financial services provider (broker) and vice versa. The Rand value is limited per calendar year to R1, 000 and such limitations are dealt with and managed by our Management Policy.

A full copy of our overall Conflict of Interest Management Policy can be obtained from:
Our offices upon written request to judy@ethico.co.za

What else should you know? 

Client rights:

As a client, no product provider or FSP may request or induce you, in any manner whatsoever, to waive any right or benefit conferred on you, or in terms of, any provision of the FAIS Act and Codes of Conduct.

We undertake:

  • To keep all information you tell us about yourself confidential.
  • Not to alter any documents you provide us with when submitting them to any insurer. Where we feel an error has been made    we will advise you prior to submission.
  • To never ask you to sign blank documents – wherever possible all documents, be they proposals or claim forms should be    completed by you to ensure full and correct details.        
  • Never to take away any rights you have in terms of any legislation that governs the way we transact business.
  • To supply a copy of any documents used in the preparation of your insurances, when required, free of charge.

Your insurer undertakes:

  • To be the one who provides the reason for any claim that is repudiated.
  • To ensure that they write to you should they wish to cancel your policy and to give you at least 30 days’ notice of their intention to do so. 

If you are paying your premiums by debit order: 

  • The debit order may only be in favour of one person/entity.
  • It may not be transferred without your approval.
  • You are entitled to 30 days’ notice of cancellation of the debit order.
  • If you are paying for personal insurances you are entitled to a period of 15 days grace in which to pay the premium (other than    in the first month of insurance).


If you are paying your premiums in any way other than monthly:

  • You are only entitled to a 15 day grace period if the insurances are in respect of your personal insurances, otherwise:
  • all premiums must be paid at inception or by renewal date for the policy to be in force.


If you have a claim or are involved in an incident that could lead to a claim:

  • You must advise us immediately, preferably in writing.  Your policy will contain conditions that relate to the early reporting of    potential claims and it is important that you do not breach this responsibility.    


If any of the information you’ve provided us with changes:

  • You must advise us immediately – policy cover, premiums and terms are based on what you told the insurer, so we need to    advise them of any changes that could affect their view of you and your policy.


Other contact details:

The following offices can be contacted via one central number: 0860 662837

Financial Services Board

P O Box 35655
Menlo Park
[t] (012) 428 8000
[t] (012) 347-0221