To / Aan - Glacier by Sanlam

GLACIER INVESTMENT PLAN
The Glacier Investment Plan is funded by the client’s own money and not contractual money
and therefore needs to be FICA compliant.
Definition
The Glacier Investment Plan enables clients to invest and grow their money in a personal
investment portfolio customised according to their individual needs and risk tolerance.
These are investments in a portfolio of collective investments, guaranteed products, and/or
shares. Clients can select their own funds or make use of managed solutions offered by
Glacier.
Types of investors
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Natural persons
Trusts
Closed corporations
Companies
Partnerships
Non-taxable associations
Minimum investment amounts
Single investment
Ad hoc investment
Shares
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R100 000
R15 000
Depending on the stockbroker
Note: See document on Glacier stockbroker offering for more details on the available
stockbrokers.
Recurring premium minimums are allowed and will decrease as follows depending on
whether a single premium investment was made:
Single Premium Amount
Recurring Premium Allowed
R0 – R29 999
R2 500 per month
R30 000 – R59 999
R2 000 per month
R60 000 – R99 999
R1 500 per month
R100 000 +
R1 000 per month
A LICENSED FINANCIAL SERVICES PROVIDER
FOR INTERMEDIARY USE ONLY
FICA
FICA is applicable to all discretionary investments. The last page of the investment plan
application form lists the necessary requirements for natural persons, trusts and all other
entities.
Investment options
The following investment options are available when investing in an investment plan:
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Collective investment funds (1 000+)
Share investments (See document on Glacier stockbroker offering for more details on
available stockbrokers)
Guaranteed Income Plan (Sanlam)
Guaranteed Capital Plan (Sanlam)
Shares
The stockbrokers who can be used for investment plans are:
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SPI
Sasfin
Investec
PSG
FNB Securities
NVest
Melville Douglas
The minimum amount that must remain on the Glacier platform differs from stockbroker to
stockbroker.
Guaranteed products
Guaranteed products are offered by Sanlam, however, clients can invest in these products via
the Glacier platform. The client has two options:
1. Guaranteed Income Plan
2. Guaranteed Capital Plan
1. Guaranteed Income Plan
A Guaranteed Income Plan will ensure that the client receives an income for the chosen
period (between 5 –15 years) after which the investment is depleted.
2. Guaranteed Capital Plan
A Guaranteed Capital Plan is where the client (annuitant) invests a lump sum at the
beginning of an investment term (five years) and Sanlam will guarantee a maturity value
that will be paid to the client at the end of the term.
Income and debit orders
Income
The client is entitled to an income from this product. All income payments will be paid into the
bank account of the client. Glacier does not permit payments to third parties.
Debit orders
Recurring premiums (debit orders) are allowed on this product. The money funding the debit
order can come from either the investor or a third party’s bank account (as long as the third
party signs for the recurring premium instruction).
The debit order fee scales are based on a sliding fee scale.
A phasing-in option is available to the client. Phasing-in allows the client to enter the market
during volatile market conditions. Phasing-in allows the client to buy into the market over a
period of time, and therefore buy into the fund(s) at different unit prices.
Available transactions
Glacier can execute the following transactions on the client’s behalf:
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Ad hoc
Switch/Rebalance
Income
Repurchase
Debit order
Transfer
Phasing-in
Fees
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Intermediary initial fees are between 0% and 5% (negotiated with the client)
Intermediary annual fees are between 0% and 1% (negotiated with the client)
Glacier’s annual administration fees are calculated according to a sliding scale. Glacier does
not charge any initial fees.
Requirements
1. An Investment Plan Application Form (available on the web) needs to be completed by
the investor.
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All compulsory information on the application form is to be completed.
The intermediary code and applicable fees are compulsory.
The client or applicable person(s) from the trust, company, and non-taxable institution
is required to sign the application form.
2. A copy of the deposit slip or electronic proof that the money has been paid into
Glacier’s bank account with the unique M-number as reference, needs to be emailed with
the application form.
Note: This is because Glacier requires confirmation that the money is available in their
bank account before investing the money.
3. If the intermediary is an adviser, FICA documentation is required.
4. If the client selected the share option, the applicable stockbroker mandate, signed by
the client, is required.
5. If the client selected one or both of the Guaranteed Income or Guaranteed Capital options,
a quotation has to be obtained from Sanlam Life. This quote has to be submitted with the
application form.
6. If the client requests to select his/her own collective investment funds, then the fund
selection has to add up to 100%.
7. If the client selects a wrap fund from a Management Company (Manco) other than Glacier,
a mandate for that wrap fund has to be completed and signed by the client.
Note: In the case of capped funds, the money will be invested in the Glacier Money
Market until the correct fund selection has been received from the client.
a)
Other important information:
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The client’s residential address is compulsory.
Income will only be paid into the client’s bank account – no third party
payments will be allowed.
If the origin of the money is a Sanlam policy, then the policy number has to be
quoted on the application form.
Note: The client is required to sign next to any changes on the application form.
b)
The following client(s) are required to sign the application form:
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Natural Person: Client/Guardian
Company: Resolution to act on behalf of the company, including signatures
Non-taxable institutions: Letterhead of institution with the signatures(s) of
authorised signatories
Trusts:
- Letter of authority
- First page of trust deed
- Resolution to act on behalf of the trust, including signatures
Process
If any of the abovementioned documents are outstanding, the user processing the case will
contact the intermediary requesting the outstanding information.
Note: The case will not be issued until all outstanding requirements have been received.
The New Business process will be completed within four working days after receiving all
outstanding requirements.
This is the process whereby Glacier sends the purchase instruction to the respective
Management Companies (Mancos). The Mancos then purchase the units for the client and
return the transaction to Glacier.
Once this process has been finalised, Glacier will mail the client’s investment confirmation to
the client or intermediary, if requested.
Note: If the intermediary is an adviser, he/she is not allowed to receive the investment
confirmation on behalf of the client.
If a share option was chosen, Glacier will forward the necessary documents to the applicable
stockbroker. This stockbroker will open a share portfolio for the client and forward the
information to Glacier.
If the client is transferring units to Glacier, Glacier will request them from the respective
management companies.
Frequently asked questions
Why can’t Glacier pay interest and dividends into clients’ bank accounts?
Glacier is required to pay either a fixed percentage or a fixed amount as an income. Interest
and dividends are declared every quarter and Glacier cannot determine the amount being
paid. Glacier would therefore have to execute a manual transaction every quarter.
Why does Glacier still need FICA documentation if money is transferred from
Sanlam?
Glacier is required to verify and identify its clients for record purposes and therefore the client
has to submit FICA documentation.
Note: This is only applicable to advisers – not brokers.
What is the difference between a FICA declaration form and a FICA form
stating a visit to the client’s premises?
The FICA declaration forms part of the application form and is only applicable to brokers (not
advisers). This indicates that the broker declares that the client is FICA compliant and that
they keep records of the necessary supporting documentation.
A FICA form provides confirmation that a visit to the client’s premises has been made by the
intermediary (broker/adviser). This form will only be used when the client does not have a
utility bill, and is only used as an exception. The intermediary signs the form to declare that
the client resides at the premises as stated on the form.
Which business requirements are needed to finalise an investment of a trust?
Glacier requires the full trust deed, as well as the following information:
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Letter of authority: This is the document where the name and registration number of the
trust is reflected. It also provides a detailed description of all the members belonging to
the trust.
Specimen signature: This is usually the last page of the trust deed. The names,
responsibilities and specimen signatures of all the trustees are on this page.
Trust resolution: This is the document where the trustees appointed a person(s) who
can transact on the investment on behalf of the trust. The specimen signatures of these
authorised signatories are also reflected there.
What is required if a trustee dies or resigns?
Death of a trustee: A death certificate
Resignation of a trustee: A letter of resignation
When/If a new trustee is appointed by the Master of the High Court, Glacier will require a new
resolution reflecting this.
Death claims
Requirements on death
Glacier requires the following when handling a death claim:
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A copy of the death certificate issued by the Department of Home Affairs (B1-5 or B1-20)
(documents need not be certified).
A copy of the identity document of the deceased (only if the client was not previously
FICA'd).
A copy of the letter of executorship issued by the Master of the High Court.
If the executor has appointed a different person from his/her office to handle the estate,
Glacier requires a letter from the appointed executor. This is also known as an estate
authorisation.
If the magistrate has assigned him-/herself or a representative, Glacier requires a letter
from the Department of Justice indicating whether another authorised person may deal
with the estate. This is also referred to as an intestate estate.
The necessary FICA documentation for the executor and the third party, if applicable. If
the executor acts on behalf of a company, for example, Sanlam Trust, Glacier only
requires a copy of his/her identity document.
Instructions from the executor and signed by the executor or third party to explain how the
estate should be handled – specifying whether it must be repurchased or transferred to a
new owner.
If the investment must be transferred, a new application form (should the investment be
transferred into a new investor’s name) must be received, as well as supporting
documents (FICA), if required. For FAIS, an advice record needs to be included if an
adviser is involved.
In the case of a repurchase, the estate’s bank account details will also be required.
Note: If the intermediary is an adviser, FICA in respect of the executor, the deceased,
and the beneficiary in whose name the investment is transferred (if the client does not
already exist on the Glacier platform).
Options at death
Option 1: Repurchase all the funds in the investment and pay it into the
estate’s bank account
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Glacier will require an instruction from the executor.
The money will be paid into the estate’s bank account (no third party bank accounts
allowed).
Option 2: Transfer the plan to the beneficiary
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Application form to be completed by the person appointed by the executor.
The necessary trust documents if the money has to go to a trust (same as for new
business).
All FICA documentation to be completed if the intermediary is an adviser and if the client
does not exist on Glacier’s platform already.
Fees
The intermediary can receive an initial fee. Glacier does not charge initial fees.
Process upon death
Glacier will execute the following on receipt of the notification of death:
 Stop any income payments
 Stop the debit order if there is an active one
 Change the client’s status to indicate that a death claim is pending
 Send a recent investment statement to the executor
All outstanding requirements will be requested from the intermediary.
Internal transfers
General information
An internal transfer will be carried out in the following scenarios:
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Transfer of one plan from one individual to another
Transfer of one plan from one individual to another legal entity
Splitting of an existing plan for the same client into two or more plans
Transfers cannot be made when the following transactions are in progress:
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Switch
Repurchase
Rebalance
Income
Debit order
Phasing-in
Adjustment
The transfer can be made when the service fees are being deducted.
Requirements
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A letter signed by the client requesting the transfer
Application form for the new client if transferring from one client to another client or entity
The following details must be on the new application form:
- Personal details of the new client (and FICA documents if the intermediary is an
adviser and the client has not already been FICA’d by Glacier)
- Bank details of the new client
- Fund details (if changed)
- Income details (if applicable)
- Debit order details (if applicable)
- Intermediary details/fees
Process
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After processing the transfer, Glacier will mail a confirmation letter to the intermediary or
the client.
This letter is combined with a product description (like the investment confirmation) and
mailed to the ‘new’ client if the client to whom the plan is transferred has not been a
Glacier client before.
The new plan number appears at the top of the letter next to the client’s name.

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