Score rules (SFA) 2015
2015 DISTRIBUTION SCORE 1.1 SILSS RECURRING PREMIUMS RISK Matrix : level or stepped premium patterns New Business Income Protector Matrix : growth premium patterns Automatic annual premium increases New Business Other Whole Life products Funeral Cover Life Power Automatic annual premium increases New Business Automatic annual premium increases 1.98% x annual benefit premium x term on date of issuing Life cover premium : 100% of the above formula Rider Benefit premium : 115% of the above formula Income Protector premium : 130% of the above formula 0.9% x annual premium increase x term on date of increase 3.02% x annual benefit premium x term on date of issuing Life cover premium : 100% of the above formula Rider Benefit premium : 115% of the above formula Income Protector premium : 130% of the above formula NO Score 35% x commission as and when commission is payable Note: - For whole life policies the term is calculated as the GREATER OF (75-age next birthday) AND 10, limited to 26 years - For Term Assurance and Income Protector, the chosen guaranteed or benefit term will be used as the term, where the maximum term is the GREATER OF (75-age next birthday) AND 10, limited to 26 years - Score is calculated per beneficiary per benefit - Proof free conversion of life cover from Legacy to Matrix do not qualify for Score - Proof free Options qualify for Score - Score will be reversed proportionally (over the commission vesting term) should the policy lapse - When business assurance is dissolved, the new individual life policies do not qualify for Score RA and Other Savings RA (incl LISP, Echo and Flexi products) Endowment Stratus Provident Fund LISP Committed Plan Central Provident fund (paying commission annually over term) LISP Flexible Plan Tax Free Savings Account Other Savings products (paying commission annually over term) New Business 2.19% x annual premium x term on date of issuing Ad hoc Premium increases Automatic annual premium increases (growth type 1) 0.9% x annual premium increase x remaining term on date of increase Annual negotiated premium increases (growth type 2,3,4) 2.19% x annual premium increase x remaining term on date of increase Ad hoc Premium increases and annual premium increases 15% x annual premium increase on date of increase New Business Ad hoc Premium increases Automatic annual premium increases New Business Ad hoc Premium increases Automatic annual premium increases 2.19% x annual premium x 5 on date of issuing 0.9% x annual premium increase x remaining term on date of increase 75% of each commission payment payable annually for the duration of the plan Note: - Term is limited to 25 years - Score will be reversed proportionally (over the commission vesting term) should the policy lapse - An open ended plan continued with further premiums after the initial period end date will receive Score on each premium (the term will be 1) 1.2 SILSS SINGLE PREMIUMS LISP products (RA and Endowment) Guaranteed Plans Compulsory Life Annuities Other Life and Term Annuities All other single premiums Continuations (excl RA, Provident Fund) New Business and Ad Hoc payments New Business and Ad Hoc payments New Business and Ad Hoc payments New Business and Ad Hoc payments New Business and Ad Hoc payments On maturity date 0.82% x premium 0.82% x premium 0.97% x premium 0.82% x premium 0.82% x premium 0.82% x continued value An open ended plan continued after the initial period end If the recurring premium is continued (with or without an increase), Score will be allocated date is not seen as a continuation and no Score is allocated according to 1.1. An open ended plan continued with further premiums after the initial period end date will receive Score on each premium (the term will be 1) on the fund value Note: - Score will be reversed proportionately to the size of the withdrawal amount should the client, within 6 months from the investment date, - withdraw from or loan against the investment - withdraw from the investment/fund and purchase an annuity from Sanlam Life or another company - transfer the investment to another company (incl Section 14) - No Score is allocated on Section 14 transfers 18/05/2015 1.3 OTHER PRODUCT PROVIDERS SANLAM TRUST Wills - filed and charged Estates Intervivos Trusts Testamentary Trusts Asset value up to R2.5m Asset value > R2.5 and < R7.5m Asset value > R7.5m Fee up to R33 250 Fee > R33 250 to R90 000 Fee > R90 000 to R250 000 Fee > R250 000 Acceptance FEE All Trusts Acceptance FEE Trusts > R1.5m Trusts > R40 000 All Trusts NO Score 100 Score points 200 Score points NO Score 20% x commission 25% x commission 30% x commission NO Score 30% x commission NO Score 30% x commission 30% x commission 30% x commission Umbrella Trusts, Ben funds, Guardian Trusts, RA's Inter Vivos Trust deeds (drafting) Note: - No SCORE awarded on safe custody fee, revisions of wills, acceptance and termination fees or income tax returns - All wills will be free except for clients who prefer to pay drafting fees (R456) and revisions (R228) instead of the new safe custody fee of R57 p.a. SKY Funeral Cover New Business 3.02% x premium x term (equivalent to 93% of primary commission) on date of issuing Note: - NO Score is payable on the savings component - Score is payable on premium increases according to the New Business rule (excluding the increase on the savings component) - Score will be clawed back if commission is reversed GLACIER International Products (Global Life Plan, Global Collection Plan, International Linked Annuity) Compulsory Life Annuities Other Annuities Retirement Fund Solution (Contributory funds) Other Linked Products (RA, Preservation Funds, Endowment, Sinking Fund) 0.82% x investment amount 0.97% x investment amount 0.82% x investment amount 0.1% x each investment premium NO Score payable on transfers from the Sanlam Advisers Retirement Fund 0.82% x investment NO Score payable on Section 14 transfers Note: - Score will be reversed proportionately to the size of the withdrawal amount should the client, within 6 months from the investment date, - withdraw from or loan against the investment - realize the investment and withdraw the cash within the rules - withdraw from the investment/fund and purchase an annuity from Sanlam Life or another company - transfer the investment to another company (incl Section 14) Sanlam Collective Investments Money Market NO Score Sanlam Alternative Income Fund Income fund Bond Fund Absolute Return Income Fund Inflation Linked Fund 0.82% x investment amount Equity Fund Balanced Fund International Funds Note: - Score will be reversed proportionately to the size of the withdrawal amount should the client, within 6 months from the investment date, - withdraw from the investment - switch to another fund at SCI - transfer the investment to another company 18/05/2015 Local Equity Offshore Investments SPI Credit Sanlam Private Investment 0.82% x investment amount Investments on/before 15 December 2011: from month 13, monthly one 12th of 0.15% of assets under management Investments after 15 December 2011 : NO Score from month 13 0.82% x investment amount monthly one 12th of 20% of the loan awarded (the intermediary should not be the referrer only, but actively involved) Note: - If the full management fee was not received, Score will be reduced accordingly - If the investment/part thereof is withdrawn within 18 months, pro rata Score will be reversed accordingly - Investments via Glacier will earn Score only at Glacier BLUE INK Investments Note: - If the full management fee was not received, Score will be reduced accordingly - If the investment/part thereof is withdrawn within 6 months, pro rata Score will be reversed accordingly New schemes and transfers : - Standard, Comprehensive and Comprehensive Plus 0.82% x investment amount Sanlam Umbrella Solutions 20% x the total of the 1st month's consulting fee x 12 (calculated on inception date and allocated at the end of the 2nd month) PLUS 0.1% x the asset value specified on the Section 14 transfer document (payable if assets are received within the first year after inception and allocated at the end of the month in which assets are received) Note: - Score is allocated for new schemes with 15 or more members, unless the API is > R300 000 - The following incidents do not qualify for Score: - movements between existing funds - incidental changes during the year e.g. increase in membership - additional voluntarily contributions - ROT's Sanlam Group Risk On inception date a value equal to the estimate total fee payable to intermediary in the first year Group Risk Schemes Note: - Score is allocated for new schemes only. Schemes transferred from elsewhere are not recognized as new schemes. Sanlam Structured Solutions 20% x fee payable to intermediary 0.05% x investment amount Annuities (including Quantum pensions and group ILLA's) Other Single premiums Note: - Score is allocated for new schemes only. Schemes transferred from elsewhere are not recognized as new schemes. Short Term Insurance Santam (through Sanlam Referral process) Santam (on Sanlam's FSP licence), Auto & General, Mutual & Federal Other companies/niche underwriters 2% x premium received (payable monthly) Commercial Lines : 2% x new book premium received (payable monthly) Personal Lines : 3% x new book premium received (payable monthly) NO Score 18/05/2015
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