Information for Financial Advisors

Overview
Investment philosophy
The BullionGold Facility
IFA investment platform
Online Functionality
FAIS licensing
Product training and accreditation
Registration

Overview

SA Bullion Investor Services (Pty) Ltd is the retail investment division of the SA Bullion group. It is designed to cater for investors and financial advisors who wish to invest in physical gold bullion. The firm offers it’s unique and proprietary product - The BullionGold Facility. The company maintains the necessary Financial Service Provider (FSP) licensing that permits it to engage in investment business with public investors. The company operates in conjunction with its parent company, SA Bullion Management (Pty) Ltd, which company is the holder of a special dispensation granted by the South African Reserve Bank, and a management agreement with Rand Refinery Limited. Accredited financial advisors serve as intermediaries for the delivery of The BullionGold Facility to local and offshore investors.

Investment philosophy

Through The BulllionGold Facility clients may now obtain direct title ownership of gold bullion at gold industry wholesale prices. This means low acquisition costs, low administrative costs and complete security. BullionGold Facility holders are not investing in a gold derivative or exchange traded fund (commonly known as paper gold). They are investing in gold bullion in their own name. They are therefore not exposed to the credit risk of a paper gold issuer nor is there any stock market risk involved. Physical gold ownership is a unique investment as it is the only financial investment that is no one else’s liability (and therefore cannot go broke). Our view is that gold should be viewed as a form of currency – and at a time when all paper currencies are being debased – it is the ultimate currency and should form a component of any portfolio.

The BullionGold Facility

The BullionGold Facility is an investment that allows clients to accumulate gold via lump sum or recurring contributions. Recurring contributions are made by way of monthly debit order. A client’s contributions are credited to the client’s own segregated call account established with Nedbank Limited. The client earns preferential rates of interest on cash held in their call account. At any moment that the client’s cash balance is sufficient to fund a purchase of gold, this balance triggers a purchase. The minimum purchase of gold is the prevailing Rand equivalent of the wholesale price of a 1 oz gold bullion Krugerrand. The client enjoys full title ownership of their gold bullion Krugerrands in their BullionGold Facility and therefore runs no credit risk as they would with a bank, unit trust or life company product. For the purposes of ensuring full transparency clients and advisors are provided with full online access to their call accounts so as to be able to review all cash contributions, charges and gold purchases.

IFA platform

With SA Bullion, accredited financial advisors are able to offer their clients a unique investment proposition: full title ownership of physical gold bullion acquired and vaulted at wholesale prices. The SA Bullion Investor Services IFA Platform enables financial advisors to facilitate client investments into physical gold bullion. Financial advisors earn initial fees and annual trail fees in respect of the intermediary function they perform in the beneficiation chain.

IFA PRODUCT PLATFORM FUNCTIONS
• 360 Degree client administration and service
• IFA fee payments and reconciliations
• IFA reporting
• IFA service delivery

Online Functionality

SA Bullion is committed to providing financial advisors with transparency and accountability. The BullionGold Facility has two distinct components, namely, the cash portion which is managed in a segregated call account in the client’s own name with Nedbank, and the gold bullion portfolio which is physical gold bullion in the client’s own name with SA Bullion and vaulted at Rand Refinery Limited.

Nedbank Call Account:

You enjoy online access to your clients’ call accounts where you can view statements and scrutinize all cash movements in respect of all transactions related to the clients’ investments.

Gold Portfolio:

You receive an immediate transaction notification via email confirming the purchase or redemption of your clients’ gold bullion. You receive monthly statements reflecting the market value of your clients’ gold bullion holdings via email.

IFA Fees:

All fees are allocated to your segregated Nedbank call account which you authorise SA Bullion to establish on your behalf to be used as your clearing account. You enjoy full online access to this call account. A weekly commission run transfers your income from your clearing account to your nominated account. In your Nedbank call account you earn wholesale-money rates of interest on your accrued fees. An IT3(b) certificate is issued to you annually in respect of interest earned.

FAIS licensing

According to the Financial Advisory Intermediary Services Act (“FAIS Act”) in order to be eligible as an SA Bullion Investor Services accredited intermediary, the financial adviser is required to hold the following FAIS Licence Category:
Category 1.18 [Deposits defined in the Banks Act, 12 months or less] for both Advice and Intermediary sections.

This licence category requirement is in respect of the client call account operated by SA Bullion Investor Services on behalf of the client with Nedbank Limited.
However, SA Bullion Investors Services is in possession of the Category 1.18 licence and may assume the responsibility of providing the client with advice on the call account and so relieve the financial advisor of this licensing requirement.

Product training and accreditation

SA Bullion Investor Services reserves its rights in providing accreditation to financial advisors. At such time as a financial advisor is approved, SA Bullion Investor Services provides comprehensive product training on The BullionGold Facility. A certificate of accreditation is issued upon completion of the training.

Registration

SA Bullion Investor Services welcomes and encourages all Financial Advisors that are accredited by the Financial Services Board in South Africa. To register please select the Registration button on the drop-down menu in the IFA Platform section.