IFM-itransact fund managers

Untraceable Investors Policy

Introduction

Itransact Fund Managers (RF) (Pty) Ltd (“IFM”) in its commitment to good business practice, treating of customers fairly and transparency when dealing with investor’s assets has adopted the Untraceable Investors Policy.

The policy is applicable in the event  that IFM  becomes  unable to make successful contact with the client using conventional communication methods, this document sets out the IFM policy in accordance with good industry practice.

Scope

This policy applies to all divisions, sub-division and employees within IFM, it applies to all information sources created and received by IFM and its employees, regardless of the format or media type.

Purpose

The purpose of this policy is to outline  IFM’s standard and procedure for tracing clients, who still have assets held by IFM and have not been able to make successful contact with them using conventional communication methods.

Objectives

The aim of this policy is:

  1. To ensure that the client’s right to the investment remains intact until the client has been found/located.
  2. To enhance tracing procedures as to keep untraceable clients at a minimum level as far as possible.
  3. To enhance disclosure to clients in respect of the treatment of untraceable
  4. To achieve consistent treatment, as far as practically possible, of untraceable clients.

Tracing

Where the client has been identified as untraceable, a standard minimum tracing process is applicable, within set time frames. IFM’s standard tracing process is:

Within the first 6 months
  1. Attempt to contact the investor to advise them, about the available assets.
  2. If unsuccessful in contact, determine last known contact information and address of the customer with reference to the IFM database.
  3. Compare internal database with an external database.
  4. Block the units and terminate all further transacting until the client has been found.
Within 3 years
  1. Repeat the “Within the first 6 months” process.
  2. If contact has been made and the client informed of the claim within the 3 years, but the client has not acted, no further attempts will be made to obtain the documentation and the units will remain blocked.
Within 10 years
  1. Repeat the “Within 3 years” process.
  2. If the client cannot be contacted then an external tracing company needs to be requested to the trace the client, unless an external tracing company has been utilized prior to this check.

IFM will take all reasonable steps, including but not limited to a thorough search of all internal client databases as well as utilising the information and services provided by external databases or tracing agencies, where appropriate, to contact the client.

Administration costs

Any reasonable direct administrative and tracing cost(s) are to be incurred by IFM. The cost(s) will not be charged against the portfolio. The cost(s) may be recovered from the client by a deduction from the value of the investment, but only once the client has been located.

Tracing of the owner of an investment may cease where the value of the investment is less than R1,000 and if the cost of tracing exceed the benefit of tracing.

Retaining of records

IFM will retain records that will allow the tracing process to be audited and verified by the company’s internal compliance function, such will also be made available to the client in the event they re-establish contact, a third party with an interest to the assets and the Regulator.

Disclosure

New Business stage
  • The IFM new business terms and conditions must include appropriate information on untraceable clients.
  • It must be clear that the client is and will remain responsible for ensuring that their contact information is kept up to date.
  • IFM will disclose the actions to be taken to trace a client in the event of the existing contact information being outdated.
  • IFM will expressly indicate that all reasonable direct administrative, tracing and management costs associated with the tracing of the investor, will be recovered by a deduction from the value of the investment once the customer has been located.
  • IFM will obtain the client’s consent to use the client’s available personal information to facilitate tracing where required in the future. Such consent must allow for sharing of personal information and ensure compliance with the Protection of Personal Information legislation.
Ongoing – Existing Customers
  • Annual communication to clients will include appropriate information on untraceable clients.
  • The disclosure needs to make it clear that the client is and remains responsible for ensuring that their contact information is kept up to date.
  • Disclosures need to include a reference to the costs applicable to the tracing of unidentified investors.

Client education

Appropriate information must be made available to clients, including the process to be followed to update personal contact information, on the IFM website.

Policy oversight responsibilities

IFM senior management, is the ultimate responsible person for the application of this policy, and to review this policy on a regular basis to ensure that it continues to comply with the legislative requirements for untraceable investors. Senior Management is also responsible to communicate the company’s policy to all employees, officers, directors, representatives and advisors of the company.

All staff have a responsibility to create and maintain full and accurate records of activities, transactions, and decisions carried out during the course of daily business activity, and to comply with the organisation’s documented untraceable investors policies and procedures.

Policy definitions

“Investigation” means (i) an investigation pertaining to the IFM activities, IFM resources or IFM employees where their relationship to or activities at IFM may bear on the investigation, which includes but is not limited to an investigation by or on behalf of: any government entity; any regulatory or legal oversight; IFM itself; or a private person or entity relating to IFM or IFM employee that could lead to litigation or the filing of a complaint with IFM, a government entity or regulatory or legal oversight authority; or (ii) any other investigation where the IFM or IFM employee hold records that are relevant to such investigation.  An investigation includes not only an existing investigation but also includes situations where IFM or IFM employee have notice, should know or reasonably can anticipate a future investigation.

“Legal hold” means a written (which may be by email or other electronic means) directive issued by the Business Unit Head directing the retention of records related to an investigation or litigation.

“Litigation” means (i) any legal proceeding to which IFM or any IFM employee in their capacity as IFM employee is a party or a witness that is brought in any court, alternative dispute resolution forum or administrative agency; or (ii) any other legal proceeding where IFM or IFM employee hold records that are relevant to such legal proceeding.  Litigation includes not only existing litigation but also includes situations where IFM or IFM employee have notice, should know or reasonably can anticipate future litigation.

“Non-record” means information that would have been a record, however its formal designation is a non-record.  Non-records include blank forms, and publications and periodicals of general circulation (including newspapers and magazines).  In the absence of an investigation, litigation or legal hold, non-records also includes duplicate copies of records, drafts of documents, items containing information where the nature, content and/or source of the information is not readily identifiable and messages or communications containing information that is short-lived or that contains information of negligible or non-existent permanent administrative value, including without limitation, telephone message slips, self-sticking notes and voice mail communications, provided that such information does not constitute portions of any IFM record and is not otherwise required to be maintained.  Non-records include other items designated as non-records from time to time by the relevant Business Unit Head.

“Record” means recorded information in any form, regardless of physical form or characteristic, generated or received by or on behalf of IFM or IFM employee in their capacity as IFM employee and includes information pertaining to IFM activities or IFM resources.  A record includes all original documents, papers,  clinical readings, cards, books, maps, photographs, blueprints, sound or video recordings (e.g., records, CD’s, DVD’s, audiotape, videotape), microfilm, magnetic tape, electronic media (including information store on computers), emails and other media for recording information.  Original documents means the electronic, digital, microfilmed or other preserved or archived non-hard copy of records where IFM has expressly authorised in writing the destruction of original records.

Personal information broadly means any information relating to an identifiable, living natural person or juristic person (companies, CC’s etc.) and includes, but is not limited to:

  • contact details: email, telephone, address etc.;
  • demographic information: age, sex, race, birth date, ethnicity etc.;
  • history: employment, financial, educational, criminal, medical history;
  • biometric information: blood type etc.;
  • opinions of and about the person;
  • private correspondence.

 “IFM activities” means any and all activities, operations, or undertakings, whether undertaken directly or indirectly, by IFM or any IFM employee in their capacity as IFM employee, including without limitation, any IFM programs, operations, and/or services.

“IFM facilities” means any and all facilities owned, leased, licensed or otherwise in the possession of IFM.

“IFM funds” means funds that are owned, held in trust by or for, or administered by IFM, regardless of their origin.  Such funds include, but are not limited to, IFM operating funds, board-restricted funds, investment funds, endowments, amounts received by IFM from contracts or grants, including sub-contracts or sub-grants, amounts received by IFM from contributions, gifts or awards and any income resulting from them.

“IFM employee” means trustees, directors, officers, members of board committees, employees of IFM, trainees, volunteers, observers, contractors, and any other persons who are formally associated with the IFM for the purpose of overseeing or engaging in any activity, operation or undertaking of IFM or for or on behalf of IFM that involves the creation or use of IFM records, and other persons designated by the CEO or his/her designee.

“IFM resources” means IFM facilities, IFM funds, property or other tangible or intangible assets or resources of IFM, such as furniture and equipment, owned, leased, licensed or otherwise in the possession of IFM, IFM inventory and supplies, intellectual property owned, licensed or otherwise in the possession of IFM, and/or IFM employee during periods when IFM employee are acting within the scope of their relationship with IFM or are using IFM facilities, IFM funds, or other IFM resources, including without limitation other IFM employee.