Product Providers & Associates
Finsolnet and Sygnia
Findata and Finsolnet — Our association
To enhance service delivery, reduce costs and improve the quality of benefits and products offered, Findata started Finsolnet (Pty) Ltd in 2004. Finsolnet is a network of independent financial professionals who remain independent but combine their resources and work together. As an associate of Finsolnet, we participate and benefit from the combined resources and knowledge of this select group of specialists to:
- Develop, benchmark and standardize best practice solutions.
- Establish economies of scale to reduce cost.
- Manage on-going due diligence, product and performance reviews of products and product providers.
- Inform and fully disclose all costs related to financial and other solutions.
Sygnia as investment manager of Finsolnet strategies
The strategies are managed by Sygnia, South Africa's second largest institutional investment manager with more than R130 billion under management. The real return investment strategies have distinct real return, risk and term mandates that are applied in accordance with the client's risk profile and needs. The Finsolnet strategies and Sygnia's involvement ensure that client investment expectations can be managed better. Sygnia's appointment assures customers that:
- Investment performance is not dependent on any single individual or institution.
- Strategic and tactical investment decisions are done in a timely matter
- The continuous management of asset allocation which ensures optimum performance in accordance with the respective mandates.
- Economies of scale and cost effective management is achieved by institutional fees and segregates investment mandates
- Adjustments to the investment strategies happen seamlessly with little exposure to Capital Gains Tax
Managing potential conflict of interest
Finsolnet associates regularly review the offering of all service providers. We are confident that the Finsolnet solutions currently offer the best value for investors. Consequently we use Finsolnet as preferred provider of our investment solutions. It should also be noted that:
- Finsolnet is a company that uses the economies of scale of collaboration to develop better products for the Finsolnet associates.
- The membership fee of Finsolnet associates is the company's only income.
- Finsolnet is totally independent. The shares are in a trust and no outside body can control Finsolnet.
- Finsolnet is managed by associates on a break-even basis to minimize cost. Associates do not receive any profit share, incentives or rewards.
- Associates may receive a rebate from the portfolio administrators. This fee, however, is fully disclosed and is funded from the savings generated by the economies of scale of the structured solutions.
Findata is independent and we may also, where appropriate and to the benefit of the client, offer clients a range of solutions and products from other service providers such as insurance companies, unit trusts, asset managers and investment houses. See below for a complete list of product houses that Findata represents.
Findata Financial Services (Pty) Ltd is registered with the following product providers:
- Allan Gray
- Close Trustees
- Fairbairn Trust Company
- Old Mutual
- Royal Skandia
Financial planning requires a multi-discilinary approach to ensure integrated best practise solutions. In support of our extensive in-house qualifications and experience Findata uses carefully selected specialist associates to support their planning services where necessary.
Our clients are under no obligation to make use of our associates. Where clients have existing relationships with specialist providers (e.g. accountant, tax practitioner, lawyer) Findata will engage with them in order to provide clients with integrated advice.
Continuity, service and security
To ensure continuity of service delivery, Findata continually recruits and trains suitably qualified staff and advisors. Findata’s services are process driven to ensure that no one individual can adversely affect planning solutions. Individual advisors and staff give advice within the constraints of the Findata, Finsolnet and FSB advisory and compliance guidelines.
No client’s funds may at any time be invested in any account of Findata or be exposed to creditors of any investment product provider. Investments may only be transferred to the collective investment trust accounts of our participating investment associates.