TREATING CUSTOMERS FAIRLY POLICY STATEMENT
Treating customers fairly is at the core of Catalyst Fund Manager’s (Catalyst)* culture. As such, Catalyst is committed to ensuring that the Financial Sector Conduct Authority’s initiative of “Treating Customers Fairly” (TCF) is embedded in all areas of our business that our customers remain confident that we provide an investment relationship that remains open and honest at all times and that all Catalyst’s products continue to adequately address their needs.
(* includes Catalyst Fund Managers (Pty) Ltd, Catalyst Fund Managers Global (Pty) Ltd, Catalyst Fund Managers SA (Pty) Ltd and Catalyst Fund Managers Alternative Investments (Pty) Ltd)
Our clients are our most valuable asset and our aim is to:
- Protect the interests of our clients at each stage of the investment process, from the very first meeting through to the regular reviews.
- Endeavour to meet our clients’ expectations of high-quality outcomes.
Our TCF Policy is centred around the Financial Sector Conduct Authority’s guidelines and the six outcomes produced, of which we have adopted five:
- Outcome 1: Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.
- Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
- Outcome 3: Customers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
- Outcome 4: Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard and as they have been led to expect.
- Outcome 5: Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.
Catalyst aims to achieve these desired outcomes of TCF by striving to ensure that specific, clearly articulated fairness outcomes for our customers are demonstrably delivered and that our customers are supplied with appropriate financial products and services and that enhanced transparency and discipline within our firm will result in ongoing customer confidence:
- We do not provide investment advice.
- We will disclose all costs and risks involved with the purchase of any product.
- We will ensure that all Conflicts of Interest are clearly disclosed to enable the client to make an informed decision.
- We will ensure that all client communications are clear and concise.
- We will ensure that all Authorised Representatives have received necessary training to attend to their duties effectively.
- We will continuously ensure that all staff members fully understand the Five Outcomes detailed above.
- We will listen to client feedback and will deal with any complaints timeously.
- We will ensure that a mandate or agreement is signed between ourselves and the client detailing the extent of our discretionary services.
- At least quarterly we will send a report to all discretionary clients detailing progress made during the quarter on investments.
- We will ensure that authority is obtained for Personal Account Trading and that no such trading takes place until authority has been obtained.
- Where a breach of mandate has taken place, we will rectify the situation so that the client is not prejudiced.
- We will ensure that no Insider Trading takes place.
- We will ensure that detailed fund fact sheets are produced monthly for funds being managed clearly detailing composition, costs and performance.
TREATING CUSTOMERS FAIRLY – embedding TCF principles
Outcome 1: Consumers can be confident that they are dealing with firms where the fair treatment of customers is central to the corporate culture.
- Our staff and shareholders are all co-investors into the Catalyst Funds. Client service and management fees impact us as much as our clients. We therefore have an incentive to get these two key elements right.
- Consistency in our approach to investment management and our longevity as a company focussed solely on Real Estate.
- Reputation of the business and quality of staff compliment. Nearly 90% of staff are members of a professional body where adherence to a Code of Conduct is required i.e. CA(SA) or CFA charter holder.
Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified consumer groups and are targeted accordingly.
- We do not believe in ‘sales’ or targeted marketing. Our marketing approach is through word of mouth and through sophisticated Independent Financial Advisors discussions and meetings.
- Our target market is very specific, listed real estate investors, so there is no ambiguity in our message to clients or confusion around the sector we are promoting.
Outcome 3: Customers are provided with clear information and are kept appropriately informed before, during and after the point of sale.
- Single sector focus reduces any confusion around the product that we are ‘selling’.
- Fees are negotiated before any contract is agreed.
- Regular client feedback is provided through monthly reporting and at least an annual face-to-face feedback session.
Outcome 4: Consumers are provided with products that perform as firms have led them to expect, and the associated service is of an acceptable standard as they have been led to expect.
- Catalyst does not make specific forecasts on how we expect a fund to perform.
- Catalyst does not offer advice to clients.
- Client service levels are contractually agreed and subsequently monitored.
- Catalyst provides historic performance as a reference but is effusively clear that this is not an indicator of future performance.
Outcome 5: Consumers do not face unreasonable post-sale barriers imposed by firms to change product, switch provider, submit a claim or make a complaint.
- All client agreements/contracts are explicit in the manner and timing in which a client can change products, make a redemption or close their account
- Readily available complaints policy consistent with industry standard.
Approved by the Board of Directors