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SARB (South Africa Reserve Bank) and PASA (Payments Association of South Africa) implemented a rule that says every bank must follow the Debit Order Abuse Rules process.
True
As Sanlam, we need to ensure that we have written instruction and permission to debit clients’ accounts (known as a mandate).
True
Information on application forms must be complete and 100% accurate in order for us to be allowed to collect premiums.
True
The ... needs to explain this mandate to the client and ensure that they understand what it means
Financial Advisor
A mandate is a written instruction giving Sanlam Sky permission to collect premiums from a client’s bank account (SDO) or directly from the salary (STO) on a specific date chosen by the client.
True
Companies who debit client’s bank account will be monitored by PASA to ensure that they do not exceed a maximum of 50% of disputes.
False, 0.05%
Failure to complete the stop order mandate accurately may result in Sanlam Sky losing its license to collect premiums directly from government employees’ salaries.
True
A completed mandate gives us written instruction and permission to collect the premiums from the client.
True
A completed mandate forms part of our contract with the client and is also a regulatory requirement.
True
In the event of a client disputing a deduction, Sanlam Sky will be able to prove that the deduction was valid.
True
The ... needs to make sure that application form and the mandatory fields are completed in full.
True
It is important that you complete your mandates accurately so that you or the branch, do not face this harsh penalty.
True
ABSA will be conducting the audits and will fine Sanlam R 1 000 per failed mandated. This amount will be passed down to the branch and possibly the adviser as well.
True
An advisor is allowed to sign the form on behalf of the client.
False
Reduced NTU’s, Improved persistency and Minimized commission clawbacks are the benefits of completing the mandate form correctly.
True
Wherever you see a * on the form, the field contributes to what makes a mandate valid and so it must be completed accurately.
True
