COSTS AND DISCLOSURE: SANLAM RESPONDS

IN ITS response, Sanlam disputed the annual costs as quoted by the investors. However, Sanlam did not provide the actual figures. It also disputed that the early-withdrawal (termination) charges were not communicated to the investors.

“The [PFA determination] that refers to the fact that we did not initially provide the client with an indication of the termination charges refers to the original quotations of the 1990s. We did provide the client with an indication of the termination charges when he transferred these two policies and combined the proceeds in [a new] policy in 2012. This is explained in 4.2 to 4.6 of the determination.

“The high annual costs of 5.61% that is quoted is a number that the client calculated by adding up some of the charges on his current product. It is not accurate and bears no relation to the actual cost incurred over the term from 1996 to 2018 (which is the context in which this number is used in the article). Even if the number was correct, it also does not provide a true picture of how much of the fee Sanlam actually receives. At that point in time the client was investing in a combination of externally managed investment funds where part of the fee would accrue to them,” Sanlam says.