Compliance · FAIS
Conflict of Interest Management Policy
This Policy sets out how OneCompare (Pty) Ltd identifies, avoids, mitigates, manages, and discloses actual and potential conflicts of interest in the course of rendering financial services to clients. It is adopted in accordance with section 3A(2)(a) of the General Code of Conduct for Authorised Financial Services Providers and Representatives, under the Financial Advisory and Intermediary Services Act, 2002.
Contents
- 1.Policy statement and purpose
- 2.Application
- 3.Definitions
- 4.How conflicts of interest may arise in OneCompare’s business
- 5.Treating Customers Fairly and our guiding principle
- 6.How we identify conflicts of interest
- 7.How we avoid and mitigate conflicts of interest
- 8.List of third-party relationships and the financial interests received
- 9.Gifts, hospitality, and the immaterial financial interest threshold
- 10.Sign-on bonuses and similar arrangements
- 11.Consequences of non-compliance with this Policy
- 12.Internal procedures, controls, and oversight
- 13.Publication and availability
- 14.Amendments to this Policy
- 15.How to raise a concern about a potential conflict
- →Contact us about this Policy
1.Policy statement and purpose
OneCompare (Pty) Ltd ("OneCompare", "we", "us", "our") is an authorised Financial Services Provider (FSP 55551) authorised by the Financial Sector Conduct Authority (FSCA) under the Financial Advisory and Intermediary Services Act, 37 of 2002 ("FAIS"). We operate a car insurance comparison and policy review service for South African drivers.
This Conflict of Interest Management Policy ("Policy") is adopted in accordance with section 3A(2)(a) of the General Code of Conduct for Authorised Financial Services Providers and Representatives, 2003 ("General Code"), promulgated under the FAIS Act. The FAIS Act and the General Code require every FSP to adopt, implement, and maintain a written Conflict of Interest Management Policy.
The purpose of this Policy is to:
- Set out OneCompare’s commitment to rendering unbiased and fair financial services to clients in line with the Treating Customers Fairly ("TCF") outcomes prescribed by the FSCA.
- Identify potential or actual conflicts of interest that may arise between OneCompare, its employees, its representatives, its third-party relationships, and its clients.
- Establish the measures we take to avoid conflicts of interest where possible, and to mitigate, manage, and disclose them where they cannot be avoided.
- Document the consequences of non-compliance with this Policy for employees and representatives of OneCompare.
- Provide clients and other stakeholders with transparent information about how OneCompare manages conflicts of interest in the conduct of its business.
2.Application
This Policy applies to OneCompare (Pty) Ltd, all employees of OneCompare, all key individuals and representatives (as those terms are defined in FAIS), and all persons acting in any other capacity on behalf of OneCompare in the rendering of financial services.
All persons to whom this Policy applies are required to read it, to comply with it, and to assist OneCompare in identifying, avoiding, mitigating, and disclosing conflicts of interest in the rendering of financial services to clients.
3.Definitions
The following terms used in this Policy carry the meanings given to them in the General Code of Conduct. Where a term is defined in the General Code, the meaning given here is the meaning in the General Code at the time this Policy was adopted, and any subsequent amendment to the General Code definition will apply to this Policy with effect from the date of the amendment.
3.1"Associate"
In relation to a natural person, "associate" means:
- A person who is recognised in law or under the tenets of religion as that person’s spouse, life partner, or civil union partner.
- A child of that person, including a stepchild, an adopted child, and a child born out of wedlock.
- A parent or stepparent of that person.
- A person legally responsible for managing the affairs of, or appointed by a court to manage the affairs of, that person.
- A spouse, life partner, or civil union partner of any of the persons referred to in the four points above.
- A person with whom that person is in a commercial partnership.
In relation to a juristic person which is a company, "associate" means any subsidiary or holding company of that company, any other subsidiary of that holding company, and any person who controls the management of the company. In relation to a juristic person other than a company, "associate" means another juristic person whose board of directors or equivalent body acts in accordance with the directions or instructions of the first-mentioned juristic person, and any trust controlled or administered by that person.
3.2"Conflict of interest"
A "conflict of interest" means any situation in which a provider or a representative has an actual or potential interest that may, in rendering a financial service to a client, influence the objective performance of his, her, or its obligations to that client, or prevent a provider or representative from rendering an unbiased and fair financial service to that client, or from acting in the interests of that client. This includes, but is not limited to, a financial interest, an ownership interest, and any relationship with a third party.
3.3"Financial interest"
A "financial interest" means any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, or other incentive or valuable consideration, but does not include:
- An ownership interest.
- Training (other than training that is offered in a manner that may be construed as an inducement to render a particular financial service), on products and legal matters relating to those products, on general financial and industry information, on specialised technological systems necessary for the rendering of a financial service, but excluding travel and accommodation associated with such training.
3.4"Immaterial financial interest"
An "immaterial financial interest" means any financial interest with a determinable monetary value, the aggregate of which does not exceed R1,000 (one thousand Rand) in any calendar year from the same third party in that calendar year, received by a provider who is a sole proprietor, or a representative for that representative’s direct benefit, or by a provider who, for its benefit or that of some or all of its representatives, aggregates the immaterial financial interest paid to its representatives.
3.5"Ownership interest"
An "ownership interest" means any equity or ownership interest for which fair value was paid by the owner at the time of acquisition, other than an equity or ownership interest held as an approved nominee on behalf of another person. It includes any dividend, profit share, or similar benefit derived from that equity or ownership interest.
3.6"Third party"
A "third party" means a product supplier, another provider, an associate of a product supplier or a provider, a distribution channel, or any person who, in terms of an agreement with a person referred to above, provides a financial interest to a provider or its representatives.
4.How conflicts of interest may arise in OneCompare’s business
OneCompare’s business model differs from that of a typical insurance broker in several material respects. The following clarifications inform how conflicts of interest may, or may not, arise in our business:
4.1We primarily act as an intermediary
OneCompare primarily acts as an intermediary as defined in FAIS. Each insurance contract you take out as a result of using our Services is concluded directly between you and the relevant insurer.
4.2We do not collect premiums
OneCompare does not collect, hold, or administer premium payments on behalf of any insurer or policyholder. All premiums are paid directly by the policyholder to the insurer in accordance with that insurer’s collection arrangements. This materially reduces the scope for fiduciary or trust-account conflicts that can arise where an intermediary holds client money.
4.3We do not charge clients a fee
Our comparison and policy review Services are provided to clients free of charge. We do not invoice clients, and clients do not pay us directly for our Services. This removes the conflict that can arise where an intermediary charges a fee to a client in addition to receiving commission from a product supplier.
4.4How OneCompare earns its income
OneCompare earns its income through commercial arrangements with insurance partners on its panel. These arrangements may include commission on policies sold, lead-generation fees, marketing-co-funding arrangements, and similar standard intermediary remuneration permitted under the Insurance Act and Policyholder Protection Rules.
The existence of these commercial arrangements creates the principal category of conflict of interest that this Policy is designed to identify, avoid, mitigate, manage, and disclose.
4.5The conflict in plain terms
A conflict could arise if OneCompare were to recommend or favour an insurer simply because that insurer pays a higher commission or other financial interest, rather than because that insurer offers the most appropriate cover or pricing for the client. This Policy addresses that risk directly through the avoidance, mitigation, and disclosure measures set out in sections 6, 7, and 8.
5.Treating Customers Fairly and our guiding principle
Our overarching principle in managing conflicts of interest is the Treating Customers Fairly framework, in particular the following TCF outcomes prescribed by the FSCA:
- TCF Outcome 1: Customers can be confident they are dealing with a firm where the fair treatment of customers is central to the firm culture.
- TCF Outcome 2: Products and services marketed and sold in the retail market are designed to meet the needs of identified customer groups and are targeted accordingly.
- TCF Outcome 3: Customers are provided with clear information and kept appropriately informed before, during, and after the point of sale.
- TCF Outcome 4: Where customers receive advice, the advice is suitable and takes account of their circumstances.
- TCF Outcome 5: Customers 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.
- TCF Outcome 6: Customers do not face unreasonable post-sale barriers to change product, switch provider, submit a claim, or make a complaint.
Where a course of action would advance one or more TCF outcomes for the client, that course of action will take precedence over any commercial benefit to OneCompare, an employee, or a representative.
6.How we identify conflicts of interest
OneCompare has implemented the following reasonable mechanisms to identify actual and potential conflicts of interest:
- A documented onboarding process for new insurance partners, which includes review of the proposed remuneration structure against the rest of our partner panel.
- A periodic review of all third-party relationships and the financial interests received from each, conducted at least annually by our compliance function.
- A declaration register in which employees, key individuals, and representatives disclose any financial interest, ownership interest, or relationship with a third party that may give rise to a conflict.
- A review of our quote-engine and policy review logic to ensure that quotes are presented to clients on a consistent basis across our insurance panel, and that no insurer is shown preferential placement that is not justified on objective grounds.
- A training programme for employees and representatives covering this Policy, the General Code of Conduct, and the TCF outcomes.
7.How we avoid and mitigate conflicts of interest
Where OneCompare identifies an actual or potential conflict of interest, the hierarchy is: first avoid; if avoidance is not possible, mitigate; and where the conflict cannot be avoided or mitigated, disclose.
7.1Avoidance
Where reasonably possible, we avoid placing OneCompare or any employee or representative in a position where a conflict of interest is likely to arise. This includes a prohibition on accepting any financial interest from a third party that exceeds the immaterial financial interest threshold prescribed by the General Code (currently R1,000 per calendar year from the same third party), other than commission and remuneration that is permitted under the Insurance Act and the Policyholder Protection Rules.
7.2Mitigation
Where a conflict cannot be avoided, we mitigate the impact through one or more of the following:
- Separating functions internally so that the person assessing or presenting a quote is not the person who negotiates the commercial arrangement with the relevant insurer.
- Reviewing the recommendation or service rendered to the client to confirm that the client’s interest has been served.
- Ensuring that all insurance partners on our panel are presented to clients on a consistent basis using the same logic and the same client information.
- Ensuring that any non-standard placement (for example, a banner promoting a specific insurer) is supported on objective grounds (such as a special offer to clients) and is disclosed as such.
7.3Disclosure
Where a conflict cannot be avoided or fully mitigated, OneCompare will disclose the conflict to the client at the earliest reasonable opportunity, in plain language, and with sufficient detail for the client to make an informed decision about whether to proceed with the service. Disclosure does not, on its own, cure a conflict. It supplements the avoidance and mitigation measures above.
8.List of third-party relationships and the financial interests received
OneCompare maintains a register of all third parties from which it receives a financial interest, and the nature of that financial interest. The register is available to clients on request at legal@onecompare.co.za. At the date of adoption of this Policy, OneCompare’s third-party relationships fall into the following categories:
- Insurance partners on our panel, from which OneCompare may receive commission, lead-generation fees, marketing co-funding, or other standard intermediary remuneration in respect of policies taken out by clients introduced through our Services.
- Vehicle tracking providers, from which OneCompare may receive a commission or referral fee in respect of tracker installations resulting from referrals through our Services.
- Service providers and operators (such as hosting, email delivery, and analytics) which receive payment from OneCompare for services rendered to OneCompare. These relationships do not give rise to conflicts of interest in respect of clients.
OneCompare does not hold any ownership interest in any insurer or tracking provider on its panel at the date of adoption of this Policy. If any such ownership interest is acquired in future, it will be disclosed in this Policy at the next review.
9.Gifts, hospitality, and the immaterial financial interest threshold
Employees, key individuals, and representatives of OneCompare may not accept any gift, hospitality, or other financial interest from a third party that exceeds the immaterial financial interest threshold prescribed by the General Code (currently R1,000 in aggregate per calendar year from the same third party), other than:
- Commission and other remuneration permitted under the Insurance Act and the Policyholder Protection Rules.
- Training (other than training that may reasonably be construed as an inducement to render a particular financial service), and provided that any travel or accommodation associated with the training is paid for by OneCompare and not by the third party.
Any gift, hospitality, or other financial interest received from a third party must be declared by the recipient on the OneCompare gifts and hospitality register, irrespective of whether the value exceeds the immaterial financial interest threshold. The register is reviewed by the compliance function quarterly.
10.Sign-on bonuses and similar arrangements
OneCompare does not currently provide, and does not currently receive, sign-on bonuses to or from representatives or third parties. Should this position change, the General Code’s requirements in respect of sign-on bonuses will be observed, including the requirement to disclose any such arrangement to affected clients in the manner prescribed.
11.Consequences of non-compliance with this Policy
Non-compliance with this Policy by an employee, key individual, or representative of OneCompare is treated as a serious matter. Depending on the nature and seriousness of the non-compliance, consequences may include:
- A formal warning recorded on the employment file.
- Suspension from rendering financial services pending investigation.
- Termination of employment in accordance with applicable labour law.
- Where appropriate, referral to the FSCA, the Financial Intelligence Centre, the National Prosecuting Authority, or other competent authority.
OneCompare will take appropriate disciplinary, civil, or criminal action against any employee, key individual, or representative who knowingly breaches this Policy.
12.Internal procedures, controls, and oversight
The compliance function is responsible for the implementation, oversight, and periodic review of this Policy.
- This Policy is reviewed and updated at least annually, and sooner where a material change occurs in OneCompare’s business, third-party relationships, or applicable law.
- Compliance with this Policy is monitored on an ongoing basis through review of the gifts and hospitality register, the third-party relationships register, and the records of client interactions.
- All employees, key individuals, and representatives receive training on this Policy at the time of onboarding and at least annually thereafter.
- The compliance function reports to OneCompare’s board of directors at each board meeting on conflicts of interest identified during the reporting period, and on the measures taken to avoid, mitigate, manage, and disclose them.
13.Publication and availability
This Policy is published on OneCompare’s website at www.onecompare.co.za/conflict-of-interest, and is accessible from the website footer alongside the Privacy Policy and the Terms of Use. A copy of this Policy is provided free of charge to any client or other stakeholder on request to legal@onecompare.co.za.
14.Amendments to this Policy
This Policy may be amended from time to time to reflect changes in OneCompare’s business, third-party relationships, or applicable law. The current version is always published on the Website with the "Last updated" date shown at the top. Where the changes are material, we will draw them to the attention of affected clients by direct communication.
15.How to raise a concern about a potential conflict
If you, as a client, are concerned that an actual or potential conflict of interest has not been properly identified, avoided, mitigated, or disclosed by OneCompare, please write to legal@onecompare.co.za with the details of your concern. We will acknowledge your concern within five business days, and we will investigate and respond within the timeframes set out in our complaints policy.
If, after our response, you remain dissatisfied, you have the right to refer your complaint to the FAIS Ombud (https://faisombud.co.za) or to the Financial Sector Conduct Authority (https://fsca.co.za).
Contact us about this Policy
For any question or concern about this Conflict of Interest Management Policy, or to request a copy of our third-party relationships register, please write to legal@onecompare.co.za. We will respond within five business days.