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Fairheads Group Profile Fairheads Benefit Services is Southern Africa’s leading independent service provider for beneficiary funds and umbrella trusts for retirement funds and testamentary trusts. The company is an authorised financial services provider and 13B licensed administrator. We form part of the prestigious Fairheads group which was founded in 1925 as one of the first trust companies in South Africa. Fairheads Benefit Services grew out of the umbrella trust industry which we helped to pioneer in the late 1980s. The company is independent and owned by executives and staff.

Our Vision To continuously improve our service excellence as Southern Africa’s leading independent service provider.

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Message From The CEO Welcome to Fairheads Benefit Services. We are proud to be Southern Africa’s leading independent service provider of beneficiary funds and umbrella trusts. Thousands of dependants, many of them vulnerable minors, depend on us for the safe management of funds provided to them by loved ones. We never lose sight of this responsibility. As a result of our services, thousands of beneficiaries are able to be educated, often to a tertiary level. The knowledge that we are fulfilling an important role in society helps us to strive for an ever better service. Fairheads continues to play a leading industry role, including interacting with and consulting the regulator on technical and practical matters. We are also the proud recipient of a number of industry awards. We constantly strive to improve our service excellence through technology, development of our people and good communication with all our stakeholders. This brochure describes our company and the way we do business. Please consult our product information material for more information. Richard Krepelka

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Our Services Fairheads Benefit Services helps retirement fund trustees, consultants and administrators to meet the financial needs of dependants and heirs of deceased or disabled members of retirement funds. In this way we contribute to the education, maintenance, advancement and well-being of dependants all over Southern Africa. We offer a combination of administration, trusteeship and consulting services. We also run our own flagship umbrella beneficiary fund and our own flagship umbrella trust under the Fairfund name. Client-centric administration Administration is our core service. We have over 20 years of umbrella trust administration experience, which has been carried over into our beneficiary funds. Our people are key to our services and we continuously invest in training and development. Our in-house IT division ensures that our systems are robust and flexible to ensure that the constant changing needs of our clients are met. We may be administrators but we know that compassion, patience and understanding make the difference in this business. We never lose sight of our real client, who is the dependant/heir or his/her guardian or caregiver. We have walk-in offices in Johannesburg, Durban and Cape Town where beneficiaries and guardians can obtain advice and information on procedures and concepts they may not understand, as well as understanding the fund structures. At such sessions, we often help with basic financial literacy, such as household budgeting. Communication. Fairheads has pioneered guardian roadshows all over Southern Africa. We meet thousands of guardians/caregivers and beneficiaries face to face to educate them about beneficiary funds and umbrella trusts, thus raising the levels of financial literacy and understanding of these products.

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We work hard at member communication and have developed a simple member guide for the benefit of guardians and beneficiaries. We also use sms communication and social media. Tracing. We have an internal tracing team which constantly searches for guardians and beneficiaries with whom we have lost contact. State-of-the-art call centre. Fairheads has a multilingual call centre that handles daily queries from dependants and guardians relating to regular or ad hoc payments, or certificates of existence, or various other services. Complaints. Dedicated administration team members deal with complaints according to our complaints policy and we pride ourselves on resolving complaints on a results-driven basis to the satisfaction of the client. Trusteeship We have extensive in-house trustee experience and, where appropriate, we act as either corporate trustees or individual-sponsor nominated trustees. Trusteeship and fiduciary responsibility have always been the essence of the Fairheads group and they underpin everything else that we do. Consulting and training Retirement fund trustees, intermediaries and administrators are serviced by our consultants in each region through personal visits and presentations. Through our client services offices, training on section 37C benefits and beneficiary funds and trusts are made available to fund trustees, administrators, members, guardians and beneficiaries. We consult with our clients on an ongoing basis, initially on the optimal approach and familiarisation with the way beneficiary funds and trusts work. We assist with matters such as reasonable benefit distribution and guardian competency, and we offer to conduct guardian competency assessments on behalf of clients. We keep abreast of legislative developments and regularly report on these to clients. As part of a wider consumer literacy campaign, we focus on educating members of retirement funds and the wider public about beneficiary and umbrella trust funds. Intermediaries We offer training on products for financial advisers and intermediaries. Intermediaries accredited to market Fairheads products are entitled to remuneration for new business that they introduce.

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Corporate Governance Fairheads Benefit Services prides itself on high standards of governance. In many instances, we have led the way for the industry. The following are some of the basic reassurances we can give our clients: • All beneficiary funds and umbrella trusts are subjected to an annual audit by independent auditors. The latest financial statements are available to our clients. • Both The Fairfund Umbrella Beneficiary Fund and The Fairfund Trust have independent professional trustee representation. • The Fairfund Umbrella Beneficiary Fund has an appointed independent principal officer. • The relationship between trustee and administrator is governed by an administration agreement. • A service level standard between the retirement fund and the fund administrator determines the expected service level. • The trustees appoint independent asset managers in consultation with appointed independent asset consultants. • An investment policy statement is approved by the board. • We have an internal audit, risk and compliance committee. There is a risk management policy in place and a compliance report is submitted to the FSB annually. • Both the compliance and internal audit divisions monitor compliance with legislation and service level agreements, whilst internal audit focuses on risk management. • We have a superior information technology platform and a comprehensive disaster recovery plan. • We have a complaints resolution policy which complies with FAIS legislation and pension fund legislation. • Fairheads International Holdings of which Fairheads Benefit Services is a subsidiary company carries comprehensive cover in terms of Bankers Blanket Bond/Computer Crime and Professional Indemnity as well as Directors and Officers liability. • In addition to the administrator carrying comprehensive cover, it is also a requirement of the Pension Funds Act that the beneficiary fund carries sufficient fidelity cover. Proof of cover is available on request.

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Our Communities Our people Fairheads Benefit Services is committed to corporate transformation. Over the decades, we have always had a strong focus on empowering and developing our people. We recruit through affirmative action and empower previously disadvantaged individuals at all levels of the company through extensive inhouse and outsourced training programmes. We also encourage our staff to study formally with the full financial support of the company. Enterprise development Broad-based black economic empowerment (B-BBEE) is an ongoing process. We maintain a level 3 contributory recognition level in terms of our B-BBEE scorecard. Fairheads has partnered with The Business Place network (TBP), a network of eight business places located nationally in Southern Africa. TBP operates in the economic sector which has the potential to significantly address unemployment and poverty. Support for this massive job creation sector is vital and Fairheads is proud to fund various projects for TBP as part of our commitment to enterprise development. Corporate social investment We provide management, administration and financial assistance to several non-profit organisations through the Fairheads Development Foundation, a registered public benefit charitable organisation. The investment themes are youth, education and health. Our projects include the Fairheads/UCT Clanwilliam Arts project, The Kliptown Youth Program, SA Medical and others. In addition, our staff are involved in several community initiatives including Santa Shoebox, the Winter Blanket Campaign and One Day Without Shoes.

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Beneficiary I’m about to build my future with the help I got from Fairheads, I properly thank Fairheads benefits. Fund trustee Thank you so much for your thorough feedback on my queries. Guardian I do get good correspondence from Fairheads and I phone for any help they do help me. Keep up the good work it’s for our kids Financial services group I would like to thank the trust for its loyalty throughout the years. Intermediary Such a breath of fresh air to receive good service. Beneficiary I’m writing this letter from the bottom of my heart and soul because I’m happy and impressed by the service you offer in your company, the best management teams you have there. Guardian For me it has been good and I would recommend this service for everyone. Caregiver They are there over the phone should the need arise. Beneficiary I would like to say thank you for the support you u gave last year for paying my school fees. I promise I won’t let u down also this year. I will also be happy if you can continue to pay for my studies this year; it will be a pleasure for me. Guardian Tell me if John wants to book his driver’s licence can he apply for the money through the Trust , can I get a invoice ready or how will we deal with it? Guardian I think we need more workshops so that each person would understand better and I think it will help us if we get the statement after 6 months, and the workshops does help me a lot.


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Beneficiary call centre 0860 102 919 (share call) CAPE TOWN Tel +27 21 410 7500 | Fax +27 21 410 7995 E-mail benefitservices@fairheads.com SANDTON Tel +27 11 883 9755 | Fax +27 11 883 4791 E-mail madi@fairheads.com JOHANNESBURG Tel +27 11 491 6247/50 | Fax +27 11 838 3035 E-mail davis@fairheads.com DURBAN Tel +27 31 368 9260 | Fax +27 31 368 9270 E-mail andile@fairheads.com www.fairheads.com

Authorised financial services provider


Fairheads Corporate Brochure