IGrow is Fully FAIS-compliant
In South Africa, retirement fund advice, the legalities surrounding it, and the guidance offered regarding property investment are overseen by the Financial Advisory and Intermediary Services (FAIS) Act No. 37 of 2002. This law requires that any person or entity that offers financial advice or related advice must hold a license and follow the required codes of conduct.
The FAIS Act is in place to protect any consumer by mandating that advisory people advise others based on integrity, offering appropriate advice and disclosing any relevant information. The advice we give to retirees on property portfolios and retirement plans has to be by a qualified person/people who follow the legal requirements of the FAIS Act. (Source)
The Pension Funds Act No. 25 (Regulation 28) explained
If we look at retirement planning regulations, specifically, “the Pension Funds Act No. 25 of 1956, [focussing on] Regulation 28,” this can be seen as another important legal concern to account for. This rule makes sure that retirement fund investments are diversified and properly managed. Regulation 28 states that the maximum exposure limits applied to certain asset classes include a cap on property investment that falls under a retirement fund’s portfolio. (Source)
According to the South African government, “Regulation 28 [current regulation rules] prescribes maxima for various types of investment that may be made by a retirement fund…Not more than 25 percent may be invested in property.” (Source).
The aim of Rule 28 is to foster diversification, manage risks and keep the interests of fund members a priority. In offering advice on retirement funding that has a property portfolio component, it is essential to comply with these legalities.
However, this only applies to retirement funds or annuities as traditional investment vehicles that typically involve a company investing people’s monthly retirement contributions in a shared fund, which might include stocks as well as property, which pays out monthly amounts when the person reaches retirement age. It does not apply to you investing in a property portfolio independently, as you do with IGrow, where you retain ownership of the property in your own name, or in a company or trust and draw rental income or income from reifinancing your properties once you have retired (we would recommend these structures for efficient tax and estate planning for your property portfolio).
How does the IGrow team adhere to FAIS compliance?
We at IGrow Wealth Investments offer a team of qualified financial planners and property investment strategists, who can legally advise you on property portfolios within your retirement strategy, because IGrow is a licensed FSP, complaint and registered with FAIS.
IGrow Wealth Investments’ team includes qualified financial planners, wealth investment strategists, Chartered Accountants, and bond originators who each perform specific functions within a property investor’s journey. Our team has the expertise to incorporate property portfolios into your retirement planning, with you retaining full ownership and control of your property assets and income.
If the IGrow team is advising you to include property portfolios in your retirement plan, the advice our team renders is not only legal but highly lucrative and effective! In fact, with property investment in the right company and trust structures, we can show you how you can live off your property income tax free and leave your assets and rental income tax free to your loved ones or a cause you care deeply about.
Our rental management team takes the stress out of property management!
IGrow Rentals can help manage your property portfolio so you get reliable tenants at good rental rates. By utilising IGrow Rentals’ services, we will help you navigate the property world with ease! Our team offers excellent tenant management services where we vet tenants and make sure rental payments are on time, and all your paperwork is ready for tax season. Overall property maintenance, is up to us, to leave the hassle to us!
Of significant note, is that this frees up time that you you would have had to spend on DIY property management. We ensure your tenants are happy and maintenance funds are meticulously managed in an interest-bearing account, with clear rules made explicit to tenants on who is responsible for which costs. With our team by your side, your properties will run smoothly, giving you peace of mind. Read more about the benefits of IGrow’s rental management team in one of our recent blog posts: Why Property Investors Need Top-Notch Property Rental Management & Maintenance Services.
IGrow Chartered Accountants and IGrow Trusts will keep your retirement funding and estate planning tax-efficient and legally compliant
In working with IGrow Trusts and IGrow Chartered Accountants, we can set up our proven structures for managing your property assets and rental income. You will retire experiencing a tax-free income stream and thus, your assets and rental income will be tax-free for your descendants. No accounts will be frozen or taxed in your personal estate. They have long-term expertise in this and keep our strategists informed of legal concerns and tax compliance at all times. Our team all works under the “IGrow Wealth umbrella”, as such, you won’t be led into any confusing or conflicting advice that could end up with you in deep waters.
Conclusion
Property investment portfolio advice, incorporating retirement planning, is legal and effective in South Africa. With the team at IGrow Wealth Investments by your side, you can diversify your retirement strategy and reap the rewards of property investment into your old age. Are you looking for options with IGrow Wealth property portfolio planners or property management services from the IGrow Rentals management team? Our team supports your property investment journey.
Speak to an IGrow financial property portfolio planner today and plan for your property investment future, securing financial security and peace of mind for retirees.
