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Good day Mrs Matjila

I refer to your Hellopeter complaint and our telephone conversation on 19 September 2016.

The investment is governed by the Long-term Insurance Act. Legislation Old Mutual must adhere to. The restriction period imposed by the Long-term Insurance Act, restricts a client to accessing funds on 2 occasions within the first five years or an extended restriction period.

Your investment started on 01 July 2013. During the premium paying term you increased the premium on an ad hoc basis. The Long Term Insurance Act further restricts the investments we make into an investment. We are therefore allowed to increase our annual contribution by 20% only. This is commonly referred to as the 20% rule. According to my calculation you contributed 20 100.00 during the first premium paying term. This means that you were allowed to add a maximum of R24 120.00 in the next premium paying term. You however contributed R25 000.00. Which is R880.00 more than the allowable 20% to avoid the restriction period from extending? This means that the restriction period has been extended to 01 May 2020.
You made two withdrawals from your investment. Please refer to the Declaration signed by you.

The Declaration makes reference to the Section 54 of the Long-Term Insurance Act. It also mentions that you will only be able to make one loan and one disinvestment within the restriction period.

The Declaration signed by yourself states:

" I/We understand and agree that:
3.2 In terms of Section 54 of the Long-term Insurance Act, No. 52 of 1998, only one disinvestment may be effected during the first 5 years of my/our investment contract or during a restriction period."

This creates the impression that you were aware of the withdrawals and the limitations imposed by Section 54 of the Long-Term Insurance Act.

We are therefore not able to assist as we are bound by this legislation.

Regards

Brent Sellidon