Unjustified Termination Charges on Section 14 Retirement Annuity Transfer

Unjustified Termination Charges on Section 14 Retirement Annuity Transfer – Policy ***X9 I am a financial advisor lodging a complaint on behalf of my client regarding termination charges that Sanlam has app**** to policy ***X9, which is currently undergoing a Section 14 transfer in terms of the Pension Funds Act. A Section 14 transaction is a legislated transfer of retirement fund benefits between qualifying funds and is not a surrender or termination. Applying termination charges to a Section 14 transfer is inappropriate and inconsistent with the FSCA’s Treating Customers Fairly (TCF) principles. This retirement annuity is furthermore a paid-up policy. Sanlam has had the full benefit of recovering its costs over the contribution period, making the application of termination charges even more unjustifiable. The current broker on record has refused to reply to correspondence, assist or acknowledge these questions raised, and has not services this portfolio in years now this leaving client unfairly treated and the broker earned the commission initially and Sanlam earned their share of this portfolio. This is by no means TCF.