Proposed Intermediary Unification and Merger

1
Proposed Intermediary Unification and Merger

2
Background
History

• FIFSA
  
• (Reason for Failures)

• IBC National Meeting and Strategic Planning
  2005.
  
• Members requested Investigation

• Unified approach 2005/6
• National Treasury Discussion Paper

• Subsequent Meeting
• Common ground Successful results
  Can work together

3
IBC SAFSIA EXCO Meeting 15 April 2007

• Common ground
• Umbrella Body
• Approach all bodies for consent and imbizo
• Proposed Merger

• UMBRELLA BODY
• Received Positive
• BBF reaction
• Delay in process
• 1st priority

4
IBC SAFSIA EXCO Meeting April 2007
PROPOSED MERGER

• Ongoing consultations CEOs, EXCOs, BOD
• Brokers only
• Confidentiality agreement
• Working Agreement
• Due diligence
• Communication
• Discussions with ABIB

5

• IBC is well positioned
• SAFSIA is well positioned
• Operate in same space
• Government (Parliamentary Committee of Finance)
  PCoF
• Regulators (One Standard / Code of Ethics)
• Legislators
• Stakeholders / Product Providers
• Macro impact / Delivery
• Changing environment
• Fragmented
• David Goliath (LOA/SAIA)
• Previous lack of cooperation

CONSIDERATIONS

6
Considerations

• Economies of scale - Numbers - NO
  - Stronger Voice YES - Member
  Benefits - Stronger Negotiation Powers
  - Share Structures / Networks
  Resources - Cut Duplication -
  Possible financial benefits - Utilize
  strong points from both associations

7
Structures Implementation under consideration

• Individual members
• Corporate members
• IBC regional and branch structures remain
• Head Office / National Office IBC premises
  will be used
• Legal processes followed
• Transition
• Newco Rules (to be determined by Newco BOD)
• National Committee / Advisory Committee

8
Structures Implementation under consideration

• New Name / Logo / Branding (Should reflect
  professionalism, unity and globalization)
• Communication
• The way forward
• Time frames
• - 1st and 2nd November 2007 Special
  General Meetings - Target Date 1 January
  2008

9
PRESIDENT
I Individual C Corporate
CEO and National Office staff
VICE PRESIDENT
Directors
Directors
I
I
I
I
I
I
Individual
C
C
C
C
C
Corporate
C
CHAIR Life and investments
CHAIR Retail
CHAIR Health
CHAIR Employee Benefits
CHAIR Short Term
CHAIR Membership
The IBC branch and Division structures should be
retained
7 Divisions and 24 Branches
10