Focus on AdviceFee

Here is detailed information regarding the Advice Fee

The AdviceFee+ represents a fee that is mutually agreed upon by clients and their financial advisers for services related to their membership in the Momentum Medical Scheme. Momentum plays a crucial role in the process by facilitating the collection of this fee from clients and subsequently transferring it to the financial adviser.

AdviceFee for individuals

For individual members, the principal member is responsible for determining the amount of the AdviceFee. They must complete and sign the AdviceFee application form, which can be applied to either new or existing memberships. The principal member has the option to choose a fixed AdviceFee amount from the following options: R62, R117, R155, or R184. Additionally, they have the flexibility to request an annual review of this amount to ensure it aligns with their current needs and circumstances.

AdviceFee for employer groups

When it comes to employer groups, they have the option to select between two types of AdviceFees: mandatory or conditional.

Mandatory AdviceFee

The mandatory AdviceFee can only be implemented at the employer level. Employer groups have the choice to select either a standard fixed fee, which can be R62, R117, R155, or R184, or they can negotiate a specific amount that applies per member, per group, or per option. For instance, they may decide on a fee of R100 that applies to all members enrolled in the Custom Option.

It is important to note that mandatory AdviceFees will only be applied to the options that the employer selects. For example, if the employer opts for an AdviceFee of R100 exclusively for the Custom Option, then this fee will only be applicable to members who are part of that specific option. The amounts associated with the AdviceFees may be subject to an annual review, and standard amounts will automatically adjust in accordance with the average increase of the Momentum Medical Scheme each year. However, negotiated amounts will not experience automatic increases.

In the event that a company wishes to apply for a new AdviceFee or modify an existing one to the mandatory option, it is required that both the authorized signatory of the company and the financial adviser complete and sign a company application form for complementary products. It is not necessary to submit individual AdviceFee application forms when a company chooses the mandatory option. Any alterations made by the company to the AdviceFee will be applicable to all relevant members within the group. For example, if the employer group decides to cancel the AdviceFee for employees enrolled in the Custom Option, this cancellation will automatically extend to all employees under that option. It is also crucial to understand that changes to a mandatory AdviceFee cannot be backdated.

Conditional AdviceFee

The conditional AdviceFee can be applied at either the employer or employee level. This fee is set at a standard fixed rate of R62, R117, R155, or R184 per member. One of the key features of the conditional AdviceFee is that it will automatically increase in alignment with the average increase of the Momentum Medical Scheme each year. Similar to the mandatory option, the AdviceFee amounts can also be reviewed once a year.

For the conditional AdviceFee, it is essential to complete individual AdviceFee application forms for each new applicant. These forms must be duly signed by both the member and the authorized signatory at the company, especially if the employer is responsible for making the contributions.

Billing

The AdviceFee is billed separately from the contributions to the Momentum Medical Scheme, ensuring clarity and transparency in financial transactions.

Payment

Payments for the AdviceFee are required to be made monthly in advance, specifically on the first day of each month. Clients can choose to pay this fee via debit order or electronic funds transfer (EFT), particularly for employer groups that utilize EFT as their payment method for the Momentum Medical Scheme.

Cancellations

Should a client or financial adviser submit a request, the AdviceFee will be canceled. Additionally, the AdviceFee will also be terminated if the Momentum Medical Scheme membership is canceled. Furthermore, if the AdviceFee remains unpaid for two consecutive months, it will be canceled, necessitating the client to complete a new application to reactivate it.

Change in financial adviser

In cases where individual members or employer group clients decide to change their financial adviser, it is mandatory to complete a new AdviceFee application form. If this new form is not submitted, the AdviceFee will be canceled automatically.