This table summarises the key features of the SatrixNOW product (and is an extract from the legal terms and conditions), so that you can use this as a guide when reading the legal terms and conditions. In order to understand the terminology contained in this table please see the definitions contained in clause 2 of the legal terms and conditions. This table is not a legal agreement. For a proper understanding, you must read all of the terms and conditions set out in the Agreement.
You will invest in SatrixNOW products with Satrix Managers (RF) Proprietary Limited (Satrix).
First World Trader Proprietary Limited ("FWT") provides the SatrixNOW Platform and all related support services to Satrix in terms of a Service Level Agreement between Satrix and FWT. Your investment is with SATRIX and not with FWT.
What are SatrixNOW Investments?
They are a combination of Securities and CFD Transactions bought via our online platform.
The Securities are listed on the JSE or other Recognised Exchanges.
Where you cannot afford to buy a Whole Security, you can still invest in a fraction of a Security by entering into a CFD Transaction with us to obtain Fractional Security Rights.
We use a broker for Securities bought and sold on the JSE.
The sale of Whole Securities is subject to the Financial Advisory and Intermediary Services Act, 2002 (FAIS) – see paragraph 1.6.
The issue of CFD Transactions is not subject to FAIS, but are subject to the Consumer Protection Act, 2005 (CPA) – see paragraph 1.6.
FAIS does not govern our obligations to you in respect of CFD Transactions.
Satrix is a registered financial services provider.
Buying and Selling Securities on the SatrixNOW Platform
How to buy a Security
Place an Order for a chosen Security in Rands or number of Securities.
If you place your Order in Rands, for example R1000’s worth of Securities:
If the Securities are trading at R45 per Security you will buy 22 Whole Securities and you will have the benefits of owning those 22 Whole Securities;
You will have a remaining balance of R10, which is not enough to buy another Whole Security;
We will enter into a CFD Transaction with you and the Underlying Reference Instrument will be 22% of that Security (this is because R10 is 22% of R45, the Security’s current price);
You will have a contractual right under the CFD Transaction to 22% of the income earned on the Underlying Reference Instrument, and to the changes in the value of the Underlying Reference Instrument, pro rated to 22%. We call this a Fractional Security Right;
As with all CFD Transactions you will not own the Underlying Reference Instrument; and
You will have a contractual claim against us under the CFD Transaction, which means that you may enforce your rights under this Agreement and any Transaction directly against us, and only us.
If you place your Order by number of Securities: e.g.: 200 Whole Securities:
You will pay for and own 200 Whole Securities.
How to sell a Security
You may not sell a Whole Security which you do not own
sell any of your Whole Securities on the SatrixNOW Platform by placing a sell Order; or
close out any CFD Transaction over an Underlying Reference Instrument.
Proceeds from sales will be paid to you up to 10 (ten) Business Days after the investment date.
We have appointed FWT, through its nominee company, FWT Nominees to hold your Whole Securities in safe custody in your name. Your Whole Securities belong to you and will be kept separate from the estate of FWT and from the assets of FWT, and will be kept separate from our estate and our assets.
What protections do you have?
Profit and Margin in respect of Fractional Security Rights
When you enter into a CFD Transaction you must pay us Margin in terms of clause 11.7(3) - 11.7(5). You may also earn a Profit in terms of clause 11.7(4) - 11.7(6).
The money that you give us as Margin or that constitutes your Profit is held in the FWT Nominees Bank Account operated by FWT Nominees for your benefit.
For further details see clause 20 of this Agreement.
Your Margin is used by Satrix to purchase the Hedge Securities to hedge Satrix’s obligations to you in respect of your CFD Transaction. This protects you in an Insolvency Event. For further details see clause 20 of this Agreement.
We cede to you the rights to the funds in the FWT Nominees Bank Account and the Hedge Securities, purchased with your Margin as security for any payments we may owe you under the Agreement.
Risks of Investing
Profits and Losses
You are responsible for all investments on the SatrixNOW Platform.
We do not give you any advice or recommendations regarding investments.
The issue of CFD Transactions is not subject to FAIS and you may not rely on the provisions of FAIS in respect of your CFD Transactions.
You are responsible for any profits or losses as a result of Whole Securities which you buy and sell or decisions you make regarding close out of a CFD Transaction.
The profits and losses on Investments in the Securities depends on the market value of the Underlying Reference Instruments, and this market value will change from time to time.
The past profits and losses on Investments in Securities is no indication of future profits and losses. The value of your Investments in the Securities may go down as well as up, depending on whether the value of the Underlying Reference Instruments goes down or up.
As the Underlying Reference Instruments are Collective Investment Scheme securities issued by Satrix they are generally medium to long term investments.
CFD Transactions do not occur on a Recognised Exchange and, may consequently expose you to greater risks than exchange based transactions.
Tax Free Savings Accounts
Tax Free Savings Accounts
SatrixNOW gives you access to a Tax Free Savings Account if you are a South African citizen.
A Tax Free Savings Account allows you to invest in Tax Free Products without paying tax on those investments.
Corporate Bodies may not open Tax Free Savings Accounts.
You may not transfer funds from your account with another FSP to your Tax Free Savings Account and you may not transfer funds from your Account to your Tax Free Savings Account.
We may not accept total investments of more than R30 000 into your Tax Free Savings Account in one tax year (“Yearly Payment Limit”).
We may not accept total investments of more than R500 000 into your Tax Free Savings Account over your lifetime (“Lifetime Payment Limit”).
You may withdraw funds from your Tax Free Savings Account but any withdrawal will be subtracted from the Yearly Payment limit and the Lifetime Payment Limit mentioned above.
If you make any profit on the investments in your Tax Free Savings Account, the profits will not be subtracted from the Yearly Payment Limit and the Lifetime Payment Limit.
Where you purchase additional Tax Free Products by re-investing your Income Distributions, this will not be deducted from the Yearly Payment Limit and the Lifetime Payment Limit.
You will be responsible for any penalties, if you exceed the Yearly Payment Limit and the Lifetime Payment Limit.