Moving an RA....how?

xrapidx

xrapidx

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My RA is currently with ABSA Financial Advisor's, I want to move it and manage it myself, maybe to Alan Gray or Investec or both, anyone know how to do this?
 
You can move the RA between brokers yes but you cannot move it from the actual company who administers it.

See, RA's are protected by pension fund legislation; even worse, unlike your pension fund where you can take it in cash when you leave, the funds in an RA will only become available at age 55 attained - 56 next. The only way to stop the actual RA would be to make it paid-up and to start a new RA with a company of your choice - not giving you advice here; just an option.

PS: I have paid-up RA's with at least 3 different financial institutions, for this very reason that you cannot move it from one company to the other.
 
The brokers being ABSA?

I asked them about moving the fund when I initially started it and this was the reply
1. You can move from ABSA section 14 Transfer to any other service provider no penalties

--

I also thought the law changed in 2007 regarding moving between funds?
 
How do I find out if I have a unit trust RA or a life assurance RA?

This is what I have on my statement:
Fund Name
Allan Gray Balanced Fund A
WS ABSA Select Equity Fund B
WS Investec Equity Fund B3 D
Investec Opportunity Fund B
 
The brokers being ABSA yes.

Oh, and I haven't tried to move any RA's since 2007 so I wouldn't know.

What do they mean with any other service provider? It still says nothing about the actual company administering the fund.
 
xrapidx said:
How do I find out if I have a unit trust RA or a life assurance RA?

This is what I have on my statement:
Fund Name
Allan Gray Balanced Fund A
WS ABSA Select Equity Fund B
WS Investec Equity Fund B3 D
Investec Opportunity Fund B
Click to expand...

The product or portfolio should state the type of investment.

Those funds listed, are the funds that the RA is invested in; there should be a percentage next to it.
 
VernD said:
The product or portfolio should state the type of investment.

Those funds listed, are the funds that the RA is invested in; there should be a percentage next to it.
Click to expand...

I'm assuming they're unit trusts, as I also have it in writing that I won't be charged for switching funds...

There is a % - and an amount, I just removed it.
 
You can move an RA but it is a massive pain and requires mountains of time and paperwork.

I just did it for a client of mine, I will never mention again as it was the worst charity work I have ever done.

Yes brokers cannot get paid to do it and therefore will not recommend it to you.

Sent from my GT-I9000 using MyBroadband Android App
 
Shayd said:
You can move an RA but it is a massive pain and requires mountains of time and paperwork.

I just did it for a client of mine, I will never mention again as it was the worst charity work I have ever done.

Yes brokers cannot get paid to do it and therefore will not recommend it to you.
Click to expand...

^^ What he said.

And yes, it's definitely a unit trust RA if it's invested in underlying funds.

Instead of moving it, why not change the underlying funds to funds that perform more aggressively? That's what my financial advisor advised me; aggressive when you're young and when you get older, you move it over to more conservative portfolios in order to preserve the capital. Ask your financial advisor about this.
 
Yes you can move your RA - I've done it

Don't be put off - you can do it and I encourage as many to do it as possible - the reason those monkeys get away with fleecing the public is they had an effective monopoly on your money for many many many years - i.e. no incentive to improve performance or reduce fees! I feel Liberty raped my savings.

I have moved an RA from Liberty to Allan Gray.

Persevere - they will try and tell you that legislation prevents them from doing this, and that you cannot do it if it is from a provident or pension fund (or vice versa)... man the run-around.

Took about a year. I have someone else I know who is in process of moving and was told to expect up to 6 months. Obviously they are going to do everything to prevent you from exercising your rights - Again persevere for everyone's sake. Only way we'll prevent them from milking peoples pension funds is to move your investments from dud companies to pro-active ones.

Be weary your brokers too - and insist on zero trail commissions etc - i.e. you don't want to be milked by your broker all over again too.
</rant>

As you can see I'm quite passionate about this - enough to register just to post this comment - despite being a long time lurker. Don't be put off - but expect a lot of uphill from broker and Ins Co - none of them want to encourage a loss of funds they want to hold onto that money!
 
You can move it, it's called a "Section 14" Transfer - from Pension Funds Act . There may be some costs involved, which you will have to clarify with the administrators.

So select your administrator that you want to move your RA's administration to and then inform your current administrator - they will then either provide you with forms or request them.

But yes it's possible, via the Section 14 transfer process.
 
VernD said:
Instead of moving it, why not change the underlying funds to funds that perform more aggressively? That's what my financial advisor advised me; aggressive when you're young and when you get older, you move it over to more conservative portfolios in order to preserve the capital. Ask your financial advisor about this.
Click to expand...

I'm tired of ABSA - and am sick of paying their astronomical fee's and getting the worst service in South Africa.... They are now number two on my list of companies I won't deal with, the other being MTN.

Although the financial advisor from ABSA has been great, its not enough for me to continue using their services.
 
ThrowawayUserName said:
Don't be put off - you can do it and I encourage as many to do it as possible - the reason those monkeys get away with fleecing the public is they had an effective monopoly on your money for many many many years - i.e. no incentive to improve performance or reduce fees! I feel Liberty raped my savings.

I have moved an RA from Liberty to Allan Gray.

Persevere - they will try and tell you that legislation prevents them from doing this, and that you cannot do it if it is from a provident or pension fund (or vice versa)... man the run-around.

Took about a year. I have someone else I know who is in process of moving and was told to expect up to 6 months. Obviously they are going to do everything to prevent you from exercising your rights - Again persevere for everyone's sake. Only way we'll prevent them from milking peoples pension funds is to move your investments from dud companies to pro-active ones.

Be weary your brokers too - and insist on zero trail commissions etc - i.e. you don't want to be milked by your broker all over again too.
</rant>

As you can see I'm quite passionate about this - enough to register just to post this comment - despite being a long time lurker. Don't be put off - but expect a lot of uphill from broker and Ins Co - none of them want to encourage a loss of funds they want to hold onto that money!
Click to expand...

Trust me - I'll be giving one instruction - and then I'll just lodge a dispute with the ombudsman... I'm already going to stop making payments and open up something with Alan Gray myself.

Anyone have any advice on whats performing?
 
iDOL said:
You can move it, it's called a "Section 14" Transfer - from Pension Funds Act . There may be some costs involved, which you will have to clarify with the administrators.

So select your administrator that you want to move your RA's administration to and then inform your current administrator - they will then either provide you with forms or request them.

But yes it's possible, via the Section 14 transfer process.
Click to expand...



I have it in writing that there is zero cost - I was quite persistent as I got stuck in a similiar thing with an endowment policy where I was charged a fair portion for cancelling two months early, fortunately, the fund crashed after my cash out and was worthless than what they paid out after two months :p (Liberty)
 
Ok - if I understand correctly, a Section 14 Transfer is a transfer between funds, e.g. Allan Gray Balanced Fund A goes to Investec Opportunity Fund B, correct?

How do I go about removing ABSA as my broker then and administrating the funds myself? I'm quite happy with the Allan Gray Balanced Fund A Investec Opportunity Fund B and WS Investec Equity Fund B3 D to stay with the institutions, I just need to get them in my name and not administered and charged by ABSA.

The WS ABSA Select Equity Fund B I'll then do a section 14 on - not to concerned about time as it was only started recently and is only worth R5,000
 
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