Financial Advisory Services
 
Nerina Visser and Mike Brown are FSB licensed Financial Services Providers (FSPs) that can provide advice on portfolio construction and management of ETF portfolios, but only once the financial needs and objectives of the investor have been analysed. In order to provide financial advice, the Advisor needs to have certain information about the client including: their financial circumstances; knowledge of financial products; future financial needs & objectives; age; risk profile and future income requirements.
With some 60 years of combined experience in the financial services industry in South Africa, with the past two decades devoted to ETFs, Mike and Nerina are uniquely positioned to make the most of ETF investments for all investors.
 
 
Business Consulting Services
 
Background
 
Mike Brown was one of the instigators of the Exchange Traded Product industry in South Africa. Employed at Gensec Bank at the time, he was responsible for the launch of the Satrix 40 as the first South African listed ETF in November 2000. Satrix went on to list six further ETFs during his association with that company. In 2004, Mike helped restructure Satrix as a Collective Investment Scheme to take advantage of the new Collective Investment Scheme legislation. The structure of registering funds under a Collective Investment Scheme (CIS) Manco and listing the CIS portfolios on the JSE as ETFs has subsequently been followed by other South African issuers of ETFs.
Nerina Visser set up the Beta Solutions (ETF based) business for the Nedbank Group and listed their first products on the JSE and Botswana Stock Exchanges.
 
Services Offered to ETP issuers
 
Product Origination
  • Advice on product opportunities, gaps in the SA market, investor demand for certain products.
  • Approaches to the regulators (JSE and FSB) to gain initial approval in the registration and listing process for new products.
 
Product Structure and Documentation
  • Provide advice and product concepts for ETPs that will obtain approval under local regulations.
  • Obtain tax and other legal advice and opinions if required. Prepare documentation and schedules for the formal listing process.
 
Listing Process
  • Facilitate the JSE listing process and the CIS registration procedures with the FSB, in conjunction with the Sponsors.
  • Handle any queries or additional requirement by the regulators.
  • Obtain approval from South African Reserve Bank (Exchange Control) and Strate (listing regulation).
  • Help appoint and brief service providers and draw up required agreements for: 
  • Custodians
  • Administrators
  • Transfer Secretaries
  • Participating Stockbroker
  • Trust Deeds
 
IPO and Launch
  • Prepare marketing strategies for product launch with relevant media publicity, client roadshows, stockbroker briefings and institutional visits.
  • Prepare marketing material and IPO process documents.
  • The services of etfSA and participating stockbrokers in the IPO process can be coordinated and monitored.
Fees
  • The services above can be provided on a modular basis for certain services only, or as an overall basis to design and deliver ETP products.
  • Fees are calculated on the basis of hours worked by the Consultancy, but this can be fixed up-front and negotiated in advance if require.
 
This consulting service is also provided to and has been utilised by other stock exchanges, particularly in Africa, looking to set up their own ETP listings.