SFDR 2021

When setting up an A(M)RF, making sure your clients receive their income payments efficiently is important. To support that, we're updating the regular payment options on our A(M)RF products. These changes will apply to all new business received after the 26th of March.

How will the regular payment options change?

• All withdrawals, including regular income payments and imputed distributions, from new A(M)RF products will only be made by Electronic Fund Transfer (EFT) directly into your client's bank account. Payment by cheque will no longer be an option.
• All regular income payments and imputed distributions will be paid on the 1st of the month only.
• Ad hoc withdrawals will be paid on variable dates as before, but only by EFT.
• To enable these payments, new A(M)RF applications must include the client's bank details. Without valid bank details the plan will not go inforce.

What are the benefits?

• EFT is the easiest, quickest and most secure way for your clients to receive their payments.
• EFTs are paid directly into your client’s bank account.
• Payments by EFT land in accounts quickly while cheques can take up to five days to clear.
• No need for clients to visit a bank branch to lodge cheques. Visiting a branch may be inconvenient for older people, particularly with more branches closing.
• Having valid bank details for clients reduces delays and the risk of errors.
• Increased certainty - for example with budgeting - in knowing payment will be made on the 1st of the month.

Our online application system and forms have been updated and you'll see "tooltips" to help you with some of the changes when submitting an A(M)RF case online.

 

These changes won't apply to any current pipeline cases that issue before Friday 26th March. The new process and requirements will apply to pipeline cases issued after the 26th March. 

 

If you have any queries on the new process, please do not hesitate to contact your account manager.