Valufin can handle specific ‘one-off’ type transactions for an organisation or for an individual.
Organisation This service is of benefit to a company where Forex requirements are erratic, linked to specific activities or do not occur frequently enough to warrant a full management service.
In this case each transaction is managed as a one-off activity, and risk managed and hedged accordingly.
This will require a degree of risk evaluation and understanding of the underlying exposure to enable us to advise correctly, determine the correct solution structure, monitor the markets and choose the transaction moment.
The Forex Risk Manager (FRM) system will be used by Valufin for the purpose of managing the transaction but the system is not licensed to, or accessible by, the customer.
FRM will generate the required reporting and confirmation in line with the service contract agreed.
The pricing for this service is based on either a percentage of the profit gained by the customer, where this can be adequately benchmarked, or is based on a percentage of the value of the transaction. In both cases the fee will be lower than the gain.
There is a minimum charge which means that small payments may not be effectively priced.
Individual For individuals who are purchasing/selling property or investments in another currency other than their home currency, there is a foreign exchange risk. This risk could be at that moment in time or the risk could relate to a period of time before the transaction funds flow, but the individual may wish to hedge the exposure in advance.
Depending on time, currency and value we can support the individual in the timing of the right transaction and negotiate the best rate for the client.
In many cases a different currency provider can be used in these circumstances and we would help get the best rate / service / product mix for the individual.
South African Individuals remitting funds offshore In terms of South African exchange control, South African resident individuals, who have the required SARS tax clearance, are able to remit SA funds offshore for investment up to a maximum per calendar year of R4 million (2011).
Valufin is able to support the individual in preparing for the Tax Clearance Certificate (TCC) and once all the documents are forms are complete, Valufin will go to South African Revenue Services (SARS) on behalf of the individual and apply for the TCC. This service saves the individual from the frustrations and time consumption of this process and makes it seamless, efficient and quick.
The current turnaround time is less than 10% of what an individual could achieve on their own. The average turnaround is usually less than a week but can vary based on SARS as their operational processes change regularly and are not standard in all the tax offices.
Where South African Reserve Bank (SARB) clearances or approvals are required we can help the client determine the correct approval, complete the required forms and documents and follow up on the process with SARB until the approval is achieved.
Please see the attached diagram which show the flow of activity and responsibilities in this process.
Valufin works closely with brokers and lawyers who introduce Valufin to their clients who have this need.
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