3.1 Requirements Applicable to Representatives
Representatives must meet all of the following elements of fit and proper requirements, the details of which is considered in the sections following: Personal character qualities of honesty and integrity and good standing Financial Soundness Operational Ability Competency Continuous Professional Development
2.3 Financial Soundness
A. Applicability of requirements The financial soundness requirements are applicable to all financial services providers and juristic representatives. The financial soundness requirements are not applicable to the following: A representative that is a natural person. A key individual. An FSP that is a registered Bank and that FSP complies with the requirements prescribed in the […]
2.2 Honesty, Integrity and Good Standing
An FSP must be owned and managed by persons displaying qualities of honesty and integrity and good standing. The commissioner will assess if any of the directors, members or owners (which ever the case might be) have been found guilty of any of the following transgressions or offences: The person has been found guilty (and […]
2.1 Introduction
Although the elements of fit and proper requirements for financial services providers has remained the same, the requirements itself has become more onerous. The financial services provider must on appointment meet the requirements in terms of honesty and integrity, financial soundness and operational ability on appointment and thereafter on a continuous basis. The three aspects […]
2.4 Operational Ability
A. General requirements An FSP must prove continuous operational ability, which includes the following: Have the operational ability, including adequate and appropriate human, technical and technological resources, to effectively function as a particular category of FSP and to render the financial services in relation to the financial product for which it is authorised. Adopt, document […]
1.6 Definitions
A. Product definitions Short-term insurance personal lines A1 means the short-term insurance policies that- Require no or limited underwriting. Define policy benefits as a sum insured, provide for the replacement of the insured asset or provide for the settlement of outstanding balances due and payable to credit providers. Have contract terms of 24 months or […]
1.5 Classes of Business
For purpose of the continuous professional development requirement, financial products were also categorized according to classes of business. Table 1.5 Classes of business Class 1: Short-term insurance: Personal Lines (Policy holder must be a natural person) 1.1 Personal lines: Accident and health policy 1.2 Personal lines: Liability policy 1.4 Personal lines: Miscellaneous policy 1.5 Personal […]
1.4 Tiers of Products
For further clarification on the fit and proper requirement products were also categorized into two tiers. Table 1.1 outlines the two tiers. Table 1.1 Tiers of financial products Tier 1 Financial Products Tier 2 Financial Products Structured Deposits Short-term Insurance Personal Lines A1 Short-term Insurance Personal Lines Long-term Insurance Subcategory A Short-term Insurance Commercial Lines […]
1.3 Categories of Financial Service
The FAIS Act governs different kinds of financial service, product and a wide range of participants. Therefore, it is necessary to differentiate between types of financial service which can be provided and the product in which it can be provided. The FAIS Act makes provision for categorizing FSPs and their representatives into Categories and Subcategories. […]
1.2 Change Under the Financial Sector Regulation Act
The Financial Sector Regulation Act have been promulgated (enacted) in order to effect the Twin Peaks model of regulation. Under this act, the name of the Financial Services Board has been amended to the Financial Sector Conduct Authority and the role of the FAIS registrar is now performed by the Commissioner of the FSCA.