General Code of Conduct: Disclosure Duties Key Notes
Key points Initial Oral Disclosure: Representatives may initially communicate disclosures orally. Written Confirmation: Must be provided within 30 days of the service for client reference. Information on FSP: Full business and trade names, contact information, compliance details, arrangements with product suppliers, legal status, services authorized, and insurance coverage. Information on Product Supplier: Name, address, contact […]
General Code of Conduct: FSP Duties Key Notes
Key points Statement of Accounts Duty: An FSP must provide a client with a statement of account for any financial service upon request or at annually. Documents of Title Duty: FSPs must promptly confirm receipt and securely safeguard documents of title, keeping them separate from the FSP’s general assets. Original Agreement Duty: FSPs must ensure […]
General Code of Conduct: Disclosure Duties Topic 1
General Disclosures: Face to Face Representatives Disclosures are essential for maintaining ethical standards in the financial services sector, empowering clients to make well-informed decisions. Initial Oral Disclosure: Disclosures may be initially communicated orally. Written Confirmation: Must be provided within 30 days of the service, ensuring clients have a documented reference of the information shared during […]
General Code of Conduct: Representative Duties Key Notes
Key points Ethical Behavior: Aligns with Codes to distinguish right from wrong in the financial sector. General Code of Conduct: Sets ethical and professional standards for representatives. General Duty Principles: Honesty and Fairness | Skill, Care, and Diligence | Client Interests | Industry Integrity Quality of Info Key Provisions: Accuracy and Clarity: Clear, non-misleading information. […]
General Code of Conduct: Representative Duties Topic 1
Revision Clip Introduction The FAIS Act establishes various Codes of Conduct with legal weight that apply to different categories of FSPs. These Codes of Conduct primarily safeguard the interests of FSP clients, empowering them to make well-informed decisions and ensuring their needs are appropriately addressed. In the financial services sector, ethical behavior aligns with the […]
The Debarment Process: Key Notes
Key points FAIS Act Authority: Enacted in 2002, it empowers FSPs with the statutory authority to debar representatives and key individuals to ensure compliance with the FAIS Act and fit and proper requirements. Grounds for Debarment: Includes not meeting fit and proper requirements, material contravention of the FAIS Act, or aiding others in contravening the […]
The Debarment Process: Topic 1
Introduction The requirement and duty imposed by the FAIS Act on FSPs to debar representatives and key individuals was enacted in 2002 as a measure of self-regulation of advice and intermediary services. The legislature empowered FSPs with the statutory authority to debar representatives and key individuals. Debarments under section 14(1) of the FAIS Act serve […]
Supervision Arrangements: Key Notes
Key points Supervision Eligibility: Representatives can work under supervision if they do not meet competency requirements: Experience | Recognised Qualification | RE5 |COB Category I & IV: Grade 12 certificate or equivalent (with exceptions). Category II, IIA, or III: Recognized qualification for the specific category. Written Agreement: Must be established before starting supervised services. Supervisor […]
Supervision Arrangements: Topic 1
Introduction A representative, excluding a sole proprietor, is allowed to work under supervision if they do not meet the prescribed competency requirements. This is in accordance with Board Notice 86 of 2018, which outlines the conditions under which representatives may provide services while being supervised. Definitions Supervised Representative: A representative who does not meet one […]
Regulatory Compliance for Representative: Key Notes
Key points Role of Representatives: Representatives provide financial services on behalf of a Financial Service Provider (FSP), not independently. They must be authorized by an FSP to offer financial services. Fit and Proper Requirements: The FSP is responsible for ensuring representatives meet the fit and proper requirements before their appointment. Representatives who do not initially […]