Regulatory Compliance for Representative: Summary of Representative Requirements
Representative must meet these requirements and the minimum competency requirement to be placed under supervision. Honesty and Integrity: Representatives must not have a history of criminal or civil convictions related to financial misconduct, dishonesty, or fiduciary breaches, and must disclose any such incidents to the FSCA. Financial Soundness: Representatives must not be declared insolvent or […]
Regulatory Compliance for Representative: Topic 1
Status, Role & Function Role of Representatives: Representatives provide financial services on behalf of an FSP, not independently. Authorization from an FSP is required to offer financial services. Authorization of Representatives: Authorization can be granted through an employment contract or a mandate. A mandated representative can be an individual or an entity (juristic representative). Representative […]
Regulatory Tools: Key Notes
Key points Initial Suspension: The FSCA first suspends the license if the FSP does not meet fit and proper requirements, has outstanding fees, penalties, or interest, lied on the application, or did not adhere to conditions, restrictions, or directives on the license. Subsequent Withdrawal: After suspension, the FSCA may withdraw the license if the issues […]
Regulatory Compliance for FSP: Key Notes
Key points Standards for FSPs, Key Individuals, and Representatives: The FAIS Act has established fit and proper requirements. These standards were updated on April 1, 2018, as per Board Notice 194 of 2017. Maintenance of Authorization: FSPs, key individuals, representatives, and compliance officers must always comply with these requirements relevant to their roles and the […]
Regulatory Tools: Topic 1
The Different Tools The Financial Sector Conduct Authority (FSCA) employs a range of regulatory tools to ensure compliance with the Financial Advisory and Intermediary Services (FAIS) framework and to achieve its objectives of maintaining integrity and protecting clients in the financial sector. These tools include: Suspension of FSP licenses Withdrawal of FSP licenses Imposition of […]
Regulatory Compliance for FSP: Topic 1
Introduction The FAIS Act has established standards for FSPs, key individuals, and representatives. These standards, known as the fit and proper requirements, were updated on April 1, 2018, as detailed in Board Notice 194 of 2017. To maintain authorization, FSPs, key individuals, representatives, and compliance officers must always meet these fit and proper requirements, relevant […]
Duties and Powers of the FAIS Ombud: Topic 1
Revision Clip Role and Scope Handles complaints about financial services. Acts when an FSP’s internal complaint process fails. Neutral and unbiased. Complaint Handling: Fair, straightforward, cost-effective, and quick. Focuses on reasonableness, contract terms, and FAIS Act rules. Roles in Complaint Handling In terms of complaints, we refer to the respondent and the complainant. The respondent […]
Duties and Powers of the FAIS Ombud: Key Notes
Key points · Jurisdiction: The FAIS Ombud handles complaints related to the provision of advice and/or intermediary services. · Product Performance Complaints: Complaints concerning product performance are referred to the relevant sectorial ombudsmen. · Applicable Timeframe: The issue being complained about must have happened while the Ombud’s rules were applicable (after 2004). · Failure to […]
Scopes of Authorisation: Key Notes
Key points Category I: The representative gives advice to the client, and the client decides what to buy. The client has the final say in choosing financial products. Category II: The representative makes buying decisions on behalf of the client, using their judgment to decide what’s best based on the client’s needs and goals. The […]
Scopes of Authorisation: Topic 1
Revision Clip Scope of Authorisation When a regulated role player is authorized, the authorization is within a specific scope. This scope consists of four parts: Type of Financial Service: This refers to the kind of financial service provided, such as giving advice, automated advice, other types of intermediary services, completing sales, or following a script […]