Subject Title - INSETA

5.3 SECTION 13As mentioned above, Section 13 imposes certain duties and responsibilitieson FSPs (and by implication on key individuals).Summary of responsibilities.What must be done?Nobody may provide financialservices to clients for or on behalf ofunauthorised FSPs who are notexempted from the FAIS Act.Nobody may act as a representativefor an FSP unless the person canconfirm to clients (certified by theFSP) that: he has an employment ormandate agreement with theFSP, to represent the FSP; and the FSP accepts responsibilityfor the activities of therepresentative performed interms of the agreement.If a representative was debarred, hecan only operate as a representativeagain if the procedures forreappointment of rehabilitateddebarred representatives have beenfollowed.Who must do it and how?The key individual must ensure thatthere are processes in place to verifythat the other FSP is authorised/licensed in terms of FAIS.The key individual must ensure thatthe representatives are supplied withthe necessary documentation toconfirm the required information toclients.Where representatives providefinancial services on mandates fromthe FSP, the required writtenmandate must be available torepresentatives to provide to clients.The key individual must ensure thatthe necessary checks are done onrepresentatives before appointment,to ensure that they are not debarred.When the FSP wants to reappoint anyperson who had been debarred, thekey individual must ensure that thecorrect procedure is in place toensure that the re-appointmentrequest is assessed in terms of thecriteria as stipulated in Section 2 ofBN 82 of 2003.104 © INSETA - Section 1 12a