Subject Title - INSETA

Section 3 of the FAIS Act states that, subject to the provisions of this Act,any notice given, approval or exemption granted, determination made,requirement or condition determined or imposed, or any other decision takenby the Registrar under an enabling provision of this Act, is valid only if it isreduced to a durable written or printed form or, where communicatedelectronically, has been correctly transmitted in a legible form.Appropriate action by the FSPThe Registrar of Financial Services Providers has deemed it proper that if therepresentative does not meet the required qualifications or appropriate skillsprogramme as specified in Table E, Part 10 of the Determination of Fit andProper Requirements for Financial Services Providers, the FSPs may do asfollows:Debar the representative and request the Registrar to list the latteron the list of debarred persons;Request a profile change to remove the product/s for which therepresentative is not qualified for;Remove the said representative from the register of the particularFSP and subsequently request the Registrar to remove thatrepresentative from the central register.In terms of Condition 1 of the licensing conditions imposed on FSPs, an FSP isrequired to inform the Registrar within 15 days of any change to its licensingconditions. This means that the FSP is required to inform the Registrar of thefailure to meet the qualification requirements by an FSP (sole proprietor) orkey individual within 15 days after the due date for meeting the relevantqualification requirements.It is critical that the FSP ensures that representatives are enabled andsupported to achieve the (outstanding) requirements by the relevant dates.It is therefore imperative that there are adequate processes in place tomonitor and manage the representatives' progress and achievement of the fitand proper requirements.Checks should be done at regular intervals and the key individual mustensure that there are systems to record progress and achievement of therequirements.© INSETA - Section 1 12a 109