Subject Title - INSETA

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8.8.3 Insurance 89One of the risks for consumers in the provision of financial services in relationto the FAIS defined financial products is the recourse they have when the FSPfails in one way or another.Will they get their investment money back if there was product or institutionfailure? The General Code 90 states that the Registrar may require providers tohave suitable guarantees, professional indemnity or fidelity insurance coverin place. The General Code was amended in September 2009 to require (forproviders excluding representatives) specific cover for professional indemnityand fidelity insurance.New FSPs (authorised after 21 September 2009) must comply with theinsurance requirements within six (6) weeks of authorisation.The following is a summary of the insurance cover requirements, effectivefrom 21 September 2009.WHO? BY WHEN? WHAT?Category I or IV provider 91who does not receive orBY21 SEPTEMBERhave in force, in respect ofthe clients:hold clients‟ financial 2010 suitable guarantees of aproducts or funds onminimum R1 million ORbehalf of clients on 21 suitable professionalSeptember 2009 MUSTindemnity cover of aminimum of R1 million.Category I or IV provider 92who does receive or holdBY21 SEPTEMBERhave in force, in respect ofthe clients:clients‟ financial products 2010 suitable guarantees of aor funds on behalf ofminimum R1 million ORclients on 21 September suitable professional2009 MUSTindemnity and fidelityinsurance cover of aminimum amount of R1million.89 Section 13 of the General Code90 Section 13 of the General Code91 Section 3(a) of BN 123 of 200992 Section 3(b) of BN 123 of 2009158 © <strong>INSETA</strong> - Section 1 12a
WHO? BY WHEN? WHAT?Category II provider 93who does not receive orBY21 MARCH 2010hold clients' financialproducts or funds onbehalf of clients on 21September 2009 MUSTCategory II provider 94 BYwho does receive or hold 21 MARCH 2010clients' financial productsor funds on behalf ofclients on 21 September2009 MUSTCategory IIA provider 95 By 21 MARCHwho does not receive or 2010hold clients' financialproducts or funds onbehalf of clients on 21September 2009 MUSTCategory IIA provider 96 BY 21 MARCHwho does receive or hold 2010clients' financial productsor funds on behalf ofclients on 21 September2009 MUSThave in force, in respect ofthe clients: suitable guarantees of aminimum R1 million suitable professionalindemnity cover of aminimum of R1 million.have in force, in respect ofthe clients: suitable guarantees of aminimum R5 million OR suitable professionalindemnity and fidelityinsurance cover of aminimum amount of R5million RESPECTIVELY.have in force, in respect ofthe clients: suitable guarantees of aminimum amount of R5million OR suitable professionalindemnity cover of aminimum of R5 million.have in force, in respect ofthe clients: suitable guarantees of aminimum R5 million OR suitable professionalindemnity and fidelityinsurance cover of aminimum amount of R5million RESPECTIVELY.93 Section 3(d) of BN 123 of 200994 Section 3(e) of BN 123 of 200995 Section 3(f) of BN 123 of 200996 Section 3(g) of BN 123 of 2009© <strong>INSETA</strong> - Section 1 12a 159
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LOGO TO BE CONFIRMEDFSB REGULATORY
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Table of ContentsTasksGlossary of T
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8.8 Other provisions of the general
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TasksThe material provided in this
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PurposeThe FAIS Act introduced mark
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The duties of FSPs are described in
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CATEGORY II: SUBCATEGORIES2.1 Long-
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1.5.2 AdviceThe FAIS Act defines
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The elements of „advice‟ includ
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1.5.3 Intermediary serviceLet's loo
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1.5.2 Types of financial productsFi
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FSP licences are issued for specifi
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5. To provide a financial service m
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6. To give advice means to:a) give
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PurposeThis chapter introduces the
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Example 1:CBA Financial services is
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Submitting documentsEmploymenthisto
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financial soundness requirement - t
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The person was found guilty in any
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2.3.5 Experience requirements for k
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TABLE A: CATEGORY I EXPERIENCE REQU
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Experience requirements for a Categ
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was obtained through active involve
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IF YOU…Were appointed from 1Janua
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A key individual must have already
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Key individuals fulfilling the role
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serious enough to impugn the honest
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Self-Assessment QuestionsPlease not
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) Once a key individual has been ap
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Self-Assessment Answers1. Which of
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) Once a key individual has been ap
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56 © INSETA - Section 1 12a
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PurposeChapter 3 introduces you to
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Let's look at the responsibilities
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For example, a person may have star
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3.3.3 Competency requirements for r
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We discussed the tables under 2.3 a
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Experience requirements for Categor
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The main reason for the differentia
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Regulatory examinations for represe
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The purpose of the register is to:p
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Part of the management and oversigh
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Let‟s look at a summary of the co
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c) The representative register need
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Self-Assessment Answers1. In terms
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8. The general experience requireme
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PurposeIn Chapter 4 you will learn
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TABLE ACATEGORIES 1 and IV: LEVEL O
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4.2 SUPERVISION REQUIREMENTSKey ind
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Ensure that the supervision require
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Self-Assessment QuestionsPlease not
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Self-Assessment Answers1. In terms
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PurposeBefore a juristic entity can
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Understanding the process step by s
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5.3 SECTION 13As mentioned above, S
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What must be done?The FSP must main
Page 116 and 117: Registrar, by 31/12/2013.Failure by
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Page 120 and 121: 4. In order to meet the requirement
Page 122 and 123: 5. Section 13 imposes certain dutie
Page 124 and 125: PurposeChapter 6 gives you an overv
Page 126 and 127: Ramifications for the FSP if debarm
Page 128 and 129: All other administrative or legal p
Page 130 and 131: 3. May an FSP use information obtai
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Page 134 and 135: PurposeDuring the course of the lif
Page 136 and 137: In the discussion of the purpose an
Page 138 and 139: caused by or arose out of the carry
Page 140 and 141: c) within 60 days after the busines
Page 144 and 145: PurposeThe FAIS General code prescr
Page 146 and 147: of crime, money-laundering legislat
Page 148 and 149: Requirements.the existence of a spe
Page 150 and 151: Disclosure must include the followi
Page 152 and 153: 8.4 MANAGING TRANSPARENCY AND CONFL
Page 154 and 155: Where the juristic person is neithe
Page 156 and 157: what measures were taken to avoid/m
Page 158 and 159: A provider must continuously monito
Page 160 and 161: 2. Identify the financial product o
Page 162 and 163: 1. A brief summary of the informati
Page 164 and 165: are addressed in the business-speci
Page 168 and 169: WHO? BY WHEN? WHAT?Category III pro
Page 170 and 171: a representative, the information m
Page 172 and 173: Record of advice 106A direct market
Page 174 and 175: influence the objective exercising
Page 176 and 177: 4. What needs to be disclosed to cl
Page 178 and 179: Self-Assessment Answers1. Which of
Page 180 and 181: 8. The two main requirements of giv
Page 182 and 183: PurposeThis chapter introduces you
Page 184 and 185: „compliance practice‟ means a c
Page 186 and 187: Internal compliance officer:where t
Page 188 and 189: 9.1.5 Withdrawal of a compliance of
Page 190 and 191: One of the main functions of a comp
Page 192 and 193: Internal auditors normally audit co
Page 194 and 195: Information about the FSPs adherenc
Page 196 and 197: Compliance reports must be submitte
Page 200 and 201: PurposeThe application process for
Page 202 and 203: the financial services business as
Page 204 and 205: Disclose compliance with other appl
Page 206 and 207: easons why the provisional suspensi
Page 208 and 209: impartial tribunal or forum. This i
Page 210 and 211: 10.3.2 Civil remediesRestrainingord
Page 212 and 213: 10.4 LEVIES PAYABLE IN TERMS OF THE
Page 214 and 215: Any contravention of or failure to
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Self-Assessment Answers1. Which of
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PurposeAs a key individual, you nee
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11.2 EFFECT OF VOLUNTARY SEQUESTRAT
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2. A licence of ANY FSP may lapse:a
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5. Before sequestration, winding-up
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PurposeIn Chapter 12 you will find
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3. The records and documentation Th
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The Registrar has certain powers in
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SummaryThe FAIS Act requires string
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4. Section 22 of the FICA requires
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PurposeManaging the infrastructure
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A key individual, in respect of an
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The financial statements can either
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Self-Assessment Answers1. The opera
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PurposeChapter 14 introduces you to
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Sec 19(4) states that: the auditor
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2. The financial statements must:a)
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PurposeThe FIC Act imposes certain
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Accountable institutionsThe FIC Act
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The four (4) money laundering contr
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The documents used to identify and
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In an FSB FAIS Newsletter, the FSB
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Protection of Constitutional Democr
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steps to be taken to determine and
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3. Section 21(1) of the FICA requir
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PurposeChapter 16 is the last part
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The Ombud for Financial Services Pr
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11. If the complainant is unhappy w
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the contractual or other legal rela
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Self-Assessment Answers1. The funct
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