Subject Title - INSETA

Any contravention of or failure to comply with Section 7(3) of the FAIS Act, isan offence subject to penalties. This section requires that every authorisedFSP or representative may only conduct financial services-related businesswith a person rendering financial services, if that person has, where lawfullyrequired, been issued with a licence for the rendering of such financialservices and the conditions and restrictions of that licence authorises therendering of those financial services, or if that person is a representative asdescribed in the Act.SummaryFSPs must adhere to the conditions and key individuals must ensurethat there are adequate systems and processes in the business toensure compliance with the licence conditions.The licensing conditions create certain obligations for FSPs and theseconditions must be complied with on a continuous basis.A FAIS licence may be withdrawn or suspended by the Registrarunder certain conditions.The FAIS Act describes the various offences and when offences arecommitted, a court may impose a fine of R1 million and/orimprisonment of ten (10) years.The Registrar has certain civil remedies, which include gettingrestraining orders or payment orders.There are certain anti-money laundering controls built into the FAISAct and FSPs must comply as such.The FAIS Act also allows the Registrar (FSB) to raise levies in respectof authorised FSPs.Authorised FSPs, regardless of product categories pay annual leviesto the Ombud for Financial Services Providers (FAIS Ombud).There is a responsibility on FSPs to only conduct FAIS-relatedbusiness with other authorised FSPs.206 © INSETA - Section 1 12a