Subject Title - INSETA

PurposeManaging the infrastructure of an FSP is part of the key individual'smanagement and oversight responsibilities. Chapter 13 highlights a few ofthese responsibilities. You will gain a better understanding of the operationalability that FSPs must have and maintain, as well as the financial soundnessrequirements, which must be met.13.1 OPERATIONAL ABILITY REQUIREMENTS OF THE FSPApplicants must have operational ability before they will be authorised to actas FSPs. Once an FSP is authorised, the key individual must ensure thatthese abilities are maintained and managed.The operational ability requirements for FSPs are listed in Board Notice 106,in Section 8 under Part VIII. These apply to FSPs (sole proprietors included)and not to representatives.These requirements include the following:AN FSP MUST HAVE:a fixed business address.adequate access to communication facilities - at least a fulltimetelephone or cell phone service, typing and document duplicationfacilities.adequate storage and filing systems for the safe‐keeping of records,business communications and correspondence.an account with a registered bank including, where required by theAct, a separate bank account for client funds.where the FSP is an accountable institution as defined in the FICA, allthe necessary policies, procedures and systems to ensure fullcompliance with FICA and other applicable anti‐money laundering orterrorist-financing legislation.An FSP that utilises any third party to render administrative or systemfunctions in relation to the rendering of financial services on its behalf musthave a detailed service level agreement, specifying the agreed services, time230 © INSETA - Section 1 12a