Subject Title - INSETA

4. A Category II and IV FSP must AT ALL TIMES: have assets (excluding goodwill, other intangible assets andinvestments in related parties) that exceed the FSPs liabilities(excluding loans validly subordinated in favour of all othercreditors). maintain current assets which are at least sufficient to meetcurrent liabilities; and maintain liquid assets equal to or greater than 8/52 weeks ofannual expenditure.5. A Category IIA and III FSP must AT ALL TIMES: have assets (excluding goodwill, other intangible assets andinvestments in related parties) that exceed the FSPs liabilities(excluding loans validly subordinated in favour of all othercreditors) BY AT LEAST R3 MILLION; maintain current assets which are at least sufficient to meetcurrent liabilities; and maintain liquid assets equal to or greater than 13/52 weeksof annual expenditure.Where an FSP has multiple licences, the most onerous financial soundnessrequirements must be met.13.2.2 Monthly management accountsSection 19 of the FAIS Act requires FSPs to meet certain accounting andaudit requirements.One of the requirements is full and proper accounting records, whichmust be updated monthly.Another requirement is the submission of annual financial statementsreflecting the financial position of the business for the financial year.Financial statementsAs from 1 May 2009, all authorised FSPs should submit their annual financialstatements within four months after their financial year-end. This means thatFSPs who use accounting officers or auditors must ensure that they submittheir documentation timeously to the accounting officer or auditor, and agreeon a time-frame for completion of the financial statements with them. Itremains the responsibility of the FSP and Key Individual to ensure that thesereports are submitted within the prescribed period.© INSETA - Section 1 12a 233