Subject Title - INSETA

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Submitting documentsEmploymenthistoryOperationalabilityGeneralA detailed CV must be attached, indicating theexperience that the applicant has gained within thelast five (5) years. Full details of the person‟sresponsibilities must be provided to illustrate that theperson‟s experience is relevant to the category offinancial services and subcategory of financialproducts being offered/rendered.Reference letters from previous employers must besubmitted.Details of experience for the categories of financialservices and the subcategories of financial productsin respect of which the sole proprietor will berendering financial services and the key individualwill be managing or overseeing, must be provided.Reference letters from previous employers regardingresponsibilities of the applicant in the variouscategories must be submitted.The key individual and sole proprietor must have theoperational ability to fulfil the responsibilities imposedon the licensee and its key individuals by the Act.If the applicant is both key individual and arepresentative, a separate form (FSP 5) must becompleted.The applicant needs to sign an indemnity, authorisingthe FSB to verify all information.Once the Registrar is satisfied that the applicant meets all the requirementsfor the key individual role in the FSP, the Registrar will grant or refuse theapplication.The Registrar may impose restrictions or additional conditions on the FSPlicence, which may include specific conditions regarding the key individual.An example of a condition (in terms of Section 8(4)(b)) is the following:A person may be approved for the position as key individual subjectto the successful completion of the first level regulatory exam by acertain date.26 © <strong>INSETA</strong> - Section 1 12a
After a licence has been issued to an FSP, the Registrar may impose newconditions on the licence after evaluation of a new key individual or whenthere is a change in a key individual's personal circumstances as discussedbelow.2.3 FIT AND PROPER REQUIREMENTS FOR KEY INDIVIDUALS2.3.1 Overview of the fit and proper requirements for key individualsThe FAIS Act is clear on the various requirements and criteria a person mustmeet in order to be approved as a key individual. Apart from the definition inthe Act, which we looked at above, we find most of the requirements in thesubordinate legislation (Board Notices).Remember, the FSP, being the employer, will identify/appoint the people itwants to act as key individuals, and the FSB, being the regulator, willapprove the appointment of key individuals for each FSP.What are the fit and proper requirements to be a key individual?The fit and proper requirements for all key individuals include the following:We discuss the requirements relating to honesty and integrity andcompetence in the sections to follow. (Refer to BN 106 for further detail inrespect of these requirements.)Part of a key individual's fit and proper requirements is the operational abilityto fulfil its functions in terms of the FAIS Act, including the oversight of thefinancial services (regarding the giving of advice and rendering ofintermediary services) provided by the representatives of the FSP.FSPs must also meet operational ability requirements in order to beauthorised as such – these will be discussed throughout the chapters tofollow. In addition, FSPs (including sole proprietors) must also meet the© <strong>INSETA</strong> - Section 1 12a 27
Page 1 and 2: LOGO TO BE CONFIRMEDFSB REGULATORY
Page 3 and 4: Table of ContentsTasksGlossary of T
Page 5 and 6: 8.8 Other provisions of the general
Page 7 and 8: TasksThe material provided in this
Page 10 and 11: PurposeThe FAIS Act introduced mark
Page 12 and 13: The duties of FSPs are described in
Page 14 and 15: CATEGORY II: SUBCATEGORIES2.1 Long-
Page 16 and 17: 1.5.2 AdviceThe FAIS Act defines
Page 18 and 19: The elements of „advice‟ includ
Page 20 and 21: 1.5.3 Intermediary serviceLet's loo
Page 22 and 23: 1.5.2 Types of financial productsFi
Page 24 and 25: FSP licences are issued for specifi
Page 26 and 27: 5. To provide a financial service m
Page 28 and 29: 6. To give advice means to:a) give
Page 30 and 31: PurposeThis chapter introduces the
Page 32 and 33: Example 1:CBA Financial services is
Page 36 and 37: financial soundness requirement - t
Page 38 and 39: The person was found guilty in any
Page 40 and 41: 2.3.5 Experience requirements for k
Page 42 and 43: TABLE A: CATEGORY I EXPERIENCE REQU
Page 44 and 45: Experience requirements for a Categ
Page 46 and 47: was obtained through active involve
Page 48 and 49: IF YOU…Were appointed from 1Janua
Page 50 and 51: A key individual must have already
Page 52 and 53: Key individuals fulfilling the role
Page 54 and 55: serious enough to impugn the honest
Page 56 and 57: Self-Assessment QuestionsPlease not
Page 58 and 59: ) Once a key individual has been ap
Page 60 and 61: Self-Assessment Answers1. Which of
Page 62 and 63: ) Once a key individual has been ap
Page 64 and 65: 56 © INSETA - Section 1 12a
Page 66 and 67: PurposeChapter 3 introduces you to
Page 68 and 69: Let's look at the responsibilities
Page 70 and 71: For example, a person may have star
Page 72 and 73: 3.3.3 Competency requirements for r
Page 74 and 75: We discussed the tables under 2.3 a
Page 76 and 77: Experience requirements for Categor
Page 78 and 79: The main reason for the differentia
Page 80 and 81: Regulatory examinations for represe
Page 82 and 83: 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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98 © INSETA - Section 1 12a
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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
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Registrar, by 31/12/2013.Failure by
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It should be a condition of the emp
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4. In order to meet the requirement
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5. Section 13 imposes certain dutie
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PurposeChapter 6 gives you an overv
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Ramifications for the FSP if debarm
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All other administrative or legal p
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3. May an FSP use information obtai
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PurposeDuring the course of the lif
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In the discussion of the purpose an
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caused by or arose out of the carry
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c) within 60 days after the busines
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PurposeThe FAIS General code prescr
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of crime, money-laundering legislat
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Requirements.the existence of a spe
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Disclosure must include the followi
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8.4 MANAGING TRANSPARENCY AND CONFL
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Where the juristic person is neithe
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what measures were taken to avoid/m
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A provider must continuously monito
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2. Identify the financial product o
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1. A brief summary of the informati
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are addressed in the business-speci
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8.8.3 Insurance 89One of the risks
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WHO? BY WHEN? WHAT?Category III pro
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a representative, the information m
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Record of advice 106A direct market
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influence the objective exercising
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4. What needs to be disclosed to cl
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Self-Assessment Answers1. Which of
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8. The two main requirements of giv
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PurposeThis chapter introduces you
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„compliance practice‟ means a c
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Internal compliance officer:where t
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9.1.5 Withdrawal of a compliance of
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One of the main functions of a comp
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Internal auditors normally audit co
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Information about the FSPs adherenc
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Compliance reports must be submitte
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PurposeThe application process for
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the financial services business as
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Disclose compliance with other appl
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easons why the provisional suspensi
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impartial tribunal or forum. This i
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10.3.2 Civil remediesRestrainingord
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10.4 LEVIES PAYABLE IN TERMS OF THE
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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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