Subject Title - INSETA

PurposeChapter 3 introduces you to the role of representatives and their fit andproper requirements. The FSP is responsible for the actions of representativesand as a key individual, you are responsible to oversee and manage therepresentatives including their fitness and propriety.3.1 THE ROLES AND RESPONSIBILITIES OF REPRESENTATIVESAS DEFINED IN THE FAIS ACT3.1.1 Definition of a representativeThe FAIS Act defines a „representative‟ as follows:Definition of representative"‟Representative‟ means any person, including a person employed ormandated by such first-mentioned person, who renders a financial service toa client for or on behalf of a financial services provider, in terms of conditionsof employment or any other mandate, but excludes a person renderingclerical, technical, administrative, legal, accounting or other service in asubsidiary or subordinate capacity, which service-a) does not require judgment on the part of the latter person; orb) does not lead a client to any specific transaction in respect of afinancial product in response to general enquiries;"The representative IS:a person who renders a financial service (advice or intermediaryservice)to a clienton behalf of a provider (licensed FSP)by virtue of an employment contract with the provider orby virtue of a mandate from the provider.58 © INSETA - Section 1 12a