Subject Title - INSETA

Let's look at the responsibilities of representatives: A representative gives advice and/or provides an intermediaryservice to the clients of the FSP. A representative must confirm to clients (and certified by the FSP)that he:– has an employment or mandate agreement with the FSP, torepresent the FSP; and– that the FSP accepts responsibility for the activities of therepresentative performed in terms of the agreement. A representative must be fit and proper as required by the FAIS Act.(We discuss this in more detail below.) Representatives appointed after 1 January 2010 may have to workunder supervision whilst getting the required qualifications,experience and/or completing the regulatory examinations. A representative must comply with the FAIS Act and other relevantlaws which apply to the conduct of business. (The compliance withthe General Code is discussed in more detail below.)If a representative also acts as a key individual (discussed above), it followsthat the representative will also have those responsibilities (KIresponsibilities), in addition to the representative responsibilities.If a representative was debarred, he can only operate as a representativeagain if the procedures for reappointment of debarred representatives havebeen followed.3.2 REGISTRATION OF REPRESENTATIVES3.2.1 Appointment of representativesThe FAIS Registrar does not issue licences to representatives, nor does theRegistrar „approve‟ representatives.The FSP appoints representatives and carries all the responsibilities inrelation to ensuring that the representatives are fit and proper and complywith legislation and the FAIS subordinate legislation in particular (like theGeneral Code).The FAIS Registrar (FSB) authorises an FSP to provide financial services andissues a licence.60 © INSETA - Section 1 12a