Subject Title - INSETA

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For example, a person may have started an insurance or banking career on 1June 2006. The person was not appointed as a representative at that stage.On 1 September 2008, the person started in a new function, with the sameorganisation (or another one), as a FAIS representative. This date – 1September 2008 – is the „date of first appointment‟ for purposes of the FAISAct.What are the fit and proper requirements for representatives?The fit and proper requirements for all representatives include the following:3.3.2 Honesty and integrityThe requirements in terms of honesty and integrity are the same for keyindividuals and representatives.The FSP, in appointing or mandating a representative, may refer to anyinformation it has or anything that is brought to its attention, relating to theapproval of the representative. 24The FAIS Registrar has similar powers, even though the FSB does notapprove or appoint a representative, the Registrar may still use information ithas, to question the approval of a representative or even to debar arepresentative.As with key individuals, the honesty and integrity requirement is ongoing andthe FSP must ensure that the representatives appointed and mandated toprovide financial service remain qualified in terms of these personalattributes.To achieve this, the representative must declare to the FSP on a regular basisif there is any change in his personal situation that affects his statusnegatively 25 .24 This is implied in Section 13(2) and 8(2)(b) of the Act25 This is implied in Section 13(2)(b) of the Act62 © <strong>INSETA</strong> - Section 1 12a
If the FSP becomes aware of a change in the circumstances of therepresentative that affects his honesty and integrity adversely, the FSP isobliged to debar the representative. This means that the FSP must preventthe representative from rendering any financial service by withdrawing anyauthority to act on its behalf. In addition, the FSP must remove the name ofthe representative from the representative register and must advise theRegulator and also inform the Regulator what action the FSP has taken.The following table summarises factors that may exclude a person from beinga representative. The factors mentioned below are merely some of theindications of the fitness and propriety of a representative and should not beregarded as a „closed list‟.A person may not be appointed as a representative if:The person was found guilty in any criminal proceedings or liable inany civil proceedings of acting fraudulently, dishonestly,unprofessionally, dishonourably or in breach of a fiduciary dutywithin five (5) years before application, approval and appointment.The person was found guilty by any statutory professional body orvoluntary professional body of dishonesty, negligence, incompetenceor mismanagement serious enough to impugn the honesty andintegrity of the representative, within five (5) years beforeappointment.The person was denied membership of any statutory professionalbody or voluntary professional body because of an act of dishonesty,negligence, incompetence or mismanagement, within five (5) yearsbefore application, approval and appointment.The person was found guilty by a regulatory or supervisory body ofan act of dishonesty, negligence, incompetence or mismanagementserious enough to impugn the honesty and integrity of therepresentative, within five (5) years before appointment.The FSP had its authorisation to carry on business/any licencewithdrawn or suspended by any regulatory or supervisory bodybecause of an act of dishonesty, negligence, incompetence ormismanagement of the representative, within five (5) years beforeapplication, approval and appointment.The person was disqualified or prohibited by a court from taking partin the management of any company or other statutorily created,recognised or regulated body, current or not, irrespective whethersuch disqualification has since been lifted or not.© <strong>INSETA</strong> - Section 1 12a 63
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LOGO TO BE CONFIRMEDFSB REGULATORY
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Table of ContentsTasksGlossary of T
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8.8 Other provisions of the general
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TasksThe material provided in this
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PurposeThe FAIS Act introduced mark
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The duties of FSPs are described in
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CATEGORY II: SUBCATEGORIES2.1 Long-
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1.5.2 AdviceThe FAIS Act defines
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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 34 and 35: Submitting documentsEmploymenthisto
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
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Page 66 and 67: PurposeChapter 3 introduces you to
Page 68 and 69: Let's look at the responsibilities
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
Page 84 and 85: Part of the management and oversigh
Page 86 and 87: Let‟s look at a summary of the co
Page 88 and 89: c) The representative register need
Page 90 and 91: Self-Assessment Answers1. In terms
Page 92 and 93: 8. The general experience requireme
Page 94 and 95: PurposeIn Chapter 4 you will learn
Page 96 and 97: TABLE ACATEGORIES 1 and IV: LEVEL O
Page 98 and 99: 4.2 SUPERVISION REQUIREMENTSKey ind
Page 100 and 101: Ensure that the supervision require
Page 102 and 103: Self-Assessment QuestionsPlease not
Page 104 and 105: Self-Assessment Answers1. In terms
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Page 108 and 109: PurposeBefore a juristic entity can
Page 110 and 111: Understanding the process step by s
Page 112 and 113: 5.3 SECTION 13As mentioned above, S
Page 114 and 115: What must be done?The FSP must main
Page 116 and 117: Registrar, by 31/12/2013.Failure by
Page 118 and 119: 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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124 © INSETA - Section 1 12a
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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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Subject Title - INSETA

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