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Licensing requirements. Key Individuals chapter 4. 2. Licensing requirements for FSp and role of ki. Source: Section 8 of FAIS Act. 37. Use of specimen mandates. Registrar must approve specimen mandates used by administrative- and discretionary FSP’s - PowerPoint PPT Presentation
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Key Individuals chapter 4
Source: Section 8 of FAIS Act
Registrar must approve specimen mandates used by administrative- and discretionary FSP’s
No changes or amendments can be made without prior approval of Registrar
Discretionary FSP
Nominee Company
Holding Company is Discretionary FSP
•Wholly owned by discretionary FSP•Holds assets for investors•Ring fences assets•Cannot incur liabilities•Only owes investors money•Has adequate insurance for theft and disasters•Annually submit financials to FSB•Failure will mean license withdrawal
Discretionary FSP cannot exist without nominee company
Fidelity guarantees in place
Where license granted registrar issues license authorising applicant to act as FSP in Gazette and issues copy of licence.
Registrar may withdraw license or amend condition or restriction and if new KI appointed impose new conditions and restrictions and license and issue new copy
Conditions may include that where KI is replaced, or new KI appointed or personal circumstances of KI changes and effects fit and proper no person can take part in
management and oversight of licensee’s business
On license being granted registrar may impose conditions having regard to: •All facts and information Category of financial services
•Category of FSP in relation to fit and proper•Any guidelines by Advisory Committee
Authorised FSP or Rep can only do business with person rendering financial services if person has been issued with a license for rendering financial services and conditions
and restrictions on license allow rendering of such service
Source: Section 7 and 8 of FAIS Act
Source: Section 8 of FAIS Act
Levies calculated on 31 August every year and payable by 30 October in same year
Any change in personal circumstances of KI affecting fit and proper status will mean person cannot take part in
management or oversight of FSP unless on application been approved by Registrar
Source: Section 8 (4) (iii) of FAIS Act
Source: Section 18 of Financial Advisory and Intermediary Service Regulations
A person who fails to comply with these regulations is guilty of an offence and liable on conviction to a fine not exceeding R500 000 or imprisonment for a period
not exceeding 5 years or both
Apply for Court order restraining person
From continuing to commit act or any
omission
Require person to take remedial steps
Source: Section 33 of FAIS Act
Payment for amount as compensation
Penalty for punitive purposes Interest and cost of suit
Business changes reported in 15 days
Business Name
Business address
Compliance Officer
Any contact details
Banking details
Shareholder
Representatives
Auditors
No one can act as rep
unless
He has employment or mandate
agreement with FSP
Suspend license until conditions met Withdraw license
FSP may not carry on business practice concerned
•Registrar can direct that practice must be rectified
Registrar may not make order contemplated in Financial Institutions Act
•FSP must rectify as directed within 60 days after direction
Source: Section of FAIS Act
Source: Section 7 (3) of FAIS Act
FSP or Rep may only conduct financial
services related business with person
rendering financial services if that
person has a license for rendering
financial services and conditions and
restrictions authorises that person to
render financial services
Registrar may impose conditions and restrictions on authority granted by license having regard to:
Facts and information
Category of financial services
Category of financial services providers
Advisory Committee Guidelines
After date of granting license KI replaced, appointed or personal situation changes and not fit and proper person
cannot manage FSP
Source: Section 8 (4) of FAIS ACT
Contravenes or fails to comply
Makes misleading statement or
conceals material fact
Gives Auditor of CO false,
misleading information
Is not rep appointed or
mandated by FSP and professes to
be
Guilty of offence on conviction
fined R1 million or 10 years
imprisionment or both
Source: Section 36 of FAIS Act