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Overview and preparation techniques. Presented by the Inspired Learning Regulatory Academy. Minimum license requirements. Competency Product Category ,minimum experience, academic qualifications, Conditions. Operational Ability - PowerPoint PPT Presentation
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OVERVIEW AND PREPARATION TECHNIQUES
Presented by the Inspired Learning Regulatory Academy
MINIMUM LICENSE REQUIREMENTS
CompetencyProduct Category ,minimum
experience, academic qualifications, Conditions
Sound financial security No unrehabilitated insolvent
Assets exceed liabilities
Honesty and IntegrityGood character and integrity
Found guilty, fined , prohibited Court of Law or civil matter etc
Operational AbilityBusiness address,
communication facilities, bank account, money laundering
controls,
Fit and Proper
USE OF LICENSE
Displayed in prominent and
durable manner
Reference in all business
documentation, advertisements,
promotional material
Not use license when withdrawn or
suspended
Immediately or within reasonable
time available
OUTCOME 16
COMPLIANCE PROVISIONS WITHIN FSP
•Have suitable guarantees or professional indemnity
•May not contain statement, promise or forecast which is fraudulent, untrue or misleading
•Structure internal control procedures to ensure business carried on in orderly and efficient manner
•Effectively employ resources, procedures and appropriate technological systems
Control Measures
Specific Control
Measures
InsuranceAdvertising
OUTCOME 43
APPOINTMENT OF COMPLIANCE OFFICER
No one can act as rep
unless
He has employment or mandate
agreement with FSP
Authorized FSP with more than one KI or Rep, subject to 35 (1) (c), must
appoint Compliance Officer
CO is any person with suitable qualifications and experience
determined by Registrar
Provisions of Section 19 regarding auditor apply with changes to CO
OUTCOME 43
ROLE / FUNCTION OF COMPLIANCE OFFICERSource: Board Notice 127
CO approved by Registrar
No longer complies with criteria and guidelines
Registrar may make know withdrawal and reasons in
Gazette
• May withdraw approval if• CO contravened / failed
to comply with FAIS or
• Criteria set by registrar in consultation with Advisory Committee
• Or any appropriate media
OUTCOME 43
ROLE / FUNCTION OF COMPLIANCE OFFICER
FSP must establish and maintain procedures to be followed by provider and
Reps to ensure compliance
CO must submit reports to registrar in manner and in
matters determined by registrar
Provisions also apply to FSP who has 1 key
individual or without a representative
Source: FAIS Act Section 17
OUTCOME 43
FUNCTIONS OF COMPLIANCE OFFICER
The CO is required to supervise the compliance function. This CO must ensure requirements of FAIS met through procedures which the FSP (key individual) must establish. These may be:• Examination of the compliance function at the time of
license application; • Direct examination of the compliance function as part of
the general on-site inspections of the FSP• Direct examination of the internal policies and
operational procedures and controls • Periodic assessment which should be filed with the
regulators for review• Revising and re-examination of the compliance function
where issues had previously been identified with the FSP about the operation of the function.
Source: Section 17 of FAIS Act and www.fsa.gov
OUTCOME 43
UNDESIRABLE BUSINESS PRACTICE
Harming relationships
Unreasonably prejudicing client
Deceiving any clientUnfairly effecting any client
If practice continues objectives of Act will be
defeated
Source: Section 34 of FAIS Act
Practice directly or indirectly
OUTCOME 13
REGISTRAR PUBLISHES UNDESIRABLE NOTICE
Publishes intention in
Gazette
Gives reasons in Gazette and
invites written representation
receivable 21 days from publication
Declaration published and FSP must stop practice
OUTCOME 14
Registrar may suspend or withdraw license at any time if
Licensee no longer meets fit and proper requirements
Licensee did not make full disclosure on license application form
Failed to comply with other provisions of FAIS
Is liable to pay levy or administrative sanction
LICENSE SUSPENSION
OUTCOME 17
LICENSE WITHDRAWAL
Registrar must make known the reasons
for the suspension or withdrawal and any
terms attached thereto by notice in
the Gazette
Provisionally suspend or withdraw a
licence. Grounds therefore and period
and terms of suspension
Make known the suspension or
withdrawal in the Gazette
Give licensee reasonable time to
respond
OUTCOME 17
RECOURSE FOR LICENSE SUSPENSION
The Registrar must consider a response received from the licensee and may decide to: • Lift the provisional suspension or withdrawal • Make it final
The licensee must be advised accordingly and notification must happen in the Gazette and other media if necessary.
If a license is suspended or withdrawn, the licensee is not authorised to act as a FSP.
Source: FAIS Act Section 9
OUTCOME 18
Licensee becomes permanently disabled Finally sequestrated Dies Finally liquidated or dissolved License becomes dormant Licensee voluntarily and finally surrenders
license to Registrar Advise registrar in writing
LAPSING OF A LICENSE
OUTCOME 19
LAPSING VS SUSPENSION/ WITHDRAWALS
Suspension or withdrawal of a license is the result of non-compliance with the requirements of the FAIS Act: • Originates as a result of FSP actions or omissions • FSB may allow reinstatement of suspended or withdrawn licenses under
certain conditions • After suspension or withdrawal a FSP will be debarred to apply for a new
license. • There are implications for FSP’s registered under the Medical Schemes Act as
the FSP will loose the accreditation if the license is suspended when a license is lapsed
Lapsing of a license is the result of factors other than non-compliance: • Lapsing of the license is initiated by the FSP, following an event that gave rise it • There are no provisions in the Act to reinstate a lapsed license. • There are no requirements for debarment on lapsing of a license • There are no implications from other legislation when a license is lapsed
Source: FAIS Act Section 11
OUTCOME 20
REINSTATEMENT OF LICENSE
1. There are no provision in the Act to reinstate a lapsed license. A new application must be submitted . But this can only happen if that entity has not been permanently disbarred from receiving a license
for that product category 2. The Registrar can reinstate a suspended license once all the
conditions have been met 3. The Registrar may impose conditions if a suspension or
withdrawal is lifted. These conditions may include certain actions by the FSP in relation to its business
Source: FAIS Act Section 11
OUTCOME 21
REINSTATEMENT OF AUTHORISATION IMPOSED
The Registrar must consider a response received from the licensee and may decide to: • Lift the provisional suspension or withdrawal • Make it final
• Withdrawn license cannot be reinstated• Registrar can reinstate withdrawn license once conditions met• Registrar can impose conditions is suspension lifted
OUTCOME 22
DETERMINATIONS BY OMBUD
Registrar informs licensee of intention to suspend and gives reasonable time for submission
Inform licensee of intended period and terms of suspension
Prohibition on concluding new business from date of suspension
For unconcluded business determine measures for protection in interests of clients of licensee
Terms for lifting of the suspension
Registrar must consider any response received and may suspend or withdraw license thereafter or not to and
must notify licensee
OUTCOME 23
COMPLAINTS
Lodge complaint in writing Record complaints for 5 years
Handle complaints in timely and fair manner Investigate and respond promptly
Not resolved to clients satisfaction advise client of further steps
available
Source: Section 16 of FAIS Act
OUTCOME 33
COMPLAINTS CONTINUEDSource: Section 17 of FAIS Act
FSP must have internal complaint resolution
system and procedures
Maintain comprehensive policy and have systems / procedures for resolution
Clients must have full knowledge or resolution
procedures
Access to facilities such as branch or electronic /
postal means
Resolution to be fair to both client and provider
OUTCOME 33
COMPLAINTS CONTINUED AGAINSource: Section 19 of FAIS Act
FSP internal complaint resolution system must
reduce details of internal complaint resolution system to
writing
Handle complaints in timely and fair manner
Access to procedures are at all times available to clients and be made
known
Include clear summary of procedure after dismissal of complaint or if client wishes to
proceed to Ombud Name , address and contact details of
Ombud
OUTCOME 33
ROLE AND POWERS OF OMBUD
Consider and dispose of complaints Procedurally fair, informal, economical and expeditiously
Equitable in circumstances with regard to contractual relationship An provisions of Act
Ombud must be independent and impartial
Source: FAIS Act Sections 20 to 32
OUTCOME 23
RECEIPT OF COMPLAINTS BY OMBUD
Explore any reasonable prospect of resolving complaint by settlement
May resolve complaint by conciliation , make recommendation
All parties have had time to respond
In determining officially received complaint follow and implement any procedure
Allow any party right of legal representation
Ombud cannot proceed to investigate unless
Has informed other parties in writing Is satisfied all parties have particulars of claim
DETERMINATIONS BY OMBUD
Dismiss complaint or uphold complaint
Make award of fair compensation to complainant
Monetary award payable may bear interest
Determination reduced to writing with all reasons
Copies to registrar and all parties concerned
May lodge appeal and appeal goes to clerk or registrar of court for determination
Source: FAIS Act Sections 20 to 32
OUTCOME 23
ROLE POWERS AND DUTIES OF REGISTRAR
Approach a Court for restraining order against person
contravening FAIS Act
Declare a business practice undesirable
Institute action in Court of Law against
any person for payment of
compensation on behalf of another
person and punitive damages
Institute civil proceedings on
behalf of a person against FSP
OUTCOME 14
PENALTIESContravention and failure to
comply
Misleading, false or deceptive statement
Conceals material fact
Guilty of offence, on conviction to fine not exceeding R 1 million
Or imprisonment not exceeding 10 years or both
OUTCOME 14