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