Apr 11, 2014 the circular provides an overview of the amendments made to the fais act by the financial services laws general amendment act fslga and the motivation for the amendments. Financial advisory and intermediary services act xps. Act no 37 of 2002 determination of fit and proper requirements for financial services providers, 2017 i, caroline dey da silva, the deputy registrar of financial services providers, hereby under section 6a of the financial advisory and intermediary services act, 2002 act no. The emea centre for regulatory strategy africa desk emea crs africa desk draws on financial services industry expertise from across deloittes african network to provide our clients with a forwardlooking view of the most important regulatory developments affecting them. Mastheads services and feedback are of a high standard. You are hereby advised that no employee of the provider or any other person may ask you, or offer any inducement to you, to waive any right or benefit conferred on you by or in terms of any provision of the fais act. The financial advisory and intermediary services fais act. This act has been established for you, the client of the financial advisor. The act expressly provides that records must be kept in written form, or other form or manner. The laws of the republic of south africa shall govern any claim relating to or arising from the contents of this document. As these conditions were refined, it became evident that the financial services industry, renowned for the high turnover in intermediaries. All changes are effective from the 28 th of february 2014, except for section 1c, which is effective from the 30 th of may 2014.
Fais applies to financial service providers fsps wherever they are domiciled. A full copy of the general code of conduct of the fais act is available to download at the bottom of this page. The financial advisory and intermediary services act 37 of 2002 intends. As a client of ours, you have a right to information that must be disclosed to you terms of the fais act. Financial advisory and intermediary services act, no37 of 2002. Compliance and the compliance officer the requirements for approval of a compliance officer by the registrar section 171 of the fais act prescribes that an fsp with more than one key individual or one or more representatives must appoint a compliance officer. Whereas the bill of rights in the constitution of the republic of south africa, 1996 act no. Upfront disclosure document fxcm south africa pty ltd fsp. Financial advisory and intermediary services act, 2002 legal. The financial advisory and intermediary services fais act requires that fsps be licensed and crates a professional code of conduct with specific enforcement measures. Amended by financial services laws general amendment act 45 of 20 amended by financial markets act 19 of 2012. Below you will find the framework pertaining to the qualifications that must be achieved to be an authorised representative key individual. Financial advisory and intermediary services act 37 of 2002 south.
South africa was ranked 123rd out of 144 countries in terms of the burden of government. The advent of outcomesbased legislation alters the playing field substantially. Fais act is unclear about what services should be licensed. Continuing professional development practices cpd in. Your financial services provider name standard bank insurance brokers pty ltd sbib fais licence 224 vat number 4040108880 service fees earned includes vat at the prevailing rate. Financial advisory and intermediary services act 37 of 2002. This policy is applicable in south africa, as well as to all financial service providers in firstrand. To regulate the rendering of certain financial advisory and intermediary services to clients.
As an alumnus of deloitte, you can leverage the power of the deloitte network wherever you are in the world and take advantage of local alumni offerings including local events, communications, continuous education, business insights, and more. Please refer to the below fais disclosure document for this information. The act came into effect on september 30, 2004, ushering in regulation. The financial advisory and intermediary services fais act has far reaching implications. Be it enacted by the parliament of the republic of south africa. General code of conduct for authorised financial services providers and their representatives. Financial advisory and intermediary services act 37 of. The following can be obtained from the fsb website. Financial advisory and intermediary services act centre for. It regulates the financial services market and became effective in 2002 with the main objective to protect consumers in relation to financial services with regard to the regulated products. Jun 27, 2017 the financial advisory and intermediary services act fais is unclear about which intermediary services require licensing.
National credit act, no 34 of 2005 to promote a fair and nondiscriminatory marketplace for access to consumer credit and for that purpose. Please note that the links can be opened by right clicking, on the pdf or list icon, and selecting open hyperlink. Financial advisory and intermediary services act no. The companies act, no 71 of 2008, consolidates and amends the law that relates to companies. It regulates the financial services market and became effective in 2002 with the main. You hereby authorize fxcm south africa pty ltd to receive a copy of the customer due diligence. For example, a fund does not have to be registered with a government agency. Funeral insurance and the fais act cover publications. Statutory disclosure in terms of the financial advisory and. Managing your practice in terms of the fais act and the general code of conduct may be timeconsuming, but at least there is a set of rules to guide you. This policy is applicable in south africa, as well as to all financial service providers in firstrand limited, in all countries and regions, who have been issued with a license by the registrar of financial. Complaint means, subject to section 261aiii of fais, a specific complaint relating to a financial service rendered by a financial services provider or representative to the complainant on. On 1 october 2004, the financial advisory and intermediary services fais act came into force.
All fsps must ensure that they comply with the legislation, and with certain specific fit and proper requirements as stipulated in the act. This means that an fsp with only one key individual. Financial advisory and intermediary services act fais, the financial advisory and intermediary services act, is legislation that impacts on the financial services industry and aims to regulate the giving of advice and rendering of intermediary services to clients, as well as certain other issues. The marketing and sale of financial products in south africa is subject to regulation under the financial advisory and intermediary services act, 2002 fais. In terms of section 1 of the auditing profession act, 2005, act no. Be it enacted by the parliament of the republic of south africa, as follows. The south african insurance association saia supports the information published in recent financial services board fsb circulars regarding the financial advisory and intermediary services act fais fit and proper competency requirements and the debarment when sole proprietors fsps, key individuals and representatives fail to comply. The financial advisory and intermediary services fais act 6. Column a category l table a column d category ill column e category iv column b category il column c category iia.
The circular provides an overview of the amendments made to the fais act by the financial services laws general amendment act fslga and the motivation for the amendments. Jun 27, 2018 the financial advisory and intermediary services fais act is a statement of law that affects the way a financial services provider fsp conducts business, interacts with consumers, and guides the consumer in their daily dealings. Financial advisory and intermediary services act, 2002 act no. The fais act alone cannot guarantee consumer protection, so the ombud for financial services providers fais ombud plays an integral role in providing consumer protection. Financial advisory and intermediary services act 372002. Protection of constitutional democracy against terrorist and related activities, 2004 act no. Fais act financial advisory and intermediary services act fdi foreign direct investment. Aug 01, 2010 since the implementation of the fais act of 2002, given effect in 2004, the fsb has generated a substantial number of licences. The financial advisory and intermediary services act, 2002 act no.
However, the financial advisory and intermediary services fais act 8 requires fund managers to register as financial services providers. The fais ombud deals with consumer complaints against fsps and provides an efficient and affordable dispute resolution mechanism. Sep 28, 2015 the fais act was established to regulate the conduct of financial institutions who offer credit or other financial products to clients members of the public, in terms of supplying accurate and informative financial advice, and to repeal or amend certain laws and provide for matters incidental thereto. We would like to show you a description here but the site wont allow us. This week marked the 10th anniversary of the implementation of the financial advisory and intermediary services fais act. Fais means the financial advisory and intermediary services act no 37 of 2002. The fais bill before it was enacted was drafted on the basis of a framework of specifications provided by the policy board for financial services and regulation, which only covered the furnishing of advice. With acts you are guaranteed the latest and most up to date resource for your legislative needs. Cpd is one of the requirements that form part of the fais fit and proper dispensation. The financial advisory and intermediary services act fais. Acts online provides legislation, including amendments and regulations, in an intuitive, online format. The financial advisory and intermediary services act. The regulation of the private equity fund in south africa.
Financial advisory and intermediary services fais act. Financial advisory and intermediary services act, 2002 act. E it enacted by the parliament of the republic of south africa. You may soon find that you ticked all the right boxes, yet can be found. Broadbased black economic empowerment amendment act 46 of 20 government notice 55 in government gazette 37271 dated 27 january 2014. The introduction of the fais act brought with it a new set of regulatory requirements, including those pertaining to industry incumbents being fit and proper. Regulated entities licensing and registration insurer micro insurer fais cis hedge funds retirement fund credit ratings capital markets. The market conduct policy approach should therefore be seen as a supporting pillar of south africa s financial inclusion policy higher standards of customer protection can drive greater inclusion as customers feel more. Financial advisory and intermediary services act, 2002. Financial advisory and intermediary services act updated to 28 february 2014 act 37 of 2002 gon 1453, g. Since the implementation of the fais act of 2002, given effect in 2004, the fsb has generated a substantial number of licences. Determination of fit and proper requirements for financial services providers, 2017 41 321. This is an unofficial text of the financial intelligence centre act, 2001, the money laundering and terrorist financing control regulations and the exemptions in terms of the financial intelligence centre act.
The standard bank of south africa limited is a juristic representative of sbib, and therefore you have the right to the information in this document. Co ntes 3 table of contents shortterm insurance act, 1998 act no. Definitions and application chapter i administration of act 2. Statutory disclosure in terms of the financial advisory. Financial advisory and intermediary services act, no 37 of 2002 fais 2,2mb pdf to regulate the rendering of certain financial advisory and intermediary services to clients. Financial advisory and intermediary services audit guide. Below you will find the framework pertaining to the. The fais act fais training was introduced in 2004 to insure best practices and professionalism within the financial services industry. The financial advisory and intermediary services act 37 of 2002 affects the way in which a financial services provider fsp conducts business and interacts. Dbsa development bank of south africa dti department of trade and industry eft electronic funds transfer fais act financial advisory and intermediary services act fdi foreign direct investment fic financial intelligence centre fica financial intelligence centre act fma financial markets act. National credit amendment act no 19 of 2014 the president of south africa has on 19 may 2014 signed the national credit amendment act. If we were to focus only on funeral insurance, appropriately called assistance business, we would find it could not have come at a better time, given the fact that this form of insurance is the only type of insurance still paid in cash and therefore open to abuse. The impact of regulation of the south african asset management industry. Fit and proper competency requirements and failure to comply.
Corporations act are to include at least the following in one of the official languages of south africa. Registrar and deputy registrar of financial services providers 3. The fais act introduced market conduct legislation into south africa. One of the concerns is the lack of oversight of funds in south africa. The act has now been part of south african law for more than a decade and has been amended several times. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. In this submission we will therefore highlight the. South africa s productive resources and access to skills. The financial advisory and intermediary services fais act is a statement of law that affects the way a financial services provider fsp conducts business, interacts with consumers, and guides the consumer in their daily dealings. Financial markets act 19 of 2012 government notice 70 in government gazette 36121, dated 1 february. Financial advisory and intermediary services act fais.
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