Financial advisory and intermediary services act 37 of 2002. In this submission we will therefore highlight the. Broadbased black economic empowerment act 53 of 2003 gazette no. This week marked the 10th anniversary of the implementation of the financial advisory and intermediary services fais act. National credit act, no 34 of 2005 to promote a fair and nondiscriminatory marketplace for access to consumer credit and for that purpose. 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. 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. The financial advisory and intermediary services fais act. Financial advisory and intermediary services fais act. Registrar and deputy registrar of financial services providers 3. 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. 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.
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. Continuing professional development practices cpd in. Financial advisory and intermediary services act updated to 28 february 2014 act 37 of 2002 gon 1453, g. The following can be obtained from the fsb website. Financial advisory and intermediary services act no. As these conditions were refined, it became evident that the financial services industry, renowned for the high turnover in intermediaries. The regulation of the private equity fund in south africa. Mastheads services and feedback are of a high standard. However, the financial advisory and intermediary services fais act 8 requires fund managers to register as financial services providers. 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 impact of regulation of the south african asset management industry. Determination of fit and proper requirements for financial services providers, 2017 41 321. Cpd is one of the requirements that form part of the fais fit and proper dispensation. Jun 27, 2017 the financial advisory and intermediary services act fais is unclear about which intermediary services require licensing.
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. The financial advisory and intermediary services fais act has far reaching implications. The financial advisory and intermediary services act fais. Fais act financial advisory and intermediary services act fdi foreign direct investment. The act came into effect on september 30, 2004, ushering in regulation. The financial advisory and intermediary services fais act 6. The fais ombud deals with consumer complaints against fsps and provides an efficient and affordable dispute resolution mechanism. Protection of constitutional democracy against terrorist and related activities, 2004 act no. Financial advisory and intermediary services act, 2002 act.
General code of conduct for authorised financial services providers and their representatives. Since the implementation of the fais act of 2002, given effect in 2004, the fsb has generated a substantial number of licences. Whereas south africa s economy still excludes the vast majority of its people from ownership of productive assets and the possession. 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.
You hereby authorize fxcm south africa pty ltd to receive a copy of the customer due diligence. Continuing professional development practices cpd in recognised professional bodies an initial survey by saqa fpi page 3 abstract continuing professional development cpd is a requirement for the maintenance of professional designations. 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. Funeral insurance and the fais act cover publications. Fais act is unclear about what services should be licensed. With acts you are guaranteed the latest and most up to date resource for your legislative needs. 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. Whereas the bill of rights in the constitution of the republic of south africa, 1996 act no. All fsps must ensure that they comply with the legislation, and with certain specific fit and proper requirements as stipulated in the act. E it enacted by the parliament of the republic of south africa.
Be it enacted by the parliament of the republic of south africa, as follows. The marketing and sale of financial products in south africa is subject to regulation under the financial advisory and intermediary services act, 2002 fais. Corporations act are to include at least the following in one of the official languages of south africa. To regulate the rendering of certain financial advisory and intermediary services to clients. Co ntes 3 table of contents shortterm insurance act, 1998 act no. Fit and proper competency requirements and failure to comply. South africa was ranked 123rd out of 144 countries in terms of the burden of government. 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, 2002 act no. 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.
Fais means the financial advisory and intermediary services act no 37 of 2002. 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. 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. The financial advisory and intermediary services act. 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. Below you will find the framework pertaining to the. Fais applies to financial service providers fsps wherever they are domiciled. This policy is applicable in south africa, as well as to all financial service providers in firstrand. 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.
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. National credit amendment act no 19 of 2014 the president of south africa has on 19 may 2014 signed the national credit amendment act. The fais act introduced market conduct legislation into south africa. Broadbased black economic empowerment amendment act 46 of 20 government notice 55 in government gazette 37271 dated 27 january 2014. The advent of outcomesbased legislation alters the playing field substantially. 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. 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, no37 of 2002. We would like to show you a description here but the site wont allow us. The masthead learning centre adds value as it helps me to meet the fscas requirements by attending seminars and completing online learning activities. Regulated entities licensing and registration insurer micro insurer fais cis hedge funds retirement fund credit ratings capital markets. A full copy of the general code of conduct of the fais act is available to download at the bottom of this page. 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. Please note that the links can be opened by right clicking, on the pdf or list icon, and selecting open hyperlink.
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. You may soon find that you ticked all the right boxes, yet can be found. 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. Financial advisory and intermediary services act 372002. On 1 october 2004, the financial advisory and intermediary services fais act came into force. We are the leading resource for freely available legislation in south africa and are used daily by thousands of professionals and industry leaders. The financial advisory and intermediary services act 37 of 2002 intends. Financial advisory and intermediary services act 37 of. 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 laws of the republic of south africa shall govern any claim relating to or arising from the contents of this document.
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. It violates the rule of law principle that laws must indicate with reasonable clarity what is. Financial markets act 19 of 2012 government notice 70 in government gazette 36121, dated 1 february. Amended by financial services laws general amendment act 45 of 20 amended by financial markets act 19 of 2012. Financial advisory and intermediary services act, 2002. The act has now been part of south african law for more than a decade and has been amended several times.
Be it enacted by the parliament of the republic of south africa. South africa s productive resources and access to skills. 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. Financial advisory and intermediary services audit guide. The financial advisory and intermediary services act 37 of 2002 affects the way in which a financial services provider fsp conducts business and interacts. 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. Financial advisory and intermediary services act xps. For example, a fund does not have to be registered with a government agency.
It regulates the financial services market and became effective in 2002 with the main. 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. Definitions and application chapter i administration of act 2. 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, 2002 act no. Acts online provides legislation, including amendments and regulations, in an intuitive, online format.
Upfront disclosure document fxcm south africa pty ltd fsp. This act has been established for you, the client of the financial advisor. Following the sought opinion, on 3 march 2015 the law society of south africa lssa wrote to the senior legal adviser of the fsb requiring clarity on the circular and expressing the views of the lssa on the various investments that attorneys are involved with, being the investments in terms of the act and the investments in terms of the rules. 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. In terms of section 1 of the auditing profession act, 2005, act no. The companies act, no 71 of 2008, consolidates and amends the law that relates to companies. 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. Financial advisory and intermediary services act, 2002 legal.
Statutory disclosure in terms of the financial advisory. 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. Statutory disclosure in terms of the financial advisory and. As a client of ours, you have a right to information that must be disclosed to you terms of the fais act. One of the concerns is the lack of oversight of funds in south africa. This act became effective on 1 may 2011 and should be read with the companies amendment act, no 3 of 2011, and the companies regulations, 2011. Compliance to financial services providers masthead. Financial advisory and intermediary services act 37 of 2002 south. It requires any person who provides investment advice or an intermediary service to register with the financial services board.
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