The Financial Advisory and Intermediary Services Act, 2002 (“FAIS”) regulates the provision of financial service activities (advice and intermediary services) on specific financial products in South Africa by requiring the registration of financial service providers (“FSPs”). The different categories of FSP licences cover a broad spectrum of activities from financial advisors, to asset managers, to hedge fund investment managers, to LISPs and administrators. FAIS imposes a number of registration and licence requirements on the FSPs such as operational capacity, financial soundness and experience which are monitored and enforced by the regulatory authority, the Financial Sector Conduct Authority (“FSCA”). By holding the FSPs to these standards and applying constant monitoring of FSPs, the FSCA seeks to protect the end-consumer.
FAIS also stipulates that a FSP appoint certain statutory officers such as key individuals, representatives and compliance officers who are obligated to have a solid working knowledge and understanding of FAIS. The key individuals and representatives are also required to write one or more regulatory examinations based on FAIS. This is often challenging for persons who are key individuals and representatives because they do not necessarily engage with FAIS on a regular basis although they implicitly follow FAIS in carrying out their duties. It also is difficult because the provisions of FAIS are also constantly changing and being updated.
We recognise the need to train FSPs’ key individuals, representatives and other staff members on their obligations under FAIS in preparation for the RE examinations or as a general update to ensure that they continue their compliance under FAIS.
The following topics will be covered during the course:
- Financial products under FAIS
- Role and responsibilities of key individual
- Role and responsibilities of representative
- Role and responsibilities of compliance officer
- Fit and proper requirements
- Different categories of FSPs
- FAIS requirements for FSPs
- Conflict of interest
- Interaction of FAIS and other financial services legislation