Key Individual Chapter 2

Purpose of FAIS

Consumer protectionProfessionalize intermediary and

advisory services in Financial Services industry

Regulate financial services industry

Key components of FAIS

Provides framework for advisory businesses

Ensures implementation of processes and procedures

LicensingKey Individuals and Reps

ComplaintsAuditing and accounting

Competency

Code of Conduct

Designed to protect consumerContacting client

Suitability of adviceRecording adviceRecord keeping

DisclosuresRisk management

Advertising

Source: FSB understanding the practicalities, a guide for FSP’s

Telephonic Email Fax or hard copy submission

“Do not submit financial statements by facsimile”

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 R 500 000 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

Any person contravening FAIS and making a deliberate misleading false or deceptive statement or conceals

material fact or is not a representative or makes out to be one is guilty of an offence and on conviction liable to a fine not exceeding R 1 million or imprisonment of 10

years or both

Source: Section 36 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 R 1 million or 10 years

imprisionment or both

Source: Section 36 of FAIS Act

Source: Section 19 (1) (d) of Code of Conduct and BN 81

Complainant and any other party to complaint expected to give fullest co-operation to disposal of

complaint within a reasonable time

Respondent is required to act professionally and reasonably and to co-operate with view to ensuring

efficient resolution of complaint

Source: Section 20 of FAIS Act

Source: BN 81 of 2003

Source: Section 27 (3) of FAIS

Source: Section 27 (5) of FAIS

Source: Section 28 of FAIS

Source: Section 28 (4) of FAIS