Key Individual Chapter 1

Source: Section 8,13 and 14 of FAIS Act and BN 106

Source: section 2 of BN 106 as amended

5 years

Prima facie evidence

Disqualified from management of

company

Change in personal circumstances of KI may affect fit and proper status

Renders person not to be fit and proper and cannot take part in conduct or management or

oversight of FSP

Source: Louis Wessels Legal Adviser FSB and Section 8 (4) (b) (iii)

Experience

Qualifications

Regulatory Exams 1 and 2

CPDCompetence

Source: Section 8 (1) (i) (ii) of FAIS Act and BN 106

Source: BN 106 and substituted by BN 60 of 2010

One subcategory Advice minimum Experience Services Minimum Experiences

Long term Insurance sub cat A 6 months 2 months

Short term Insurance Personal Lines 1 year 6 months

Long term Insurance sub cat B1 and B2 1 year 6 months

Long term Insurance sub cat C 1 year 6 months

Retail Pension benefits 1 year 6 months

Pension Fund Benefits 1 year 6 months

Securities and instruments•Shares, Money market• Debentures•Warrants•Derivatives•Collective investments• Forex

2 years 1 year

Source: Section 13(2) of FAIS Act

Where any KI is replaced by new KI

Is appointed or assumes office

Change in personal circumstances of KI

Such person not fit and proper

Source: Section 8 (4) of FAIS

Identify whether classified as part of transitional arrangements or as new entrant – (see BN 104)

May select further qualifications from qualifications list and complete relevant qualification within 5 years of appointment

Reps must meet qualifying criteria published in subordinate legislation.

FAIS Registrar published list of “recognised qualifications” for each category and subcategory

Source: Board Notice 106

Product specific Regulatory Exam and exemptions depending on qualifications

Qualifications not listed may gain recognition by making application which MAY be added to qualification list

Entry level requirements for each License Category

FAIS Registrar published list of “recognised qualifications” for each category and subcategory

Source: BN 106 section 5

Source: Section 13 (3) of FAIS Act

Management and oversight requires processes to recruit and appoint representativesKI’s will need to do the following:

•Honesty and Integrity reference checks•- FSB debarred list

•-Professional Body membership validity•Obtain details of previous experience

•Obtain and verify details of qualifications•Check completion of Regulatory Exams

•Obtain and verify CPD status

Competent to act and practical experience in financial services

Active involvement and ongoing gain of knowledge, skills and expertise

Pre-transaction and advice sign-off

Attend meetings with Supervisee

Post transaction sampling and client follow up

Source: BN 106 and 104

Source: Section 13, 16 of FAIS Act and section 3 to 5 of Code of Conduct

Source: Section 3 to 5 and 7 to 9 of Code of Conduct

Source: Section 8 and 13 of FAIS Act

Complies with fit and proper:•Personal character qualities of honesty and integrity•Competence and operational ability•Financial soundness

FSP must at all times be satisfied that Reps and KI’s are when rendering a financial service

competent to act and comply with Act and Code of Conduct

Registrar may debar Reps and KI’s not meeting requirements

(see REPS course)

Source: BN 106

Competence requirements:•Qualifying criteria•List of qualifications•Minimum experience •Passed RE•CPD compliance•Sole proprietor and other KI must do above•FSP must have 1 KI with above•Juristic FSP must have 1 KI with above•Reps must have minimum experience and qualifications•Health services benefits accreditation

Experience requirements:•Active and ongoing gaining of knowledge and skills•Active involvement in rendering financial services•In or outside RSA•Intermittent periods not more than 5 yrs•Simultaneous or multiple categories•Rep must have same as KI but can be exempted and be under supervision•KI must have 1 yrs practical experience in management and oversight•Gained in similar or corresponding to financial services rendered by FSP

Regulatory Exams and CPD:•All Reps and KI’s must pass RE•Reps must do so w/i 2 yrs of first appointment•Second level with in 6 yrs of 1st appointment•CPD requires 15 to 60 notional hours of learning over 3 year cycle•Cycle starts after RE 1 passed

Qualifications:•List of qualifications in Table A•Must comply with Highest qualification required in respect of sub-categories