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Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002)

Chapter III : Representatives of authorised Financial Services Providers

13. Qualifications of representatives and duties of authorised financial services providers


(1) A person may not—
(a) carry on business by rendering financial services to clients for or on behalf of any person who—
(i) is not authorised as a financial services provider; and
(ii) is not exempted from the application of this Act relating to the rendering of a financial service;
(b) act as a representative of an authorised financial services provider, unless such person –

[Words preceding section 13(1)(b)(i) amended by section 186(a) of Act No. 45 of 2013]

(i) prior to rendering a financial service, provides confirmation, certified by the provider, to clients—
(aa) that a service contract or other mandate, to represent the provider, exists; and
(bb) that the provider accepts responsibility for those activities of the representative performed within the scope of, or in the course of implementing, any such contract or mandate; and
(iA) meets the fit and proper requirements; and

[Section 13(1)(b)(iA) inserted by section 186(b) of Act No. 45 of 2013]

(ii) if debarred as contemplated in section 14, complies with the requirements determined by the registrar by notice in the Gazette, for the reappointment of a debarred person as a representative; or

[Section 13(1)(b)(ii) amended by section 186(c) of Act No. 45 of 2013]

(c) render financial services or contract in respect of financial services other than in the name of the financial services provider of which such person is a representative.

[Section 13(1)(c) amended by section 186(d) of Act No. 45 of 2013]

[Section 13(1) amended by section 186(d) of Act No. 45 of 2013]


(2)        An authorised financial services provider must—

(a) at all times be satisfied that the provider's representatives, and the key individuals of such representatives, are, when rendering a financial service on behalf of the provider, competent to act, and comply with—

(i)        the fit and proper requirements; and

(ii) any other requirements contemplated in subsection (1)(b)(ii);

[Section 13(2)(a) amended by section 186(e) of Act No. 45 of 2013]

(b) take such steps as may be reasonable in the circumstances to ensure that representatives comply with any applicable code of conduct as well as with other applicable laws on conduct of business .


(3) An authorised financial services provider must—
(a) maintain a register of representatives, and key individuals of those representatives, which must be regularly updated and be available to the Authority for reference or inspection purposes; and
(b) within five days after being informed by the Authority of the debarment of a representative or key individual by the Authority, remove the name of that representative or key individual from the register referred to in paragraph (a).

[Section 13(3) substituted by section 290, item 10 in Schedule 4, of Act No. 9 of 2017 - effective 1 April 2018 (paragraph (h) of Notice 169 of 2018)]


(4) Such register must –
(a) contain every representative's or key individual's name and business address, and state whether the representative acts for the provider as employee or as mandatory; and
(b) specify the categories in which such representatives are competent to render financial services.


(5) The registrar may require information from the authorised financial services provider, including the information referred to in subsection (4), so as to enable the registrar to maintain and continuously update a central register of all representatives and key individuals, which register must be published in any appropriate media.


(6) A person who on the date contemplated in section 7(1) complies with the requirements of this Act for a representative and on such date acts as employee or mandatory for any person who on or after such date becomes an authorised financial services provider, is, for the purposes of this Act, but subject to the provisions of this Act relating to representatives, regarded as a representative.