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


Amendment of the Determination of Fit and Proper Requirements, 2020

Chapter 3 : Competence Requirements

Part 3 : Minimum qualifications

22. Application of Part


The competence requirements relating to qualifications contained in this Part—

(a) subject to paragraph (b), apply to all FSPs, key individuals and representatives;
(b) do not apply to—
(i) a Category I FSP, its key individuals and representatives that are authorised, approved or appointed only to render financial services or manage or oversee financial services in respect of the financial products: Long-term Insurance subcategory A and/or Friendly Society Benefits; and
(ii) a representative of a Category I FSP that is appointed only to perform the execution of sales in respect of a financial product provided that—
(aa) the representative has a Grade 12 National Certificate or an equivalent qualification;
(bb) the execution of sales is performed—
(aA) in accordance with a script approved by a key individual and the relevant governance structure of the FSP; and
(aB) under the direct oversight of a key individual;
(cc) where the execution of sales is performed by telephone, all conversations with clients are recorded and the recordings are stored and retrievable;
(dd) the FSP has sufficient and adequate controls in place to ensure and to monitor that—
(aA) the representative does not furnish clients with advice; and
(aB) the sales practices and techniques employed by the representative are not misleading, false, inappropriate to the expected target clients or will not result in unfair outcomes for clients; and
(ee) the FSP on a regular basis—
(aA) reviews the recordings referred to in (cc) and/or monitors the representatives, to ensure that they do not deviate from the script or supplement the script with content not approved as contemplated in (bb);
(aB) reviews and monitors the adequacy and  efficiency of its controls and quality assurance processes in relation to the execution of sales; and
(aC) reviews the script for appropriateness and compliance with applicable legislation.