Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002)
Codes of Conduct
Amendment of the General Code of Conduct for Authorised FSPs and Representatives, 2020
Part VIII : Custody of financial products and funds
|Subject to the provisions of any other applicable Act, a provider who receives or holds financial products or funds of or on behalf of a client must account for such products or funds properly and promptly and—
|when documents of title are lodged with the provider on behalf of the client, the provider must immediately provide written confirmation of receipt thereof which contains a description of the documents that is sufficient to identify them;
|when a provider receives funds into safe custody without the mediation of a bank, the provider must on receipt of the money, issue a written confirmation of receipt thereof;
|where the provider, or a third party on behalf of either of them, is in control of such financial products or funds, take reasonable steps to ensure that they are adequately safeguarded;
|open and maintain a separate account, designated for client funds, at a bank and—
|must within one business day of receipt pay into the account all funds held on behalf of clients;
|ensure that the separate account only contains funds of clients and not those of the provider;
|pay all bank charges in respect of the separate account except that bank charges specifically relating to a deposit or withdrawal of the funds of the client are for the client's own account; and
|ensure that any interest accruing to the funds in the separate account is payable to the client or the owner of the funds;
|take reasonable steps to ensure—
|that at all times such financial products or funds are dealt with strictly in accordance with the mandate given to the provider;
|that client financial products or funds are readily discernible from private assets or funds of the provider; and
|that, subject to any applicable contractual or statutory provisions, a client has ready access to any amount paid into the separate account, less any deductions which are authorised, and charges and fees required or authorised to be paid by law.
|Where a transaction or agreement has been recorded in writing, the provider who dealt with the client, must ensure that the original agreement is delivered to the client for safe custody.
|Section 10(1)(d) is not applicable to a provider—
|who receives, holds or in any other matter deals with premiums payable under a short-term reinsurance policy; or
|who is subject to section 45 of the Short-term Insurance Act, 1998 (Act No. 53 of 1998), if the provider complies with the requirements contemplated in that section.
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