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

Notice on Requirements for Professional Indemnity and Fidelity Insurance Cover for Providers, 2009

3. Categories I, II, IIA, III and IV providers

 

 

Subject to the provisions of this Schedule-

a) A person who is a Category I or IV provider and who does not receive or hold clients' financial products or funds on the date of commencement must, with effect from a date 12 months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum amount of R1 million; or
ii) suitable professional indemnity cover of a minimum amount of R1 million.
b) A person who is a Category I or IV provider and who receives or holds clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date 12 months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum amount of R1 million; or
ii) suitable professional indemnity and fidelity insurance cover of a minimum amount of R1 million.
c) The provisions of paragraphs (a) and (b) apply to any person who after the commencement date becomes a Category l or IV provider.
d) A person who is a Category II provider and who does not receive or hold clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum amount of R1 million; or
ii) suitable professional indemnity cover of a minimum of R1 million.
e) A person who is a Category II provider and who receives or holds clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum amount of R5 million; or
ii) suitable professional indemnity and fidelity insurance cover of a minimum amount of R5 million, respectively.
f) A person who is a Category IIA provider and who does not receive or hold clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum amount of R5 million; or
ii) suitable professional indemnity cover of a minimum amount of R5 million.
g) A person who is a Category IIA provider and who receives or holds clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum amount of R5 million, or
ii) suitable professional indemnity and fidelity insurance cover of a minimum amount of R5 million, respectively.
h) A person who is a Category III provider and who receives or holds clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum amount of R5 million; or
ii) professional indemnity and fidelity insurance cover of a minimum amount of R5 million, respectively.
i) The provisions of paragraphs (d), (e), (f), (g) and (h) apply to any person who after the commencement date becomes a Category II, IIA or III provider.