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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 –
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
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
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.

[Subsection 1 amended by section 186(a), (b), (c) and (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);

[Paragraph (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) The authorised financial services provider must maintain a register of representatives, and key individuals of such representatives, which must be regularly updated and be available to the registrar for reference or inspection purposes.

 

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.