Acts Online
GT Shield

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

Determination of Fit and Proper Requirements for Financial Services Providers, 2006

Part III : Competency and Operational Ability

3. Competency

 

 

1) Financial Services Providers Category I

 

Subject to the provisions of the Act, an applicant for a licence to act as a Financial Services Provider, Category I and, where applicable, any key individual of any such person, must be a person who, in respect of one or more of the financial products of a subcategory appearing in Column One of Table A hereunder in respect of which the applicant wishes to carry on business as stated in the relevant application-

a) has the minimum experience applicable to that subcategory stated in Column Two of that Table;
b) has achieved the minimum academic standard, qualifications or professional status applicable to that sub category as stated in Column Three of that Table; and
c) will after licensing comply with the conditions/restrictions as indicated in Column Four of that Table (if any), in addition to any other conditions/restrictions imposed by the Registrar on the applicant in terms of the Act (i any), as indicated on the relevant licence when granted:

 

[Table A in this section can be found in Government Gazette No. 29132 dated 16 August 2006]

 

2) Financial Services Providers Category II

 

Subject to the provisions of the Act, an applicant for a licence to act as a Financial Services Provider, Category II, and, where applicable, any key individual of any such provider, must be a person who, in respect of the subcategory appearing in Column One of Table B hereunder for which the applicant qualifies-

a) has the minimum experience applicable to that subcategory appearing in Column One of that Table;
b) has achieved the minimum academic standard, qualifications or professional status applicable to that subcategory as stated in Column Two of that Table; and
c) will after licensing be subject to the conditions/restrictions as indicated in Column Three of that Table (if any), in addition to any other conditions/restrictions imposed by the Registrar on the applicant in terms of the Act (if any), as indicated on the relevant licence when granted:

 

2A) Financial Services Providers, Category IIA (Hedge Fund FSPs)

 

Subject to the provisions of the Act, an applicant for a licence to act as a Financial Services Provider, Category IIA, and, where applicable, any key individual of any such provider, must be a person who, in respect of the subcategory appearing in Column One of Table C hereunder for which the applicant qualifies-

a) has the minimum experience in managing hedge funds applicable to that subcategory appearing in Column One of that Table, and is able to adequately demonstrate knowledge, skill and competency in managing all instruments and asset classes comprising a hedge fund portfolio as optimized by and in conjunction with the requisite hedge fund strategies employed from time to time;
b) has achieved the minimum academic standard, qualifications or professional status applicable to that subcategory as stated in Column Two of that Table; and
c) will after licensing be subject to the conditions/restrictions as indicated in Column Three of that Table (if any), in addition to any other conditions/restrictions imposed by the Registrar on the applicant in terms of the Act (if any), as indicated on the relevant licence when granted:

 

[Table B in this section can be found in Government Gazette No. 29132 dated 16 August 2006]

 

Table C

Column One

Minimum experience

Column Two

Minimum academic standard, qualifications, professional status

Column Three

Conditions/restrictions

5 years

Grade 12 (Standard 10 or an equivalent qualification) or FETC

The applicant must within 4 years after the date of licensing or, in the case of a Key Individual, after the date of appointment, complete an appropriate NQF level 6 certificate listed on the NLRD, consisting of a minimum of 360 credits (full business honours degree)

4 years

An appropriate National Certificate at NQF level 5;

Or

A minimum of an appropriate NQF level 6 skills programme consisting of unit standards registered by SAQA and quality assured by an ETQA (minimum 120 credits)

The applicant must within 4 years after the date of licensing or, in the case of a Key Individual, after the date of appointment, complete an appropriate NQF level 6 certificate listed on the NLRD, consisting of a minimum of 360 credits (full business honours degree)

3 years

An appropriate business degree at NQF level 6

 

 

3) Financial Services Providers, Category III

Subject to the provisions of the Act, an applicant for a licence to act as a Financial Services Provider, Category III, and, where applicable, any key individual of any such provider, must be a person who, in respect of the subcategory appearing in Column One of Table D hereunder for which the applicant qualifies-

a) has the minimum experience stated in Column One of Table D;
b) has achieved the minimum academic standard, qualifications or professional status applicable to that subcategory appearing in Column Two of Table D; and
c) will after licensing be subject to the conditions/restrictions as indicated in Column Three of Table D (if any), in addition to any other conditions/restrictions imposed by the Registrar on the applicant in terms of the Act (if any), as indicated on the relevant licence when granted:

 

[Table D in this section can be found in Government Gazette No. 29132 dated 16 August 2006]