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

Financial Advisory And Intermediary Services Regulations, 2003

Chapter V : Matters relating to Administrative and Discretionary FSPs (Section 35(1)(d) and (e) of Act)

6. Nominee companies of discretionary FSPs

 

 

1) The functions of the nominee company of a discretionary FSP must be limited to its object and to such other functions as may be necessary to achieve the said object.

 

2) A discretionary FSP must, prior to obtaining authorisation, apply to the registrar for approval of its nominee company.

 

3) The Memorandum and Articles of Association of a nominee company must preclude it from incurring any liabilities other than those to persons on whose behalf it holds assets and, if any other liabilities are incurred in the name of the nominee company, the discretionary FSP shall be liable to meet them.

 

4) The nominee company must enter into an agreement with the discretionary FSP in terms of which the provider must pay all expenses for and incidental to its formation, activities, management and liquidation, unless the Memorandum and Articles of Association of the nominee company already provide for such an obligation.