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, 2008

Part VI : Regulatory Examinations

 

 

6.
1) Principles applicable to the regulatory examinations subject to the provisions of this Act, the qualifying criteria referred to in section 3(1) determines the scope and content of the regulatory examination(s) as it applies to an FSP (who is a sole proprietor), key individuals and/or representatives of providers in accordance with the following principles:
a) An FSP (who is a sole proprietor) applying for a licence of any Category and, where applicable, any key individual and representative of a Gazettes are Reproduced under  provider must take and successfully pass such regulatory examinations as may from time to time be set by the Registrar.
b) The Registrar may approve examination bodies, in accordance with the criteria as published by the Registrar after consultation with the Advisory Committee by notice in the Gazette.
c) The regulatory examinations include a set of core examinations (referred to as first level regulatory examinations) dealing in particular with legislation directly binding on an FSP, its key individuals and representatives in terms of the Act (particularly the provisions of the Act and the Financial Services Board Act, 1990, and of all measures promulgated there under), and specific examinations (referred to as second level regulatory examinations) relating to the Category or subcategories thereof in respect of which an FSP is authorised to render financial services.
d) The regulatory examinations will focus in particular on testing the application of factual knowledge of the examinees in relation to-
i) the rendering of financial services applicable to specific Categories or subcategories to clients; and
ii) the relevant legal provisions, particularly of the rights and duties which they vest in providers and clients, their appreciation of the legal meaning and implications of these provisions, and their competence to apply correctly these provisions.
e) The Registrar, after consultation with the Advisory Committee, determines by notice in the Gazette all required necessary and incidental matters relating to the setting and taking of such examinations, including the curricula to be covered, the drafting of the examination papers, the criteria to be applied in the determination of whether an examinee has passed the examination successfully, the persons or bodies, if any, appointed to apply such criteria as examiners, the time, place and date set for the examinations, the carrying out of supervision powers during the taking of the examinations, the evaluation and marking of the completed examinations, the moderation of examinations and the communications to examinees and the Financial Services Board of the results achieved.

 

2) Categories I and IV: Regulatory Examinations

 

a) Subject to paragraph 3(3) of Part III, an FSP (who is a sole proprietor) in respect of Category I or IV must meet the first and second level regulatory examination requirements, as determined by the Registrar by notice in the Gazette, as applicable to the Categories or subcategories the provider is authorised for:
i) In relation to the first level regulatory examination, the FSP must meet the requirements as determined in column two of Table C below;
ii) in relation to the second level regulatory examination, the FSP must meet the requirements as determined in column three of Table C, below;
b) Subject to paragraph 3(4) of Part III, a key individual in respect of Category I or IV must meet the first level regulatory examination requirements, as determined by the Registrar by notice in the Gazette as applicable to the Categories or subcategories the provider is authorised for
c) Subject to paragraph 3(7) of Part III, a representative in respect of Category I or IV must meet the first and second level regulatory examination requirements, as determined by the Registrar by notice in the Gazette, as applicable to the subcategory or subcategories he or she is authorised for, as required in column two and three of Table C below: Provided that a representative in respect of subcategory 1.1 Long-term Insurance Category A and/or 1.19 Friendly Society Benefits does not need to meet the first level regulatory examination requirements as referred to in respect of column two of Table C below.

 

TABLE C:

CATEGORIES

I and IV:

REGULATORY

EXAMINATIONS

 

 

 

 

COLUMN ONE SUBCATEGORY

COLUMN TWO FIRST LEVEL

COLUMN THREE SECOND LEVEL

 

Category I

 

 

1.1

Long-term Insurance subcategory A

Applies

Applies key individual only)

1.2

Short-term Insurance Personal Lines

Applies

Applies

1.

1.3.1

Long-term Insurance:

subcategory B1

 

Applies

 

Applies

1.3.2

subcategory B2

Applies

Applies

1.4

Long-term Insurance subcategory C

Applies

Applies

1.5

Retail Pension Benefits

Applies

Applies

1.6

Short-term Insurance Commercial
Lines

Applies

Applies

1.7

Pension Fund Benefits

Applies

Applies

1.8

Securities and instruments: Shares

Applies

Applies

1.9

Securities and Instruments: Money market instruments

Applies

Applies

1.10

Securities and Instruments: Debentures and securitised debt

Applies

Applies

1.11

Securities and Instruments: Warrants, certificates and other instruments acknowledging debt

Applies

Applies

1.12

Securities and Instruments: Bonds

Applies

Applies

1.13

Securities and Instruments: Derivative instruments excluding warrants

Applies

Applies

1.14

Participatory Interests in one or more collective Investment schemes

Applies

Applies

1.15

Forex Investment Business

Applies

Applies

1.16

Health Service Benefits

Applies

Applies

1.17

Long-term Deposits

Applies

Applies

1.18

Short-term Deposits

Applies

Applies

1.19

Friendly Society Benefits

Applies

Applies (key individual only)

 

Category IV: Assistance Business FSP

Applies

Applies

 

 

3) Categories II, IIA and III: Regulatory Examinations

 

a) Subject to paragraph 3(3) of Part III, an FSP (who is a sale proprietor) must meet the first and second level regulatory examination requirements, as determined by the Registrar by notice in the Gazette, as applicable to the Categories or subcategories the provider is authorised for.
b) Subject to paragraph 3(4) of Part III, a key individual must meet the first level regulatory examination requirements, as determined by the Registrar by notice in the Gazette, as applicable to the FSP in respect of the Categories the provider is authorised for, and in respect of which that key individual will manage or oversee the provider's activities.
c) Subject to paragraph 3(7) of Part III, a representative must meet the first and second level regulatory examination requirements, as determined by the Registrar by notice in the Gazette, as applicable to the Categories or subcategories he or she is authorised for.