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

Qualifications, Experience And Criteria For Approval As Compliance Officer

Part  IV

4. Criteria for Phase II approval

 

 

1) An applicant and compliance practice must have Phase I approval.

 

2) The Registrar must be satisfied that an applicant and compliance practice have-
a) adequate resources available to ensure the efficient rendering of compliance services; and
b) direct access to, and demonstrable support from, the senior management of the provider.

 

3) The Registrar must be satisfied that an applicant and compliance practice will be able to-
a) render compliance services independently and objectively;
b) avoid conflicts of interest in the rendering of compliance services;
c) keep records and supporting documentation of activities undertaken in the course of compliance reviews, visits or monitoring;
d) assist the provider in the compilation of an appropriate compliance risk management strategy as part of the provider's overall risk management strategy;
e) liaise directly with the Registrar; and
f) conduct regular reviews of financial services rendered by the provider and any representative.

 

4) The Registrar must be satisfied that-
a) an applicant and compliance practice who applied for approval as an external compliance officer are able, in respect of-
i) categories I and IV providers, to conduct regular visits to the business premises, business units and/or branches of the provider. The intervals of such visits may not be less than once a quarter and in respect of representatives of the provider, twice a year;
ii) categories II, IIA and Ill providers, to conduct regular visits to the business premises, business units and branches of the provider and any representative. The intervals of such visits may not be less than once a month;
b) an applicant who applied for approval as an internal compliance officer is able in respect of-
i) categories I and IV providers, to conduct regular visits to the business premises, business units and branches of the provider and any representatives, and the intervals of such visits may not be less than once a year;
ii) categories II, IIA and Ill providers, to conduct regular visits to the business premises, business units and branches of the provider and any representative, and the intervals of such visits may not be less than once a quarter;
c) an applicant and compliance practice be able to provide the provider with reports at intervals not less than the intervals referred to in subparagraphs (a) and (b) on the rendering of financial services, including the making of a recommendation to the provider regarding the rendering of compliance services.

 

5) An applicant and a compliance practice must ensure that the number of clients allocated to any applicant or compliance officer representing such practice, are at all relevant times sufficient to ensure the rendering of proper and appropriate compliance services to such clients.