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

Determinations

Determination of Fit and Proper Requirements for Financial Services Providers, 2017

Chapter 3 : Competence Requirements

Part 1 : Application and General Requirements

13. Responsibilities of an FSP

 

(1) An FSP must establish, maintain and apply adequate policies, internal systems, control and monitoring mechanisms to ensure that it, its key individuals and representatives—
(a) comply and continue to comply with section 12 and, where applicable, the minimum requirements set out in Part 2, 3, 4 and 5 of this Chapter;
(b) are aware of the procedures which must be followed for the proper discharge of their responsibilities in the performance of their functions;
(c) possess appropriate general and technical knowledge so as to be able to comply with all relevant disclosure obligations to clients;
(d) are appropriately trained regarding the requirements of the Act and the financial services and financial products in respect of which they are appointed;
(e) undertake CPD to maintain and update the knowledge and skills that are appropriate for their activities;
(f) are able to assess whether it is appropriate to offer or provide a client a particular financial service or product taking into account the needs, circumstances, risk tolerance and capacity of the client and the client’s capacity to understand the features and complexity of the service or product; and
(g) who do not meet the competency requirements, and staff of the FSP who are not appointed as representatives, do not render financial services.

 

(2) A Category I FSP that appoints representatives to perform the execution of sales as contemplated in section 22(b)(ii) must be able to demonstrate compliance with the requirements set out in that section.

 

(3) An FSP must be able to demonstrate and record that it has evaluated and reviewed at regular and appropriate intervals—
(a) its representatives’ and key individuals’ competence and has taken appropriate action to ensure that they remain competent for the activities they perform; and
(b) the appropriateness of the training and CPD referred to in subsection 1(d) and (e).

 

(4) The evaluation and review contemplated in subsection (3) must, inter alia, take into account—
(a) technical knowledge and its application;
(b) skills and expertise; and
(c) changes in the market, to financial products, financial services and legislation.

 

(5) An FSP must establish, maintain and update on a regular basis a competence register in which all qualifications, successfully completed regulatory examinations, product specific training, class of business training and CPD of the FSP, its key individuals and representatives are recorded.

 

(6) An FSP must, in the form and manner and at the intervals prescribed by the Registrar, furnish to the Registrar the information in the register referred to in paragraph (5).

 

(7) An FSP must notify the Registrar immediately after it becomes aware, or has information which reasonably suggests, that a key individual does not comply or no longer complies with any requirement set out in this Determination.

 

(8) The requirements set out in Parts 2, 3, 4 and 5 of Chapter 3 and Chapter 4 are minimum requirements and compliance with that requirements does not in itself serve as evidence that a person complies with the general competence requirements in section 12.