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)
9. Requirements for independent nominee
|(1)||More than 50% of the directors, trustees or other persons responsible for the management and control of the independent nominee, must be persons independent not only from the administrative FSP, but also from companies within the same group as the FSP: Provided that persons holding office in or representing the FSP in a professional or non-professional capacity, excluding a person acting only in a non-executive director capacity in one of the companies within the group, are not deemed independent for the purposes of this subregulation.|
|(2)||The independent nominee must be structured in such a way that clients’ investments are at all times protected from its creditors or those of the administrative FSP and anyone else, especially if the nominee is sequestrated or wound-up.|
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