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

Notice on Requirements for Professional Indemnity and Fidelity Insurance Cover for Providers, 2009

3. Categories I, II, IIA, III and IV providers (Repealed)

 

 

Subject to the provisions of this Schedule-

 

a) A person who is a Category I provider on the date of commencement must, with effect from a date 12 months after that date, maintain in force in respect of clients-
i) suitable professional indemnity of a minimum of R1 million; or
ii) suitable guarantees of a minimum of R1 million.

 

b) A person who is a Category I or IV provider and who receives or holds clients financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date 12 months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum R1 million; or
ii) suitable fidelity insurance cover of a minimum of R1 million.

 

c) The provisions of paragraphs (a) and (b) apply to any person who after the commencement date becomes a Category I or IV provider.

 

d) A person who is a Category II or IIA and who receives or hold clients financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients-
i) suitable guarantees of a minimum amount of R5 million, or
ii) suitable professional indemnity or fidelity insurance cover of a minimum of R5 million, respectively.

 

e) A person who is a Category III provider and who receives or hold clients financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients-
i) suitable guarantees or of a minimum amount of R5 million; or
ii) professional indemnity and fidelity insurance cover of a minimum amount of R5 million, respectively.

 

f) The provisions of paragraphs (d) and (e) apply to any person who after the commencement date becomes a Category II, IIA or III provider.