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

Exemption in respect of Services under Supervision in terms of Requirements and Conditions, 2008

Table A: Categories I and IV: Level of Supervision Required

 

TABLE A: CATEGORIES I AND IV: LEVEL OF SUPERVISION REQUIRED


COLUMN ONE: SUBCATEGORY

COLUMN TWO: DIRECT SUPERVISION

COLUMN THREE: ONGOING LEVEL OF SUPERVISION

Category

1.1

Long-term Insurance subcategory A

The first 2 months of the period under supervision

After 2 months for the rest of the period under supervision

1.2

Short-term Insurance Personal Lines

1.3

1.3.1

1.3.2

Long-term Insurance: subcategory B1

subcategory B2

1.4

Long-term Insurance
subcategory C

1.5

Retail Pension Benefits

1.6

Short-term Insurance Commercial Lines

1.7

Pension Fund Benefits (excluding Retail Pension Benefits)

1.8

Securities and instruments: Shares

The first 4 months of the period under supervision

After 4 months for the rest of the period under supervision

1.9

Securities and Instruments: Money Market Instruments

1.10

Securities and Instruments:
Debentures and Securitised Debt

1.11

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

1.12

Securities and Instruments: Bonds

1.13

Securities and Instruments: Derivative Instruments

1.14

Participatory Interests in one or more Collective Investment Schemes

1.15

Forex Investment Business

1.16

Health Service Benefits

The first 2 months of the period under supervision

After 2 months for the rest of the period under supervision

1.17

Long-term Deposits

The first 6 weeks of the period under supervision

After 6 weeks for the rest of the period under supervision

1.18

Short-term Deposits

1.19

Friendly Society Benefits

The first 2 weeks of the period under supervision

After 2 weeks for the rest of the period under supervision

Category IV

Assistance Business FSP

The first 6 weeks of the period under supervision

After 6 weeks for the rest of the period under supervision

 

f) Supervision applicable to representatives of Categories II, IIA and III financial services providers:
i) The supervisor must, where the representative is rendering discretionary financial services (Categories II and IIA), review and approve in writing the rendering of such services prior to conclusion or execution of any transaction;
ii) the supervisor must, where the representative is rendering discretionary financial services (Categories II and IIA), approve a transaction before it is finalised in respect of all representatives acting under supervision of Category III providers or, if the transaction is of such a nature where prior approval is not feasible, within a reasonable period thereafter;
iii) in respect of Categories II and IIA providers, the supervisor is required to ensure that all actions taken by the representative adheres to the mandate and/or morning meeting decisions;
iv) the supervisor must conduct sample checks on a weekly basis to ensure that the supervisee did not deviate from the relevant mandate and/or investment team meetings;
v) the supervision requirements may not be lessened in intensity during the duration of the period under supervision.