| (1) |
An FSP and a juristic representative must at all times maintain financial resources that are adequate both as to amount and quality to carry out their activities and supervisory arrangements and to ensure that liabilities are met as they fall due. |
[Section 44(1) will become effective from 1 March 2019, but only insofar it relates to a juristic representative, in terms of section 53(1) of this Notice]
| (2) |
An FSP, other than a Category I FSP that does not hold or receive monies in respect of a financial product, and a juristic representative of such FSP, must have sound, effective and comprehensive strategies, processes and systems to assess and maintain, on an ongoing basis, the amounts, types and distribution of financial resources that it considers adequate to cover: |
| (a) |
the nature and level of the risks to which it is, or might be, exposed; |
| (b) |
the risk that the FSP or juristic representative might not be able to meet the requirements set out in this Chapter. |
[Section 44(2) will become effective from 1 March 2019, but only insofar it relates to a juristic representative, in terms of section 53(1) of this Notice]
| (3) |
No person may become or continue as an FSP or juristic representative if— |
| (a) |
declared insolvent or provisionally insolvent; |
| (b) |
placed under liquidation or provisional liquidation; |
| (c) |
subject to section 9(3), it is subject to any pending proceedings which may lead to an outcome referred to in paragraph (a) to (b); or |
| (d) |
subject to section 9(3), it seriously and persistently failed or fails to manage any of its financial obligations satisfactorily. |
| (4) |
No person may become an FSP or a juristic representative if business rescue proceedings have commenced in respect of that person. |
Petroleum Pipelines Levies Act, 2004
