Contingency Fees Act, 1997
R 385.00
Financial Advisory and Intermediary Services Act 2002 (Act No. 37 of 2002)DeterminationsAmendment of the Determination of Fit and Proper Requirements, 2020Chapter 6 : Financial SoundnessPart 3 : Requirements applicable to specific Categories of FSPs and juristic representatives48. Specific requirements |
| (1) | The assets of a person referred to in section 46(1)(a) must at all times exceed the liabilities of that person. |
| (2) | A person referred to in section 46(1)(a) must at all times comply with the additional asset, working capital and liquidity requirements as set out in Table B. |
| (3) | An FSP referred to in section 46(1)(a) must submit to the Registrar Form A in Annexure Six— |
| (a) | in the case of a Category II, IIA and III FSP, on a half yearly basis calculated in terms of the FSP’s financial year; |
| (b) | in the case of a Category I and IV FSP, on an annual basis. |
| (4) | A juristic representative referred to in section 46(1)(a) must submit to its FSP, on a half yearly basis calculated in terms of the representative’s financial year, Form A in Annexure Six. |
| (5) | The form referred to in subsections (3) and (4) must be submitted – |
| (a) | in the case of persons referred to in subsections (3)(a) and (4), within 45 days after every half year-end of the FSP or juristic representative as the case may be; and |
| (b) | in the case of Category I and IV FSPs, simultaneously with the financial statements of the FSP as contemplated in section 19 of the Act. |
|
TABLE B |
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|
Category of FSP and juristic representative |
Additional Asset Requirement |
Working Capital Requirement |
Liquidity Requirement |
|
Category I |
N/A |
Current assets must exceed current liabilities |
Liquid assets equal to or greater than 4/52 weeks of annual expenditure |
|
Category II |
N/A |
Current assets must exceed current liabilities |
Liquid assets equal to or greater than 8/52 weeks of annual expenditure |
|
Category IIA |
Assets of the FSP must exceed the FSP's liabilities by at least R3 million |
Current assets must exceed current liabilities |
Liquid assets equal to or greater than 13/52 weeks of annual expenditure |
|
Category III |
Assets of the FSP must exceed the FSP’s liabilities by at least R3 million |
Current assets must exceed current liabilities |
Liquid assets equal to or greater than 13/52 weeks of annual expenditure |
|
Category IV |
N/A |
Current assets must exceed current liabilities |
Liquid assets equal to or greater than 4/52 weeks of annual expenditure |
[Section 48 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]
