1 Determination of Fit and Proper Requirements for FSP’s

2 What do I have to do to comply?  Be: honesty and integrity financially sound and have a basic infrastructure Competent and have the knowledge and skills NB: If you don’t comply you can’t practice as a financial advisor, nor sell insurance or financial products to clients

3  The main issue: Competence and qualifications. Three categories:  Category I – FSP’s, key individuals, financial advisors, representatives and employees who advise on or sell products listed in the 14 sub- categories of Category I  Category II – Discretionary FSP’s, separately regulated, who have a mandate from clients to transact at their own discretion on behalf of the client  Category III – Those who require licenses as Administrative FSP’s

4 Fit and Proper Determination  The Fit and Proper Determination has tables giving details of each sub- category of FSP  Every FSP needs to comply with minimum requirements for experience and academic standards.  FSP’s to note timeframes and conditions for further education and training

5  The FSP has to register with the FSB  FSP then nominates key individuals  Key individuals personally responsible to ensure compliance with legislation for the products advised on or sold

6 Category I  Includes majority of Financial Advisors  The are 14 sub-categories that cover insurers and financial products handled by FSP’s  Each sub-category has three columns that list: Type of product Minimum experience required for the product The current minimum educational qualifications required to obtain a licence  A fourth column sets out qualifications and skills training required within two or three years of being licensed  See example