2. Competency Product Category,minimum experience, academic qualifications, Conditions Sound financial security No unrehabilitated insolvent Assets exceed liabilities Honesty and Integrity Good character and integrity Found guilty, fined, prohibited Court of Law or civil matter etc Operational Ability Business address, communication facilities, bank account, money laundering controls, Fit and Proper

3. Displayed in prominent and durable manner Reference in all business documentation, advertisements, promotional material Not use license when withdrawn or suspended Immediately or within reasonable time available

4. Have suitable guarantees or professional indemnity May not contain statement, promise or forecast which is fraudulent, untrue or misleading Structure internal control procedures to ensure business carried on in orderly and efficient manner Effectively employ resources, procedures and appropriate technological systems Control Measures Specific Control Measures Insurance Advertising

5. No one can act as rep unless He has employment or mandate agreement with FSP Authorized FSP with more than one KI or Rep, subject to 35 (1) (c), must appoint Compliance Officer CO is any person with suitable qualifications and experience determined by Registrar Provisions of Section 19 regarding auditor apply with changes to CO

6. Source: Board Notice 127 CO approved by Registrar No longer complies with criteria and guidelines Registrar may make know withdrawal and reasons in Gazette May withdraw approval if CO contravened / failed to comply with FAIS or Criteria set by registrar in consultation with Advisory Committee Or any appropriate media

7. FSP must establish and maintain procedures to be followed by provider and Reps to ensure compliance CO must submit reports to registrar in manner and in matters determined by registrar Provisions also apply to FSP who has 1 key individual or without a representative Source: FAIS Act Section 17

8. The CO is required to supervise the compliance function. This CO must ensure requirements of FAIS met through procedures which the FSP (key individual) must establish. These may be: Examination of the compliance function at the time of license application; Direct examination of the compliance function as part of the general on-site inspections of the FSP Direct examination of the internal policies and operational procedures and controls Periodic assessment which should be filed with the regulators for review Revising and re-examination of the compliance function where issues had previously been identified with the FSP about the operation of the function. The CO is required to supervise the compliance function. This CO must ensure requirements of FAIS met through procedures which the FSP (key individual) must establish. These may be: Examination of the compliance function at the time of license application; Direct examination of the compliance function as part of the general on-site inspections of the FSP Direct examination of the internal policies and operational procedures and controls Periodic assessment which should be filed with the regulators for review Revising and re-examination of the compliance function where issues had previously been identified with the FSP about the operation of the function. Source: Section 17 of FAIS Act and www.fsa.gov

9. Harming relationships Unreasonably prejudicing client Deceiving any clientUnfairly effecting any client If practice continues objectives of Act will be defeated Source: Section 34 of FAIS Act Practice directly or indirectly

10. Publishes intention in Gazette Gives reasons in Gazette and invites written representation receivable 21 days from publication Declaration published and FSP must stop practice

11.  Registrar may suspend or withdraw license at any time if  Licensee no longer meets fit and proper requirements  Licensee did not make full disclosure on license application form  Failed to comply with other provisions of FAIS  Is liable to pay levy or administrative sanction

12. Registrar must make known the reasons for the suspension or withdrawal and any terms attached thereto by notice in the Gazette Provisionally suspend or withdraw a licence. Grounds therefore and period and terms of suspension Make known the suspension or withdrawal in the Gazette Give licensee reasonable time to respond

13. The Registrar must consider a response received from the licensee and may decide to: Lift the provisional suspension or withdrawal Make it final The licensee must be advised accordingly and notification must happen in the Gazette and other media if necessary. If a license is suspended or withdrawn, the licensee is not authorised to act as a FSP. Source: FAIS Act Section 9

14.  Licensee becomes permanently disabled  Finally sequestrated  Dies  Finally liquidated or dissolved  License becomes dormant  Licensee voluntarily and finally surrenders license to Registrar  Advise registrar in writing

15. Suspension or withdrawal of a license is the result of non-compliance with the requirements of the FAIS Act: Originates as a result of FSP actions or omissions FSB may allow reinstatement of suspended or withdrawn licenses under certain conditions After suspension or withdrawal a FSP will be debarred to apply for a new license. There are implications for FSP’s registered under the Medical Schemes Act as the FSP will loose the accreditation if the license is suspended when a license is lapsed Lapsing of a license is the result of factors other than non-compliance : Lapsing of the license is initiated by the FSP, following an event that gave rise it There are no provisions in the Act to reinstate a lapsed license. There are no requirements for debarment on lapsing of a license There are no implications from other legislation when a license is lapsed Source: FAIS Act Section 11

16. 1. There are no provision in the Act to reinstate a lapsed license. A new application must be submitted. But this can only happen if that entity has not been permanently disbarred from receiving a license for that product category 2. The Registrar can reinstate a suspended license once all the conditions have been met 3. The Registrar may impose conditions if a suspension or withdrawal is lifted. These conditions may include certain actions by the FSP in relation to its business Source: FAIS Act Section 11

17. The Registrar must consider a response received from the licensee and may decide to: Lift the provisional suspension or withdrawal Make it final The Registrar must consider a response received from the licensee and may decide to: Lift the provisional suspension or withdrawal Make it final Withdrawn license cannot be reinstated Registrar can reinstate withdrawn license once conditions met Registrar can impose conditions is suspension lifted Withdrawn license cannot be reinstated Registrar can reinstate withdrawn license once conditions met Registrar can impose conditions is suspension lifted

18. Registrar informs licensee of intention to suspend and gives reasonable time for submission Inform licensee of intended period and terms of suspension Prohibition on concluding new business from date of suspension For unconcluded business determine measures for protection in interests of clients of licensee Terms for lifting of the suspension Registrar must consider any response received and may suspend or withdraw license thereafter or not to and must notify licensee

19. Lodge complaint in writing Record complaints for 5 years Handle complaints in timely and fair manner Investigate and respond promptly Not resolved to clients satisfaction advise client of further steps available Source: Section 16 of FAIS Act

20. Source: Section 17 of FAIS Act FSP must have internal complaint resolution system and procedures Maintain comprehensive policy and have systems / procedures for resolution Clients must have full knowledge or resolution procedures Access to facilities such as branch or electronic / postal means Resolution to be fair to both client and provider

21. Source: Section 19 of FAIS Act FSP internal complaint resolution system must reduce details of internal complaint resolution system to writing Handle complaints in timely and fair manner Access to procedures are at all times available to clients and be made known Include clear summary of procedure after dismissal of complaint or if client wishes to proceed to Ombud Name, address and contact details of Ombud

22. Consider and dispose of complaints Procedurally fair, informal, economical and expeditiously Equitable in circumstances with regard to contractual relationship An provisions of Act Ombud must be independent and impartial Source: FAIS Act Sections 20 to 32

23. Explore any reasonable prospect of resolving complaint by settlement May resolve complaint by conciliation, make recommendation All parties have had time to respond In determining officially received complaint follow and implement any procedure Allow any party right of legal representation Ombud cannot proceed to investigate unless Has informed other parties in writing Is satisfied all parties have particulars of claim

24. Dismiss complaint or uphold complaint Make award of fair compensation to complainant Monetary award payable may bear interest Determination reduced to writing with all reasons Copies to registrar and all parties concerned May lodge appeal and appeal goes to clerk or registrar of court for determination Source: FAIS Act Sections 20 to 32

25. Approach a Court for restraining order against person contravening FAIS Act Declare a business practice undesirable Institute action in Court of Law against any person for payment of compensation on behalf of another person and punitive damages Institute civil proceedings on behalf of a person against FSP

26. Contravention and failure to comply Misleading, false or deceptive statement Conceals material fact Guilty of offence, on conviction to fine not exceeding R 1 million Or imprisonment not exceeding 10 years or both Or imprisonment not exceeding 10 years or both