1. Key Individuals chapter 4

2. Source: Section 8 of FAIS Act Information for licensing must show Personal character qualities of honesty and integrity Competence and operational ability Applicants financial soundness So Key Individual can fulfil responsibilities imposed by FAIS

3. Registrar must approve specimen mandates used by administrative- and discretionary FSP’s No changes or amendments can be made without prior approval of Registrar

4. Discretionary FSP Nominee Company Holding Company is Discretionary FSP Wholly owned by discretionary FSP Holds assets for investors Ring fences assets Cannot incur liabilities Only owes investors money Has adequate insurance for theft and disasters Annually submit financials to FSB Failure will mean license withdrawal Discretionary FSP cannot exist without nominee comp any Fidelity guarantees in place

5. Where license granted registrar issues license authorising applicant to act as FSP in Gazette and issues copy of licence. Registrar may withdraw license or amend condition or restriction and if new KI appointed impose new conditions and restrictions and license and issue new copy Where license granted registrar issues license authorising applicant to act as FSP in Gazette and issues copy of licence. Registrar may withdraw license or amend condition or restriction and if new KI appointed impose new conditions and restrictions and license and issue new copy Conditions may include that where KI is replaced, or new KI appointed or personal circumstances of KI changes and effects fit and proper no person can take part in management and oversight of licensee’s business On license being granted registrar may impose conditions having regard to: All facts and information Category of financial services Category of FSP in relation to fit and proper Any guidelines by Advisory Committee On license being granted registrar may impose conditions having regard to: All facts and information Category of financial services Category of FSP in relation to fit and proper Any guidelines by Advisory Committee Authorised FSP or Rep can only do business with person rendering financial services if person has been issued with a license for rendering financial services and conditions and restrictions on license allow rendering of such service Source: Section 7 and 8 of FAIS Act

6. After date of granting license Any KI is replaced by new KI Any new KI assumes office Any change in personal circumstances of KI No such person permitted to take part in conduct or management or oversight of FSP in relation to rendering financial services, unless approved by Registrar Source: Section 8 of FAIS Act

7. Basic levy per FSP Levy per KI Levy per Rep FSB FAIS Levy Basic levy per FSP Levy per KI Levy per Rep FAIS Ombud Levy Levies calculated on 31 August every year and payable by 30 October in same year

8. Any change in personal circumstances of KI affecting fit and proper status will mean person cannot take part in management or oversight of FSP unless on application been approved by Registrar Source: Section 8 (4) (iii) of FAIS Act

9. Source: Section 18 of Financial Advisory and Intermediary Service Regulations A person who fails to comply with these regulations is guilty of an offence and liable on conviction to a fine not exceeding R500 000 or imprisonment for a period not exceeding 5 years or both

10. Apply for Court order restraining person From continuing to commit act or any omission Require person to take remedial steps Source: Section 33 of FAIS Act Payment for amount as compensation Penalty for punitive purposes Interest and cost of suit

11. Business changes reported in 15 days Business Name Business Name Business address Business address Compliance Officer Any contact details Banking details Banking details Shareholder Representatives Auditors Source: FAIS Introductory Provisions Definitions

12. No one can act as rep unless He has employment or mandate agreement with FSP FSP, Key Individual and Representative Meet all fit and proper requirements Products offered must qualify as financial product ito FAIS

13. Suspend license until conditions met Withdraw license

14. FSP may not carry on business practice concerned Registrar can direct that practice must be rectified Registrar may not make order contemplated in Financial Institutions Act FSP must rectify as directed within 60 days after direction Source: Section of FAIS Act

15. Source: Section 7 (3) of FAIS Act F S P o r R e p m a y o n l y c o n d u c t f i n a n c i a l s e r v i c e s r e l a t e d b u s i n e s s w i t h p e r s o n r e n d e r i n g f i n a n c i a l s e r v i c e s i f t h a t p e r s o n h a s a l i c e n s e f o r r e n d e r i n g f i n a n c i a l s e r v i c e s a n d c o n d i t i o n s a n d r e s t r i c t i o n s a u t h o r i s e s t h a t p e r s o n t o r e n d e r f i n a n c i a l s e r v i c e s

16. Registrar may impose conditions and restrictions on authority granted by license having regard to: Facts and information Category of financial services Category of financial services providers Advisory Committee Guidelines After date of granting license KI replaced, appointed or personal situation changes and not fit and proper person cannot manage FSP Source: Section 8 (4) of FAIS ACT

17. Compliance officer Any change in Directors or Members Change in auditor Financial year end Bank detailsContact person FSP must have procedures in place to report changes within 15 days Business nameChange in type of business entity

18. Contravenes or fails to comply Makes misleading statement or conceals material fact Gives Auditor of CO false, misleading information Is not rep appointed or mandated by FSP and professes to be Guilty of offence on conviction fined R1 million or 10 years imprisionment or both Source: Section 36 of FAIS Act