1. Key Individual Chapter 2

2. Purpose of FAIS Consumer protection Professionalize intermediary and advisory services in Financial Services industry Regulate financial services industry Purpose of FAIS Consumer protection Professionalize intermediary and advisory services in Financial Services industry Regulate financial services industry Key components of FAIS Provides framework for advisory businesses Ensures implementation of processes and procedures Licensing Key Individuals and Reps Complaints Auditing and accounting Competency Key components of FAIS Provides framework for advisory businesses Ensures implementation of processes and procedures Licensing Key Individuals and Reps Complaints Auditing and accounting Competency Code of Conduct Designed to protect consumer Contacting client Suitability of advice Recording advice Record keeping Disclosures Risk management Advertising Code of Conduct Designed to protect consumer Contacting client Suitability of advice Recording advice Record keeping Disclosures Risk management Advertising

3. Source: FSB understanding the practicalities, a guide for FSP’s New licenses, approval of CO Any profile changes Representatives register Registration Maintain risk based supervisory framework On site visits, peruse financial statements, compliance reports Supervision Inspections and inspection reports, client complaints Suspension and withdrawals, debarments Enforcement

4. Telephonic Email Fax or hard copy submission “Do not submit financial statements by facsimile”

5. BN 106 CPD requirements Government Gazette FSB website and circulars

6. 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 R 500 000 or imprisonment for a period not exceeding 5 years or both

7. 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

8. Any person contravening FAIS and making a deliberate misleading false or deceptive statement or conceals material fact or is not a representative or makes out to be one is guilty of an offence and on conviction liable to a fine not exceeding R 1 million or imprisonment of 10 years or both Source: Section 36 of FAIS Act

9. 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 R 1 million or 10 years imprisionment or both Source: Section 36 of FAIS Act

10. Source: Section 19 (1) (d) of Code of Conduct and BN 81 Complainant and any other party to complaint expected to give fullest co-operation to disposal of complaint within a reasonable time Respondent is required to act professionally and reasonably and to co-operate with view to ensuring efficient resolution of complaint

11. Source: Section 20 of FAIS Act Procedurally fair, economical and expeditious and equitable Contractual arrangement between parties Always independent and impartial Provisions of Act

12. Source: BN 81 of 2003 Complaint must fall within ambit of FAIS Person against whom complaint is made is subject to Act Respondent failed to address complaint within 6 weeks of its receipt Act or omission occurred when rules were in force

13. All parties must receive particulars and respond thereto Interested parties to submit responseComplaints must be officially received If proceedings are in court then may decline to hear matter Find grounds that complaint be better dealt with in court Cannot proceed unless all parties informed in writing Ombud has these jurisdictional provisions Decline to investigate - 3yrs before receipt at office Complainant unaware Source: Section 27 (3) of FAIS

14. Investigate complaint, follow and implement any procedure Explore opportunity to resolve complaint May make recommendation to resolve speedily, this is final determination if accepted May delineate functions of investigation May mandate any person to perform functions Commissions Act of 1947 apply regarding summons and examinations of persons Source: Section 27 (5) of FAIS

15. Dismissal of complaint Uphold complaint Award complainant fair compensation and ensure FSP takes remedial steps May make any order which Court makes Monetary award payable to bear interest but not more than rate Court awards Determine maximum monetary award, granting of costs Source: Section 28 of FAIS

16. Source: Section 28 (4) of FAIS Make determination in writing with reasons Notice of appeal goes to clerk or registrar Determination or decision by appeal board regarded as civil judgment Only appealable with leave of Ombud Ombud looks at complexity, reasonable likelihood board may find differently