FSB Presentation BANKSETA Conference 26 October 2007 Charene Nortier.
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Transcript of FSB Presentation BANKSETA Conference 26 October 2007 Charene Nortier.
FSB Presentation
BANKSETA Conference26 October 2007Charene Nortier
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Current position in terms of FSPs Small FSPs: 10 376 Medium Impact: 3 157 High Impact: 268
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Categories of FSPs
There are 3 categories: Category I: Advice and Intermediary
Services Category II: Discretionary License Category III: Administrative License
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Category I
There are 19 sub-categories, broadly grouped as: Long term insurance Short term insurance Assistance Business Deposit taking Shares and Securities Collective Investment Schemes Pension Fund Benefits Health Care Benefits
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What is required?
The FAIS Act requires: S.8(1)(i) Honesty and Integrity S 8 (1)(ii) Competence
Fit and Proper: Table A, B and C:
Experience Minimum Qualifications Conditions
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“Appropriateness” an “appropriate” certificate, diploma, skills
programme or degree, refers to such academic qualifications obtained in the fields of commerce and/or commercial law which includes modules on financial accounting, financial markets, commercial law, insurance law, estate and trust law and similar subjects, or other particular fields of study which equip such person to render a financial service in a specialised class of financial product, registered by SAQA and provided by a registered higher institution whether local or foreign
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What is the situation?
Total FSPs: 14 211 Total KI’s: 18 664 KI’s with conditions: 10 843 (58%) KI’s without conditions: 7 821 (42%)
Assume that the % is same for Representatives: Total Reps: 65 737 58%: 38 128 not meet the conditions 42%: 27 609 meet conditions
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Amendment
BN 68 of 2007: Amended F&P compliance dates
Licensed/ appointed 2004: 31 December 2008 Licensed/ appointed 2005 – 2009: 31
December 2009 Extended exemption regarding certain
minimum qualifications (Cat 1.1 and 1.19) Only applies to FSPs that applied in 2004 Meet Column 3: 31 December 2009 Meet Column 4: 31 December 2011
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Compliance dates
License date Compliance date
On or before 31 December 2004Total FSPs: 1 377
31 December 2008
Between 1 January 2005 and 31 December 2009Total FSPs: 12 909
31 December 2009
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Scenarios we need to take into account
1/10/2004 – 31/12/2009KI’s and RepresentativesMeet the Column 4Requirements:•31/12/2008•31/12/2009
A: Existing KI’s and Reps:No changes to their conditions
B: Group A, but want to add categories to their licences/ registration
C: New entrants, post 2009
1/10/2004 31/12/2008/9 1/1/2010 and on
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Where to in the future?
Experience: gain under strict supervision Minimum education requirements: likely
to be similar to current minimum requirements
Conditions: probably based on Series of qualifying exams Based on standards set by industry and FSB Results recorded by SAQA Can be acknowledged against qualifications
Questions?