Key Individual Chapter 1. Anti-money laundering compliance FICA internal rulesMonitoring and...
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Transcript of Key Individual Chapter 1. Anti-money laundering compliance FICA internal rulesMonitoring and...
![Page 1: Key Individual Chapter 1. Anti-money laundering compliance FICA internal rulesMonitoring and identification Auditing and Accounting process Codes of conductSubordinate.](https://reader035.fdocuments.us/reader035/viewer/2022062518/56649f1d5503460f94c338e6/html5/thumbnails/1.jpg)
Key Individual Chapter 1
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Source: Section 8,13 and 14 of FAIS Act and BN 106
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Source: section 2 of BN 106 as amended
5 years
Prima facie evidence
Disqualified from management of
company
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Change in personal circumstances of KI may affect fit and proper status
Renders person not to be fit and proper and cannot take part in conduct or management or
oversight of FSP
Source: Louis Wessels Legal Adviser FSB and Section 8 (4) (b) (iii)
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Experience
Qualifications
Regulatory Exams 1 and 2
CPDCompetence
Source: Section 8 (1) (i) (ii) of FAIS Act and BN 106
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Source: BN 106 and substituted by BN 60 of 2010
One subcategory Advice minimum Experience Services Minimum Experiences
Long term Insurance sub cat A 6 months 2 months
Short term Insurance Personal Lines 1 year 6 months
Long term Insurance sub cat B1 and B2 1 year 6 months
Long term Insurance sub cat C 1 year 6 months
Retail Pension benefits 1 year 6 months
Pension Fund Benefits 1 year 6 months
Securities and instruments•Shares, Money market• Debentures•Warrants•Derivatives•Collective investments• Forex
2 years 1 year
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Source: Section 13(2) of FAIS Act
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Where any KI is replaced by new KI
Is appointed or assumes office
Change in personal circumstances of KI
Such person not fit and proper
Source: Section 8 (4) of FAIS
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Identify whether classified as part of transitional arrangements or as new entrant – (see BN 104)
May select further qualifications from qualifications list and complete relevant qualification within 5 years of appointment
Reps must meet qualifying criteria published in subordinate legislation.
FAIS Registrar published list of “recognised qualifications” for each category and subcategory
Source: Board Notice 106
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Product specific Regulatory Exam and exemptions depending on qualifications
Qualifications not listed may gain recognition by making application which MAY be added to qualification list
Entry level requirements for each License Category
FAIS Registrar published list of “recognised qualifications” for each category and subcategory
Source: BN 106 section 5
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Source: Section 13 (3) of FAIS Act
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Management and oversight requires processes to recruit and appoint representativesKI’s will need to do the following:
•Honesty and Integrity reference checks•- FSB debarred list
•-Professional Body membership validity•Obtain details of previous experience
•Obtain and verify details of qualifications•Check completion of Regulatory Exams
•Obtain and verify CPD status
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Competent to act and practical experience in financial services
Active involvement and ongoing gain of knowledge, skills and expertise
Pre-transaction and advice sign-off
Attend meetings with Supervisee
Post transaction sampling and client follow up
Source: BN 106 and 104
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Source: Section 13, 16 of FAIS Act and section 3 to 5 of Code of Conduct
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Source: Section 3 to 5 and 7 to 9 of Code of Conduct
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Source: Section 8 and 13 of FAIS Act
Complies with fit and proper:•Personal character qualities of honesty and integrity•Competence and operational ability•Financial soundness
FSP must at all times be satisfied that Reps and KI’s are when rendering a financial service
competent to act and comply with Act and Code of Conduct
Registrar may debar Reps and KI’s not meeting requirements
(see REPS course)
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Source: BN 106
Competence requirements:•Qualifying criteria•List of qualifications•Minimum experience •Passed RE•CPD compliance•Sole proprietor and other KI must do above•FSP must have 1 KI with above•Juristic FSP must have 1 KI with above•Reps must have minimum experience and qualifications•Health services benefits accreditation
Experience requirements:•Active and ongoing gaining of knowledge and skills•Active involvement in rendering financial services•In or outside RSA•Intermittent periods not more than 5 yrs•Simultaneous or multiple categories•Rep must have same as KI but can be exempted and be under supervision•KI must have 1 yrs practical experience in management and oversight•Gained in similar or corresponding to financial services rendered by FSP
Regulatory Exams and CPD:•All Reps and KI’s must pass RE•Reps must do so w/i 2 yrs of first appointment•Second level with in 6 yrs of 1st appointment•CPD requires 15 to 60 notional hours of learning over 3 year cycle•Cycle starts after RE 1 passed
Qualifications:•List of qualifications in Table A•Must comply with Highest qualification required in respect of sub-categories