Who does the FAIS Act apply to?
Who does the FAIS Act apply to?
6.2 Why the Need for the FAIS Legislation? The FAIS Act was introduced to regulate the business of all Financial Service Providers who give advice or provide intermediary services to clients, regarding a wide range of financial products.
What advice is in terms of FAIS Act?
‘Advice’ is defined in FAIS as ‘any recommendation, guidance or proposal of a financial nature furnished, by any means or medium, to any client or group of clients’.
When was the FAIS Act effective?
15 November 2002
The commencement date of the FAIS Act is 15 November 2002, except for the following sections: Sections 20 to 31 became operational on 8 March 2003 (Proclamation 21 of 2003). Section 13(1) became operational on 30 September 2004. (Proclamation 35 of 2004)
Who needs FAIS compliance?
Any authorized financial services provider with more than one key individual or one or more representatives must appoint a compliance officer, subject to Section 35. He must be approved by the Registrar.
Why do we need the FAIS legislation?
The Purpose of the FAIS Act is to: protect consumers of financial products and services. regulate the selling and advice-giving activities of FSPs. ensure that consumers are provided with adequate information about the financial product they use and about the people and institutions who sell these financial products.
Who has to abide by the FAIS legislation?
The Financial Advisory and Intermediary Services (FAIS) Act requires that FSPs be licensed and crates a professional code of conduct with specific enforcement measures. All FSP’s must ensure that they comply with the legislation, and with certain specific fit and proper requirements as stipulated in the act.
What is the need for the FAIS legislation?
The Purpose of the Financial Advisory and Intermediary Services Act is to protect Consumers of financial products and services; regulate the selling and advice-giving activities of FSPs; ensure that the Consumers are provided with adequate information about the financial product they use and about the people and …
What is FSP?
Adult Full Service Partnership (FSP) programs are designed for adults ages 26-59 who have been diagnosed with a severe mental illness and would benefit from an intensive service program. Adult Full Service Partnership programs will provide services to 2,611 individuals.
What are FAIS requirements?
FAIS ACT & FIT PROPER REQUIREMENTS
- Honesty and Integrity requirements that are applicable to all FSPs, key individuals, representatives and compliance officers.
- Competency requirements that consist of experience and qualification requirements that are applicable to all FSPs, key individuals and representatives.
What Fais means?
Financial Advisory & Intermediary Services
FAIS stands for “Financial Advisory & Intermediary Services”. The FAIS Act was established to regulate the giving of advice and the provision of intermediary services.
What does FSP mean in law?
Financial Services Provider
FSP means a Financial Services Provider.
Why was the need for the FAIS legislation?
6.2 Why the Need for the FAIS Legislation? The FAIS Act was introduced to regulate the business of all Financial Service Providers who give advice or provide intermediary services to clients, regarding a wide range of financial products.
What is an intermediary service under the FAIS Act?
The FAIS Act affects those that furnish financial advice, and/or render an intermediary service As mentioned in a previous post, an intermediary service includes: the receiving, submitting or processing of a client’s claim against a product supplier buying, selling or dealing in (discretionary or non-discretionary basis) financial products
Who is an FSP under the FAIS Act?
In terms of the Act, an FSP is defined as any person, other than a representative, who as a regular feature of the business of such person furnishes advice, or renders any intermediary service, or both.
What are the penalties for not complying with the FAIS Act?
FAIS Act non-compliance penalties include fines up to R1 million and/or imprisonment for up to 10 years, as well as the withdrawal of the FSP’s licence or debarment of a representative. Please note that is only as a brief summary of the main provision of the Code and should not be relied upon as a legal document.