RE 1: Key individuals: Categories I, II, IIA, III & IV
FSP’s now operate in a more regulated environment after anti-money laundering legislation and an act governing the advisory and intermediary industry‛s professionalism was passed in 2002/2003. The Financial Advisory and Intermediary Services (FAIS) Act was passed by Parliament, promoting the fostering of good business ethics. Client relationships are also affected by the Financial Intelligence Centre Act (FICA), legislation established to combat money laundering.
The FAIS act prescribes that key individuals and representatives of FSP’s must be declared fit and proper to render advisory and intermediary services to clients. These requirements are applicable to the honesty and integrity as well as the competency of the key individuals and representatives. As part of the competency requirements key individuals and representatives are required to display knowledge of the various legislation governing the financial services industry. Their competency is tested by means of the Regulatory Examination Level 1 developed under the leadership of the Financial Sector Conduct Authority (FSCA)
FSP’s are licensed to provide certain services, grouped as service categories, in relation to certain financial products, grouped as sub-categories. Key individuals and representatives are approved and appointed to be operative within certain product categories and sub-categories.
This guide is designed to familiarise the reader with the Acts, Codes of Conduct and other legislation applicable to representatives operating in Category I, II and IIA, III and IV. Both content and practical application of the applicable statues are considered. This guide is a valuable tool in the preparation for FAIS RE1 examination as all knowledge criteria (as published in Board Notice 194 of 2017) accessed in the examination is covered.
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- Topic 1 FAIS Act: Introduction
- Topic 2 Licensing requirements for Financial Services Providers
- Topic 3 Rights of the Commissioner
- Topic 4 Duties and responsibilities of representatives
- Topic 5 Fit and proper requirements for representatives
- Topic 6 Supervision arrangements
- Topic 7 Key Individual: Responsibilities and Requirements
- Topic 8 Compliance Officer: Responsibilities and Requirements
- Topic 9 General Code of Conduct
- Topic 10 Financial Intelligence Centre Act