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The 2008 FAIS Report. Presented by Richard Rattue. Agenda. THE ANNUAL REPORT Section 17(4) FAIS Session 1 09.00 -10.30 Submission and Deadlines Report Review: Category 1 (With / out CO) Break 15 mins 10.30-10.45am Session 2 10.45 – 11.00 Report Review: Category 2 Session 3 - PowerPoint PPT Presentation
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The 2008 FAIS ReportPresented by Richard Rattue
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AgendaTHE ANNUAL REPORTSection 17(4) FAIS
Session 109.00 -10.30 Submission and Deadlines Report Review: Category 1 (With / out CO)
Break 15 mins10.30-10.45am
Session 2 10.45 – 11.00Report Review: Category 2
Session 311.00-11.30Report Submission : FSB Presentation
Session 4 11.30-12.00Questions & Close
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Housekeeping Please make sure that you have registered
Copies of all presentations will be on our website for download next Monday
Upon receipt of payment delegates will receive our internal guidance papers on the report via email.
FPI Members will get 3 CPD points
Delegates will need a copy of the relevant report for this session.
Please switch off cell phones
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Introduction Report to be completed by all FSP’s in terms of Section 17(4) of FAIS
Report has four flavoursCategory 1 FSP’sCategory 2 FSP’sCategory 3 FSP’sSeparate report if you do not require a CO in terms of Section 17(1) of FAIS
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2008 Report Overview Fewer sections overall Fewer questions due to consolidationMore focus on key risk areas i.e J Reps Amalgamation of prior questions Additional Monitoring Areas for CO’s Improved structureNew Sections i.e Risk Man & Terminations More Annexures for Cat 1 FSP’s No efficacy or sampling submissions required from CO’s
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Clarity of TermsReport Date
Report Period
Submission Date
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FSP Yr End Reporting Date31 Jan 31 July28 Feb 31 Aug31 March 30 Sept30 April 31 Oct31 May 30 Nov30 June 31 Dec31 July 31 Dec31 Aug 31 Dec30 Sept 31 Dec31 Oct 31 Dec30 Nov 31 Dec31 Dec 31 Dec
Gazetted Table A
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Revised Reporting Dates Reporting Date Submission Date
1. 31 May 15 August 2. 31 August 31 October3. 31 December 28 FebruaryReporting Type1. = Cat 1 FSP’s with CO
2. = Cat 2 & 3 & Forex Only FSP’s with CO
3. =FSP’s that DO NOT require a CO
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Report Columns 1 Yes
compliant
2 Nonon compliant
3 Not applicableCannot enter in shaded areas of report
4 Developmental area
areas of concern identified and are to be fixed in a reasonable time frame
5 Annexures or numbers
Number your submissions correctly
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1. License Conditions and Restrictions / Financial Products
Fewer questionsAdvise Registrar within 15 days of any changes 1.4.1 / 1.4.2 Details of other regulators 1.5.4 – Details of related parties where applicable
2. Key Individuals
Control of K.I.’s.Changes in circumstances. Fit and Proper Advancement 2.3.3 Procedures to meet Column 4
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3. FSP License Display of original or certified copy of license at every business premises .
4. Representatives 4.3 / 4.4 Juristic Rep Controls
Keeping control of your Reps and their Fit & Proper status.Disclosure of supervised Reps and status and No of supervisors Ongoing reviews /assessment of Reps under supervision.Attachments re procedures4.5.3.8.Non compliance Report Compliance of all Reps with the Gen Code of Conduct. Debarment Details.
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5. Insurance Cover
Fidelity guaranteeprovides an employer with insurance cover for financial loss resulting from an employee's dishonesty.
PI Cover: purpose is to cover your company against the potential liability and claims caused as a result of the professional work you undertake.
Guarantees: A guarantee is effected to provide protection against an uninsured contingencies Intermediaries Guarantee Facility (IGF) .
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6. Compliance Function. Status of Compliance Function
CO Function StatusRegular reports submitted by the CO. Quarterly RemovedNumber of visits for outsourced CO’s 6.4 CO to highlight additional issuesEfficacy Statement Removed
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7. Record Keeping.
Section 18 verbal communications with clientscomplaints.non compliance i.e. /breaches registerpremature cancellation of transactions.Continued compliance of Reps
Section 3.2 Gencode.electronic /safe storage etcaccessible within 7 days Longevity ( 5 years after product termination date.
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8. General Code of Conduct. 8.1 General Provisions.
8.1.1 Conflict of Interest Policy 8.1.2 Submit as an Annexure Receipt of non cash incentives.Disclosure thereof.
8.2 Disclosures. 8.2.1. Direct Marketer8.2.3. Details of non compliance iro Section 4,5,7. of General Code8.2.4. Provide copy of disclosure doc as an Annexure
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8.3 Direct Marketing Voice recording systems in placeCO monitoring of disclosures required8.3.2.4 Non Compliance Annexure Required
8.4 AdviceCO monitoring of Analysis and Record of Advice required8.4.2.5 % iro Section 8(4)a8.4.2.6 Non Compliance Annexure Required –Record of Advice
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8.5 Fund Custody.If yes you need.
Auditor. Section 19(3) ReportSeparate Accounts
Premium Collection Section 45 of STI Act
8.5.4 – Amount of IGF Cover8.5.5 – IGF Number8.5.6 - IGF Cover ScheduleCO to monitor procedures
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8.6 Risk Management. Section 11 & 12 Gen Code8.6.2 RM Plan Documented8.6.3 CO to monitor RM Plan 8.6.4 Submit details of how RM plan is monitored
8.7 Advertising.8.7.1 –Does FSP AdvertiseProcedures in place to comply with Section 14. Telephonic AdvertisingCO to monitor voice logging
8.8 Complaints .Resolution mechanisms that comply with Sections 16-19 of the Gen codeRecords of Complaints8.8.3 CO to submit annexure
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8.9 Termination ProceduresProcedures to comply with Section 20
(Termination of client relationship)(Termination of FSP business)
(Termination of Rep)
8.10 Waiver of Rights.
Reps to use approved documents to ensure no waiver of rights is requested or induced form the client.8.10.2 –CO Required to monitor compliance with Sect 21 of Gen Code8.10.3 – Details of non compliance on Annexure
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9. Exemptions Board Notice 104
Temp Exemption for Cat A providers from minimum qualifications.
Board Notice 97Exemption of executors , liquidators and other related persons.9.2.2.1. –CO Required to monitor compliance with BN 979.2.2.2 – Details of non compliance on Annexure
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10. Money Laundering ControlCustomer IdentificationRecord KeepingStaff Training Reporting Copy of Internal rules requiredMoney Laundering Control officer detailsFICA Exemption 4 Usage
10.7. Procedures to enable staff to identify and report 10.8 Procedures to Risk Rate clients
11. Financial SoundnessSolvency Requirements Section 19 Monthly Records
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SECTION 2 – Forex FSP’s
Consolidated Questions in 2008Forex FSP’s
Duties & Obligations 12.1 -12.4
Forex Investment Advisors 12.5.1 -12.5.8
12.5.5 Details of trading platform /system used
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SECTION 3- Health Service Benefits
13.2.1 – Details of Suspensions , withdrawals or lapses in Annexure 13.2.2.- ORG and BR numbers required13.2.3 – Corporate Client Info
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Section 4Attachments and Signature
All attachments to be referenced to the relevant question number
Both Compliance Officer and a key individual to sign off the report before submission is made to the regulator
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Compliance Report 2008 NO CO
To be completed by all individuals who do not need to appoint a compliance officer in terms of Section 17(1) of FAIS
Slimmed down version.Less annexures No sampling Signed off by KI of FSP
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Report Structure SECTION 1.
To be completed by all FSP’s
SECTION 2. Forex FSP’s Only
SECTION 3 Health Services Benefits
SECTION 4Annexure(s) and sign off
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1.License Conditions Updating Information Financial Product Controls
1.4 Other Regulators –New Annexure
1.5.4 Related Party Information 2.Key Individuals
Circumstances and Conditions 2.2 Column 4 Fit and Proper
3.LicenseDisplay Original or Certified copy
4.Staff Compliment Annexure Required
5.Insurance Cover
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Section Overview
6 Compliance function7Record keeping 8.1 General Provisions 8.2 Disclosure8.3 Direct Marketing 8.4 Advice8.5 Product custody8.6 Risk Management 8.7 Advertising 8.8 Complaints8.9 Termination of Agreement or Business8.10 Waiver of rights9.0 Exemptions10 Money Laundering11 Financial soundness
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15min Break
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Welcome back to the second session
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Discretionary FSP’s
Section 1 - same as Category 1 FSP’s.Except 9.3
Additional Exemption BN 15 of 2008 (Supervision)
9.3.1 CO to report on usage by FSP
Section 2 12.1 Obligations /Prohibitions12.2 Mandates12.3. Reporting
12.3.2 Section 6 Compliance
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Discretionary FSP’s
12.4 Administration 12.4.2 Details of Computer packages iro admin 12.4.3 Outsource arrangements iro admin
12.5 Assets under Management 12.5.2 Audit Status of accounts
Nominee CompaniesQuestions Consolidated
General Functions Wrap Fund Details Hedge Fund Details 12.7.5 Names of product supplier used by HF FSP
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FSB Presentation Ronel Reyneke Specialist Analyst FAIS SUPERVISION
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Closing thoughts Take it seriously Honesty is the best policy.Compliance Officer / Key Individual should not compromise report content.Get it in on time.
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Knowledge Service(Logon for 14 Day Free Trial) Financial Services Compliance Portal
Key Regulatory Information at your fingertips
Targeted to the Compliance CommunityInternal CO’sCompliance Practices
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Thank youWe hope to see you again soon
