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The Financial Advisory and Intermediary Services Act, No. 37 of 2002 ("FAIS Act") came into effect on 15 November 2002 and has had far reaching effects not only on FSPs and their representatives, but also for the consumer.
The Act is possibly best known for imposing the ubiquitous “fit and proper requirements” which demand that financial advisors meet certain minimum levels of experience and education in order to be licensed to give advice.
The FAIS Act, in conjunction with other relevant legislation, has created a formal system for the regulation of financial advisors and intermediaries in South Africa. Consumers, as a result, may now seek appropriate redress if they have been unprofessionally or recklessly treated by a financial advisor or provider.
The publication content is aligned to Unit Standard 242584, NQF Level 4 with 2 credits.
 Target Market
Workers in the financial services sector who are construed to give financial advice under FAIS.
It will be useful for financial planners, intermediaries and support staff employed by financial service providers.
Outcomes
On completion the learner should be able to:
- Explain the purpose of the Financial Advisory and Intermediary Services Act (FAIS).
- Explain the requirements for licensing under FAIS.
- Explain the mechanisms for enforcement and the implications for the intermediary and the industry.
- Discuss the effects of requirements for transparency and the right to information on the financial services industry.
Programme Includes
- Copies of all relevant Acts
- Links to relevant websites
- 12 activities
- Self-marking assessments at the end of each section.
Course Content
1. The Financial Advisory and Intermediary Services Act
- Purpose & Overview
- The purpose of FAIS
- The need for FAIS
- International Consumer protection legislation
- FAIS Concepts
- The concept of financial service provider (FSP)
- Consumer protection offered by FAIS
2. Licensing Under FAIS
- Purpose & Overview
- Work roles affected by FAIS
- Key individuals
- Natural persons
- Representatives
- Compliance officers
- FSPs and representatives
- Licensing and ongoing compliance
- The suspension, withdrawal and reinstatement of FSPs
- Suspension of a FSP"s licence
- Withdrawal of authorisation
- Debarment of representatives
- Reappointment of debarred representatives
3. Enforcing FAIS
- Purpose & Overview
- The Registrar
- Functions performed by the Registrar
- Enforcement of the Act by the Registrar
- Offences and penalties
- The FAIS Ombudsman
- Complaints
About the Author
Tracey Tomlinson has a BComm degree from Rhodes University and has worked for a number of blue chip companies in South Africa including Anglo American, Allan Gray, Coronation Asset Management and Old Mutual Asset Managers. For the past decade Tracey has been involved in the development and creation of multi-media in-house training resources for leading financial institutions.
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