The Financial Sector Conduct Authority has given certain financial services providers operating in the private equity sector, and certain juristic representatives associated with them, another three years of relief from selected Financial Advisory and Intermediary Services Act requirements.
Published on 30 June, FAIS Notice 39 of 2026 extends three existing exemptions until 30 June 2029. The notice does not introduce new exemptions or alter the conditions attached to the existing ones; it simply extends the period during which they remain available.
The exemptions have formed part of the FAIS regulatory framework since 2012 and relate to three distinct areas: specified discretionary mandate requirements, a representative requirement in section 13(1)(c) of the FAIS Act, and specified liquidity requirements applicable to certain juristic representatives.
Although extended by a single Notice, the three exemptions apply to different categories of persons.
The 2012 exemption applies to Category II FSPs that render financial services to private equity funds and as subsequently amended, provides relief from specified provisions of the Discretionary Code of Conduct and from specified Fit and Proper financial soundness requirements.
The 2015 exemption applies to Category II FSPs that render financial services to private equity funds and exempts them from section 13(1)(c) of the FAIS Act.
The 2018 exemption applies separately to qualifying juristic representatives of private equity providers and exempts them from specified liquidity requirements.
For these purposes, a private equity fund is broadly defined as a managed pool of capital that invests primarily in equity or equity-related interests in unlisted companies or ventures, is managed or advised by the Southern African Venture Capital and Private Equity Association or an equivalent recognised private equity and venture capital industry body and is not offered to the public as an investment.
Discretionary mandate and financial soundness requirements
The first exemption continues to relieve qualifying providers from specified provisions of the Discretionary Code of Conduct governing discretionary investment mandates.
Among other things, it preserves relief for certain mandates concluded before the exemption took effect, provided clients received written disclosure of the risks associated with investing in private equity funds and local and foreign financial products, including currency risk. It also preserves relief from certain mandate termination requirements, subject to conditions that include a right for clients representing at least 75% of committed capital to terminate the mandate on no more than 180 days’ written notice.
The exemption also continues relief from specified Fit and Proper financial soundness requirements for qualifying providers.
Representative-name requirement
The second exemption concerns section 13 of the FAIS Act, which regulates representatives of authorised FSPs.
Section 13(1)(c) provides that a representative may not render financial services or enter into contracts in respect of financial services other than in the name of the FSP of which that person is a representative.
The exemption allows Category II FSPs that render financial services to private equity funds to continue relying on relief from that specific representative-name requirement, subject to the conditions attached to the exemption.
Liquidity requirements for juristic representatives
The third exemption applies to qualifying juristic representatives of private equity providers.
It exempts them from specified liquidity requirements under the Fit and Proper framework. The exemption ceases to apply if the juristic representative becomes subject to specified regulatory action, including debarment, the imposition of an administrative penalty, or removal from a specified position or function in or in relation to a financial institution.
What has changed?
Notice 39 extends the three exemptions from 30 June 2026 to 30 June 2029. Their scope, qualifying criteria and conditions remain unchanged.
The extension continues a regulatory approach that has been in place since 2012. Following substantive amendments in 2018 to align the exemptions with the revised Fit and Proper framework, subsequent notices issued in 2020, 2021, 2023 and now 2026 have largely served to extend their duration.
FSPs and juristic representatives relying on these exemptions should review the relevant exemption notice to confirm that they continue to satisfy the applicable qualifying criteria, conditions, and notification requirements. Links to the original exemption notices are provided below.
- Board Notice 208 of 2012 – Exemption of certain persons conducting financial services-related business with a private equity fund
- FAIS Notice 70 of 2015 – Exemption of certain FSPs conducting financial services-related business with private equity funds from section 13(1)(c) of the FAIS Act
- FAIS Notice 88 of 2018 – Exemption of certain juristic representatives from the liquidity requirements
