The FIC issued two new directives applicable to all accountable and reporting institutions:
Directive 1 stipulates that “All institutions registered with the FIC are required to update their registration details only via the FIC’s electronic registration platform.”
Directive 2 requires that “…login credentials may only be used by the person who originally registered them on the FIC system. No one else may use these login credentials to submit reports required in terms of FICA to the FIC. If the individual no longer holds the position he /she held at the time of registration with the FIC, the accountable or reporting institution must ensure that new login credentials are obtained.”
If your FSP is authorised to render financial services on any financial product other than short-term products and/or health benefits, it is classified as an accountable institution.
The official FIC guidelines indicate that this applies to a person who carries on the business of dealing in motor vehicles. Each operating unit or branch of a motor vehicle dealer will be regarded as a separate reporting institution and will be required to register separately. It must however be noted that, in instances where different franchise owners are operating under the same name, those franchise owners are separate legal persons and will be regarded as separate accountable institutions* which need to register with the Centre separately.
If your licence also provides for products other than short-term insurance (e.g. credit life), you are also required to register as an accountable institution.
For more comprehensive details, please download the official FIC guidelines.
*We are of the view that this may be incorrect, and should read “…separate reporting institutions…” We will take this up with the FIC and report back.