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Tag Archives | Fit and proper requirements

fitandproper

FSCA reissues exemptions from competency requirements for certain licence categories

In February, the FSCA published FSCA Communication 4 announcing that it is exempting FSPs, key individuals and representatives who operate in the credit life and funeral insurance space from some of the Fit and Proper Requirements. Read: ‘Fit and proper’ exemptions for credit life, funeral insurance FSPs The reason for the exemptions is the “unintentional […]

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fit-and-proper

‘Fit and proper’ exemptions for credit life, funeral insurance FSPs

The FSCA is exempting FSPs, key individuals and representatives who operate in the credit life and funeral insurance space from some of the Fit and Proper Requirements. The reason for the exemptions is the “unintentional complications” that have arisen because of the reclassification of classes and sub-classes of insurance business in terms of the Insurance […]

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licensed

Keeping it simple is the solution

Ninety-eight percent of lawyers give the rest of us a bad name, quipped Steven Wright, American stand-up comedian, actor, writer and Oscar-winning film producer. This view was also applied to the financial services industry at the beginning of this century, which led to the raft of legislation currently governing how we do business. Prior to […]

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Forgive and forget – so ‘no need’ to disclose debarment

Forgive and forget – so ‘no need’ to disclose debarment

The owner of a brokerage asked the Financial Services Tribunal to award him R2 million in damages because the FSCA refused to grant his firm an FSP licence. The regulator rejected the firm’s licence application because its sole key individual, director and shareholder did not comply with the fit and proper requirements. The tribunal also […]

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Financial soundness exemption Claims of hardship must be ‘adequately’ supported

Financial soundness exemption? Claims of hardship must be ‘adequately’ supported

“Merely claiming” that compliance with the financial soundness requirements will create hardship is not “reasonable grounds” for justifying an exemption from section 45(2) of Board Notice 194 of 2017. Such claims must be “adequately” supported at the time an exemption application is made. This was the finding of the Financial Sector Tribunal when it upheld […]

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Bills

Draft Conduct Standard published for CIS Managers

A draft Conduct Standard, setting out both the principles and fit and proper requirements that CIS managers must comply with on an ongoing basis, was released by the Financial Sector Conduct Authority (FSCA) on 2 December 2020. The draft Conduct Standard contains requirements relating to governance arrangements; obligations of the board; directors; competence; honesty, integrity and good […]

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Proposed Changes to Liquid Assets Definition

Financial Services Providers who receive client funds are required to conform to very specific requirements in terms of liquidity, as set out in the Determination of Fit and Proper Requirements. In terms of section 9 of the Determination, a FSP who receives client funds must maintain ‘liquid assets’ equal to, or greater than, 4, 8, […]

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