Posted on 30 Sep 2024
Once considered the wild west of finance, the South African cryptocurrency industry is now subject to formal regulatory oversight. Here’s what crypto asset service providers (CASPs) need to do to ensure they stay on the right side of the law. Initially, the cryptocurrency industry was a niche market dominated by a small group of early … Continued
Posted on 30 Sep 2024
A recent report by the Financial Intelligence Centre (FIC) offers valuable insights into the growing issue of money mule activities in South Africa. Released in June, the Financial Crime Insights: Money Laundering Risks Associated with Money Mules report sheds light on how criminals exploit individuals to transfer illicit funds, often unknowingly. According to FIC, the … Continued
Posted on 30 Sep 2024
The Financial Sector and Deposit Insurance Levies Act, 2022 (Levies Act) commenced on 1 April 2023. The Levies Act prescribes the financial sector levies on supervised entities for the funding of the FAIS Ombud and sets out the fees payable by FSPs. On 4 September 2024, the Office of the FAIS Ombuds office published the … Continued
Posted on 30 Sep 2024
During a media briefing on 11 September 2024, the Information Regulator shared an overview of its work since its last report in March 2024. These include the progress of investigations, cases and projects. POPIA The Regulator revealed an alarming 980 security compromises reported since April 2024. This statistic highlights that many organisations may lack the … Continued
Posted on 30 Sep 2024
Liquidity Calculation FSPs (CAT II, IIA, and III) required to maintain liquid assets and whose financial year end was 28 February 2024, are required to submit Form A: Liquidity Calculation (Annexure six of BN 194 of 2017) to the FSCA by 15 October 2024. Crypto FSPs – regulatory exams FSPs and key individuals authorised for … Continued
Posted on 2 Sep 2024
Need help with implementing the Joint Standards? The deadline for implementing the Joint Standard on IT Governance and Risk Management is 15 November 2024. We offer a specialised IT Risk Management and Cybersecurity Implementation Service designed to assist with both the Joint Standard on IT Governance and Risk Management and the Joint Standard on … Continued
Posted on 2 Sep 2024
From the 01 April 2023, the Companies and Intellectual Property Commission (CIPC) has developed a beneficial ownership (BO) register to be used on a voluntary basis. On 24 May 2023, the Amended Companies Regulations were issued to fully implement the General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act 22 of 2022, which made … Continued
Posted on 2 Sep 2024
The Financial Intelligence Centre (FIC) recently published Public Compliance Communication (PCC) 59 which offers accountable institutions guidance on compliance with the beneficial ownership requirements of the FIC Act. Accountable institutions are required to establish the ownership and control structure of clients that are legal persons, trusts, or partnerships. Identifying and verifying the natural persons who … Continued
Posted on 2 Sep 2024
Credit providers, such as lenders and financiers, are particularly susceptible to money laundering and terrorist financing due to the nature of their business. The ease with which funds can be obtained through loans, and the potential for these funds to be used for illicit purposes, makes the sector a prime target for criminals. To mitigate … Continued
Posted on 2 Sep 2024
Category II, IIA & III FSPs required to report Investments under Management / Administration Category II, IIA and III FSPs must calculate their investments under management and/or administration as at 31 August 2024 and prepare this for submission to the FSCA via the FAIS ePortal. The deadline for submission is 16 September 2024. Crypto FSPs … Continued
Posted on 6 Aug 2024
Financial service providers (FSPs) shoulder the responsibility of keeping their clients informed about changes made to financial products by their product providers. However, staying abreast of continual product adjustments can be a challenge. This article explores the responsibilities of FSPs in this regard, the common issues they face and strategies for overcoming these challenges. Who … Continued
Posted on 6 Aug 2024
The Council for Medical Schemes has announced an extension to the deadline for insurers to submit information regarding their medical scheme business operations. Initially scheduled for 30 June 2024, the new deadline for Phase 2 of the submission process is now 30 August 2024. CMS previously outlined a two-phase submission process in Circular 16 of … Continued
Posted on 6 Aug 2024
The Financial Sector Conduct Authority (FSCA) published its latest Regulatory Actions Report for the period 1 April 2023 and 31 March 2024. The report is a summary of the FSCA’s enforcement actions over the period, as well as the trends and risks that have been identified. The objective of the report is to draw attention … Continued
Posted on 6 Aug 2024
As of 1 July 2024, the Companies and Intellectual Property Commission (CIPC) has strictly enforced the filing of Beneficial Ownership declarations with annual returns for all companies and close corporations. This requirement was imposed by the General Laws (Anti-Money Laundering and Combatting Terrorism Financing) Amendment Act, which modified the Companies Act 71 of 2008, on … Continued
Posted on 6 Aug 2024
The Financial Sector Conduct Authority (FSCA) released its recently updated three-year Regulation Plan (2024 Regulation Plan). This plan outlines the FSCA’s primary area of focus over the medium to long term as well as approximate timelines for the implementation of pertinent regulatory instruments for the period April 2024 to March 2027. The FSCA analyses and … Continued
Posted on 6 Aug 2024
Commencement date of Joint Standard on IT Governance and Risk Management Joint Standard 1 of 2023 on Information Technology Governance and Risk Management aims to ensure that financial institutions implement sound practices to reduce IT-related disruptions and breaches and applies to discretionary FSPs and administrative FSPs, among others. These financial institutions are urged to prepare … Continued
Posted on 5 Jul 2024
Transferring or acquiring a client book can boost your financial advisory business, but it’s not without its challenges. We delve into the intricacies of client transfers and the factors financial service providers (FSPs) should consider before making this decision. There are many reasons why an FSP would like to expand their client base – increased … Continued
Posted on 5 Jul 2024
The Financial Sector Conduct Authority (FSCA) has launched a national Know Your Rights campaign to educate the public about the two-component retirement system. The two-component (two-pot) system is set to go live on 1 September 2024. The FSCA’s communications campaign will focus on an introduction of the two-component retirement system and other aspects of retirement … Continued
Posted on 5 Jul 2024
The Ombud Council recently published Rules for the Ombud for Financial Services Providers which took effect on 1 July 2024. The Rules revoke the previous Rules on Proceedings of the Office of the Ombud for Financial Services Providers, 2003, published under the former Financial Services Board. The new Rules increase the amount of compensation that … Continued
Posted on 5 Jul 2024
The FSCA and Prudential Authority (the Authorities) have confirmed the commencement date of Joint Standard 2 of 2024: Cyber Security and Cyber Resilience as 1 June 2025. On 17 May 2024, the Authorities published the final version of the Joint Standard which stated that it will commence at a date to be determined by the … Continued
Posted on 5 Jul 2024
Commencement date of Joint Standard on IT Governance and Risk Management Joint Standard 1 of 2023 on Information Technology Governance and Risk Management aims to ensure that financial institutions implement sound practices to reduce IT related disruptions and breaches and applies to discretionary FSPs and administrative FSPs, among others. These financial institutions are urged to … Continued
Posted on 10 Jun 2024
In April, the Financial Sector Conduct Authority (FSCA) approved licences for 75 crypto asset service providers (CASPs), marking a new era of heightened regulatory oversight in the realm of cryptocurrency. Masthead assisted several customers with their licence applications, some of which were approved while others are still busy with the pre-licensing inspections or awaiting approval, … Continued
Posted on 10 Jun 2024
In a recent review of a debarment order, the FSCA was ordered to reverse the decision to debar a representative (Mr Shuping), revisit the licence suspension and pay 50% of the applicant’s legal costs due to accepting evidence which was not independently verified. In the matter of Shuping and Shuping vs the FSCA the Financial … Continued
Posted on 10 Jun 2024
The FSCA published a draft Amendment Notice on 6 July 2022 and received public comment during August 2022. However, after engagement between the FSCA and Ombud Council, the rule-making powers of the FSCA were reconsidered in terms of the legislative framework and established within the Ombud Council to take responsibility for the scope and content … Continued
Posted on 10 Jun 2024
CPD Training Plan – new CPD cycle The new CPD cycle started on 1 June 2024 and will end on 31 May 2025. FSPs, KIs, and Reps are required to prepare a CPD Training Plan. The CPD training plan must ensure that the type and combination of CPD activities undertaken are relevant, contribute to the … Continued
Posted on 8 May 2024
Unlock the full potential of your business by investing in your greatest assets – your employees. Discover how upskilling can boost profitability, give you a competitive edge and enhance employee satisfaction. In today’s fast-paced, ever-changing and fiercely competitive business landscape, staying ahead of the curve is not just an option but a necessity for sustained … Continued
Posted on 8 May 2024
The Financial Sector Conduct Authority (FSCA) published its Statement on Consumer Vulnerability (Vulnerability Statement) on 19 March 2024. The FSCA is responsible for protecting financial customers by promoting and encouraging fair treatment by financial institutions and the promotion of financial inclusion. The Vulnerability Statement therefore supports the FSCA objectives and aims to stimulate thinking and … Continued
Posted on 8 May 2024
On 28 March 2024, the FSCA issued FSCA Communication 11 of 2024 (RF): Extension of completion date of the first 11 modules of trustee training toolkit, the launch of the second phase, and determination of dates for completion thereof in terms of Conduct Standard 4 of 2020 (RF). The Financial Sector Conduct Authority (FSCA) rolled … Continued
Posted on 8 May 2024
In terms of FSCA Communication 13 of 2024 (FAIS), with effect from 1 April 2024, the FSCA will now only accept electronically uploaded submissions of Annual Financial Statements (AFS) and other statutory returns by FSPs via the FAIS e-Portal. Electronic submission via e-Portal FSPs must submit their AFS and other statutory returns (section 19(3) audit … Continued
Posted on 8 May 2024
The Demarcation Regulations, implemented in December 2016, changed the landscape for certain insurance products in South Africa. These regulations reclassified (demarcated) specific insurance policies, including primary healthcare and hospital indemnity products, as products that may only be offered by a medical scheme, meaning that providers offering these products would be subject to stricter regulations designed … Continued
Posted on 8 May 2024
CPD deadline FSPs, KIs and Reps are reminded that the deadline to comply with the required number of CPD hours is 31 May 2024. Click here to see the various accredited CPD activities available on the Masthead Learning Centre. Planning for the new CPD cycle The new CPD cycle will start on 1 June 2024 … Continued
Posted on 11 Apr 2024
Determining the value of your financial advisory practice is a complex undertaking. However, whether due to retirement or death, everyone eventually exits the industry, which makes business valuations both a wise investment and a crucial step in ensuring your own financial well-being, as well as that of your clients. From the desire for autonomy and … Continued
Posted on 11 Apr 2024
The Financial Sector Transformation Council (FSTC) published Reporting Notice 1 of 2024 regarding the submission of broad-based black economic empowerment (B-BBEE) compliance reports for the period 1 December 2022 to 30 November 2023. All entities operating in the financial sector must submit their B-BBEE compliance reports for the 2022/23 period to the FSTC by close … Continued
Posted on 11 Apr 2024
On 29 February 2024, the Financial Intelligence Accountable institution (FIC) issued public compliance communication 44A (PCC 44A) which further guides accountable institutions (AI) on the measures, obligations and risk-based approach in terms of asset freeze requirements of the United Nations Security Council (UNSC) resolutions and South Africa’s domestic requirements for targeted financial sanctions (TFS) against … Continued
Posted on 11 Apr 2024
The South African Financial Sector Conduct Authority (FSCA) recently introduced an exemption for Microinsurers, providing them with more flexibility in managing their policies. Previously, Rule 2A.6.1 restricted the waiting period that Microinsurers could set for death, disability, or health benefits arising from natural causes. The Rule capped the period at a maximum of three months … Continued
Posted on 11 Apr 2024
The National Treasury published a Media Statement on South Africa’s action plan against the February 2024 FATF Plenary meetings. In February 2023, South Africa was greylisted by the Financial Action Task Force (FATF), upon its Plenary meetings, an action plan was adopted listing 22 action items linked to the strategic deficiencies identified in the Anti-Money … Continued
Posted on 11 Apr 2024
CPD clock is ticking FSPs, KIs and Reps are reminded that the deadline to comply with the required number of CPD hours is 31 May 2024. Masthead offers various accredited CPD activities. For more information, please get in touch with Masthead on info@masthead.co.za or contact your Compliance Officer. Renew PI cover FSPs are reminded to … Continued
Posted on 15 Mar 2024
Will healthcare brokers continue to have a role under the National Health Insurance (NHI) system? While the current bill still lacks specifics on its implementation, healthcare brokers and Representatives could potentially continue to play a significant role in helping customers navigate the complexities of the healthcare system. A recap of the NHI The NHI, as … Continued
Posted on 15 Mar 2024
The Financial Sector Conduct Authority (FSCA) published a press release advising of the administrative sanction imposed on two Financial Service Providers (FSPs), Theuns Vosloo Financial Advisory Services CC and Ashburton Fund Managers. The administrative sanction for Theuns Vosloo Financial Advisory Services CC amounted to R400 000 and R16 million for Ashburton Fund Managers respectively, for non-compliance … Continued
Posted on 15 Mar 2024
In November 2023, the Prudential Authority (“PA”) published its presentation of the 2022 Life Insurance Industry and Non-Life Industry Experience. 1. 2022 Life Insurance Industry Presentation: The presentation was based on the 2018 – 2022 Annual quantitative reporting templates (“QRT”) submitted to the Prudential Authority by 66 insurers. A total number of 11 licensed and … Continued
Posted on 15 Mar 2024
On 19 February 2024, the Companies and Intellectual Property Commission (CICP) sent out a notice regarding the rollout of the CIPC Beneficial Ownership Reviewer system, which allows the examination, review and sample of Beneficial Ownership filings, allowing the CIPC to assist and advise corporate users on the completeness and accuracy of filings. Background Among other … Continued
Posted on 15 Mar 2024
The change The National Financial Ombud Scheme South Africa (NFO Scheme) was recognized by the Ombud Council on March 1, 2024, as an industry ombud scheme in terms of Section 194 of the Financial Sector Regulation Act, 2017 (Act No. 9 of 2017) (FSR Act). In addition, the National Treasury published a Media Statement titled … Continued
Posted on 15 Mar 2024
On 25 February 2015, the Minister of Finance declared under Section 65 of the Collective Investment Schemes Control Act, 2002, the business of a hedge fund to be a collective investment scheme and the provisions of the Collective Investment Schemes Control Act Applies. It was further decided on 06 March 2015 that the requirements for … Continued
Posted on 15 Mar 2024
Liquidity Calculation Declaration Category II, IIA and III FSPs required to maintain liquid assets and whose financial year end was 28 February 2024, are required to submit Form A: Liquidity Calculation (Annexure six of BN 194 of 2017) to the FSCA before 13 April 2024 (i.e. 45 days after every half year-end of the FSP, … Continued
Posted on 16 Feb 2024
Accountable institutions, including legal practitioners, can expect an increase in Financial Intelligence Centre (FIC) inspections following South Africa’s greylisting by the Financial Action Task Force (FATF) in February 2023. However, few legal firms have proper (if any) Risk Management and Compliance Programmes (RMCPs) in place. In this article, we look at how legal practitioners can … Continued
Posted on 16 Feb 2024
In December 2023, the Short-Term Insurance Ombudsman (OSTI) published the final edition of the 2023 Ombudsman’s Briefcase. During the course of the year, the short-term, long-term and credit Ombudsman will all be merging to form The National Financial Ombud Scheme South Africa (NFO). This issue of the OSTI’s newsletter contains news and events, four case … Continued
Posted on 16 Feb 2024
The Council for Medical Schemes recently published Circular 2 of 2024, on the adjustment of fees payable to healthcare brokers. The Minister of Health has approved an increase on the maximum fee that is payable by medical schemes to brokers for introducing a member to a medical scheme and providing the member with ongoing service … Continued
Posted on 16 Feb 2024
FICA Risk and Compliance Return A reminder that specified accountable institutions must comply with Directive 6 of 2023 by submitting a FICA Risk and Compliance Return (RCR). Although the deadline to submit the RCR was 31 May 2023, there are many entities that have not yet submitted the RCR. The portal for submission remains open. … Continued
Posted on 19 Jan 2024
Retirement might seem like a distant event on the horizon, but delaying succession planning to the last minute can have repercussions for both you and your clients. In this article, we highlight the importance of succession planning and provide guidance on how to ensure a seamless transition to a successor. Regardless of the circumstances – … Continued
Posted on 19 Jan 2024
Keeping track of what must be done in an FSP and making time to address any gaps is key to remaining compliant and in business. Below we look at some key dates and offer general reminders to help FSPs plan for the compliance requirements of 2024. We suggest that you set these dates in your … Continued
Posted on 19 Jan 2024
Decoding COFI: Guiding you through the regulatory shift Feeling perplexed about the upcoming Conduct of Financial Institutions (COFI) Bill? Not sure how this pivotal legislation will impact your business? We’ve got you covered! Our new Decoding COFI article series is designed to keep our newsletter readers well-informed and ready for the changes this legislation will … Continued
Posted on 19 Jan 2024
The FSCA has issued FSCA FAIS Notice 85 of 2023 which grants an extension of the current exemption applicable to Compliance Officers regarding the minimum prescribed intervals of visits and reports to FSPs. The exemption which was first granted in 2017 and subsequently extended, has recently been extended again until 30 June 2026. Conditions of … Continued
Posted on 19 Jan 2024
On the 4th of December, the FSCA and Prudential Authority published FSCA Communication 34 of 2023 and the final draft Joint Standard on Cybersecurity and Cyber Resilience Requirements. The Joint Standard outlines the principles for cyber security and cyber resilience for certain categories of financial services providers. The final draft was revised in line with … Continued
Posted on 19 Jan 2024
During December 2023, the FSCA issued an update relating to the roll-out and implementation of the Omni-CBR Roadmap in FSCA Communication 33 of 2023. The intended roll-out was previously communicated in a Roadmap by the FSCA in June 2022. The roll-out would be in four phases over four years, from June 2022 – June 2026 … Continued
Posted on 19 Jan 2024
Update your Business Plan FSPs should start planning and considering the needs of their business for 2024 by reviewing and updating the Business Plan according to the aims, scope and changes in the business and changes in regulation. Strategic Planning 2024 – KIs and Successors A reminder to all FSP’s that Masthead has a new … Continued
Posted on 1 Dec 2023
Significant amendments to the Trust Property Control Act (TPCA) and Regulations introduced several new compliance obligations for trustees on 1 April of this year. Surprisingly, many fiduciary service providers are still unaware of these legislative changes, never mind the profound implications they have on their roles as trustees. In this article, we delve into these … Continued
Posted on 1 Dec 2023
In today’s complex financial landscape, ensuring consumer protection and promoting financial literacy are crucial cornerstones of a fair and just society. In Issue 1 of the FAIS Ombud’s Newsletter, the FAIS Ombud committed their office to empowering consumers and safeguarding their rights in the financial sphere by actively working towards enhancing awareness and advocating for … Continued
Posted on 1 Dec 2023
During September 2023, the FSCA published its budget and estimates of expenditure for the 2024/25 financial year including proposed levies that will be imposed and fees that will be charged by the FSCA. Levies on FSPs The FSCA’s notice explains that section 10(4)(b) of the Levies Act provides that the levies must be increased by … Continued
Posted on 1 Dec 2023
The FSCA has published its Integrated Report for 2022/2023. The report provides information on the performance of the regulator and gives stakeholders a holistic and balanced view of their strategy and performance in the context of risks and opportunities, and relevant socioeconomic, environmental, and technological factors. Below we highlight some of the topics relevant to … Continued
Posted on 1 Dec 2023
In terms of FSCA Communication 31 of 2023, the FSCA has called for input on the draft standard which introduces quarterly reporting under Regulation 28 of the Pension Funds Act, 1956. The Prudential Standard prescribes quarterly reports for pension funds relating to: non-compliance with Regulation 28; and assets held in terms of Regulation 28 (as … Continued
Posted on 1 Dec 2023
Need help with implementing the Joint Standards? The deadline for implementing the Joint Standard on IT Governance and Risk Management is 15 November 2024. We offer a specialised IT Risk Management and Cybersecurity Implementation Service designed to assist with both the Joint Standard on IT Governance and Risk Management and the Joint Standard on … Continued
Posted on 1 Dec 2023
Update your Business Plan FSPs should start planning and considering the needs of their business for 2024 by reviewing and updating their Business Plan according to the aims, scope and changes in their business and changes in regulation. Strategic Planning 2024 – KIs and Successors A reminder to all FSPs who are entering into their … Continued
Posted on 3 Nov 2023
Earlier this year, significant amendments to the Companies Act were implemented to promote heightened transparency within the corporate world. These changes encompass the addition of a beneficial owner definition and the introduction of mandatory reporting requirements. In this article, we explore the impact of these amendments on companies and closed corporations and stress the importance … Continued
Posted on 3 Nov 2023
The Financial Intelligence Centre (FIC) released its 2022/23 Annual Report which contains an overview of the work that the FIC has been involved in between April 2022 – March 2023. During the reporting period, the FIC was instrumental in the recovery of more than R5.8 billion in criminal proceeds. The FIC produced 3 424 intelligence … Continued
Posted on 3 Nov 2023
Markus Jooste, from the “Steinhoff” matter, was the CEO of Steinhoff International Holdings and the FSCA held him responsible for his actions and for his part in the loss of millions, concluding that his actions were deliberate, premeditated and calculated. The FSCA also recently dealt with the case of Markus Johannes Jooste vs FSCA, where … Continued
Posted on 3 Nov 2023
The Association for Savings and Investment South Africa (ASISA) has recently published an update for the first half of 2023. As per the statistics, life insurers paid claims and benefits worth R287.1 billion during this period. ASISA indicated that for the first six months of this year, despite the significant pay-out in claims, life insurers … Continued
Posted on 3 Nov 2023
In September, the Financial Sector Conduct Authority (FSCA) initiated regulatory action against a financial service provider (FSP) for their failure to adhere to Section 13(1)(c) of the Financial Advisory and Intermediary Services (FAIS) Act. We examine the case, which resulted in an enforceable undertaking agreement between the FSCA and the FSP, Universal Insurance Administrators (UIA). … Continued
Posted on 3 Nov 2023
The FSCA recently issued Communication 27 of 2023 informing stakeholders that it will be initiating a process to verify certain information about financial institutions, including criminal records for specific individuals. Since 1 June 2022, the FSCA has been verifying information, including criminal records, relating to all new licence applicants, and has appointed Managed Integrity Evaluation … Continued
Posted on 3 Nov 2023
Deadline for payment of Levies FSPs are reminded that the FAIS Levy Invoices should have been received by the end of October, with payment due by 30 November 2023. If an FSP has not received their invoice, we suggest that they contact the FSCA to request that this be re-sent to them. Failure to pay … Continued
Posted on 2 Oct 2023
In a challenging economic environment, where the cost of living rises and disposable incomes are limited, financial services and insurance products are often the first to be cut when people review their budgets. In these challenging circumstances, it’s more important than ever for financial service providers (FSPs) to nurture strong client-advisor relationships and foster customer … Continued
Posted on 2 Oct 2023
A recent publication by the National Credit Regulator reminds credit providers of their risk and compliance obligations under the Financial Intelligence Centre (FIC) Act. All credit providers are urged to register with the FIC, if they have not already done so. Credit providers are listed as accountable institutions under item 11 of Schedule 1 to … Continued
Posted on 2 Oct 2023
Accountable Institutions are required to know the clients that they deal with. Part of the customer due diligence requirements in terms of the Financial Intelligence Centre (FIC) Act, is that accountable institutions must determine if they are dealing with a person or entity on the Targeted Financial Sanctions (TFS) List. Accountable institutions are required to … Continued
Posted on 2 Oct 2023
The newly updated Trustee Training Toolkit (TTK) e-learning platform was launched by the Financial Sector Conduct Authority (FSCA) on 26 September 2023, when it released the first eleven modules. It is expected that the platform’s remaining eleven modules will be launched in March 2024. The TTK is a free e-learning program that has been created … Continued
Posted on 2 Oct 2023
FSTC Reporting 2023 All entities operating in the financial sector are reminded to submit their B-BBEE compliance reports for the 2021/22 period to the Financial Sector Transformation Council (FSTC) by cob 13 October 2023. Click here to read more. Liquidity Calculation FSPs (CAT II, IIA, and III) required to maintain liquid assets and whose financial … Continued
Posted on 5 Sep 2023
Finding the perfect match: What FSPs must know before employing a Representative You believe that your newly appointed Representative is the perfect fit for your business. They aced the interview and with several years’ experience in the industry, they’ll be a valuable addition to your business. However, the ink on their contract has hardly dried … Continued
Posted on 5 Sep 2023
It’s almost that time of the year again… FSP levies, which are due at the end of October. The Financial Sector and Deposit Insurance Levies Act 11 of 2022 (the Act) that commenced earlier this year on 1 April 2023 introduces some changes to levy payments going forward. The Act prescribes two main levies for … Continued
Posted on 5 Sep 2023
In July and August 2023, the Financial Sector Conduct Authority (FSCA) publicised no less than 20 enforcement orders following investigations into businesses issuing funeral policies without an underwriter. Besides violating Section 5 of the Insurance Act, which establishes regulations for insurance businesses and restrictions on other enterprises, these businesses also contravened Section 7 of the … Continued
Posted on 5 Sep 2023
In the world of financial services, honesty, integrity, and compliance with regulation are fundamental pillars. A recent case involving a representative who attempted to overturn her debarment decision highlights the significance of adhering to these principles. The Financial Services Tribunal (FST) decision revolved around a representative who faced charges of falsifying documents and breaching financial … Continued
Posted on 5 Sep 2023
Category II, IIA & III FSPs required to report Assets under Management Category II, IIA and III FSPs must calculate their assets under management (AUM) as at 31 August 2023 and prepare this for submission to the FSCA via the FAIS ePortal. The deadline for submission is 20 September 2023. FSTC Reporting 2023 All entities … Continued
Posted on 8 Aug 2023
The advantages of enhancing TCF in your business plan The Treating Customers Fairly (TCF) Outcomes go beyond protecting the interests of clients – financial service providers (FSPs) that wholeheartedly embrace these principles can reap numerous benefits as well. While the Financial Advisory and Intermediary (FAIS) Act or General Code of Conduct (GCOC) do not explicitly … Continued
Posted on 8 Aug 2023
The FSCA published the 2023 Financial Sector Conduct Authority (FSCA) Three-Year Regulation Plan, covering 1 April 2023 to 31 March 2026. The Regulation Plan is a three-year rolling plan and is reviewed and revised on an annual basis to encompass the changing financial environment. The most recent release provides an update on the results that … Continued
Posted on 8 Aug 2023
The Council for Medical Schemes has published Circular 25 of 2023 which sets out amendments to the fees payable in terms of Regulations 31 and 32 of the Medical Schemes Act. These relate to fees payable to register a medical scheme, accredit an administrator, managed care organisation and brokers, change the name of a medical … Continued
Posted on 8 Aug 2023
The Financial Sector Transformation Council (FSTC) published Reporting Notice 1 of 2023 regarding broad-based black economic empowerment (B-BBEE) compliance reports for the period 1 December 2021 to 30 November 2022. All entities operating in the financial sector must submit their B-BBEE compliance reports for the 2021/22 period to the FSTC by cob 13 October 2023. … Continued
Posted on 8 Aug 2023
All entities registered with the National Credit Regulator (NCR) must pay a renewal registration fee each year by no later than 31 July as required by the National Credit Act (NCA). If you have missed the deadline, you can still make payment within the 30-day grace period subject to a penalty fee. However, failure to … Continued
Posted on 8 Aug 2023
The Office of the FAIS Ombuds has received thousands of complaints relating to property syndications between 2009 and 2014. Between 2019 to 2021, there were several determinations issued against financial institutions regarding property syndications such as Sharemax, Highveld Syndications, Realcor and Blue Zone Investments. In many of these cases, the respondents (financial advisors) applied to … Continued
Posted on 8 Aug 2023
Ensure contact details are updated FSPs are reminded to check that all their information and contact details on the FSCA’s website is up-to-date and correct. Levies due by FSPs will be calculated based on the information available to the FSCA as at 31 August 2023. Where such information or contact details require updating, FSPs should … Continued
Posted on 11 Jul 2023
Masthead Compliance Officers have observed a worrying trend amongst financial service providers (FSPs) of non-compliance with their Product Specific Training (PST) obligations. We share tips on how they can address PST compliance issues in their businesses. It’s been half a decade since the Fit and Proper requirements that specify how to comply with PST, as … Continued
Posted on 11 Jul 2023
On 9 June 2023, National Treasury published two draft Bills (Draft Revenue Laws Amendment Bill, 2023 and Draft Revenue Administration and Pension Laws Amendment Bill, 2023) along with a memorandum on the proposed implementation of the two-pot retirement system which is set to come into effect on the 1st of March 2024. The draft Bill … Continued
Posted on 11 Jul 2023
During May 2023, the Ombudsman for long-term insurance (OLTI) released a summary of five cases displaying different concerns that are prominent within the industry. Interpretation of Exclusion Clauses to reject claims – TCF 3 and the importance of being clear One of the concerns raised by the OLTI was how insurer’s interpret exclusion clauses to … Continued
Posted on 11 Jul 2023
The 2022 Annual Report for the Ombudsman for both the Long-Term (OLTI) and the Short-term Insurance (OSTI) was released in May 2023. The Office for the Long-Term Insurance: The report reflects the findings of the insurer activities in relation to the complaints received by the Ombuds Office. For 2022, there were 7126 complaints received. Overall, … Continued
Posted on 11 Jul 2023
On the 12 June 2023, the National Assembly passed the National Health Insurance (NHI) Bill. The Bill was first introduced in 2009. There have been various engagements with the private sector to reach this point. One of the key purposes of the Bill is to establish a National Health Insurance Fund and to set out … Continued
Posted on 11 Jul 2023
Licence application period for Crypto Asset FSPs open Persons rendering a financial service in relation to crypto assets, must apply to the FSCA to be authorised as an FSP between 1 June 2023 and 30 November 2023. FICA Risk and Compliance Return A reminder that the following accountable institutions must comply with Directive 7 of … Continued
Posted on 13 Jun 2023
If a claimed item is found damaged beyond repair by the insurer and the insurer has indemnified the policyholder, the policyholder can’t hold onto the item or simply give it away or sell it. The item belongs to the insurer who has the right to salvage the remains of the damaged item. We explain how … Continued
Posted on 13 Jun 2023
When last did you review your Risk Management and Compliance Programme (RMCP)? The Financial Sector Conduct Authority (FSCA) recently stated that they’ll be stepping up their Financial Intelligence Centre (FIC) inspections. And when they come knocking, they expect accountable institutions to have their RMCPs in order. Why is there a renewed emphasis on risk management … Continued
Posted on 13 Jun 2023
The Information Regulator issued a media statement that requires all public and private bodies to submit Annual Reports for the 2022/2023 financial year, by 30 June 2023. The report is focused on access to information requests that were received and processed. Section 32 of the Promotion of Access to Information Act (PAIA) requires the information … Continued
Posted on 13 Jun 2023
Persons rendering a financial service in relation to crypto assets, must apply to the FSCA to be authorised as an FSP between 1 June 2023 and 30 November 2023. On 19 October 2022, the FSCA declared a crypto asset as a financial product, and it had also issued a general exemption from the licensing requirement, … Continued
Posted on 13 Jun 2023
On the 4th of May 2023, the FSCA released FSCA Communication 12 of 2023 (CIS) dealing with changes to the criminal verification checks process in respect of Collective Investment Schemes (CIS). In terms of the Determination of Fit and Proper Requirements and Conditions for Managers of Collective Investment Schemes, published under Notice 910 of 2010 … Continued
Posted on 13 Jun 2023
The National Treasury published the increase of policy benefits for health insurance policies that fall under the Long-term Insurance Act (LTIA) and Short-term Insurance Act (STIA) in terms of the Demarcation Regulations. The Regulations specify which types of insurance contracts are classified as health policies under the LTIA and as accident and health policies under … Continued
Posted on 13 Jun 2023
The FSCA has published new FAIS licence forms for FSPs in terms of FAIS Notice 29 of 2023 which repeals and replaces the previous forms and notice published under FAIS Notice 1 of 2018. The new forms make provision for the crypto asset product sub-category. All new licence applications must be compiled using the new … Continued
Posted on 13 Jun 2023
CPD Training Plan for new CPD cycle and update your Competence Register The new CPD cycle started on 1 June 2023 and will end on 31 May 2024. FSPs, KIs, and Reps are required to prepare a CPD Training Plan. The CPD training plan must ensure that the type and combination of CPD activities undertaken … Continued
Posted on 16 May 2023
In recent years, financial technology has changed the way financial service firms do business. And now, several new developments are set to have an even greater impact on the industry. While some may have concerns that new technologies will replace certain financial services workers, including financial advisors, the more likely scenario is that businesses that … Continued
Posted on 16 May 2023
On the 15th March 2023 it was World Consumer Rights Day and the FAIS Ombud’s office took the opportunity to draw attention to the rights of consumers and the responsibilities of financial services providers (FSPs) towards those consumers. In the FAIS Ombud March 2023 newsletter, the FAIS Ombud referred to articles and case studies and … Continued
Posted on 16 May 2023
On the 28th of February 2022, the FSCA published its draft strategy for promoting the transformation of the financial sector and invited comments from interested parties. A total of 26 stakeholders, including Masthead, had provided comments. On 30 March 2023, the FSCA addressed the comments received from stakeholders in the form of a “Summary of … Continued
Posted on 16 May 2023
In terms of the Financial Advisory and Intermediary Services Act of 2002 (FAIS Act), professional indemnity (PI) cover is mandatory for all financial service providers (FSPs). Directors and officers (D&O) cover isn’t required by law, however having it in place can go a long way in helping an FSP mitigate risk. PI cover protects FSPs … Continued
Posted on 16 May 2023
CPD clock is ticking FSPs, KIs and Reps are reminded that the deadline to comply with the required number of CPD hours is 31 May 2023. Masthead offers various accredited CPD activities and offers a CPD package. For more information, please get in touch with Masthead on info@masthead.co.za or contact your Compliance Officer. Planning for … Continued
Posted on 18 Apr 2023
Do clients take the time to read disclosures? If not, what’s the point? Are disclosures really that important? The short answer is yes. It’s a common misconception in the industry that clients pay little to no heed to disclosures, or that disclosures aren’t really that important. In terms of regulation, disclosures are seen as a … Continued
Posted on 18 Apr 2023
In a recent newsletter, the Ombudsman for Long-Term Insurance stated that her office has received an increasing number of accidental cover further explains that these accident policies were often sold by means of direct marketing, i.e. telesales, without giving proper advice to clients. If policy terms aren’t explained in an easy-to-understand manner – for example … Continued
Posted on 18 Apr 2023
On 29 March, Masthead hosted a Masterclass in Pretoria. During this event, titled Finding Opportunity in a Changing World, industry experts gave attendees greater insights into how they can successfully navigate important developments affecting FSPs. From advice on how to update your Risk Management and Compliance Programme (RMCP) for when the Financial Services Conduct Authority … Continued
Posted on 18 Apr 2023
The FIC has published two Directives, namely Directive 6 of 2023 and Directive 7 of 2023, which requires specified accountable institutions to submit a risk and compliance return on an annual basis to the FIC. The return contains information regarding the accountable institution’s understanding of money laundering (ML), terrorist financing (TF) and proliferation financing (PF) … Continued
Posted on 18 Apr 2023
The Financial Intelligence Centre (FIC) recently issued Directive 8 of 2023 which requires accountable institutions to screen their employees for competence and integrity, as well as scrutinise employee information against the targeted financial sanctions (TFS) lists, with effect from 31 March 2023. The Directive was issued in response to the deficiency identified and the associated … Continued
Posted on 18 Apr 2023
FICA registration for new Accountable Institution A reminder, that all new entities and business activities that fall within the amended, widened scope of Schedule 1 must register as an accountable institution with the Financial Intelligence Centre and take steps to comply with the applicable FICA requirements. The amendments to the FICA Schedules came into effect … Continued
Posted on 21 Mar 2023
Collecting information on your client’s specific financial needs, and determining their knowledge on financial products, can mean the difference between giving good advice or bad advice and is crucial in terms of product suitability. What information should be gathered? This can be divided into two broad subcategories. Firstly, what is the client’s current financial situation, … Continued
Posted on 21 Mar 2023
The Financial Services Tribunal recently dismissed an application by a Key Individual (KI) to reconsider the FSCA’s decision of a R500 000 administrative penalty and debarment for a period of 5 years. The sanctions followed from an investigation by the FSCA after it received a complaint alleging that the FSP traded client funds without authorisation … Continued
Posted on 21 Mar 2023
At the end of 2022, the Collective Investment Schemes (CIS) industry’s assets under management ended on the same levels as the previous year, just above the R3 trillion mark. There were similarities noted in the CIS industry asset movements and the JSE All Share Index, in that the year-end results for 2021 are comparable to … Continued
Posted on 21 Mar 2023
On 24 February, South Africa was greylisted by the Financial Action Task Force (FATF), an intergovernmental financial crime watchdog, for failing to address eight important shortcomings identified in its anti-money laundering and countering the financing of terrorism (AML/CFT) legislation. The country has until January 2025 to address these issues, but in the meantime, what does … Continued
Posted on 21 Mar 2023
FICA registration for new Accountable Institutions A reminder, that all new entities and business activities that fall within the amended, widened scope of Schedule 1 must register as an accountable institution with the Financial Intelligence Centre and take steps to comply with the applicable FICA requirements. The amendments to the FICA Schedules came into effect … Continued
Posted on 21 Feb 2023
In this digitally connected world, cybercrime has risen significantly. However, there are ways to prevent cyber intrusions and online crimes from happening in your business. Cyber-attacks in South Africa have increased by more than 200 percent since 2019. This spike in cyber related crime and cyber security breaches occurred, even though many sections of the … Continued
Posted on 21 Feb 2023
During December 2022, National Treasury published the new Financial Sector and Deposit Insurance Levies Act 11 of 2022 and the Financial Sector and Deposit Insurance Levies (Administration) and Deposit Insurance Premiums Act 12 of 2022. The effective dates are yet to be determined by the Minister. Once effective, these Acts will replace the existing levies … Continued
Posted on 21 Feb 2023
The FSCA and the Prudential Authority (the Authorities) have published a revised version of the draft Joint Standard on cybersecurity and cyber resilience requirements for financial institutions for public comment. The first version was published in December 2021. The Need for a Cybersecurity and Cyber Resilience regulatory framework The Authorities confirmed that South Africa has … Continued
Posted on 21 Feb 2023
FICA registration for new Accountable Institutions A reminder, that all new entities and business activities that fall within the amended, widened scope of Schedule 1 must register as an accountable institution with the Financial Intelligence Centre and take steps to comply with the applicable FICA requirements. The amendments to the FICA Schedules came into effect … Continued
Posted on 24 Jan 2023
Learning more about your business through client complaints can give your business a competitive edge. A 17th century philosopher, Baltasar Gracián, wrote, “A wise man gets more use from his enemies than a fool from his friends.” While complainants are not entirely synonymous with enemies, they inadvertently offer the same opportunity to learn and grow. … Continued
Posted on 24 Jan 2023
Keeping track of what must be done to remain compliant is key to remaining in business as an FSP. In 2022, we saw the FSCA take action against FSPs where regulatory deadlines were not complied with, for example FSPs who omitted to submit their Annual Financial Statements to the FSCA within the required 4 months … Continued
Posted on 24 Jan 2023
The Financial Sector Conduct Authority (FSCA) is requesting Crypto Asset FSPs to provide information on the crypto asset related activities that these FSPs are currently performing. The purpose of the Information Request is to assist the FSCA in obtaining a better understanding of related conduct risks. It is important to note that it is mandatory … Continued
Posted on 24 Jan 2023
National Treasury has released a media statement that President Cyril Ramaphosa recently signed into law two key Acts of Parliament namely: Protection of Constitutional Democracy Against Terrorism and Related Activities Amendment Act, 23 of 2022 (“POCDATARA Amendment Act”); and General Laws (Anti-Money Laundering and Combating Terrorism Financing) Amendment Act, 22 of 2022 (“General Laws Amendment … Continued
Posted on 24 Jan 2023
The Financial Intelligence Centre (FIC) recently published draft Public Compliance Communication 5D (Draft PCC 5D) which provides guidance on the registration requirement in terms of section 43B of the Financial Intelligence Centre Act (FICA). The draft PCC provides guidance to accountable institutions on how to register with the FIC and further, provides guidance on the … Continued
Posted on 24 Jan 2023
Accountable institutions are required to obtain, assess and report certain personal information and special personal information pertaining to their clients in terms of the Financial Intelligence Centre Act (FIC Act). However, complying with these obligations can sometimes lead to grey areas due to data privacy laws which promotes the protection of personal information that is … Continued
Posted on 24 Jan 2023
FSCA RFI deadline A reminder to all Crypto Asset FSPs to comply with the FSCA’s Request for Information (RFI) 7 of 2022 on crypto asset related activities. Crypto Asset FSPs must submit the required information to the FSCA by 15 February 2023. Click here to read more. FICA registration for new Accountable Institutions The amendments … Continued
Posted on 13 Dec 2022
FICA Cash Threshold Reports Accountable and reporting institutions are reminded of the new CTR requirements that came into effect on 14 November 2022. A reminder, if not already done, to: Update: Accountable institutions and reporting institutions must update your RMCP and/or reporting processes respectively to align to the new CTR requirements. Approve: Any updates to … Continued
Posted on 13 Dec 2022
The National Credit Regulator (NCR) recently published their annual report which highlighted several key developments during the 2021/22 period. With its latest annual report, the NCR chose to remind the public of its commitment in complying with all applicable laws and regulations along with taking reasonable measures to ensure compliance. Credit Provider Compliance The NCR … Continued
Posted on 13 Dec 2022
The Association for Savings and Investment South Africa (ASISA) recently published their life and disability insurance gap statistics which highlighted that individuals are unable to fully cover themselves or their dependents in the event of death or disability. The insurance gap is defined as the difference between actual risk cover in place and the insurance … Continued
Posted on 13 Dec 2022
The Financial Sector Conduct Authority (FSCA) issued a Press Release announcing that Adv. John Simpson has been appointed as the Ombud for Financial Services Providers (FAIS Ombud). The appointment is for a period of two (2) years, effective 1 November 2022. Adv. John Simpson replaces Ms. Thobile Masina, who was appointed as the acting Ombud, … Continued
Posted on 13 Dec 2022
The Financial Intelligence Centre (FIC) recently issued draft Directive 7 for public comment, which requires specified accountable institutions to submit a risk and compliance return on an annual basis to the FIC. The return will contain information regarding the accountable institution’s understanding of money laundering (ML), terrorist financing (TF) and proliferation financing (PF) risks and … Continued
Posted on 13 Dec 2022
Finance minister Enoch Godongwana has amended the Schedules in the Financial Intelligence Centre Act (FICA). The amendments to Schedules 1, 2, and 3 of FICA will come into effect from 19 December 2022. This comes after a long consultation process which began when National Treasury initially published the proposed amendments on 19 June 2020; since … Continued
Posted on 9 Dec 2022
The FAIS Act defines a complaint as a specific complaint relating to a financial service an FSP or its representative has rendered to a client, where it is alleged that the provider or representative: has contravened or failed to comply with a provision of the Act. As a result, the client has suffered or is … Continued
Posted on 1 Nov 2022
As the cost to keep the door of your business open increases, it’s important to consider whether or not your fee structure is appropriate both for the current times and going forward. Fees are based on many factors. In addition to your expertise, years of experience, scope of services provided and delivery methods, you will … Continued
Posted on 1 Nov 2022
On 19 October 2022 the FSCA declared a crypto asset as a financial product. This comes after the consultation process which started on 20 November 2020, when the FSCA published the draft Declaration of a Crypto Asset as a Financial Product under the FAIS Act for public comment. The declaration defines a crypto asset as … Continued
Posted on 1 Nov 2022
South Africa’s anti-money laundering (AML) and combatting financing of terrorism (CFT) mutual evaluation assessment by the Financial Action Task Force (FATF) was conducted in 2019 and the report was adopted in October 2021. The mutual evaluation gave South Africa a poor ratings assessment namely due to having inadequate measures in place to address AML/CFT concerns. … Continued
Posted on 1 Nov 2022
Submitting Cash Threshold Reports (CTRs) to the FIC is one of several regulatory reporting obligations for accountable and reporting institutions listed in FICA. Central to its mandate, the FIC interprets and analyses the regulatory reports it receives to develop financial intelligence for use by law enforcement and other competent authorities in their investigations, prosecutions, and … Continued
Posted on 1 Nov 2022
The Financial Intelligence Centre (FIC) released its 2021/22 Annual Report which contains an overview of the work that the FIC has been involved in during the reporting period. Below we discuss some of the highlights from the Report: Compliance Inspections Supervisory bodies are responsible for overseeing FIC Act compliance of accountable institutions in the business … Continued
Posted on 1 Nov 2022
Draft Guidance Note (GN) 7A which was initially issued by the Financial Intelligence Centre (FIC) for public consultation in April 2022, has recently been made available for a second round of consultation. All comments received from the first consultation phase have been considered and incorporated in the updated second draft where appropriate. It is intended … Continued
Posted on 1 Nov 2022
FICA Cash Threshold Reports Accountable and reporting institutions are reminded to update their RMCP and reporting processes respectively to align to the new CTR requirements that will take effect on 14 November 2022. FSCA Financial Soundness Survey FSPs are reminded to complete the online FSCA Financial Soundness Survey 2022/23 by 22 November 2022. Read more … Continued
Posted on 4 Oct 2022
Terminating a business relationship with a client must be done the right way. This ensures that you comply with the applicable legislation and treat customers fairly. As a financial service provider (FSP), you will encounter terminations of agreements or business relationships during your time in the industry. Terminations occur for numerous reasons. You may decide … Continued
Posted on 4 Oct 2022
OTC derivatives – or over-the-counter derivatives – are somewhat of an enigma. Few people trade OTC derivatives and even fewer people understand them. Essentially, OTC derivatives are securities that are traded between parties directly, as opposed to trading via an exchange like the Johannesburg Stock Exchange (JSE). A simple example of an OTC transaction would … Continued
Posted on 4 Oct 2022
The Financial Sector Conduct Authority (FSCA) issued a press release announcing that a new Acting Ombud for Financial Services Providers (FAIS Ombud) has been appointed, namely Ms. Thobile Prudence Masina. Ms. Masina served as assistant Ombud since October 2017. She replaces Adv Nonku Tshombe, who acted in the position since 1 December 2019. Her appointment … Continued
Posted on 4 Oct 2022
An inter-agency initiative tasked with curbing unexplained wealth has led to a collaboration amongst several law enforcement agencies in an attempt to de-escalate this illicit phenomenon within South Africa. The National Prosecuting Authority (NPA), Directorate of Priority Crime Investigation (DPCI), Department of Justice (DOJ) and South African Revenue Service (SARS), led by the Financial Intelligence … Continued
Posted on 4 Oct 2022
In August 2022, the Financial Sector Conduct Authority (FSCA) published draft amendments to the exemption of significant owners of FSPs from Joint Standard 1 of 2020 which deals with the fitness and propriety requirements. Significant owners of particular FSPs, and the FSPs themselves, were already exempted from Joint Standard 1 of 2020 (through General Notice … Continued
Posted on 4 Oct 2022
Recently the FSCA has requested information regarding certain FSPs’ ownership and more specifically “beneficial ownership”.[1] This highlights the importance of understanding who owns or controls a legal person. The Financial Intelligence Centre (FIC) released the first national assessment on the terror financing risks facing South Africa, during April 2022.[2] It identified that South Africa has … Continued
Posted on 4 Oct 2022
The Financial Sector Conduct Authority (FSCA) recently hosted a series of financial soundness workshops for FSPs including a session explaining the launch of a financial soundness survey made available on the FSCA website. The aim of the survey is to: Gauge FSPs’ understanding of the regulatory financial soundness requirements Help enhance the ability of FSPs … Continued
Posted on 4 Oct 2022
The Financial Sector Conduct Authority (FSCA) recently published a press release recapping the financial soundness requirements for FSPs that collect premiums or hold assets. This comes after the FSCA hosted a series of financial soundness workshops for FSPs. The workshop for FSPs that collect premiums or hold assets explained the general financial soundness requirements contained … Continued
Posted on 4 Oct 2022
Liquidity Calculation CAT II, IIA, and III FSPs who are required to maintain liquid assets and whose financial year end was 28 February 2022, are required to submit Form A: Liquidity Calculation (Annexure six of BN 194 of 2017) to the FSCA by 15 October 2022. Deadline for payment of Levies FSPs are reminded that … Continued
Posted on 6 Sep 2022
As a financial advisor, you insure clients’ assets and ensure their families have financial security if the breadwinner cannot provide. But have you made provision for your FSP and clients if something happens to you? Succession planning is often forgotten, as nobody wants to think about what will happen if they are no longer around. … Continued
Posted on 6 Sep 2022
Following an inspection conducted in 2019, the South African Reserve Bank (SARB) imposed administrative sanctions on Nedbank Limited (Nedbank) for failure to comply with the FIC Act. The non-compliance relates to certain administrative provisions of the FIC Act. It is important to note that there was no evidence of Nedbank being involved in or facilitating … Continued
Posted on 6 Sep 2022
The Financial Sector Conduct Authority (FSCA) is requesting and gathering information relating to the ownership of certain FSPs and CIS managers that are also designated as accountable institutions in terms of FICA. Impacted financial institutions must submit the requested information to the FSCA by 30 September 2022. Background The Request for Information (RFI) 6 of … Continued
Posted on 6 Sep 2022
The Financial Sector Conduct Authority (FSCA) published FSCA General Notice 1258 of 2022 (the Notice) on the Levies for Financial Institutions. The Notice has been through the consultation phase in July 2022 where the FSCA proposed a 5% increase from last year, with interested parties having submitted their comments. Masthead considered the impact of the proposed … Continued
Posted on 6 Sep 2022
The FSCA is in consultation phase with draft amendments relating to Joint Standard 1 of 2020 (the Joint Standard) in so far as it applies to significant owners of FSPs who were previously exempt. The FSCA has proposed that significant owners of FSPs become subject to fitness and propriety related requirements. Background On 1 June … Continued
Posted on 6 Sep 2022
FSCA RFI deadline A reminder to affected FSPs and CIS Managers that need to comply with the FSCA’s Request for Information (RFI) 6 of 2022 on Beneficial Ownership, to complete and submit the information to the FSCA before 30 September 2022. Click here to read more. Keep a look out for your Levy invoice The … Continued
Posted on 10 Aug 2022
To guarantee customers get the best possible support, individuals who provide a service should thoroughly understand the products they offer. Understanding a product enables you to confidently propose and discuss the product and its benefits. This better aligns customer needs and products, resulting in higher customer satisfaction and fewer complaints. As a Financial Service Provider … Continued
Posted on 10 Aug 2022
The FSCA recently published its Regulation Plan (1 April 2022 – 31 March 2025) which provides an update on various regulatory frameworks that will apply across the financial sector. The FSCA Regulation Plan sets out what can be expected in terms of regulatory developments and estimated timelines over the next three years. The financial sector … Continued
Posted on 10 Aug 2022
The Financial Action Task Force (FATF) is the global money laundering and terrorist financing watchdog. The inter-governmental body sets international standards that aim to prevent these illegal activities and the harm they cause to society. The FATF engages in an ongoing process to monitor jurisdictions that have strategic deficiencies in their regimes to counter money … Continued
Posted on 10 Aug 2022
The FSCA recently published draft amendments to the Rules on the Proceedings of the Office of the Ombud for Financial Services Providers. The current maximum compensation limit for the FAIS Ombud is R 800 000, it is now proposed that this limit be changed to R3 500 000. The reasoning behind the proposal is that … Continued
Posted on 10 Aug 2022
Schedule 1 to the Financial Intelligence Centre Act (FICA) contains a list of Accountable Institutions. Item 3 of this list specifically relates to an estate agent as defined in the Estate Agency Affairs Act 112 of 1976. However, the Estate Agency Affairs Act was repealed and replaced by the Property Practitioners Act with effect from … Continued
Posted on 10 Aug 2022
The FIC recently published draft Directive 6/2022 together with draft PCC 116 which seek to address the areas of concerns as highlighted in the Financial Action Task Force’s 2019 Mutual Evaluation final report, focusing specifically on the shortcoming that there is no requirement for financial institutions to screen employees. The draft directive proposes the following … Continued
Posted on 10 Aug 2022
FSTC Reporting 2022 All entities operating in the financial sector are reminded to submit their B-BBEE compliance reports for the 2020/21 period to the Financial Sector Transformation Council (FSTC) by cob 12 August 2022. Click here to read our previous article on the 2022 FSTC Reporting requirements. Category II, IIA & III FSPs required to report … Continued
Posted on 12 Jul 2022
Financial planning may be second nature to you, however, the six key steps in the process each align with the Financial Advisory and Intermediary Services (FAIS) Act. Here are the steps and the legislation behind them: #1: Client introduction and establishing the relationship You probably orally introduce yourself to potential clients and give them your … Continued
Posted on 12 Jul 2022
The FSCA has published the 2022 draft Notice imposing levies on financial institutions. The levy increases have been proposed by the FSCA in absence of the finalisation of the Financial Sector and Deposit Insurance Levies Bill, which was circulated by the FSCA for commentary during 2021. In terms of the proposals in the Bill, FSPs … Continued
Posted on 12 Jul 2022
What is the Omni-CBR? The Omni-CBR refers to the FSCA’s cross-sectoral Conduct of Business Return. The FSCA has published FSCA Communication 16 of 2022 and a roadmap for roll out and implementation of the Omni-CBR. A draft Omni-CBR template has also been published for public consultation with the intention of getting feedback from industry stakeholders on … Continued
Posted on 12 Jul 2022
The new CPD cycle commences on 1 June of every year, we look at how to ensure that you meet your requirements for the current cycle. What is CPD? CPD refers to Continuous Professional Development. The FSCA introduced CPD requirements to ensure that FSPs, key individuals and representatives maintain their competence and that their knowledge, … Continued
Posted on 12 Jul 2022
The Financial Sector Transformation Council (FSTC) published Reporting Notice 1 of 2022 regarding broad-based black economic empowerment (B-BBEE) compliance reports for the period 1 December 2020 to 20 November 2021. All entities operating in the financial sector must submit their B-BBEE compliance reports for the 2020/21 period to the FSTC by cob 12 August 2022. … Continued
Posted on 12 Jul 2022
Category II, IIA & III FSPs required to report Assets under Management Category II, IIA and III FSPs must calculate their assets under management (AUM) as at 30 June 2022 and prepare this for submission to the FSCA. The FSCA usually sends a letter to the FSP together with the Declaration which must be completed. … Continued
Posted on 15 Jun 2022
Accountable institutions, such as Financial Service Providers (FSPs), legal practitioners, and estate agents to name a few, are at risk for being targets for Money Laundering and/or Terrorist Financing (ML/TF). By knowing your clients and regularly assessing them and their transactions for the duration of your business relationship, you can prevent ML/TF from occurring in … Continued
Posted on 15 Jun 2022
In the last few months, we have seen an increase in the number of debarment cases, several of which were referred to the Financial Services Tribunal (FST), who often sets aside the debarment for a lack of adherence to procedural requirements, despite having substantial grounds to have brought that action against a representative. The FAIS … Continued
Posted on 15 Jun 2022
Background The Council for Medical Schemes (CMS) recently conducted an on-site evaluation (compliance visit) at Discovery Health (Pty) Ltd, where it was discovered that a broker was receiving ongoing commission in respect of broker services rendered to himself as a member of a medical scheme. An analysis of the definition of ‘broker services’ as defined … Continued
Posted on 15 Jun 2022
In a recent Gauteng High Court case, an appeal against the administrative sanction imposed on Sunward Motors (“motor vehicle dealer”) by the FIC Appeal board, was dismissed. Background Between 2016 and 2018, the FIC conducted two inspections on the motor vehicle dealer to assess its compliance in terms of FICA. The first inspection report submitted … Continued
Posted on 15 Jun 2022
Annual Financial Statements A reminder to all FSPs whose financial year end was 28 February 2022 to ensure that their annual financial statements are submitted to the FSCA by 30 June 2022. FSPs which are required to submit Annexure A (FAIS Notice 82 of 2015) together with their Annual Financial Statements, are reminded to do … Continued
Posted on 17 May 2022
While FSPs need a risk management plan to comply with regulation, it also makes sound business sense to have one. This is especially relevant, considering the diverse and unknown risks the world has faced since the start of the COVID-19 pandemic. Risks for FSPs can stem from a variety of sources. These include financial uncertainty, … Continued
Posted on 17 May 2022
Krugerrand dealers are currently listed as reporting institutions under schedule 3 of FICA. Reporting institutions have only two compliance obligations in terms of FICA, i.e., to register with the Financial Intelligence Centre (FIC) and to file regulatory reports for suspicious transactions and cash threshold reports. Below, we look at a case relating to non-compliance by … Continued
Posted on 17 May 2022
The FSCA has issued Information Request 3 of 2022 on crypto asset related activities performed by FSPs. All FSPs must complete the electronic survey by no later than 31 May 2022 using the link provided. The purpose of the Information Request is to assist the FSCA in obtaining a better understanding of the extent to … Continued
Posted on 17 May 2022
Following the inefficiencies identified in the FATF Mutual Evaluation of South Africa (October 2021), the FIC conducted a South African National Terrorism Financing (TF) risk assessment to identify and assess various vulnerable areas within the financial sector such as: the identification of the beneficial ownership of legal persons. implementing proportionate and dissuasive sanctions against those … Continued
Posted on 17 May 2022
The Financial Sector Conduct Authority (FSCA) recently published FSCA Communication 13 of 2022 (FAIS), which provides clarification on which reports are required for submission for 2022 and how to submit these reports. Compliance Reports: As was the case for 2019 – 2021, FSPs will not be required to submit compliance reports to the FSCA for … Continued
Posted on 17 May 2022
CPD clock is ticking FSPs, KIs and Reps are reminded that the deadline to comply with the required number of CPD hours is 31 May 2022. Masthead offers various accredited CPD activities. For more information, please get in touch with Masthead on info@masthead.co.za or contact your Compliance Officer. Submit FSCA RFI 3 of 2022 … Continued
Posted on 20 Apr 2022
Every business, no matter how small or uncomplicated, has risks. When you can identify the risks, you can establish a plan to manage them. Section 37(2)(b) of Board Notice 194 of 2017: Determination of Fit and Proper Requirements for Financial Service Providers (FSP), which forms part of the governance requirements for FSPs, legally obliges FSPs … Continued
Posted on 20 Apr 2022
In November 2021, the Financial Sector Conduct Authority (FSCA) published Communication 19 of 2021 (the communication). The purpose of the communication was to inform FSPs of the change in the method of submission of the representative register to the FSCA. In terms of the communication, the submission of representative registers in Microsoft Excel format would no … Continued
Posted on 20 Apr 2022
The Council for Medical Schemes recently published Circular 19 of 2022, on the adjustment of fees payable to healthcare brokers. The Minister of Health has approved an increase on the maximum fee that is payable by medical schemes to brokers for introducing a member to a medical scheme and providing the member with ongoing service … Continued
Posted on 20 Apr 2022
The National Treasury published the increase of policy benefits for health insurance policies that fall under the Long-term Insurance Act (LTIA) and Short-term Insurance Act (STIA) in terms of the Demarcation Regulations. The Regulations specify which types of insurance contracts are classified as health policies under the LTIA and as accident and health policies under … Continued
Posted on 20 Apr 2022
This article helps you to understand the FSCA’s Draft Strategy on Transformation in the Financial Sector (the Draft). It is important to note that the strategy is still in draft and the FSCA is seeking public input on their envisioned strategy. As with all legislative changes, it is important to define the terms and to … Continued
Posted on 20 Apr 2022
The Financial Intelligence Centre (FIC) recently published risk assessment reports on the following sectors: Legal Practitioners Motor Vehicle Dealers Kruger Rand Dealers Estate Agents The Gambling sector Money Lenders against the Security of Securities; and Trust Service Providers All sectors listed in the FIC Act need to understand the environment in which they operate and … Continued
Posted on 20 Apr 2022
Proposed amendments relating to the FICA RMCP The FIC published draft Guidance Note 7A which seeks to amend Chapter 4 of Guidance Note 7 of 2017. The new Chapter 4 is intended to replace the current requirements in respect of the formulation and recordal of the Risk Management and Compliance Programme (RMCP). The FIC has … Continued
Posted on 20 Apr 2022
Renew PI cover FSPs are reminded to check the status of their Professional Indemnity (PI) cover and to renew same if required. Failure to renew PI cover on time will result in a gap in cover which can cause the FSP to face the risk that any losses which occur during this period (prior to … Continued
Posted on 22 Mar 2022
The financial year ended on 28 February for many financial service providers (FSPs), and the countdown has started for the submission of annual financial statements. In terms of Section 19 of the Financial Advisory and Intermediary Services Act (FAIS), FSPs must meet the FSCA’s accounting and auditing requirements. Section 19(1)(a) states that full and proper … Continued
Posted on 22 Mar 2022
The FSCA recently published two notices namely the FSCA INS Notice 3 of 2022 (short-term insurance) and FSCA INS Notice 4 of 2022 (long-term insurance), which extends the exemption applicable to independent intermediaries insofar as it relates to receiving, holding, or in any other manner dealing with premiums payable to a short-term insurer or long-term … Continued
Posted on 22 Mar 2022
The Information Regulator has published an infographic as a reminder regarding the registration of Information Officers in terms of section 55(2) of POPIA. View the infographic here An accounting officer of a public body and a head of a private body by virtue of their positions are by default the Information Officer. If your Information … Continued
Posted on 22 Mar 2022
Agility can be defined as the “ability to move quickly and easily”. In a business sense, this is a fantastic attribute. One can only move quickly and easily if there is nothing disrupting the motion. A small stone inside a shoe can interrupt a person’s mobility. Similarly, an unknown threat such as an uneven surface … Continued
Posted on 22 Mar 2022
Exemptions regarding credit life and funeral products The Financial Sector Conduct Authority (FSCA) recently published exemptions applicable to FSPs, Key Individuals and Representatives that render financial services in respect of credit life products and funeral products. New classes and sub-classes of insurance business were introduced through the Insurance Act in 2017. Subsequently, in 2020, the … Continued
Posted on 22 Mar 2022
Draft FSCA Strategy For Promoting Financial Sector Transformation The Financial Sector Conduct Authority (FSCA) recently published its draft strategy for promoting transformation of the financial sector in South Africa for public comment and engagement. A strategic objective of the FSCA is to promote the development of an innovative, inclusive, and sustainable financial system – … Continued
Posted on 22 Mar 2022
Representative Register A reminder that the method of submitting Rep Register updates to the FSCA using a text-based document or Microsoft Excel spreadsheet will no longer be permitted after 31 March 2022. For more information on how to submit Rep Register updates to the FSCA, click here. CPD Progress FSPs, KIs and Reps are reminded … Continued
Posted on 22 Feb 2022
Formal training is not only necessary to operate as a financial services provider (FSP), key individual or representative, but it should also be documented, as a recent determination has highlighted. In the determination A J Valjee v FSCA, the Financial Services Tribunal dismissed an application for authorisation as an FSP. This was because the applicant, … Continued
Posted on 22 Feb 2022
The Office of the Ombud for Financial Services Providers (FAIS Ombud) published its 2020/2021 Annual Report in December 2021. The Report provides insight on topics such as the settlements agreed to, a summary of complaints received for the reporting period, various statistics, financial information, governance risk and compliance and human resources information. The FAIS Ombud … Continued
Posted on 22 Feb 2022
In the recent FIC Appeal Board decision of Truck World (Pty) Ltd vs The Financial Intelligence Centre and Another, a motor vehicle dealer’s appeal against an administrative sanction was dismissed. Background The motor vehicle dealer, Truck World, commenced operations in 1997 and had only registered with the FIC on 23 July 2019, after the FIC … Continued
Posted on 22 Feb 2022
The FSCA recently published two notices, FSCA INS Notice 1 of 2022 (short-term) and FSCA INS Notice 2 of 2022 (long-term), which extends the period of the exemption relating to direct collection of premiums by certain independent intermediaries and insurers, which was previously provided by FSCA INS Notice 1 of 2021 and FSCA INS Notice … Continued
Posted on 22 Feb 2022
Representative Register A reminder that the method of submitting Rep Register updates to the FSCA using a text-based document or Microsoft Excel spreadsheet will no longer be permitted after 31 March 2022. For more information on how to submit Rep Register updates to the FSCA, click here. CPD Progress FSPs, KIs and Reps are … Continued
Posted on 25 Jan 2022
Embracing the use of electronic signatures can streamline your processes, reduce face-to-face interaction and further shift your business towards a paperless environment. The COVID-19 pandemic has highlighted the advantages of working digitally and businesses are increasingly servicing clients remotely with the aid of technology. Virtual meetings have replaced boardroom tables and communication is confirmed via … Continued
Posted on 25 Jan 2022
Keeping track of what must be done in an FSP and making time to address any gaps is key to remaining compliant and staying in business. Below we look at some key dates and offer general reminders to help FSPs plan for the compliance requirements of 2022. We suggest that you set these dates in … Continued
Posted on 25 Jan 2022
The Financial Sector Conduct Authority (FSCA) recently published FSCA Communication 22 of 2021, which provides an update on the development of the cross-sectoral Conduct of Business Return (Omni-CBR) and confirmation of the FSCA’s intention to undertake a consultative process on the content and implementation of such, during 2022. The Omni-CBR aims to facilitate streamlined cross-sectional … Continued
Posted on 25 Jan 2022
The Financial Sector Conduct Authority (FSCA) recently released its Regulatory Strategy applicable for the period from 14 December 2021 to 31 March 2025. The Regulatory Strategy document outlines the FSCA’s key priorities for the next three years and provides clarification on the FSCA’s approach to policy development, regulation and supervision for the purpose of obtaining fair … Continued
Posted on 25 Jan 2022
The FSCA has issued FSCA FAIS Notice 142 of 2021 which grants an extension of the current exemption applicable to Compliance Officers regarding the minimum prescribed intervals of visits and reports to FSPs. The exemption which was first granted in 2017 and extended in 2019, has recently been extended again, until 31 December 2023. Conditions of … Continued
Posted on 25 Jan 2022
PAIA Manual A reminder that as from 1 January 2022, all public and private bodies must have compiled a PAIA Manual and made same available at your principal place of business, on your website (if any), and to the Regulator (should this be requested at any stage). FSCA Request for Information Licensed financial institutions … Continued
Posted on 9 Dec 2021
Over the last few years, rules-based regulation has been shifting towards outcomes-based regulation. How does this dynamic regulatory landscape affect FSPs and their clients? Juanita Moolman, Head: Legal and Business Assurance at Hollard, describes an outcomes-based approach as follows: “An outcomes-based compliance approach moves away from reliance on detailed prescriptive rules and provides the outcomes … Continued
Posted on 9 Dec 2021
There are questions often asked about Credit Providers and compliance. Some of these include “What is a Credit Provider?” and “Who can apply for a Credit Provider licence?”. In this article we look at some of these frequently asked questions. The National Credit Act (“the Act”) states that a person will be in contravention of … Continued
Posted on 9 Dec 2021
The Financial Intelligence Centre (FIC) recently issued Public Compliance Communication (PCC) 51 which provides guidance on measures relating to Domestic Prominent Influential Persons (DPIPs), Foreign Prominent Influential Persons (FPPOs), their immediate family members and known close associates. The draft version of the PCC was made available for consultation to relevant stakeholders during March 2021. All comments … Continued
Posted on 9 Dec 2021
The Ombud for Short-term Insurance (OSTI) recently published its quarterly newsletter: The Ombudsman’s Briefcase Issue 3 of 2021, which contains news and events from OSTI, a few case studies and consumer tips. The case studies are intended to provide guidance and insight into the way the OSTI deals with complaints. In this issue, the OSTI shares … Continued
Posted on 9 Dec 2021
The Information Regulator released a media statement that President Cyril Ramaphosa appointed four members of the Information Regulator to begin a new term with effect from 1 December 2021. The members will serve for a 5-year term as full time and part time members at the Regulator. The members of the Information Regulator are: Adv … Continued
Posted on 9 Dec 2021
The Financial Sector Conduct Authority (FSCA) recently issued a Press Release urging all financial customers to exercise vigilance and act with extreme caution when paying for purchases either in-store or online. There has been a rise in the number of alleged reported scams and fraudulent activities which has resulted in many financial customers losing money … Continued
Posted on 9 Dec 2021
FSCA Request for Information Licensed financial institutions are reminded to update their profile information via the relevant FSCA e-portals on or before 15 December 2021 in accordance with FSCA Information Request 2 of 2021. PAIA A reminder that the current exemption relating to the requirement to compile a PAIA Manual is in place until … Continued
Posted on 19 Nov 2021
FSPs can and do contract with Key Individuals (KIs) through ‘rent-a-KI’ agreements. It is important to understand the process, as well as the requirements that must be met by the KI you appoint on this basis. FSPs appoint rent-a-KIs for various reasons. For instance, your FSP might not meet all the competency requirements, such as … Continued
Posted on 19 Nov 2021
Ignorance of FICA obligations is not seen as an acceptable excuse for non-compliance. The Financial Intelligence Centre (FIC) recently published the Decision of the Appeal Board – Harlyn Trading International (Pty) Ltd and the High Court Judgement – Harlyn Trading International (Pty) Ltd v FIC and Another. Motor vehicle dealers are listed as Reporting … Continued
Posted on 19 Nov 2021
The Financial Sector Conduct Authority (FSCA) recently published FSCA Communication 19 of 2021 (FAIS) – submission of representative register, which provides information to Financial Services Providers (FSPs) and key individuals, on the new process for the submission of the representative register to the FSCA. It is a legal requirement that FSPs notify the FSCA of … Continued
Posted on 19 Nov 2021
The FSCA recently issued a statement on the Supreme Court of Appeal (SCA) ruling regarding JP Markets (Pty) Ltd. The SCA overturned a 2020 ruling by the Gauteng Division of the High Court (Johannesburg) which had allowed for the liquidation of JP Markets and ordered the FSCA to pay the costs of two counsel for … Continued
Posted on 19 Nov 2021
The Information Regulator recently announced its new email addresses for service requests and enquiries. Specific email addresses have been set up for specific purposes as outlined below: General enquiries: enquiries@inforegulator.org.za Complaints (complete POPIA/PAIA form 5) PAIAComplaints@inforegulator.org.za – Should your PAIA request be denied or there is no response from a public or private body for … Continued
Posted on 19 Nov 2021
CMS process change The new process to verify qualifications of healthcare brokers will be implemented by the CMS with effect from 1 December 2021. Read more. FSCA Request for Information Licensed financial institutions are reminded to update their profile information via the relevant FSCA e-portals on or before 15 December 2021 in accordance with … Continued
Posted on 22 Oct 2021
‘Independence’ is a differentiating factor for many financial services providers. However, with changes in legislation, some FSPs may no longer describe themselves or their financial services as ‘independent’. A subsection that was added to Section 3 of the FAIS General Code of Conduct (GCOC) which came into effect on 26 June 2020, states that an … Continued
Posted on 22 Oct 2021
The Financial Intelligence Centre (FIC) released its 2020/21 Annual Report which contains an overview of the work that the FIC has been involved in during the reporting period. The Report highlights new and adapted approaches that the FIC took in finding ways to continue fulfilling its obligations amidst the pandemic, how it accepted additional oversight … Continued
Posted on 22 Oct 2021
Proposed amendments to FICA In June 2020, proposed amendments to the Financial Intelligence Centre Act (FICA) Schedules were published for public comment. The proposed amendments seek to align FICA with the current International Standards of the Financial Action Task Force (FATF) and recent legislative amendments. Some of the proposed amendments include adding a new category … Continued
Posted on 22 Oct 2021
The Financial Action Task Force (FATF) is an international body that promotes policies and standards for combating money laundering, terrorist financing, and the financing of the proliferation of weapons of mass destruction. South Africa has been a member of the FATF since 2003 and is one of 39 member countries. The members of the FATF … Continued
Posted on 22 Oct 2021
The Council for Medical Schemes (CMS) issued a communication, CMS Circular 49 of 2021, on the minimum qualification, and verification process to be accredited as a healthcare broker in terms of the Medical Schemes Act. The notice prescribes the background, qualification requirements, and verification process. In 2014, the CMS introduced a process of verifying the … Continued
Posted on 22 Oct 2021
Deadline for payment of Levies FSPs are reminded that the FAIS Levy Invoices should have been received by the end of September, with payment due by 31 October 2021. If an FSP has not received their invoice, we suggest that they contact the FSCA to request that this be re-sent to them. Failure to pay … Continued
Posted on 29 Sep 2021
Are you pondering how to grow your revenue after the massive financial impact of the current worldwide pandemic? Whether you operate as a typical sole proprietor or an FSP with representatives, your business could benefit significantly with the targeted help of representatives. Consider the value that representatives could or do add to your business, and … Continued
Posted on 29 Sep 2021
The Ombudsman for Short-term Insurance (OSTI) has published the second edition of its newsletter for 2021: The Ombudsman’s briefcase Issue 2 of 2021. This issue contains news and events, case studies, consumer tips, as well as some statistics and trends from 2020. Some of the OSTI’s statistics for 2020 reveal the following: Motor Vehicle Insurance … Continued
Posted on 29 Sep 2021
One of the important elements of the Office of the FAIS Ombud’s (the Ombud) mission is to ensure the fair and expeditious resolution of complaints. However, in a recent determination, Fredrick Hendrik Kotze v Ombud and Another (FAB38/2021)[2021], the Financial Services Tribunal (the tribunal) set aside the Ombud’s determination to hold the financial advisor liable … Continued
Posted on 29 Sep 2021
The Minister of Finance has published draft regulations which propose to designate the “provision of a benchmark” as a financial service in accordance with the Financial Sector Regulation Act (FSR Act) and to specify that the Financial Sector Conduct Authority (FSCA) is the responsible authority for the regulation, supervision and oversight of the financial service. … Continued
Posted on 29 Sep 2021
The Financial Intelligence Centre (FIC) released its 2020/21 Annual Report which contains an overview of the work that the FIC has been involved in during the reporting period. The report highlights new and adapted approaches that the FIC took in finding ways to continue fulfilling its obligations amidst the pandemic, how it accepted additional oversight … Continued
Posted on 29 Sep 2021
Liquidity Calculation FSPs (CAT II, IIA, and III) who are required to maintain liquid assets and whose financial year end was 28 February 2021, are required to submit Form A: Liquidity Calculation (Annexure six of BN 194 of 2017) to the FSCA by 15 October 2021. Deadline for payment of Levies FSPs are … Continued
Posted on 31 Aug 2021
Succession planning is a significant factor of success and growth for financial service providers (FSPs). However, there are some important considerations to ensure your planning ultimately leads to success. Succession planning is a strategy to pass on leadership roles, and often the ownership of an FSP, to identified successors. These may be one or more … Continued
Posted on 31 Aug 2021
The Financial Sector Conduct Authority (FSCA) published FSCA Notice 465 of 2021 on the Levies for Financial Institutions, 2021. The Notice has been through the consultation phase in June 2021, with interested parties having submitted their comments. Masthead considered the impact of the proposed increases in levies on independent financial advisors and submitted comments to … Continued
Posted on 31 Aug 2021
The National Treasury recently published the media statement, Process and approach to preservation and access to retirement savings, which provides details on the approach and planned timelines concerning the proposal to allow for greater preservation with limited pre-retirement withdrawals from retirement funds. The Minister of Finance noted in the 2020 Medium Term Budget Policy Statement … Continued
Posted on 31 Aug 2021
The Financial Sector Conduct Authority (FSCA) recently proposed amendments to the Policyholder Protection Rules made under the Long-Term Insurance Act, 2017 (LTIA PPRs) and the Short-term Insurance Act, 2017 (STIA PPRs) respectively. The draft amendments have the main objective to give effect to certain enhancements to the 2017 PPRs, which were informed by supervisory findings … Continued
Posted on 31 Aug 2021
The Financial Sector Conduct Authority (FSCA) recently published FSCA Communication 16 of 2021 (FAIS), which provides clarification on which reports are required for submission for 2021 as well as how to submit these reports. Compliance Reports In terms of the Financial Advisory and Intermediary Services (FAIS) Act, FSPs are required to submit annual compliance reports … Continued
Posted on 31 Aug 2021
A media statement issued by the Ministry of Finance on 17 August 2021, announced that Ms Farzana Badat and Ms Katherine Gibson have been appointed as Deputy Commissioners of the Financial Sector Conduct Authority (FSCA). The appointment of Ms Badat and Ms Gibson are for a period of five years, effective from the dates of … Continued
Posted on 31 Aug 2021
Keep a look out for your Levy invoice The FSCA will prepare and send Levy Invoices to FSPs towards the end of September 2021. FSPs are reminded to check that the FSCA has their up-to-date contact details to ensure that the Invoice reaches the FSP and can be paid before the deadline date, 31 October 2021. … Continued
Posted on 3 Aug 2021
Recent events highlight that business sustainability also entails being prepared for times of crisis and the ease of implementing a business continuity plan to continue operations. The week of 9 to 17 July 2021 is being called South Africa’s darkest hour, even in the midst of the devastating effects of Covid-19. Looting and destruction of … Continued
Posted on 3 Aug 2021
The Ombudsman for Long-term Insurance and the Ombudsman for Short-term Insurance (OSTI) recently published its first combined Annual Report. The Annual Report 2020 includes, among others, complaints statistics and key figures, complaints trends, as well as explanatory notes and insurer statistics. The report also includes case studies from recent industry incidents, which focus on among … Continued
Posted on 3 Aug 2021
The Financial Sector Conduct Authority (FSCA) recently published FSCA Communication 12 of 2021 which provides guidance to FSPs and Representatives on the use of electronic signatures and pre-populated documents. With many working remotely due to the COVID-19 pandemic and resultant lockdown regulations, there has been an increased use of electronic signatures. It has come to the … Continued
Posted on 3 Aug 2021
The Financial Sector Conduct Authority (FSCA) recently published a press release, titled Statement on SASRIA SOC Limited insurance claims, noting the civil unrest, riots and looting that have been happening in various parts of the country. The FSCA has been in discussions with SASRIA Soc Limited (SASRIA), which is the only non-life insurer that provides … Continued
Posted on 3 Aug 2021
SASRIA has recently published a guideline to assist with settling claims due to the KwaZulu-Natal and Gauteng protests and looting that took place during 9 to 19 July 2021. Click here to read the Guideline for settlement of SASRIA claims
Posted on 3 Aug 2021
Ensure contact details are updated FSPs are reminded to check that all their information and contact details on the FSCA’s website is up-to-date and correct. Levies due by FSPs will be calculated based on the information available to the FSCA as at 31 August 2021. Where such information or contact details require updating, FSPs should … Continued
Posted on 6 Jul 2021
Should you insist that a full financial needs analysis (FNA) be done when clients approach you for advice on a solution to address a specific need? To answer this question, one must consider Section 8(1)(a) of the General Code of Conduct (GCOC) which states that financial advisors are obliged to obtain information from the client, … Continued
Posted on 6 Jul 2021
The Financial Sector Conduct Authority (FSCA) recently published the latest version of the Financial Services Tribunal (the Tribunal) Rules, which came into effect on 1 June 2021. The rules that were specifically amended or added are Rules 71, 72 and 78 to 82. The Forms have also been updated. To assist you in understanding these … Continued
Posted on 6 Jul 2021
The Intergovernmental Fintech Working Group (IFWG), through the Crypto Asset Regulatory Working Group (CAR WG), published the latest version of the Position Paper on Crypto Assets in June 2021. The paper confirms that crypto assets will be brought into the South African Regulatory purview in a phased and structured manner. The initial South African public statement … Continued
Posted on 6 Jul 2021
Commencement dates The one-year grace period that was afforded to responsible parties to be compliant with the Protection of Personal Information Act (POPIA) came to an end on 30 June 2021. Responsible parties are now expected to be compliant with the provisions of POPIA as of 1 July 2021. However, the Information Regulator announced that … Continued
Posted on 6 Jul 2021
The Information Regulator recently published three guidance notes on: Exemptions from the conditions for lawful processing of personal information Processing of personal information of children Processing of special personal information Guidance Note on Exemptions from the Conditions for Lawful Processing of Personal Information The Protection of Personal Information Act (POPIA) prescribes eight conditions for the … Continued
Posted on 6 Jul 2021
POPI – registration of Information Officers All Information Officers and Deputy Information Officers were to be registered with the Information Regulator by 30 June 2021 however due to technical glitches with the online registration portal, the Information Regulator has confirmed that responsible parties will not be held liable for not meeting this deadline. There is … Continued
Posted on 8 Jun 2021
The Protection of Personal Information (POPI) Act is the most pertinent new compliance challenge for FSPs, key individuals, representatives and your employees. Informed by South Africa’s constitutional right to privacy, the Act sets the minimum standards for and enforces the protection of personal information. It regulates how personal information should be responsibly processed and managed, … Continued
Posted on 8 Jun 2021
On 17 May 2021, the Information Regulator announced that the online portal for the registration of Information Officers is now active and available on its website. To date there has been a high volume of registrations on the portal which is causing some delays. The office of the Information Regulator is aware of the technical … Continued
Posted on 8 Jun 2021
On 24 May 2021, the Ministry of Finance released a media statement announcing the appointment of the first Ombud Council Board Members, as well as the Chief Ombud for the Council. This gives effect to the new Ombud system in terms of the Financial Sector Regulation Act No. 9 of 2017 (FSR Act). The Ombud … Continued
Posted on 8 Jun 2021
A number of administrative sanctions were published during the past year which related to non-compliance with the provisions of the Financial Intelligence Centre Act (FICA). These administrative sanctions were meted out by supervisory bodies such as the Financial Sector Conduct Authority (FSCA) and the South African Reserve Bank (SARB). Accountable and reporting institutions are required … Continued
Posted on 8 Jun 2021
The Financial Sector Conduct Authority (FSCA) recently published FSCA FAIS Notice 54 of 2021, which extends several exemptions relating to Private Equity Funds. The exemptions which are already in place and were set to expire on 30 June 2021, have now been extended until 30 June 2023. 1. Exemption of certain persons conducting financial services … Continued
Posted on 8 Jun 2021
Planning for the new CPD cycle The new CPD cycle started on 1 June 2021 and will end on 31 May 2022. FSPs, KIs, and Reps are required to prepare a CPD Training Plan. The CPD training plan must ensure that the type and combination of CPD activities undertaken are relevant, contribute to the knowledge, … Continued
Posted on 11 May 2021
In light of the Protection of Personal Information (POPI) Act 4 of 2013, gone are the days when you could keep records of Personal Information (PI) for ‘just in case’ or ‘because it might be useful someday’. The POPI Act contains specific requirements regarding the retention and destruction of PI of data subjects. Not only … Continued
Posted on 11 May 2021
The COVID-19 pandemic has left a trail of economic disaster and affected humanity like never before. Knowing the effect of the pandemic, you can plan the future of your business through your business plan. Exactly two years before the outbreak of COVID-19, the FSCA published Board Notice 194 of 2017. Chapter 5 Section 37(2)(a) stipulated … Continued
Posted on 11 May 2021
The Information Regulator provided an update on 4 May 2021, clarifying that the commencement of registration of Information Officers and/or Deputy Information Officers, is May 2021. It is important to note that May 2021 is therefore the period of registration of Information Officers and that this is not the deadline for registration. Existing Responsible Parties … Continued
Posted on 11 May 2021
The quarterly newsletter of the Ombud for Short-term Insurance (OSTI) Issue 1 of 2021 contains case studies related to claims which arose as a result of the COVID-19 pandemic and provides insight to how the OSTI dealt with this. These case studies highlight some of the practical issues that impacted short-term claims as a result … Continued
Posted on 11 May 2021
The Financial Sector Conduct Authority (FSCA) recently published FSCA Communication 6 of 2021 (FAIS) to provide clarity regarding the qualification requirements for Council of Medical Schemes (CMS) accreditation. The guidance was issued in response to numerous queries and complaints to the FSCA following the CMS’s refusal to renew the accreditation of brokers who were unable … Continued
Posted on 11 May 2021
A Media Statement issued by the Ministry of Finance dated 22 April 2021, announced that Mr Unathi Kamlana has been appointed as Commissioner of the Financial Sector Conduct Authority (FSCA). The appointment term is 5 years, effective from the date of assumption of duty, which is expected to be 1 June 2021. Ms Katherine Gibson … Continued
Posted on 10 May 2021
PI Cover FSPs are reminded to ensure that the Professional Indemnity (PI) Cover renewal process is commenced well before the renewal date to avoid a situation where their PI Cover has expired. Given concerns relating to increased cybersecurity and other risks during the lockdown period, FSPs should take this opportunity to review their business and … Continued
Posted on 15 Apr 2021
Continuous professional development (CPD) keeps professionals at the cutting edge of development in their industry. The financial advice industry is no exception: Board Notice 194 of 2017 makes CPD a fit and proper requirement for key individuals, sole proprietors and representatives. CPD is the process of lifelong learning by which you engage in activities that … Continued
Posted on 15 Apr 2021
The Council for Medical Schemes recently published Circular 18 of 2021 which contains the details on the adjustment of fees payable to brokers. The Minister of Health has approved an increase on the maximum fee that is payable by medical schemes to brokers with effect from 1 January 2021. Regulation 28(2) published in terms of … Continued
Posted on 15 Apr 2021
In July 2020, the Information Regulator published draft guidelines on the registration of Information Officers. The consultation period has since been completed and the Information Regulator recently published the final version of the guidance note relating to the registration of Information Officers and Deputy Information Officers. The Information Regulator is developing an online portal for … Continued
Posted on 15 Apr 2021
The Financial Intelligence Centre (FIC) Act imposes obligations on accountable and reporting institutions and other persons to report certain transactions to the FIC. The FIC obtains financial intelligence and other data from these reports which are filed in accordance with various sections of the FIC Act. Public Compliance Communication (PCC) 50 provides guidance to reporters … Continued
Posted on 15 Apr 2021
The Financial Intelligence Centre (FIC) recently issued Public Compliance Communication (PCC) 49 which provides guidance and clarity on certain money laundering (ML), terrorist financing (TF) and proliferation financing (PF) considerations and provides suggested resources that may be consulted in determining ML/TF/PF risks related to geographic areas. An accountable institution relies on different ML/TF/PF indicators to … Continued
Posted on 15 Apr 2021
In July 2020, the Financial Intelligence Centre (FIC) published draft Public Compliance Communication (PCC) 12A for public comment. The draft PCC provided guidance and clarity on what compliance activities can be outsourced by an accountable institution to third parties. The consultation period has since closed, and the FIC has recently published the final version of … Continued
Posted on 15 Apr 2021
Complete your CPD targets before the deadline – 31 May 2021 FSPs, KIs and Reps are reminded that the deadline to meet the minimum number of required CPD hours is 31 May 2021. For the 2020/2021 CPD cycle, an FSP, KI or a Rep that is authorised, approved or appointed to render or manage or … Continued
Posted on 17 Mar 2021
Replacement of financial products is a key part of professional and appropriate financial advice. As product providers develop new products and change existing products to meet the changing needs of clients, it may be necessary to cancel old products and replace them with new ones. Before doing so, consider the obligations placed on financial advisors … Continued
Posted on 17 Mar 2021
The Financial Sector Conduct Authority (FSCA) recently issued a notice informing the industry of a new FICA Directive to Provide Information (DPI) for 2021. The DPI must be completed by all Accountable Institutions and submitted online using the FSCA FAIS E-portal. Accountable Institutions are required to answer all questions on the DPI, which includes background … Continued
Posted on 17 Mar 2021
The Information Regulator, empowered to monitor and enforce compliance with the provisions of the Protection of Personal Information Act (POPIA), recently published the following: Commencement of Regulations The Regulations issued in terms of POPIA was published in December 2018 with the commencement dates to be determined by the Regulator at a later date. The Regulator … Continued
Posted on 17 Mar 2021
The Financial Sector Conduct Authority (FSCA) recently published three FSCA FAIS Notices relating to various exemptions: 1. FSCA FAIS Notice 15 of 2021 – Exemption of Juristic Representatives from section 13(1)(c) of the FAIS Act In terms of this Notice, a juristic representative is exempt from section 13(1)(c) of the FAIS Act when rendering a … Continued
Posted on 17 Mar 2021
The Financial Intelligence Centre (FIC) recently published Draft Public Compliance Communication 113 (draft PCC 113) which provides guidance on measures relating to Foreign Prominent Public Officials (FPPOs), Domestic Prominent Influential Persons (DPIPs), their family members and known close associates. The FIC has identified inconsistencies in Accountable Institutions’ understanding of when and how they determine if … Continued
Posted on 17 Mar 2021
Directive to Provide Information to the FIC issued by FSCA Accountable Institutions are reminded to complete and submit the Directive to Provide Information (DPI) by 31 March 2021. The DPI must be completed and submitted online using the FSCA FAIS e-portal. Liquidity Calculation Declaration Category II, IIA and III FSPs required to … Continued
Posted on 17 Feb 2021
It is critical to proactively implement the requirements of the Protection of Personal Information (POPI) Act – and Data Privacy Management in general – as all processing of personal information must comply to the Act by 1 July 2021. Postponing POPI Act compliance planning and implementation is a high risk, considering how seriously data breaches … Continued
Posted on 17 Feb 2021
The quarterly newsletter of the Ombud for Short-term Insurance (OSTI) Issue 4 of 2020 contains news and events, case studies, consumer tips, and an article on the OSTI’s complaints handling process. The case studies published in this issue focus on time-barred complaints, conditions for cover, and fraudulent claims. The case studies are intended to provide guidance … Continued
Posted on 17 Feb 2021
The Financial Sector Conduct Authority (FSCA) recently published a Press Release regarding the risks surrounding crypto-related investments. The FSCA is receiving a large number of complaints from investors who have lost their savings through investing in crypto-related investments, or where investors have fallen foul to scams packaged as a crypto investment promising unrealistic high returns. … Continued
Posted on 17 Feb 2021
The Financial Sector Conduct Authority (FSCA) recently published a draft exemption applicable to FSPs, Key Individuals and Representatives that render financial services in respect of credit life products and funeral products. Background and context In 2017, new classes and sub-classes of insurance business were introduced through the Insurance Act. In 2020, the Determination of Fit … Continued
Posted on 17 Feb 2021
On 4 February 2021, the Council for Medical Schemes (CMS) published PMB definition guideline: COVID-19 v7 which is an updated version of the Prescribed Minimum Benefits for COVID-19. The major changes in this version of the PMB guideline expands on: Inclusion of updated case definition Inclusion of COVID-19 vaccine as a PMB Inclusion of antigen testing … Continued
Posted on 17 Feb 2021
The Companies and Intellectual Property Commission (CIPC) recently published Notice 08 of 2021, introducing its new automated process registration system called K2. This new registration system will simplify the processes across its service provision which includes Name Reservation, Co-operative and Private company registration in a fully automated environment as a first phase. The new K2 … Continued
Posted on 17 Feb 2021
Annual Financial Statements FSPs with a financial year-end of 30 June who had to submit their AFS by 31 October 2020 but relied on the 4-month extension granted by the FSCA, must submit their AFS by 28 February 2021. FSPs that are required to submit Annexure A (FAIS Notice 82 of 2015) together with their … Continued
Posted on 19 Jan 2021
Amendments to the General Code of Conduct (GCoC) highlight again the importance of Treating Customers Fairly (TCF) and dealing efficiently with client complaints. With some of the amendments having taken effect on 26 December 2020, it’s important to revisit client service and client satisfaction in your FSP. Client satisfaction plays an essential role in the … Continued
Posted on 19 Jan 2021
It is now more important than ever to be proactive during this current lockdown phase and keep your clients close to you. We are in very uncertain and tumultuous times, and you have probably experienced this in your business. Your clients may be, at best, reluctant to invest and, at worst, withdrawing and realising their … Continued
Posted on 19 Jan 2021
A number of significant changes were introduced to the financial services industry in 2020, with amendments made to the General Code of Conduct (GCOC) and Fit and Proper requirements. Furthermore, all entities, including Financial Services Providers (FSPs), will also have to comply with the provisions of The Protection of Personal Information (POPI) Act by 30 … Continued
Posted on 19 Jan 2021
During December 2020, the Financial Sector Conduct Authority (FSCA) published a draft Conduct Standard setting out the principles and fit and proper requirements that Collective Investment Schemes (CIS) managers must comply with on an ongoing basis. The current Board Notice (BN 910) dealing with matters pertaining to fit and proper requirements of CIS managers which … Continued
Posted on 19 Jan 2021
The effect of the COVID-19 pandemic and resultant national lockdown has had an economic impact on several businesses across South Africa. Many businesses especially those in the hospitality and food service industries were faced with operational restrictions leading to a high rise in claims on business interruption policies. However, with legal complexities surrounding Contingent Business … Continued
Posted on 19 Jan 2021
In December 2020, the Minister of Health, Dr Zweli Mkhize announced the appointment of a new Council for the Council for Medical Schemes (CMS), taking into account the interests of members and medical schemes. The Council, which is empowered by the Medical Schemes Act (131 of 1998), consists of 15 members that represent a variety … Continued
Posted on 19 Jan 2021
The Council for Medical Schemes (CMS) has been in continuous engagements co-ordinating public-private sector collaborations aimed at ensuring that there is universal access to the COVID-19 vaccine. As a result, the COVID-19 vaccine has been included in the amended Prescribed Minimum Benefit regulations which were recently approved by the Minister of Health Dr. Zweli Mkhize. … Continued
Posted on 19 Jan 2021
Product Specific Training FSPs are reminded that Product Specific Training must be completed prior to rendering any financial service in respect of a particular financial product, which must include keeping up to date with any changes or amendments to financial products. The COVID-19 pandemic may result in product providers reconsidering benefits and/or exclusions in respect … Continued
Posted on 9 Dec 2020
In recent times cybercrime has become very prevalent in South Africa, particularly during the COVID-19 pandemic. When many people suddenly had to work from home when the national lockdown started, the focus of hackers shifted from email attacks to online attacks according to the global cyber security firm Kaspersky. Between February and March 2020 there … Continued
Posted on 9 Dec 2020
A joint media statement by the South African Reserve Bank, Financial Sector Conduct Authority, Payments Association of South Africa and the Banking Association South Africa was recently published stating that the issuing and the acceptance/collection of cheques will cease with effect from 31 December 2020. This decision was taken due to the numerous challenges associated … Continued
Posted on 9 Dec 2020
The Financial Sector Conduct Authority (FSCA) recently published a draft Declaration of crypto assets as a financial product under the FAIS Act. The manner in which crypto assets can be regulated has been under consideration by the National Treasury and relevant authorities for a number of years. In 2020, the Crypto Assets Regulatory Working Group … Continued
Posted on 9 Dec 2020
The Financial Sector Conduct Authority (FSCA) recently published Guidance Notice 1 of 2020 (FAIS) which provides clarity and guidance on the lapsing of licences issued in terms of the FAIS Act and the related duties of financial services providers (FSPs), Key Individuals, or other persons in control of the affairs of the FSP. The FSCA has … Continued
Posted on 9 Dec 2020
During this year we have published the various arrangements that the Companies and Intellectual Property Commission (CIPC) has made to cater for its services during the national lockdown amidst the COVID-19 pandemic. Some of these arrangements included extensions to file Annual Returns, compliance checklists, preparation of annual financial statements and the deferring of penalties. The … Continued
Posted on 9 Dec 2020
The Financial Sector Conduct Authority (FSCA) recently proposed further amendments to the FAIS General Code of Conduct (GCOC) which is intended to take effect early 2021. According to the statement supporting the proposed amendments, the amendments are necessary to contribute to the fulfilment of the FSCA’s legislated objectives and is intended to promote the fair … Continued
Posted on 9 Dec 2020
The Financial Sector Conduct Authority (FSCA) recently proposed amendments to the Determination of Fit and Proper Requirements which is intended to take effect early 2021. According to the statement supporting the proposed amendments, the main purpose of these amendments is to update the Determination in order to make provision to limit the need for further … Continued
Posted on 9 Dec 2020
Regulatory Exams, Class of Business and Qualification deadlines A reminder that supervised representatives who had a deadline that fell between 27 March 2020 and 30 November 2020 to comply with the Regulatory Exams, Class of Business Training and/or Qualification requirements have until 15 December 2020 to comply with the relevant requirement. CPD FSPs, KIs … Continued
Posted on 10 Nov 2020
As online communication with clients replaces face-to-face meetings, the risk of fraud, cyber threats and non-compliance with regulation increases. It is important to decide how you will communicate with your clients, taking into consideration their preferences, ability, technology capability and access to a stable internet connection. Alternative options to face-to-face meetings include email, telephone or … Continued
Posted on 10 Nov 2020
Due to the impact of COVID-19 on the financial services industry and the challenges that FSPs, key individuals and representatives might have faced in complying with various regulatory requirements, the Financial Sector Conduct Authority (FSCA) took a decision during April 2020 to grant exemptions and/or extensions regarding the submission of statutory returns and certain fit … Continued
Posted on 10 Nov 2020
The FSCA recently published two exemption notices FSCA INS Notice 19 of 2020 and FSCA INS Notice 20 of 2020 that affect premium collections by independent intermediaries. The two notices prescribe the extent and conditions of exemptions from certain sections of the Long-term and Short-term Insurance Acts and their respective Regulations. A Consolidated Report of … Continued
Posted on 10 Nov 2020
In its quarterly newsletter, the Ombudsman for Short-term Insurance (OSTI) provided an update on news and events from the office of the Ombud, a few case studies and consumer tips. Number of Complaints In the Ombudsman’s Briefcase: Issue 3 of 2020, the Ombud revealed that it saw a decline in the number of complaints lodged with … Continued
Posted on 10 Nov 2020
The Financial Sector Conduct Authority (FSCA) recently published a press release announcing that two divisional executives are set to retire from the offices of the FSCA. Jurgen Boyd, the Divisional Executive for Market Integrity Supervision, and Marius du Toit, the Divisional Executive for Specialist Support are set to retire after many years of service at … Continued
Posted on 10 Nov 2020
The Financial Sector Conduct Authority (FSCA) has recently published a series of administrative sanctions imposed on FSPs, that are accountable institutions, that were found to be non-compliant with the Financial Intelligence Centre Act (FICA). The administrative sanctions are a result of specific areas of non-compliance that the FSCA had identified during inspections that it had … Continued
Posted on 10 Nov 2020
Regulatory Exams, Class of Business and Qualification deadlines A reminder that supervised representatives who had a deadline that fell between 27 March 2020 and 30 November 2020 to comply with the Regulatory Exams, Class of Business Training and/or Qualification requirements have until 15 December 2020 to comply with the relevant requirement. CPD FSPs, KIs … Continued
Posted on 13 Oct 2020
Failure to appropriately advise a client, as required by Section 8 of the FAIS General Code of Conduct (GCOC), can result in serious consequences for both you and the client. In a 2016 Ombud Determination, a client alleged that her financial advisor had failed to appropriately advise her, despite having provided him with the necessary … Continued
Posted on 13 Oct 2020
The Financial Sector Conduct Authority (FSCA) filed an urgent application with the High Court which resulted in the liquidation of JP Markets (Pty) Limited in September 2020. The FSCA’s main contention was that JP Markets is an unlicensed over-the-counter (OTC) derivative provider. The FSCA relied on section 38B of the FAIS Act which allows the … Continued
Posted on 13 Oct 2020
Over the past few months, there has been much uncertainty regarding Contingent Business Interruption (CBI) insurance cover. The uncertainty stems from the many legal complexities surrounding CBI policy wordings. In a Press Release, the FSCA confirmed that it has been engaging with the non-life insurance industry on the most efficient way to approach the courts … Continued
Posted on 13 Oct 2020
The FSCA recently published Notification Form INS008 in terms of the Policyholder Protection Rules (PPRs) made under the Long-term Insurance Act (LTIA) and Short-term Insurance Act (STIA). The notification form must be used by insurers to notify the FSCA where there is an intention to terminate a group scheme policy as contemplated in Rule 20.2.4 and … Continued
Posted on 13 Oct 2020
On 29 September 2020, National Treasury published the second draft of the Conduct of Financial Institutions (COFI) Bill for public comment. The first draft of the Bill was published in December 2018 and was open for public comment until March 2019. The comment process allowed for issues to be more fully considered and the Bill … Continued
Posted on 13 Oct 2020
Deadline for payment of Levies FSPs are reminded that the FAIS Levy Invoices should have been received by the end of September, with payment due by 31 October 2020. If an FSP has not received their invoice, we suggest that they contact the FSCA to request that this be re-sent to them. Not having received … Continued
Posted on 15 Sep 2020
In Part 1 and Part 2 of our RDR series we looked at the consultation paper on Advisor Categorisation. In Part 3 we turned to the second consultation paper on Investment-related matters published at the end of 2019, and focused on how investment management will be defined and categorised from a licencing perspective, the impact … Continued
Posted on 15 Sep 2020
The FSCA recently published FSCA Communication 46 of 2020 on the use of pre-populated records of advice. The practice in the industry of using prepopulated records of advice for replacements have proved, in various instances, to contain incorrect advice based on factual errors. Such errors result in advice being provided on incorrect comparisons of policy wording, … Continued
Posted on 15 Sep 2020
The Financial Sector Conduct Authority (FSCA) published FSCA Notice 443 of 2020 on the Levies for Financial Institutions, 2020. The Notice has been through the consultation phase with interested parties having submitted their comments. Masthead considered the impact of the proposed increases in levies on independent financial advisors and submitted comments to the FSCA. For the … Continued
Posted on 15 Sep 2020
In 2017, the then FSB published FAIS Notice 110 of 2017 exempting Category I FSPs that are only licenced for Long-term Insurance subcategory A and/or Friendly Society Benefits from the Professional Indemnity (PI) and Fidelity Insurance Cover requirements (paragraphs 3(a) -(c) of BN123 of 2009) for a period of 3 years. The FSCA have recently … Continued
Posted on 15 Sep 2020
The Financial Sector Conduct Authority (FSCA) recently announced in a Press Release that Caroline da Silva, Divisional Executive of Regulatory Policy at the FSCA, has resigned with effect from 31 October 2020. The FSCA Commissioner, Advocate Dube Tshidi said: “During her time at the FSCA, Caroline has been an invaluable member of our executive team … Continued
Posted on 15 Sep 2020
Earlier this year we published the Companies and Intellectual Property Commission (CIPC) Notice on the various arrangements that the CIPC made to cater for its services during the national lockdown amidst the COVID-19 pandemic. The CIPC subsequently confirmed in CIPC Notice 21 of 2020 that where the filing period for Annual Returns falls within the … Continued
Posted on 15 Sep 2020
On 4 September 2020, the Council for Medical Schemes (CMS) published PMB definition guideline: COVID-19 v5 which is an updated version of the Prescribed Minimum Benefits for COVID-19. The major changes in this version of the PMB guideline expands on: Inclusion of the PMB DTP code for COVID-19 PMB recommendations on serological testing Pharmacological management is … Continued
Posted on 15 Sep 2020
Update your Competence Register FSPs must ensure that their Competence Register is updated with CPD activities within 30 days after the expiry of each CPD cycle. Those FSPs that relied on the extended CPD deadline of 31 August 2020 must update their Competence Register by 30 September 2020. CPD Plan FSPs that relied on the … Continued
Posted on 19 Aug 2020
In Part 1 and Part 2 of our RDR series we looked at the consultation paper on Advisor Categorisation. We now turn, in Part 3 and Part 4, to the consultation paper on Investment-related matters which is a follow-up from the regulators after they considered the feedback received on the 2018 Investment Document. The latest … Continued
Posted on 19 Aug 2020
During July 2020, the Information Regulator published draft Guidelines on the Registration of Information Officers. In terms of the Protection of Personal Information Act (POPIA), responsible parties are required to appoint and register an Information Officer. This is a two-step process firstly requiring that the Information Officer be appointed within the business and secondly, that … Continued
Posted on 19 Aug 2020
The Financial Intelligence Centre (FIC) published draft Public Compliance Communication (PCC) 12A together with a Consultation Note. Draft PCC 12A provides guidance and clarity on what compliance activities can be outsourced by an accountable institution to third parties and is an update to the existing PCC 12 which was issued in January 2012 dealing with … Continued
Posted on 19 Aug 2020
It is important to review your policies and procedures to bring them in line with the amendments to the General Code of Conduct (GCOC) for FSPs and Representatives, which were published on 26 June 2020. Some of the long-awaited amendments were effective immediately, while others come into effect in December 2020 or June 2021. It … Continued
Posted on 19 Aug 2020
The Financial Sector Conduct Authority (FSCA) has recently published a series of administrative sanctions that it meted out on FSPs that were found to be non-compliant with the provisions of the Financial Intelligence Centre Act (FICA). Accountable institutions are required to comply with a number of provisions of FICA when dealing with their customers. Certain … Continued
Posted on 19 Aug 2020
Circular 50 of 2020: Industry Update on Developments Relating to COVID-19 Exemptions and Guidelines The economic impact of the COVID-19 pandemic and related national lockdown has a direct impact on the livelihood of many medical scheme members and their ability to maintain their medical cover premiums as retrenchments and business closures escalate. The CMS has … Continued
Posted on 19 Aug 2020
In a FSCA Press Release dated 7 August 2020, the FSCA confirmed that Adv. Dube Tshidi has been appointed to perform the functions of the Commissioner. The designation is effective from 6 August 2020 for a three-month period, until 5 November 2020 or until a Commissioner is appointed and assumes office, whichever occurs sooner. Read … Continued
Posted on 19 Aug 2020
On 12 September 2019, the Financial Sector Conduct Authority (FSCA) imposed an administrative penalty of R100 million on MET Collective Investments (Pty) Ltd (METCI). This decision followed an investigation into METCI, after one of its unit trust funds, the Third Circle MET Target Return Fund, lost significant value during the period 8 to 11 December … Continued
Posted on 19 Aug 2020
On 12 August 2020, the FSCA published FSCA FAIS Notice 60 of 2020 which contains the prescribed form and manner for the registration of exemption of certain persons conducting financial services related business with a private equity fund. Those FSPs that are relying on any provisions of the exemption published in Board Notice 208 of … Continued
Posted on 19 Aug 2020
The Financial Sector Conduct Authority (FSCA) recently published a Press Release providing a brief update on the progress regarding the process of obtaining legal certainty on Contingent Business Interruption (CBI) Cover and related issues. The FSCA states that the process to obtain legal certainty through the courts regarding CBI cover may be lengthy and is … Continued
Posted on 19 Aug 2020
CPD extended deadline looming FSPs, Key Individuals and Representatives that did not meet the 31 May 2020 CPD deadline for the 2019/2020 CPD cycle, have until 31 August 2020 to obtain the required number of CPD hours that are relevant and appropriate for their role and the functions which they perform. Click here to read … Continued
Posted on 21 Jul 2020
In Part 1 on Advisor Categorisation we looked at the labels or titles that advisors will be allowed to use and we looked at what products PSAs and RFAs can provide. In this article, Part 2, we’ll look at proposed restrictions on licensing for both Reps and KIs. We will also consider what happens if … Continued
Posted on 21 Jul 2020
On 23 June 2020, the FSCA published a Press Release warning the public against an entity called Crowd1. Crowd1 is not an authorised Financial Services Provider (FSP) or Representative and is not authorised to render the financial services it is providing. There is also no record of a licence application with the FSCA. Crowd1 is … Continued
Posted on 21 Jul 2020
Proposed amendments to Schedules 1, 2 and 3 of the Financial Intelligence Centre Act (FICA) were published on 19 June 2020 for public comment. The proposed amendments seek to align FICA with the current International Standards of the Financial Action Task Force (FATF) and recent legislative amendments. A consultation paper providing explanatory notes to the … Continued
Posted on 21 Jul 2020
The economic impact of the national lockdown has been felt by several businesses across South Africa as many are dealing with operational restrictions. Among the hardest hit are the hospitality and food service industries where many may be forced to close their doors causing a ripple effect on the economy by adding to job losses. … Continued
Posted on 21 Jul 2020
CPD deadline for the 2019/2020 CPD Cycle FSPs, Key Individuals and Representatives that did not meet the 31 May 2020 deadline, have until 31 August 2020 to obtain the required number of CPD hours that are relevant and appropriate for their role and the functions which they perform. Read more in FSCA FAIS Notice 22 … Continued
Posted on 30 Jun 2020
On 22 June 2020, the President issued a Proclamation regarding the commencement of certain sections of the POPI Act, these refer to: sections 2 to 38; 55 to 109; 111 and 114(1), (2) and (3), which will all take effect on 1 July 2020. These sections deal with, inter alia, the purpose of the Act, … Continued
Posted on 30 Jun 2020
On 26 June 2020, the FSCA published FSCA Communication 35 of 2020 (FAIS) confirming publication of the following final amendments: Amendment of the General Code of Conduct for FSPs and Representatives; Amendment of the Specific Code of Conduct for FSPs and Representatives conducting Short-term Deposit business; and Amendment of the Determination of Fit and Proper … Continued
Posted on 30 Jun 2020
Amendments to the Fit and Proper requirements were published in the Government Gazette No. 43474 on 26 June 2020 and come into effect immediately. The amendments were primarily introduced to align the terminology in these requirements to the Insurance Act, the Long-term and Short-term Insurance Acts. However, in addition to these there are a few … Continued
Posted on 23 Jun 2020
The first RDR consultation paper was released almost 6 years ago in October 2014 and contained 55 proposals affecting financial advice and the distribution of financial products. In December 2019, the FSCA published an update and it is clear from this paper that there has been a lot of progress made even though there are … Continued
Posted on 23 Jun 2020
The 2019 Annual Report of the Ombudsman for Short-term Insurance (OSTI) released end May 2020 shows that the Ombud received 10 367 formal complaints for the 2019 period which was an increase from 9 779 complaints in the previous year, 2018. The OSTI closed 9 167 complaints in 2019 while 9 474 complaints were closed … Continued
Posted on 23 Jun 2020
The Financial Sector Conduct Authority, the Prudential Authority and the National Payment System Department of the South African Reserve Bank have recently published Joint Communication 7 of 2020 which sets out the minimum precautionary measures to be taken by financial institutions and payment institutions in light of the easing of lockdown levels amidst COVID-19. The Joint Communication … Continued
Posted on 23 Jun 2020
The Council for Medical Schemes (CMS) recently published PMB definition guideline: COVID-19 v3 which is an updated version of the Prescribed Minimum Benefits for COVID-19. This document may change as guidance changes and users should always check for updates on the National Institute for Communicable Diseases (NICD) and the National Department of Health (DOH) websites. The … Continued
Posted on 23 Jun 2020
CPD deadline for the 2019/2020 CPD Cycle FSPs, Key Individuals and Representatives that did not meet the 31 May 2020 deadline, have until 31 August 2020 to obtain the required number of CPD hours that are relevant and appropriate for their role and the functions which they perform. Read more in FSCA FAIS Notice 22 … Continued
Posted on 9 Jun 2020
Operating your business in a compliant manner includes formalising your knowledge of the financial products in which you render financial services and keeping your knowledge up to date thereafter. The Fit and Proper requirements specify how to comply with the Product Specific Training (PST) requirement but obtaining the training can sometimes be challenging. PST is … Continued
Posted on 9 Jun 2020
In an interview with Moneyweb on SAfm, the Deputy Ombud for Long-Term Insurance, Ms Jennifer Preiss, discussed the potential impact of COVID-19 and the resultant national lockdown on the Long-Term Insurance industry.[1] Why there might be a rise (spike) in Complaints[2] The Deputy Ombud warned that a prolonged national lockdown could lead to a spike … Continued
Posted on 9 Jun 2020
Keeping track of what must be done in an FSP and making time to address any gaps is key to remaining compliant and in business. In January we published Key Compliance Dates to help FSPs plan for the compliance requirements of 2020. Considering the impact of COVID-19 and subsequent developments, below is an update of … Continued
Posted on 9 Jun 2020
Medical schemes are looking for ways to deal with the negative impact of COVID-19 and have approached the Council for Medical Schemes (CMS) with requests for exemptions from the Medical Schemes Act (MSA). One of the measures offered to medical schemes was to allow, on application, the deferral of member contributions. This measure was offered … Continued
Posted on 9 Jun 2020
During October 2018, a draft Joint Standard for Significant Owners was released for public consultation. This was followed by a revised draft for further public consultation in July 2019. The draft standard together with the consultation report containing all comments and responses was later submitted to Parliament during November 2019. Most recently, on 1 June … Continued
Posted on 9 Jun 2020
On 1 June 2020, the FSCA published FSCA FAIS Notice 32 of 2020 which amended several exemptions relating to Private Equity Funds, with the effect that where an exemption was set to expire on 30 June 2020, it has now been extended until 30 June 2021. For purposes of these exemptions, “private equity funds” means … Continued
Posted on 9 Jun 2020
The Financial Sector Conduct Authority (FSCA) recently published the draft Conduct Standard and related documents on the Requirements related to the payment of pension fund contributions (draft Conduct Standard). The Statement supporting the publication states that the draft Conduct Standard is intended to replace Regulation 33, made under the Pension Funds Act, by providing for … Continued
Posted on 9 Jun 2020
The commencement dates of certain provisions that relate to Ombuds under the Financial Sector Regulation Act (FSRA) has been recently amended as published in Government Gazette No. 43371 (Government Notice 612 of 29 May 2020). Government Notice 612 has the following effect: The commencement date of Chapter 14 (sections 175 to 217) of the FSRA, … Continued
Posted on 9 Jun 2020
The Notices on Expanding Access to Living Annuity Funds were gazetted on 1 June 2020. These Notices give effect to tax measures to combat the economic effect of the national lockdown due to the COVID-19 pandemic, following the President’s address to the nation on 21 April 2020 and the announcement by the Minister of Finance … Continued
Posted on 9 Jun 2020
Category II, IIA & III FSPs required to report Assets under Management Category II, IIA and III FSPs must calculate their assets under management (AUM) as at 30 June 2020 and prepare this for submission to the FSCA. The FSCA has sent a FAIS Levy Letter (dated 15 July 2020) to Cat II, IIA and III FSPs … Continued
Posted on 26 May 2020
Recent events have not only highlighted the vulnerabilities of businesses around the world, but also the importance of having a comprehensive and effective disaster recovery plan for your business. Undoubtedly, cages have been rattled since the beginning of 2020. Puerto Rico was shaken by earthquakes and the Taal Volcano in the Philippines showed signs of … Continued
Posted on 26 May 2020
The COVID-19 loan guarantee scheme announced by President Cyril Ramaphosa in April recently came into operation on 12 May 2020. The loan guarantee scheme is an initiative to provide loans, guaranteed by government, to eligible businesses considering the economic effect of COVID-19. It is intended to help small and medium sized businesses with an annual … Continued
Posted on 26 May 2020
The FSCA and Prudential Authority (jointly referred to as the Authorities) recently published Joint Communication 4 of 2020 which provides clarity on certain regulatory requirements applicable to funeral insurance policies. The publication confirms the application of the maximum amounts prescribed as they relate to Funeral Class (Class 4) of insurance business. It also confirms the … Continued
Posted on 26 May 2020
The FSCA and Prudential Authority (jointly referred to as the Authorities) are engaging with the insurance industry on Business Interruption (BI) insurance to understand, inter alia, the full impact of BI claims following the outbreak of COVID-19. Joint Communication 5 of 2020, Covid-19 – Regulatory response: Business Interruption Insurance sets out the Authorities’ position on … Continued
Posted on 26 May 2020
The Ombudsman for Long-term Insurance (Ombud) released its Annual Report for 2019. The Report provides statistics on complaints received by the office with a trend of increasing funeral complaints. In summary, the following statistics were released: 11 915 written requests for assistance were received compared to 11 768 in 2018 (an increase of 147 requests). The … Continued
Posted on 26 May 2020
The South African financial market is experiencing significant volatility due to COVID-19, which has impacted on liquidity in certain portfolios. The Collective Investment Schemes Control Act (CISCA), in its current form, does not allow for mechanisms or tools to deal with the current market conditions. The FSCA have therefore decided to grant an exemption to … Continued
Posted on 26 May 2020
The Council for Medical Schemes (CMS) recently published Circular 35 of 2020 on the amendment to the Medical Schemes Act Regulations. The amendment includes an insertion of the Diagnosis and Treatment Pair in the list of Prescribed Minimum Benefits under the heading “Respiratory System”. In terms of the amendment, the following are now covered under … Continued
Posted on 26 May 2020
On 19 May 2020, the National Treasury published the 2nd revised 2020 Draft Disaster Management Tax Relief Bill and revised Draft Notice on Expanding Access to Living Annuity Funds with related documents. These documents announce certain tax measures to combat the economic effect of the national lockdown due to the COVID-19 pandemic, where one of … Continued
Posted on 26 May 2020
PI Cover FSPs are reminded to renew their PI Cover before the renewal date to avoid finding themselves in a situation where their PI Cover has expired. Failure to renew PI Cover on time will result in a gap in cover which can cause the FSP to face the risk that any losses which occur … Continued
Posted on 12 May 2020
In terms of the FAIS Act, a financial services provider (FSP) is responsible for the activities of its representatives which are performed within the scope of the representative’s contract. This responsibility cannot be taken lightly as the actions and decisions of representatives have implications for the FSP and its clients. Having the right contract in … Continued
Posted on 12 May 2020
There is no specific legislation or regulation that currently exists in South Africa for the use of crypto assets, which means that there is no legal protection or recourse offered to users of, or investors in, crypto assets. As the use of crypto assets continues to grow and evolve, a deeper collective understanding of this … Continued
Posted on 12 May 2020
On 23 April 2020, National Treasury published a media statement announcing certain tax measures to combat the economic effect of the national lockdown due to the COVID-19 pandemic. One of the interventions included in these tax measures related to expanding the access to living annuity funds. This will assist individuals who either need cash flow … Continued
Posted on 12 May 2020
Joint communication 2A of 2020 recently published by the FSCA updates the timeframes previously communicated regarding the submission of detailed Plans for compliance with ongoing customer due diligence (CDD) in terms of the FIC Act. Previous requirement: The previous communication, Joint Communication 2 of 2020, required accountable institutions to submit detailed Plans regarding ongoing CDD … Continued
Posted on 12 May 2020
The FSCA recently published two draft general exemption notices that affect premium collections by independent intermediaries. The proposed exemptions from certain sections of the Long-term and Short-term Insurance Acts and their respective Regulations were published together with FSCA Communication 22 of 2020 (INS) which sets out the background to the intention behind the proposed exemptions … Continued
Posted on 12 May 2020
As a rule, in terms of the Regulations passed under the Disaster Management Act, everyone needs to stay at home during Level 4 of lockdown. But, while it is preferable to continue to work remotely and avoid face-to-face advice interactions under Level 4, not everything done by financial advisors can be done remotely. Some things … Continued
Posted on 12 May 2020
CPD FSPs, KIs and Reps are reminded that the deadline to comply with the required number of CPD hours for the current CPD cycle has been extended to 31 August 2020. Those FSPs, KIs and Reps that have already attained the required number of CPD hours for the current CPD cycle will have to wait … Continued
Posted on 29 Apr 2020
The COVID-19 crisis has highlighted that we do not know what tomorrow, or next week or next month will bring. Having a well thought out Risk Management Plan (RMP) will ensure you are better prepared to handle a crisis. Risk management is part of your job. You help clients think about the future and plan … Continued
Posted on 29 Apr 2020
The Financial Sector Conduct Authority (FSCA) recently published FSCA FAIS Notice 21 of 2020 together with FSCA Communication 20 of 2020. These publications afford FSPs and Juristic Representatives an exemption from certain Financial Soundness Requirements. The Communication advises that the exemption was deemed necessary in order to alleviate some of the financial pressures experienced by FSPs and … Continued
Posted on 29 Apr 2020
The commencement dates of certain provisions that relate to Ombuds under the Financial Sector Regulation Act (FSRA) has been recently amended as published in Government Gazette No. 43131 (Government Notice 356 of 24 March 2020). Government Notice 356 has the following effect: The commencement date of Chapter 14 (sections 175 to 217) of the FSRA, … Continued
Posted on 29 Apr 2020
Various supervisory bodies have consulted the Financial Intelligence Centre (FIC) regarding the COVID-19 pandemic and possible impact on accountable institutions. These supervisory bodies include the Prudential Authority, the National Payment System Department, the Financial Surveillance Department of the South African Reserve Bank, as well as the Financial Sector Conduct Authority (FSCA) (jointly referred to as … Continued
Posted on 29 Apr 2020
The Financial Sector Conduct Authority (FSCA) recently published a Press Release warning the public against doing any financial related business with forex trading platforms that promise an income stream during the COVID-19 lockdown. It appears that these promises of income stream may be unrealistic. The Press Release states that the FSCA was informed that some … Continued
Posted on 29 Apr 2020
The adverse effects of the nationwide lockdown due to COVID-19 prompted many insurers to come out with their own responses regarding premium holidays or relief for consumers together with rules about the impact that has on benefits and rules about reinstating policies. As far as commission goes, the normal rule in terms of commission regulations … Continued
Posted on 29 Apr 2020
On 31 March 2020, the Financial Sector Conduct Authority (FSCA) published FSCA FAIS Notice 17 of 2020 on the exemption from and the extension of the period to comply with certain Fit and Proper Requirements. Subsequent to the publication, the FSCA withdrew FSCA FAIS Notice 17 of 2020 and substituted it with FSCA FAIS Notice … Continued
Posted on 29 Apr 2020
The Financial Sector Conduct Authority (FSCA) recently published FSCA Communication 18 of 2020 which provides clarity on the requirements for FSPs regarding the submission of Compliance Reports and FAIS Handover Reports. Communication 18 of 2020 explains that the FSCA did not publish any compliance reports or handover reports for 2019 or 2020, as the FSCA is … Continued
Posted on 29 Apr 2020
There seems to be some confusion between a Joint Directive issued by the Financial Sector Conduct Authority and the Prudential Authority (Authorities) on 9 April 2020 and Call Centre Directions issued on 9 April 2020 by the Minister of Health and the Minister of Trade, Industry and Competition to Call Centres providing essential services. As … Continued
Posted on 29 Apr 2020
The FSCA has warned that there is a rogue domain called www.fscaza.com which fraudsters used to send a phishing email to one of the FSCA’s service providers with the aim of soliciting financial gains. The domain has also been redirected to the FSCA’s legitimate domain to mislead unsuspecting stakeholders into believing the communication comes from … Continued
Posted on 29 Apr 2020
Renew PI Cover FSPs are reminded to check the status of their Professional Indemnity (PI) cover and to renew same if required. Failure to renew PI cover on time will result in a gap in cover which can cause the FSP to face the risk that any losses which occur during this period (prior to … Continued
Posted on 16 Apr 2020
You may have addressed business continuity and succession planning for your FSP, but there are almost certainly areas that have not been covered, and these gaps may exist in your FSP. In a previous article, we focused on the challenges a national disaster, like the Covid-19 lockdown, may bring to a business and the critical … Continued
Posted on 16 Apr 2020
An Intergovernmental Fintech Working Group (IFWG) was established in 2016 to understand the growing role of financial technology (fintech) and innovation in the South African financial sector and explore how regulators can proactively assess emerging risks and opportunities in the market. There are 6 regulators which participate in the IFWG, namely National Treasury, the Financial … Continued
Posted on 16 Apr 2020
The Information Regulator (Regulator) has published a Guidance Note on the Processing of Personal Information in the Management and Containment of the Covid-19 pandemic in terms of the Protection of Personal Information Act 4 Of 2013 (POPIA). While not all the sections of POPIA have come into effect, the Regulator encourages proactive compliance by responsible … Continued
Posted on 16 Apr 2020
The FIC has published a Web Notice – FIC Operations during Nationwide Lockdown, stating that there will be no relaxation of obligations in terms of the FIC Act in light of the lockdown. Accountable, reporting and other institutions must continue to fulfil the obligations imposed on them by the FIC Act, including filing regulatory reports … Continued
Posted on 16 Apr 2020
The Companies and Intellectual Property Commission (Commission) issued a practice note on 24 March 2020 confirming that where a company is temporarily insolvent and still carrying on business or trading due to business conditions which were caused by the Covid-19 pandemic, it will not invoke its powers under section 22 of the Companies Act which … Continued
Posted on 16 Apr 2020
The National Credit Act regulates credit insurance. Credit Providers, when extending credit or lending to customers, may require customers to either take out credit life insurance which would then cover the debt due to the credit provider in certain situations, such as death or retrenchment, or to cede an existing policy to the Provider. Final … Continued
Posted on 16 Apr 2020
In February 2020 the Financial Intelligence Centre (FIC) published a draft Public Compliance Communication (PCC) for comment, on the commencement and enforcement of the FIC Act as amended. The comments on the draft have since been considered and incorporated into the final PCC 46 where appropriate and was published by the FIC on 30 March … Continued
Posted on 16 Apr 2020
The Financial Intelligence Centre (FIC) published a draft Public Compliance Communication (PCC) for comment during January 2020, which set out guidance on the interpretation of Item 1 of Schedule 1 to the FIC Act in line with the changes as brought about by the Legal Practice Act 28 of 2014. The comments on the draft … Continued
Posted on 16 Apr 2020
The Financial Intelligence Centre (FIC) published a draft Public Compliance Communication (PCC) for comment during March 2020, which sought to clarify issues relating to the practical application of the requirements of the FIC Act by accountable institutions that offer life insurance products and/or who provide advice or intermediary services in relation to life insurance products … Continued
Posted on 16 Apr 2020
On 26 March 2020 the FSCA published an updated list of recognised qualifications for FSPs, Key Individuals and Representatives (FSCA FAIS Notice 16 of 2020), which replaces the previous list published by FAIS Notice 36 of 2019. The list includes qualifications which are recognised for each Category of FSP (i.e. Category I, II, IIA, III … Continued
Posted on 16 Apr 2020
FIC goAML Message Board FSPs that are accountable institutions, and therefore required to register on the FIC’s goAML system, are reminded to regularly log in to their goAML account and to check their Message Board. The Message Board will list all regulatory report receipts and other notifications from the FIC. It is used to send … Continued
Posted on 9 Apr 2020
The FSCA has announced that it will be working on limited capacity during the lockdown, therefore certain services may not be available. As correspondence and client enquiries will be made via email there may be delays in dealing with and responding to these. The services of the FSCA’s Licensing and Business Centre will continue to … Continued
Posted on 9 Apr 2020
The Financial Sector Conduct Authority (FSCA) recently issued a statement that the collection of blood samples as part of underwriting for new business does not qualify as an essential service and must be avoided during the national lockdown. The statement was supported by the long-term insurance members of the Association for Savings and Investment South … Continued
Posted on 9 Apr 2020
The Information Regulator of South Africa recently issued a press release about the importance of the right of access to information and the right to privacy in the management and containment of the spread of the COVID-19 virus. The Regulator commends government for the measures taken thus far to deal with the virus and calls … Continued
Posted on 9 Apr 2020
On 3 April 2020, the Financial Sector Conduct Authority (FSCA) published FSCA Communication 14 of 2020 (INS) which outlines the expectations of the FSCA regarding the culture and responsibilities of insurers and financial services providers (FSPs) in respect of premium collection of funeral policies during the COVID-19 crisis. The FSCA advises insurers to ensure that all … Continued
Posted on 9 Apr 2020
On 31 March 2020, the Financial Sector Conduct Authority (FSCA) published FSCA Communication 12 of 2020 which outlines the expectations of the FSCA regarding the culture and main responsibilities of financial institutions during the COVID-19 crisis. The Communication warns that entities must ensure that all customers are treated fairly during the entire product cycle and that … Continued
Posted on 9 Apr 2020
The COVID-19 crisis will affect all business sectors – but it especially puts a spotlight on insurers who are likely to be inundated with enquiries and claims across different products, for example health, life or non-life insurance cover. Life insurers will be considering their risks and may look to trim their policy offerings in the … Continued
Posted on 9 Apr 2020
The Financial Sector Conduct Authority (FSCA) has recently published FSCA FAIS Notice 17 of 2020 on the exemption from and the extension of period to comply with the Fit and Proper Requirements. This Notice comes after the FSCA published FSCA Communication 9 of 2020 which dealt with various extensions to regulatory requirements in light of the … Continued
Posted on 9 Apr 2020
The FSCA recently published FSCA General Notice 1 of 2020 on the extension of period for compliance with various requirements relating to the submission of statutory returns. Submission of Annual Financial Statements in respect of the FAIS Act As communicated in FSCA Communication 9 of 2020, FSPs are reminded that the period for submission of certain … Continued
Posted on 9 Apr 2020
The Financial Sector Conduct Authority (FSCA) recently issued two publications, regarding the payment of retirement fund contributions aimed at distressed employers and employees in light of the COVID-19 pandemic. The two communications published on the 26th and 27th of March 2020 were FSCA Communication 11 of 2020 (RF) and FSCA Press Release: FSCA issues guidance … Continued
Posted on 31 Mar 2020
President Cyril Ramaphosa announced on 23 March 2020 a 21-day nationwide lockdown. While we all have been watching the developments of the novel coronavirus (COVID-19), the unfolding crisis will impact the broader economy and, more specifically, financial advisory and investment management businesses. Times like this highlight the critical importance of planning for disaster and business … Continued
Posted on 31 Mar 2020
The Council for Medical Schemes (CMS) recently published two documents of note pertaining to the Coronavirus pandemic. These are the CMS Script Issue 1 of 2020 and Circular 25 of 2020. CMS Script Issue 1 of 2020 on the Coronavirus Disease (COVID-19) provides background information on the coronavirus outbreak, how the virus is spread, the risk … Continued
Posted on 31 Mar 2020
Earlier this year we published the Companies and Intellectual Property Commission (CIPC) Notice 52 of 2019 and subsequent media release which related to developments on the new requirement for all companies to submit a Compliance Checklist together with their Annual Return as of 1 January 2020. However, there is good news for those companies whose … Continued
Posted on 31 Mar 2020
The Financial Intelligence Centre (FIC) recently published Public Compliance Communication 44 (PCC 44) that provides guidance on the targeted financial sanctions regimes which are part of the regulatory framework of South Africa. South Africa’s targeted financial sanctions regimes are implemented through the country’s anti-money laundering and combating of the financing of terrorism (AML/CFT) legislative framework … Continued
Posted on 31 Mar 2020
In January 2020 the Financial Intelligence Centre (FIC) published a draft Public Compliance Communication (PCC) for comment, containing guidance to all reporters on the requirements set out in Directive 5 of 2019. The comments have since been considered and incorporated into the final Guidance Note (PCC 45) where appropriate and was published by the FIC … Continued
Posted on 31 Mar 2020
On 25 March 2020, the Financial Sector Conduct Authority (FSCA) published FSCA Communication 9 of 2020 which sets out the decision taken by the regulator with regard to complying with specific regulatory requirements in light of the impact of COVID-19 on the financial services industry. The FSCA is aware of the challenges that regulated entities … Continued
Posted on 31 Mar 2020
Ahead of the national lockdown, the Department of Co-operative Governance and Traditional Affairs issued amendments to the Regulations of the Disaster Management Act, 2002. The amendments to the Regulations provide clarity on, inter alia, the definitions of lockdown, essential services, essential goods and movement. The amendments also set out the provisions relating to the restriction … Continued
Posted on 31 Mar 2020
The Companies and Intellectual Property Commission (CIPC) has published a notice on the various arrangements it has made to cater for its services during the lockdown of South Africa amidst the COVID-19 pandemic. The notice states that for the purposes of Annual Returns, the filing period which falls within 25 March 2020 to 15 April … Continued
Posted on 31 Mar 2020
CMS Accreditation FSPs licensed to render Health Service Benefits are reminded that their CMS accreditation must be renewed before it expires. Individual brokers and broker organisations can renew accreditation commencing four months before the expiry of the current accreditation via the CMS online portal. A reminder that the manual system (hand delivery or email) to … Continued
Posted on 18 Mar 2020
Cybercrime is a serious matter of concern, not just for financial advisors but also for clients. By being aware of cybercriminals’ techniques and how they operate, and by taking reasonable precautions, you can remain alert and avert potential financial losses. In terms of section 11 of the FAIS General Code of Conduct: “A provider must … Continued
Posted on 18 Mar 2020
On 2 March 2020 the Financial Intelligence Centre (FIC) published two public statements on their website from the Financial Action Task Force (FATF). The public statements relate to jurisdictions under increased monitoring and high-risk jurisdictions that are subject to a call for action. 1. FATF public statement on high-risk jurisdictions that are subject to a … Continued
Posted on 18 Mar 2020
The Financial Intelligence Centre (FIC) recently published Draft Public Compliance Communication (PCC) 109 which provides guidance on the commencement and enforcement of the FIC Act as amended and which took effect on 2 October 2017. Draft PCC 109 states that accountable institutions must demonstrate full compliance with their obligations as set out in the FIC … Continued
Posted on 18 Mar 2020
FAIS General Code of Conduct and Short-term Deposits Code of Conduct Draft amendments to both the FAIS General Code of Conduct and Short-term Deposits Code of Conduct were published for public comment on 1 November 2017 by the then Financial Services Board (FSB). Masthead was one of sixteen commentators that submitted comments on the proposed … Continued
Posted on 18 Mar 2020
Annual Financial Statements All FSPs whose financial year end was on 31 December 2019 must ensure that their annual financial statements are submitted to the FSCA by 30 April 2020. FSPs which are required to submit Annexure A (FAIS Notice 82 of 2015) together with their Annual Financial Statements, are reminded to do so. CPD … Continued
Posted on 3 Mar 2020
Corporate governance is becoming increasingly important for the future fitness of financial service providers (FSPs), as legislation in the financial services industry moves from a rules-based approach to a principle-based approach. Corporate governance is the system by which companies are directed and controlled. Key Individuals, either in their own capacity or as a member of … Continued
Posted on 3 Mar 2020
On 25 February 2020, the Financial Sector Conduct Authority (FSCA) published their Annual Perimeter Report for 2020. The Report provides information on the FSCA’s mandate, who they regulate, their jurisdiction and current uncertainties of jurisdiction. What is the FSCA’s Perimeter The FSCA’s mandate is set out in the Financial Sector Regulation Act (FSRA) which also … Continued
Posted on 3 Mar 2020
Financial Services Providers (FSPs) have to consider and plan for several different requirements in the FAIS legislation relating to financial management, which goes beyond just the numbers. With many FSPs having just gone through their financial year end (i.e. end Feb 2020), it is as good a time as any to review the various financial … Continued
Posted on 3 Mar 2020
On 21 February 2020, the Council for Medical Schemes (CMS) published Press Release 2 of 2020, titled LCBO and Demarcation stakeholder engagements a success, which praised its recent stakeholder engagements on Low Cost Benefit Options (LCBOs) and Demarcation products as a success. The engagement sessions were held in Pretoria and Cape Town on 23 January … Continued
Posted on 3 Mar 2020
Annual Financial Statements (AFS) All FSPs whose financial year end was on 31 December 2019 must ensure that their annual financial statements are submitted to the FSCA by 30 April 2020. FSPs which are required to submit Annexure A (FAIS Notice 82 of 2015) together with their Annual Financial Statements, are reminded to do so. … Continued
Posted on 18 Feb 2020
The requirements of section 8(4)(a) of the FAIS General Code of Conduct (the Code) apply when addressing a client’s specific need, however, an Ombud determination highlights the implied duties that are also required of you. You can only avoid doing a full financial needs analysis if a client does not provide adequate information or if … Continued
Posted on 18 Feb 2020
The Council for Medical Schemes (CMS) recently published Circular 7 of 2020 which contains the details on the adjustment of fees payable to brokers. The Minister of Health has approved an increase on the maximum fee that is payable by medical schemes to brokers with effect from 1 January 2020. Regulation 28(2) published in terms … Continued
Posted on 18 Feb 2020
Directive 5 of 2019 was published by the Financial Intelligence Centre (FIC) during March 2019. The Directive relates to the usage of an Automated Transaction Monitoring System (ATMS) for the detection and submission of regulatory reports to the Centre in terms of section 29 (Suspicious and Unusual Transactions) of the FIC Act. Directive 5 places … Continued
Posted on 18 Feb 2020
A media release recently published on the website of the Ombud for Long-term Insurance stated that a new portal had been launched to assist complainants to lodge insurance related complaints. This portal was introduced shortly after the news that there would be a joint Ombudsman for both long-term and short-term insurance complaints with effect from … Continued
Posted on 18 Feb 2020
The Companies and Intellectual Property Commission (CIPC) previously announced that it is a mandatory requirement for all companies to submit a Compliance Checklist together with their Annual Return as of 1 January 2020. The checklist enables companies to declare their compliance status to specific sections of the Companies Act. CIPC will utilise the Checklist to … Continued
Posted on 18 Feb 2020
Competence training requirements 1. Class of Business Training FSPs, Key Individuals and Representatives are reminded to ensure that any Class of Business Training that has been completed must be added to the Competence Register within 15 days after the training occurred and all information and documentation relating to the training must be retained for … Continued
Posted on 4 Feb 2020
Voice recordings of your conversations with clients are an acceptable record of advice and may be used for your defence in the event of a dispute with a client. The FAIS General Code of Conduct for Authorised Financial Services Providers and Representatives (GCOC) requires providers to maintain a record of advice, which must reflect the … Continued
Posted on 4 Feb 2020
Financial advisors and asset managers must proceed with caution when offering, promoting or marketing offshore Collective Investment Schemes to their clients as the Collective Investment Schemes Control Act (CISCA) criminalises soliciting of investments in unapproved offshore investment funds. A person found guilty of this offence is liable on conviction to a fine not exceeding R10 … Continued
Posted on 4 Feb 2020
The Council for Medical Schemes (CMS) recently announced in Circular 3 of 2020 that it launched an online application portal that allows applicants to register and submit all broker applications for accreditation. The portal that went live on 20 January 2020 is also designed to allow individual brokers and broker organisations to renew accreditation commencing … Continued
Posted on 4 Feb 2020
During December 2019 the Council for Medical Schemes (CMS) published Circulars 80 and 82 of 2019 which announced its plans for Low Cost Benefit Options (LCBOs) and the Demarcation Exemption Framework. On 23 January 2020, the CMS further published Circular 5 of 2020 which stated that it will be hosting engagement sessions to unpack and … Continued
Posted on 4 Feb 2020
Several media publications reported that the Information Regulator recently requested the President to declare that the remaining provisions of the Protection of Personal Information Act (POPIA) commence on 1 April 2020. Certain sections of POPIA are already in effect such as the definitions in section 1, the establishment of the Information Regulator and the procedure … Continued
Posted on 4 Feb 2020
On 23 January 2020, the FSCA published Communication 1 of 2020 together with FSCA (INS) Notices 1 and 2 of 2020. The publications inform stakeholders that the general extension for compliance with Regulation 4.2(3) of the Regulations made under the Short-term Insurance Act (STIA) and Regulation 8.2(2) of the Regulations made under the Long-term Insurance … Continued
Posted on 4 Feb 2020
The FSCA recently published a press release that the Intergovernmental Fintech Working Group (IFWG) published its first Fintech Landscaping Report on 22 January 2020. The press release explains that Fintech is technology-enabled financial innovation which can lead to new business models, applications, processes and products, and is transforming the financial services sector globally. The research … Continued
Posted on 4 Feb 2020
Liquidity Calculation Declaration FSPs that are required to maintain liquid assets and whose financial year end was 31 December 2019, are required to submit Form A: Liquidity Calculation (Annexure six of BN 194 of 2017) to the FSCA by 14 February 2020. Juristic Reps that are required to maintain liquid assets and whose financial year … Continued
Posted on 21 Jan 2020
Keeping track of what must be done in an FSP and making time to address any gaps is key to remaining compliant and in business. Below we share some key dates and offer general reminders to help FSPs plan for the compliance requirements of 2020. General reminders: Ensure all information regarding the FSP’s profile on … Continued
Posted on 21 Jan 2020
The Companies and Intellectual Property Commission’s (“CIPC”) Annual Return is a statutory requirement in Section 33(1) of the Companies Act 71 of 2008 (as amended) (“Companies Act”), that states that every company must file an Annual Return in the prescribed form, with the prescribed fee, and within the prescribed period after the anniversary of the … Continued
Posted on 21 Jan 2020
The National Treasury published draft amendments to the regulations made in terms of the Financial Sector Regulation Act (FSRA). The draft amendments are proposed to regulations 3, 9, 10 and 11 of the current Financial Sector Regulations and aim to: Streamline the recruitment process for the Commissioner and Deputy Commissioners of the FSCA. Empower the … Continued
Posted on 21 Jan 2020
The FSCA published FSRA Exemption Notice 5 of 2019 on 19 December 2019, which came into effect on 1 January 2020. This Notice exempts certain microinsurers who offer credit life microinsurance policies from certain requirements of Rule 2A.10.1 of the Long-term Insurance Policyholder Protection Rules. This Rule prohibits a microinsurance policy benefit payable as a … Continued
Posted on 21 Jan 2020
The FSCA’s predecessor, the Financial Services Board, published its Retail Distribution Review (RDR) discussion document in November 2014. Since then, there have been various subsequent RDR communications with the most recent of these being published during December 2019 where six new documents have been made available to the public on the FSCA website. The December … Continued
Posted on 21 Jan 2020
Although there is still no indication as to when the Protection of Personal Information Act (POPIA) will come into force, there have been some recent developments related to POPIA. The Information Regulator published draft Guidelines to develop Codes of Conduct under the Protection of Personal Information Act. The draft Guidelines set out the structure and … Continued
Posted on 21 Jan 2020
During October 2019 the Financial Intelligence Centre (FIC) published the draft Public Compliance Communication 103 which provided guidance to the NPO sector, NPO Regulators and third parties dealing with NPOs, regarding measures that could be implemented in order to combat terrorist financing and money laundering risks within the NPO sector. The draft PCC was made … Continued
Posted on 21 Jan 2020
Class of Business deadline for Reps under Supervision Reps appointed under supervision before 1 February 2019 are reminded that they have until 31 January 2020 to meet the Class of Business training requirements. Masthead has partnered with Milpark Education, an accredited provider and higher education institution to offer you Class of Business training. Click here … Continued
Posted on 11 Dec 2019
Integration of IT systems between insurers and binder holders Binder holders are reminded that from 1 January 2020, they will be required to provide insurers with access to up-to-date, accurate and complete data at the following intervals: Daily – in respect of policies other than funeral and assistance policies Monthly – in respect of funeral … Continued
Posted on 11 Dec 2019
The FSCA recently published extensions to four exemption notices. These are: FSCA FAIS Notice 86 of 2019 The FSCA amended the Schedule to the Notice on Exemption of Particular FSPs from section 13 of the General Code of Conduct. Category I or Category IV FSPs that are also underwriting managers and that only render specific … Continued
Posted on 11 Dec 2019
Several significant regulatory changes were introduced to the financial services industry this year. Here are some of the highlights, as well as a heads-up for some of the changes which come into effect in 2020. December 2018 / January 2019 FAIS Notice 86 of 2018, published by the FSCA in December 2018, impacted FSPs that … Continued
Posted on 26 Nov 2019
Integration of IT systems between insurers and binder holders Binder holders are reminded that from 1 January 2020, they will be required to provide insurers with access to up-to-date, accurate and complete data at the following intervals: Daily – in respect of policies other than funeral and assistance policies Monthly – in respect of funeral … Continued
Posted on 26 Nov 2019
The Ombud for Short-term Insurance (OSTI) recently published its quarterly newsletter: The Ombudsman’s Briefcase Issue 3 of 2019, which contains news and events from OSTI, a few case studies and consumer tips. The case studies are intended to provide guidance and insight into the way the OSTI deals with complaints. In this issue, the case … Continued
Posted on 26 Nov 2019
The Financial Intelligence Centre (FIC) recently published a Collection of Case Studies and Indicators relating to financial crimes in South Africa. The Indicators included in this publication are to assist in identifying criminal activity as they set out examples or common methods used in financial crimes. These case studies and indicators can help FSPs to … Continued
Posted on 26 Nov 2019
The office of the FAIS Ombud has released a statement that Advocate Nonkumbulo Tshombe (preferred Name: Nonku) will take over from Naresh Suresh Tulsie as the new Ombud for Financial Services Providers. Advocate Tshombe assumed the role of Ombud effective 1 November 2019. The office of the FAIS Ombud stated that under the guidance of … Continued
Posted on 26 Nov 2019
The Department of Trade and Industry published a Notice that the Companies and Intellectual Property Commission (CIPC) has introduced a new electronic filing channel for Company and Close Corporation forms. The electronic web-based portal is called Bizportal and is a platform developed by the CIPC to offer company registration and related services in a simple … Continued
Posted on 26 Nov 2019
The Financial Sector Conduct Authority (FSCA) shifted compliance from rules and standards to principles on 1 April 2018 through Board Notice (BN) 194 of 2017. The advice industry now needs to comply with subjective issues such as honesty, integrity and good standing. How does one measure honesty? What is the defining criteria of integrity? What … Continued
Posted on 12 Nov 2019
Review your Business Plan As we approach the end of 2019, FSPs are reminded that they should begin planning and considering the needs of the business for 2020. The Business Plan should be reviewed and updated according to changes in the business and should include the aims and scope of the business as well as … Continued
Posted on 12 Nov 2019
The Financial Sector Conduct Authority (FSCA) has published its first Annual Report for 2018/2019 which provides information on the performance of the regulator and its various divisions, as it transitioned operations of the Financial Services Board (FSB) to the FSCA. During the period 1991 to 2018 the FSB was mandated to supervise and enforce compliance … Continued
Posted on 12 Nov 2019
The Financial Intelligence Centre (FIC) recently published draft Public Compliance Communication 105 (draft PCC 105) for public comment. The draft PCC 105 provides guidance on the use of reliance agreements by accountable institutions for customer due diligence (CDD) on shared clients. Accountable institutions are required to implement a Risk Management and Compliance Programme (RMCP) that, … Continued
Posted on 12 Nov 2019
The Financial Intelligence Centre (FIC) released its 2018/19 Annual Report which contains an overview of the work that the FIC has been involved in for the past year. The Report sets out information regarding the FIC’s performance, governance, human resource management, financial information and a materiality and significance framework. The Report also contains various case … Continued
Posted on 12 Nov 2019
An important consideration when you are a Financial Services Provider (FSP) is what will happen to your business in the untimely event of your death, temporary disability or decision to retire. Succession planning goes beyond meeting regulatory requirements. You may be encouraged to evaluate your financial position and determine if you can afford to retire, … Continued
Posted on 29 Oct 2019
Deadline for payment of Levies FSPs are reminded that the FAIS Levy Invoices should have been received with payment due by 31 October 2019. If an FSP has not received their invoice, we suggest that they contact the FSCA to request that this be re-sent to them. Failure to pay levies timeously can result in licence suspension. … Continued
Posted on 29 Oct 2019
The Financial Action Task Force (FATF) have identified non-profit organisations (NPOs) as entities which are vulnerable to abuse by criminals for terrorist financing and money laundering. In light of this, the Financial Intelligence Centre (FIC) recently published the draft Public Compliance Communication 103 (draft PCC 103) which provides guidance to the NPO sector, NPO Regulators … Continued
Posted on 29 Oct 2019
The Financial Intelligence Centre (FIC) recently published two notices on their website from the Financial Action Task Force (FATF) namely: FATF public statement on jurisdictions with strategic anti-money laundering (AML) Counter-terror financing (CFT) deficiencies and the FATF ongoing process to improve global AML/CFT compliance 1. FATF public statement on jurisdictions with strategic AML/CFT deficiencies – … Continued
Posted on 29 Oct 2019
New rules in terms of the Promotion of Access to Information Act 2 of 2000 (PAIA) have been published and come into operation on 4 November 2019. The rules set out the procedure for application to court which must be followed in all applications relating to section 78 of PAIA. Section 78 of PAIA pertains to … Continued
Posted on 29 Oct 2019
The FSCA recently published a Press Release warning the public against Fern Finance (Pty) Ltd (Fern). Fern was previously licensed by the FSCA as a Financial Services Provider (FSP) but had its licence withdrawn on 10 October 2019 for failure to comply with the provisions of the FAIS Act and for contravening section 7(1) of … Continued
Posted on 29 Oct 2019
FSPs can take steps to avoid a situation where they are facing a FAIS Ombud complaint after an insurer declines a client’s claim. There are examples where FSPs help their clients to submit a claim to the insurer and it backfires. The insurer repudiates the client’s claim, so the dissatisfied client looks to the advisor … Continued
Posted on 15 Oct 2019
Deadline for payment of Levies FSPs are reminded that the FAIS Levy Invoices should have been received with payment due by 31 October 2019. If an FSP has not received their invoice, we suggest that they contact the FSCA to request that this be re-sent to them. Failure to pay levies timeously can result in licence suspension. … Continued
Posted on 15 Oct 2019
The FSCA recently published a draft exemption in terms of the Collective Investment Schemes Control Act (CISCA). The draft exemption proposes to exempt managers and auditors of collective investment schemes (CIS) from the application of section 74(1)(a) and 2(c) of the CISCA, which determines the accounting standard to be applied by managers and auditors of … Continued
Posted on 15 Oct 2019
The Financial Sector Conduct Authority (FSCA) recently published FSRA Compliance Extension Notices namely 1 and 2 of 2019 for Short-term and Long-term Insurance respectively (Notices). In terms of these Notices, the FSCA granted an extension for the period of compliance with Regulation 4.2(3) of the Regulations made under section 70 of the Short-term Insurance Act … Continued
Posted on 15 Oct 2019
The FSCA recently published a Press Release regarding the fine that it imposed on MET Collective Investments (Pty) Ltd (METCI). The administrative penalty of R100 million was a result of METCI contravening various sections of financial sector laws including section 4 of the Collective Investments Schemes Control Act (CISCA) and Board Notice 90 and 92. … Continued
Posted on 15 Oct 2019
FSPs must strive to maintain and adopt the highest ethical standards and values in their business activities and practices. This includes avoiding, eliminating or mitigating conflict of interest. A recent FAIS Ombud determination in the case of K.R. Morulane v Silver Seed Capital (Pty) Ltd and 2 others reveals why it is crucial to declare … Continued
Posted on 2 Oct 2019
Levies due and payable FSPs are reminded that the FAIS Levy Invoices should have been received with payment due by 31 October 2019. If an FSP has not received their invoice, we suggest that they contact the FSCA to request that this be re-sent to them. Failure to pay levies timeously can result in licence suspension. … Continued
Posted on 2 Oct 2019
The FSCA published a few press releases warning the public against doing any financial services business with various named entities. The said entities are not authorised in terms of the Financial Advisory and Intermediary Services Act. FSPs are reminded that should you receive any marketing material or are approached to market a product, you should … Continued
Posted on 2 Oct 2019
The FSCA recently published a Press Release regarding the fine that it imposed on the Steinhoff Group. The Steinhoff Group were being investigated, by the FSCA, due to alleged contraventions of the Financial Markets Act in the period prior to the discovery of significant accounting irregularities at the Company in December 2017. The Press Release … Continued
Posted on 2 Oct 2019
“Free Lunch” During the mid-1800’s taverns in the USA (particularly around New Orleans) would advertise a “free lunch” to lure in customers during the mid-day hours. They would tell prospective customers that if they bought a drink, they’d get a free lunch. So, as much as the lunch sounds free, customers were expected to first … Continued
Posted on 17 Sep 2019
Keep a look out for your Levy Invoice The FSCA will prepare and send Levy Invoices to FSPs towards the end of September 2019. FSPs are reminded to check that the FSCA has their most up-to-date contact details to ensure that the invoice reaches the FSP and can be paid before the deadline date of 31 … Continued
Posted on 17 Sep 2019
The Council for Medical Schemes (CMS) will be hosting an advanced training programme for accredited healthcare brokers in Cape Town on 9 October 2019. Details on induction sessions for brokers in other provinces will be made available on the CMS website: www.medicalschemes.com The training will among others, cover the following topics: Broker Conduct, Pitfalls and … Continued
Posted on 17 Sep 2019
The Financial Intelligence Centre (FIC) clarified its role in a media release published on 4 September 2019. The publication followed several queries from the media on whether the FIC had acted lawfully in providing certain information to the Office of the Public Protector. The FIC stated that whilst it does not usually address issues through … Continued
Posted on 17 Sep 2019
Government Notice 1130 of 30 August 2019, published in a recent Government Gazette (No. 42677), amended dates in previous Government Notices (General Notice 142 of 18 March 2019 and Government Notice 1019 of 28 September 2018) which relate to provisions on the Ombud. Government Notice 1130 has the following effect: The commencement date of Chapter … Continued
Posted on 17 Sep 2019
Before you appoint a representative, check if the applicant has a date of first appointment (DOFA), as this will determine if the applicant has time to comply with the fit and proper requirements. A DOFA is the date on which one is first appointed as a representative of an authorised Financial Services Provider (FSP) and … Continued
Posted on 3 Sep 2019
Levies – ensure contact details are updated FSPs will be issued with an invoice by the FSCA towards the end of September 2019 for the levies applicable to their FSP. FSPs are reminded to check that all their information and contact details on the FSCA’s website is up-to-date and correct to ensure that their Levy … Continued
Posted on 3 Sep 2019
The FSCA has published a warning to the public against doing any financial services with Destinata 104 (Pty) Ltd and Wealth Solutions Investments & Development Partners. The said entities are soliciting funds from members of the public by offering investment opportunities in the student accommodation sector. They promise a total net return of 230% on … Continued
Posted on 3 Sep 2019
The Ombud for Short-term Insurance (OSTI) recently published a media release directed at policyholders listing “five ways in which your conduct could invalidate your insurance policy”. The media release is based on common things that consumers do which may result in the insurer cancelling cover or refusing to pay out a claim. While the media … Continued
Posted on 3 Sep 2019
On 18 April 2019, the FSCA informed FSPs that in place of the 2019 Annual or Bi-annual Compliance Reports, there would be a General Request for Information (RFI). At the end of August, the FSCA published FSRA Notice 1 / 2019 (General) and FSCA Communication 1 of 2019 (General) informing FSPs that an RFI template, in … Continued
Posted on 3 Sep 2019
Being compliant by staying on top of regulatory requirements is one of the main concerns that keeps advisors up at night, according to a recent Masthead survey. This concern is understandable, as the financial services industry has become increasingly regulated with a focus on rendering financial services within the framework of treating customers fairly. Complying … Continued
Posted on 20 Aug 2019
Update Rep Register A reminder that levies due by FSPs will be calculated based on the information available to the FSCA as at 31 August 2019. It is, therefore, important for FSPs to ensure that their representative register is up to date and to check that all their information is correct. FSPs can notify the FSCA of any … Continued
Posted on 20 Aug 2019
The FSCA has announced that it will be hosting workshops from September 2019 until February 2020. The workshops are aimed at small FSPs and SMME FSPs and focus on the requirements to maintain an existing licence. The workshop will be run over one day. The two main topics for the day will be understanding how … Continued
Posted on 20 Aug 2019
Earlier this year Masthead communicated the delay of the commencement date relating to the chapter on Ombuds in the FSRA. This is a reminder that Chapter 14 of the FSRA, which contains sections 175 to 217, will come into effect on 1 September 2019. The FSRA will also repeal the Financial Services Ombud Schemes Act … Continued
Posted on 20 Aug 2019
In the previous issue of Mastering Compliance, we published the new contact details and updated Rules of the Financial Services Tribunal (Tribunal) which took effect on 1 August 2019. In this issue we take a closer look at the Tribunal and the Rules. The Tribunal was established in terms of section 219 of the Financial … Continued
Posted on 20 Aug 2019
Dealing with an Ombud complaint is time consuming and stressful. By keeping abreast of Ombud determinations, you can learn valuable lessons that will enable you to circumvent such complaints from arising in your business. Click here to read about the main reasons why the Ombud made a determination against FSPs and advisors.
Posted on 6 Aug 2019
Category II, IIA & III FSPs required to report assets under management Category II, IIA and III FSPs must calculate their assets under management (AUM) as at 30 June 2019 and prepare this for submission to the FSCA by no later than 21 August 2019. Read the FSCA 2019 AUM Levy Letter. Update your … Continued
Posted on 6 Aug 2019
The Financial Services Tribunal which replaced the FSB Appeal Board in April 2018, is responsible for the reconsideration of decisions made by decision-makers as defined in section 218 of the Financial Sector Regulation Act. The Tribunal published a new set of rules which came into effect on 1 August 2019 and communicated their new address … Continued
Posted on 6 Aug 2019
ASISA recently published the following Standards on their website: ASISA Retail Standard on Effective Annual Cost ASISA Retirement Fund Standard: Effective Annual Cost for Individual Fund Members ASISA Standard: Calculation and Disclosure of Total Expense Ratios and Transaction costs These Standards should help advisors fulfil their duties to clients when providing advice and/or intermediary services … Continued
Posted on 6 Aug 2019
The FSCA published FSRA Exemption Notice 1 of 2019 – Exemption of certain insurers from Rule 19 of the Policyholder Protection Rules (Long-term insurance) and Regulation 3.9a of the Regulations under the Long-term Insurance Act, 1998, on 22nd July 2019. The purpose of this Notice is to exempt insurers that offer assistance policies, funeral policies or … Continued
Posted on 6 Aug 2019
The provisions contained in section 8 of the General Code of Conduct (GCoC) are not optional, which means you are responsible for the suitability of advice rendered to clients. Section 2 of the GCoC indirectly highlights the importance of determining the suitability of advice: “A provider must at all times render financial services honestly, fairly, … Continued
Posted on 23 Jul 2019
Category II, IIA & III FSPs required to report assets under management Category II, IIA and III FSPs must calculate their assets under management (AUM) as at 30 June 2019 and prepare this for submission to the FSCA by no later than 31 July 2019. CPD Exemption FSPs, KIs and Reps that are making … Continued
Posted on 23 Jul 2019
The Ombud for Short-term Insurance (OSTI) recently published its quarterly newsletter: The Ombudsman’s Briefcase. This Issue 2 of 2019 announces the new appointment of Latoya Masango as Assistant Ombudsman. The issue also contains excerpts from the 2018 Annual Report, information on the Annual Report launch where Senior Assistant Ombudsman, Ayanda Mazwi, presented the statistical analysis … Continued
Posted on 23 Jul 2019
The Office of the FAIS Ombud recently published details of a settled complaint regarding replacement of policies. In this matter the complainant acted in the capacity of an Executor for the deceased’s estate whose life insurance policy had been cancelled and replaced with a new policy with another insurer. A claim to the new insurer … Continued
Posted on 23 Jul 2019
The Financial Sector Conduct Authority (FSCA) published a draft Notice on the Levies of Financial Institutions on 6 June 2019 and invited interested parties to submit their comments by 21 June 2019. Masthead considered the impact of the proposed increases in levies on independent financial advisors and submitted comments to the FSCA. The FSCA has … Continued
Posted on 23 Jul 2019
The Financial Intelligence Centre Amendment Act (Amendment Act) brought about various changes yet many financial advice businesses have not comprehended the effect of such changes. This places them at risk in the event of a compliance inspection. Some important changes brought by the Amendment Act is that it imposed a new set of obligations on … Continued
Posted on 9 Jul 2019
Continuous Professional Development (CPD) CPD Exemption FSPs, KIs and Reps that are making use of the CPD exemption which the FSCA afforded for the 2018 CPD cycle are reminded that the deadline to comply with the required number of CPD hours is 31 July 2019. Planning for the 2019/2020 CPD cycle The current CPD cycle … Continued
Posted on 9 Jul 2019
Regulation 28 (Reg 28) under the Pension Funds Act aims to ensure that the savings South Africans contribute towards their retirement is invested in a prudent manner that not only protects the retirement fund member but is also channeled in ways that achieve economic development and growth. Reg 28 promotes responsible investing of fund assets, … Continued
Posted on 9 Jul 2019
The Financial Sector Conduct Authority (FSCA) recently announced the appointment of Ms. Kedibone Dikokwe as the Divisional Executive: Conduct of Business Supervision which took effect from 1 July 2019. The Conduct of Business Supervision is the division that supervises the way financial institutions interact with their customers. In this role Ms. Dikokwe will oversee the … Continued
Posted on 9 Jul 2019
The Financial Intelligence Centre (FIC) Appeal Board Rules sets out the rules and procedures to be followed when lodging an appeal against a decision made by a decision-maker (either the FIC or a supervisory body in accordance with section 45C of the Financial Intelligence Centre Act, 2001). The rules, inter alia, also contain a precedent … Continued
Posted on 9 Jul 2019
FSPs that hold money or assets on behalf of clients are required, in terms of section 19(3) of the FAIS Act, to maintain full and proper monthly accounting records in respect of such money or assets. They are also required to submit a separate auditor report to the FSCA together with the annual financial statements. … Continued
Posted on 9 Jul 2019
One of the Fit and Proper requirements listed in chapter 5 of Board Notice 194 of 2017 is that each FSP must have a business plan that includes the aims and scope of the business as well as the business strategies. As we enter the second half of 2019, FSPs should begin planning ahead and … Continued
Posted on 25 Jun 2019
Annual Financial Statements A final reminder to all FSPs whose financial year end was 28 February 2019 to ensure that their annual financial statements are submitted to the FSCA by 30 June 2019. FSPs which are required to submit Annexure A (FAIS Notice 82 of 2015) together with their Annual Financial Statements, are reminded to … Continued
Posted on 25 Jun 2019
FSCA Communication 5 of 2019 (Insurance), recently published by the FSCA together with other related documents, contains the format for the replacement advice record (RPAR) in terms of Rule 19 of the Long-term Insurance Policyholder Protection Rules (PPRs) with an effective date of 1 September 2019. The Communication provides a brief background on Rule 19 … Continued
Posted on 25 Jun 2019
The FSCA recently published Guidance Notice 1 of 2019: Debarment Process which provides general guidance on the application of section 14, the debarment process, of the Financial Advisory and Intermediary Services (FAIS) Act, 2002. The notice provides guidance on the rationale to be applied and process to be followed by Financial Services Providers (FSPs) when … Continued
Posted on 25 Jun 2019
The FSCA recently published FSCA Communication 1 of 2019: Scripted Execution of Sales. The Communication applies to all Category I Financial Services Providers (FSPs) and is aimed at providing guidance on the process to follow when amending the profiles of representatives to include scripted execution of sales. An FSP that meets the requirements applicable to … Continued
Posted on 25 Jun 2019
According to the principles of Treating Customers Fairly (Outcome 2), products and services in the retail market, which are sold and marketed, must be designed according to the needs of the customers identified and targeted accordingly. When designing or creating a product, the outcome for the end user must always be considered. While this is … Continued
Posted on 11 Jun 2019
FSPs must ensure that the Competence Register is updated with CPD activities within 30 days after the expiry of each CPD cycle i.e. 30 June.
Posted on 11 Jun 2019
The Financial Sector Conduct Authority (FSCA) recently published two notices on Continuous Professional Development (CPD). These are: FSCA Communication 2 of 2019 (FAIS) – Continuous Professional Development (CPD) FSCA FAIS Notice 40 of 2019: Exemption from Continuous Professional Development Requirements, 2019 – No. 2 of 2019 General CPD Guidance The FSCA Communication 2 of 2019 … Continued
Posted on 11 Jun 2019
The FSCA Bulletin released for Quarter 4 2018/19 is themed around the Conduct of Financial Institutions (COFI) Bill. The Bill seeks to streamline the legal framework for the regulation of the conduct of financial institutions and focuses on the implementation of the Treating Customers Fairly (TCF) principles. The Bulletin also contains various regulatory topics, warnings … Continued
Posted on 11 Jun 2019
The Financial Sector Conduct Authority (FSCA) recently published a Draft Conduct Standard which prescribes the minimum skills and training requirements for board members of pension funds. The proposed Conduct Standard is set to take effect on 1 January 2020. Submissions on the draft Conduct Standard must be sent to the FSCA at MinimumSkillsandTraining@fsca.co.za by 4 … Continued
Posted on 11 Jun 2019
The Determination of Fit and Proper Requirements for Financial Services Providers (BN194 of 2017) prescribes that an FSP, a KI and a Rep must have a qualification recognised by the Financial Sector Conduct Authority (FSCA). The FSCA, either on application by a person or at their own initiative will recognise a qualification for each category … Continued
Posted on 11 Jun 2019
Besides being a regulatory requirement, Continuous Professional Development (CPD) ensures that you continue to be competent in your profession. Training and learning increases confidence, overall capability, complements career aspirations and the ability to adapt positively to changes in industry requirements. The annual deadline date for FSPs, Key Individuals (KIs) and Representatives (Reps) to comply with … Continued
Posted on 28 May 2019
The next CPD cycle will start on 1 June 2019 until 31 May 2020. FSPs, KIs, and Reps are advised to put a CPD Plan together in order to manage and plan ahead to ensure that the type and combination of CPD activities undertaken are relevant, contribute to the knowledge, skills and ethical standards of … Continued
Posted on 28 May 2019
All FSPs whose financial year end was 28 February 2019 must ensure that their annual financial statements are submitted to the FSCA by 30 June 2019. FSPs which are required to submit Annexure A (FAIS Notice 82 of 2015) together with their Annual Financial Statements, are reminded to do so. Where an FSP is not … Continued
Posted on 28 May 2019
The FSCA Bulletin released for Quarter 3 2018/19 contains various regulatory topics, warnings / enforcement actions, events, and consumer education pertaining to the financial industry. This issue of the Bulletin sets out the FSCA’s three year regulatory strategy and gives insight on the strategic priorities for the Authority going forward. The Prudential Authority also outlines … Continued
Posted on 28 May 2019
On 17 May 2019, the Financial Sector Conduct Authority (FSCA) published FAIS Notice 35 of 2019: Exemption from Continuous Professional Development Requirements which sets out an Exemption from Continuous Professional Development (CPD) requirements. The FSCA also published an Explanatory Note: Exemption from Continuous Professional Development Requirements together with the Exemption Notice which explains the background … Continued
Posted on 28 May 2019
Various amendments to the Financial Intelligence Centre Act, 2001 (as contained in the Financial Intelligence Centre Amendment Act 1 of 2017) were set to come into effect on three different dates. These dates were 13 June 2017, 2 October 2017, and “dates to be determined”. In April 2018 the Financial Sector Conduct Authority (FSCA) communicated … Continued
Posted on 28 May 2019
Government Notice 657 of 10 May 2019 published in a recent Government Gazette (No. 42454) amended dates in previous Government Notices published (General Notice 142 of 18 March 2019 and Government Notice 1019 of 28 September 2018). Government Notice 657 has the following effects: The commencement date of Chapter 14 (sections 175 to 217) of … Continued
Posted on 28 May 2019
A recent Ombud determination highlights the importance of adhering to the FAIS General Code of Conduct (GCoC) when rendering financial services and the duty to investigate a client’s needs when providing advice. In the case of Bongani Nxumalo v Central Financial Advisors (Pty) Ltd t/a Coler Financial Services Providers, the financial service provider (FSP) assisted … Continued
Posted on 14 May 2019
All FSPs whose financial year end was 28 February 2019 must ensure that their annual financial statements are submitted to the FSCA by 30 June 2019. Please ensure that your accounting records are sent to your accountants/auditors as soon as possible and that they are on track to meet the deadline. It remains the responsibility of the FSP … Continued
Posted on 14 May 2019
The Financial Sector Conduct Authority (FSCA) recently published the first Draft Conduct Standard applicable to Banks. The objective of the draft Conduct Standard is to introduce requirements that promote the fair treatment of financial customers of banks. Submissions on the draft Conduct Standard must be sent to the FSCA at FSCA.RFDConductStandardBanks@fsca.co.za by 18 June 2019 … Continued
Posted on 14 May 2019
The Office of the Ombud for Financial Services Providers recently published their newsletter: FAIStime Newsletter Quarter 4 of 2019 which focuses on consumer rights and responsibilities towards their respective financial services providers. Some of the topics discussed are: Risk profiling The responsibilities of the insurer, the broker, and consumer in terms of the Long-term and … Continued
Posted on 14 May 2019
The latest newsletter of the Ombud for Short-term Insurance (OSTI): The Ombudsman’s Briefcase Issue 1 of 2019 published on the OSTI’s website contains a few case studies, consumer tips and announcements. Some of the announcements are the OSTI’s Annual Report launch and the OSTI’s new complaint handling process. The OSTI’s Annual Report for 2018, which … Continued
Posted on 14 May 2019
The Council for Medical Schemes (CMS) recently published CMS Circular 36 of 2019: Amendment to Regulations 31 and 32 of the Medical Schemes Act. Regulation 31 deals with Fees Payable and Regulation 32 deals with Penalties. We have set out all the proposed changes in Table 1. FSPs and their representatives that are approved or … Continued
Posted on 14 May 2019
There has been much debate about risk profiling and its relevance – or lack thereof – in determining an appropriate investment solution for customers. Stepping away from this controversy, we look at what else financial advisors should consider about the customer when deciding on an investment strategy. Gathering information is a critical step in the … Continued
Posted on 30 Apr 2019
The Insurance Act prohibits a person from conducting insurance business in South Africa unless that person has been licensed[1]. Although authorised financial services providers (FSPs) are licensed in terms of the Financial Advisory and Intermediary Services Act (FAIS) there may be regulatory consequences if they render financial services in respect of the products of an … Continued
Posted on 30 Apr 2019
The Conduct of Business Division at the FSCA recently sent out a notification regarding a general request for information (RFI). The notification explains that the purpose of the RFI is to confirm that the FSPs’ business information as per FSCA’s records is accurate and to identify where there are discrepancies. If, as a result of … Continued
Posted on 30 Apr 2019
In December 2018 the FSCA published FSCA Communication 2 of 2018: Update on the future of the premium collection regulatory framework under the Short- and Long-term Insurance Acts. This communication highlighted the various regulatory interventions being considered to address specific risks inherent in third party premium collection business models. The communication also confirmed that further … Continued
Posted on 30 Apr 2019
The Conduct of Financial Institutions (COFI) Bill was published by National Treasury in December 2018 and industry was given until the end of March 2019 to comment. The COFI Bill is an important development for FSPs as it will replace the FAIS Act as the main market conduct legislation. There are currently 13 different financial … Continued
Posted on 17 Apr 2019
The next CPD cycle will commence on 1 June 2019 until 31 May 2020. FSPs, KIs, and Reps are advised to put a CPD Plan together in order to manage and plan ahead to ensure that the type and combination of CPD activities undertaken are relevant, contribute to the knowledge, skills and ethical standards of … Continued
Posted on 17 Apr 2019
FSPs, KIs and Reps are reminded that the deadline to comply with the required number of CPD hours is 31 May 2019. Masthead offers various CPD accredited seminars and online learning activities on the Masthead Learning Centre.
Posted on 17 Apr 2019
FSPs are reminded to check the status of their Professional Indemnity (PI) Cover and to renew same if required. Failure to renew PI Cover on time will result in a gap in cover. Such a gap can cause the FSP to face the risk that any losses which occur during this gap period (prior to … Continued
Posted on 17 Apr 2019
The usage of an Automated Transaction Monitoring System for the detection and submission of regulatory reports to the Financial Intelligence Centre in terms of Section 29 of the Financial Intelligence Centre Act, 2001 (Act no. 38 of 2001) The Financial Intelligence Centre recently published Directive 5 of 2019. This Directive is applicable to all Accountable … Continued
Posted on 17 Apr 2019
The National Treasury recently published a list of sections from the Financial Intelligence Centre Amendment Act that commenced on 1 April 2019. The sections relate to the identification of persons and entities by the United Nations Security Council and the imposition of financial sanctions. In particular, the sections which came into effect are: Section 2(a) … Continued
Posted on 17 Apr 2019
The Financial Services Tribunal, previously the FSB Appeal Board, published a new set of rules on 29 March 2019. The Financial Services Tribunal Rules (Rules) sets out the rules and procedures to be followed in an application for reconsideration of a “decision” by the “decision-maker” which has been defined in section 218 of the Financial … Continued
Posted on 17 Apr 2019
The Financial Intelligence Centre recently released a Notice on Targeted Financial Sanctions (TFS) List in accordance with Section 26A of the Financial Intelligence Centre Act, 2001. The FIC Act[1] prohibits any dealings with a person or an entity that has been identified pursuant to a resolution of the Security Council of the United Nations. The … Continued
Posted on 17 Apr 2019
The new Fit & Proper requirements came into effect on 1 April 2018. FSPs, Key Individuals and Representatives must take note of these new requirements, especially Continuous Professional Development (CPD) as the first annual regulatory CPD cycle comes to an end on 31 May 2019. CPD is applicable to almost all[1] Representatives of FSPs, and … Continued
Posted on 2 Apr 2019
The Council for Medical Schemes (CMS) recently published the Demarcation Exemption Renewal Framework. Background The Demarcation Regulations which came into effect on 1 April 2017, identified the types of contracts that, despite the contracts meeting the definition of the business of a medical scheme in the Medical Schemes Act[1] (MSA), are “health policies” or “accident … Continued
Posted on 2 Apr 2019
The deadline to implement a FICA Risk Management and Compliance Programme is here! Accountable institutions are reminded that they must have fully adopted and implemented an RMCP to replace their FICA Internal Rules. Masthead hosts A Practical Guide to developing your own FICA Risk Management & Compliance Programme Seminar where you can learn how to … Continued
Posted on 2 Apr 2019
All FSPs whose financial year end was on 31 December 2018 must ensure that their annual financial statements (AFS) are submitted to the FSCA by 30 April 2019. FSPs which are required to submit Annexure A (FAIS Notice 82 of 2015) together with their Annual Financial Statements, are reminded to do so. Where an FSP is … Continued
Posted on 2 Apr 2019
FSPs (CAT II, IIA, and III) required to maintain liquid assets and whose financial year end was 28 February 2019, are required to submit Form A: Liquidity Calculation (Annexure six of BN 194 of 2017) to the FSCA by 15 April 2019 (i.e. 45 days after financial year-end). A juristic rep of either a CAT … Continued
Posted on 2 Apr 2019
On 27 March 2019, the FSCA published an update on the development of a format for the replacement advice record (RPAR) in terms of Rule 19 of the Policyholder Protection Rules (PPRs) made under section 62 of the Long-term Insurance Act. Rule 19 of the PPRs sets out the prerequisites for a long-term insurer when … Continued
Posted on 2 Apr 2019
Following the consultation process for the proposed changes to the Financial Intelligence Centre (FIC) draft guidance notes published during January 2019, the FIC has now considered all commentary received and updated the following FIC guidance notes as published on 26 and 27 March 2019: 1) Guidance Note 4B: on Suspicious and Unusual Transaction Reporting (section … Continued
Posted on 2 Apr 2019
On 25 March 2019, the Financial Intelligence Centre (FIC) published a booklet on Typologies and Case Studies specifically focusing on money laundering vulnerabilities faced within the Casino and Gaming industry and the Property sector. One of the main aims of the FIC is to protect the financial integrity of South Africa. In fulfilling this aim, … Continued
Posted on 2 Apr 2019
Most Key Individuals and sole proprietors (Key Individuals) are unaware of the huge responsibility resting on their shoulders, especially in terms of their duty of management and oversight. These responsibilities are increasing with the new principle-based approach to regulation. While the FSP is responsible for establishing and maintaining procedures to be followed to comply with … Continued
Posted on 19 Mar 2019
FSPs, KIs and Reps are reminded that the deadline to comply with the required number of CPD hours is 31 May 2019. Masthead offers various accredited CPD activities. To view a list of all our CPD activities, click here.
Posted on 19 Mar 2019
The requirement to implement a Risk Management and Compliance Programme (section 42 of the FIC Act) came into effect on 2 October 2017, however accountable institutions have been granted some time to implement this. Accountable institutions are reminded that they must have fully adopted and implemented an RMCP by 2 April 2019 to replace their … Continued
Posted on 19 Mar 2019
The Financial Intelligence Centre (FIC) and National Treasury recently published draft regulations and draft guidance notes for public comment. The draft regulations address sections 28 and 31 of FICA which deal with Cash Threshold Reporting (CTR) and Aggregation, and International Funds Transfer Reporting (IFTR) respectively. The draft regulations were published together with a consultation paper … Continued
Posted on 19 Mar 2019
The FSCA recently published a notice of extension for the submission period for Over-The-Counter Derivative Providers applications. The extension is until 14 June 2019. Click here to read the Notice for Extension
Posted on 19 Mar 2019
The FSCA reminds consumers who wish to conduct financial services with an institution or person to check that they are authorised by the FSCA and clarify the exact services that person or institution is authorised to offer. Click on the links be to read the media releases published by the FSCA in this regard: The … Continued
Posted on 19 Mar 2019
Your business can avoid multiple risks by having a proper review process in place. By doing so, not only would your FSP be compliant with FAIS legislation, but you could avoid client complaints to the Ombud and reputational damage to your business. Following the correct process, you can also reinforce client relationships and treat customers … Continued
Posted on 5 Mar 2019
FSPs (CAT II, IIA, and III) required to maintain liquid assets and whose financial year end was 28 February 2019, are required to submit Form A: Liquidity Calculation (Annexure six of BN 194 of 2017) to the FSCA by 15 April 2019 (i.e. 45 days after financial year-end). CAT I FSPs that hold client assets … Continued
Posted on 5 Mar 2019
All FSPs whose financial year end was 28 February 2019 must ensure that their annual financial statements are submitted to the FSCA by 30 June 2019. Please ensure that your accounting records are sent to your accountants/auditors as soon as possible and that they are on track to meet the deadline. It remains the responsibility of the FSP … Continued
Posted on 5 Mar 2019
On 21 February 2019 the Council for Medical Schemes (CMS), regulator of the medical schemes industry, announced the appointment of Dr. Sipho Kabane as the Chief Executive and Registrar for the regulator. Read CMS Circular 12 of 2019 to find out more about the appointment.
Posted on 5 Mar 2019
The final retirement funds default regulations, made in terms of section 36 of the Pension Funds Act, came into effect on 1 September 2017. The changes introduced by the new default regulations included adjustments to investment portfolios, preservation, portability and annuity strategies for funds. The default regulations came into full effect on 1 March 2019 … Continued
Posted on 5 Mar 2019
The Financial Intelligence Centre Act (FICA), as amended, requires all Accountable Institutions (AIs) to have a Risk Management and Compliance Programme (RMCP) in place. The requirement to implement a RMCP came into effect on 2 October 2017, and since then the RMCP has been a buzzword in the financial industry with many articles and workshops … Continued
Posted on 19 Feb 2019
Although the requirement to implement a Risk Management and Compliance Programme (section 42 of the FIC Act) came into effect on 2 October 2017, accountable institutions have been granted some time to implement this. Accountable institutions are reminded that they must have fully adopted and implemented an RMCP by 2 April 2019 to replace their … Continued
Posted on 19 Feb 2019
CAT II and IIA FSPs are required to submit their Bi-Annual Compliance Reports to the FSCA two (2) months after the reporting date. The reporting dates for Category II and IIA FSPs are 30 June and 31 December of each year. The upcoming Compliance Reports must, therefore, be submitted to the FSCA by 28 February … Continued
Posted on 19 Feb 2019
Category I FSPs that do not have a Compliance Officer must submit their Annual Compliance Reports to the FSCA on or before 28 February 2019 in terms of FSCA FAIS Notice 69 of 2018. Should you have any enquiries relating to the submission of the report, please contact the FSCA for assistance on 012 428 … Continued
Posted on 19 Feb 2019
The Council for Medical Schemes recently published Circular 4 of 2019 detailing the adjustment of fees payable to brokers. The Minister of Health has approved an increase on the maximum fee that is payable by medical schemes to brokers with effect from 1 January 2019. Regulation 28(2) published in terms of the Medical Schemes Act, … Continued
Posted on 19 Feb 2019
The Financial Sector Conduct Authority (FSCA) recently announced their new executive appointments which took effect from 1 February 2019. These are: Read more in FSCA Press Release: The Financial Sector Conduct Authority appoints new executives
Posted on 19 Feb 2019
Authorised Financial Services Providers (FSP) and their juristic representatives are required to comply with financial soundness requirements applicable to their category(ies) of license and the type of financial services which they provide. FSPs that do not continuously meet these requirements face the risk of license suspension or even licence withdrawal. Some FSPs have additional reporting … Continued
Posted on 19 Feb 2019
A governance framework that has a practical overview of your business and treats customers fairly became mandatory for financial service providers (FSPs) when the new fit and proper requirements came into effect on 1 April 2018. As the core of corporate governance, a governance framework comprises the rules and procedures that set out what a … Continued
Posted on 5 Feb 2019
FSPs that are required to maintain liquid assets and whose financial year end was 31 December 2018, are required to submit a Liquidity Calculation Declaration to the FSCA by 14 February 2019.
Posted on 5 Feb 2019
CAT II and IIA FSPs are required to submit their Bi-Annual Compliance Reports to the FSCA two (2) months after the reporting date. The reporting dates for Category II and IIA FSPs are 30 June and 31 December of each year. The Compliance Reports must, therefore, be submitted to the FSCA by 28 February 2019. … Continued
Posted on 5 Feb 2019