In terms of section 19(2) of the FAIS Act, all FSPs are required to submit financial statements for the FSB to determine if an FSP complies with the financial soundness requirement in terms of the Fit and Proper Requirements (BN 106 of 2008). Financial statements must be signed by the relevant person(s) before submitting.
The financial statements must be submitted within 4 months after the financial year end of such FSP. For example, if your year end is 28 February then the financials must be submitted before 30 June of the same year. It remains the responsibility of the FSP and Key Individual to ensure that these reports are submitted within the prescribed period. FSPs who are required to submit their financial statements at the end of June should ensure that all information is submitted to their accountants/auditors as soon as possible to meet this deadline. Failure to submit financial statements could lead to penalties.
An FSP must meet the Financial Soundness requirements as per the Fit and Proper requirements as follows:
The accountants or auditors of FSPs must ensure that they understand the requirements set out above. It does however remain the ultimate responsibility of the Key Individual to ensure that the financial statements reflect the correct and accurate financial position of the FSP.
If you are uncertain about calculations, contact your Masthead Compliance Officer for assistance.