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 changes. Masthead’s comments focused specifically on how these changes will impact independent financial advisors and smaller FSPs.
The draft amendments have since been through a consultation process where comments received from the industry have been considered and the proposed amendments have been revised as necessary. The final proposed amendments were submitted to Parliament on 18 February 2020 by the Financial Sector Conduct Authority (FSCA) who have indicated that they will publish the final amendments after 30 days assuming that there are no delays emanating from the Parliamentary process.
Some of the amendments to the General Code of Conduct relate to sections dealing with advertising, replacements, conflict of interest, direct marketers, disclosures, suitability, record of advice and complaints management. To read related articles published by Masthead on the proposed amendments[1], click here.
Once the amendments come into effect, FSPs will have to make system and process changes in order to comply with the new requirements. Various commentators raised the need for transitional provisions to enable FSPs sufficient lead time to address the changes. Accordingly, the draft amendments provide for a transitional period in respect of certain sections. FSPs must consider the proposed changes and start to consider the implications that they may have on their business and the various policies and procedures currently in place so that they can begin to make changes well ahead of the commencement of the various requirements.
- Read the final proposed amendments submitted to Parliament on the FAIS General Code of Conduct and Short-term Deposits Code of Conduct.
- Read the Consultation Report which includes Regulatory Response to Public Comments.
Determination of Fit and Proper Requirements
Draft amendments to the Determination of Fit and Proper Requirements (Board Notice 194 of 2017) were published for public comment on 29 March 2018. Masthead was one of six commentators that submitted comments in respect of these proposed changes. All comments have since been considered by the FSCA and the proposed amendments have been revised as necessary and submitted to Parliament.
Advisors should start considering the revised amendments ahead of the final publication and commencement dates.
- Read the final proposed amendments submitted to Parliament on the Determination of Fit and Proper Requirements.
- Read the Consultation Report which includes Regulatory Response to Public Comments.
[1] Articles are based on the initial proposed changes published on 1 November 2017.