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 during this period (prior to the renewal of the PI Cover) could be rejected by the insurer. An FSP that does not have the required PI Cover in place will be in breach of the FAIS requirements and could face regulatory action. Given concerns relating to increased cybersecurity and other risks during the lockdown period, FSPs should take this opportunity to review their risks and ensure that they have the right type of cover and the right amount of cover in place.
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 requiring them to submit this information to the FSCA by no later than 14 August 2020.
This information can be posted, transmitted by fax to 012 – 422 2973 or sent via email to aum@fsca.co.za. FSPs that have not received this letter with the attached Declaration, should contact their Compliance Officer.