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 scripted execution of sales and that wants to apply the reduced competency requirements when appointing representatives for scripted execution of sales, must update its licence profile with the FSCA to reflect that the FSP is performing scripted sales execution.
The Communication sets out a step by step approach on how to update the FSP’s licence profile and to amend the profile of representatives using the FAIS e-Portal platform.
This process requires the FSP to confirm that it has the necessary operational ability, controls and monitoring processes, etc. to ensure adequate oversight and management of the activities related to scripted execution of sales. If adequate controls and processes are not in place, the FSP will be required to submit additional information to the FSCA.
The Communication also reminds FSPs that they must ensure that their representatives are correctly linked to the type of intermediary services that they will be performing on behalf of the FSP and that they meet the competency and other requirements applicable to that activity. Failure to do so may result in regulatory action against the FSP and the representatives.