NEWS:

GUIDANCE ON SECTION 13(1)(C) OF FAIS ACT
06/14/2015

Section 13(1)(c) of the FAIS Act provides that a representative may not render financial services or contract in respect of financial services other than in the name of the financial services provider (FSP) of which the person is a representative.

The reasons for the insertion of the requirement in section 13(1)(c) are, inter alia, to ensure that consumers know with whom they are contracting and who will ultimately be responsible to perform in terms of the contract and to prevent the undesirable business practice of “renting a licence.”

A general exemption was previously granted to the industry from compliance with section 13(1)(c). However, this exemption expires on 30 June 2015 and from 1 July 2015 the industry must comply with this section.

 

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