NEWS:

FAIS ACT: ADDITION OF FINANCIAL PRODUCTS
23rd Apr 2018

The transitional provisions of the new fit and proper requirements contained in Board Notice 194 of 2017 allow for the addition of certain financial products to the licence of an FSP – some of these products will be added without application by the FSP and some will only be added on application.

ICS will assist you with the process by advising you on the relevant FSP forms to be completed, any supporting documentation required and by updating the products via the FSCA’s online portal or submitting the profile change for assessment.

Send an email to ics@complianceservices.co.za which confirms the products to be added to the license.

Products to be added by the Registrar without application:

The Registrar will add the financial products listed in Column B of Table C below to the licence of an FSP, if the FSP is authorised at 1 April 2018 for the financial products listed in Column A of Table C. Until such time that the Registrar has added the products listed in Column B, the FSP will be deemed to be authorised for the corresponding financial products listed in column B. Once the Registrar has added the products, the FSP has three months to update the central representative register to correctly reflect the financial products in respect of which a representative is appointed to render financial services.

TABLE C
Column A Column B
Short-term Insurance Personal Lines Short-term Insurance Personal Lines A-1
Long-term Insurance subcategory B1 Long-term Insurance subcategory B1-A
Long-term Insurance subcategory B2 Long-term Insurance subcategory B2-A

Products to be added by the Registrar on application by FSP:

An FSP that renders financial services in respect of a financial product listed in Column A of Table D and was authorised to render such services as at 1 April 2018, is deemed to be authorised for the corresponding financial product listed in Column B of Table D – PROVIDED that the FSP submits an application for authorisation to render the services in respect of the financial product listed in Column B of Table D to the Registrar by 30 June 2018 and until such time the Registrar has finally approved or rejected the application.

TABLE D
Column A Column B
Participatory interest in CIS Participatory interest in a CIS hedge fund
Short-term deposit Structured deposit
Long-term deposit Structured deposit

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