NOTICE OF AMENDMENT TO THE GENERAL CODE OF CONDUCT FOR AUTHORISED FSPs AND REPRESENTATIVES
On the 2nd of December 2022, the Financial Sector Conduct Authority (“FSCA”) published an Amendment Notice to the General Code of Conduct for Authorised Financial Services Providers and Representatives (“General Code”).
These amendments are effective as of the date of publication and include the following:
Section 7 of the General Code relating to disclosures about financial services that a provider must make, is amended by the insertion of subsection (5): “A provider who provides products or services to a client other than financial products or financial services, must disclose to the client the fact that the additional products or services are not regulated under the Financial Advisory and Intermediary Services Act 37 of 2002 (“the Act”) and, therefore, the client is not afforded the same protections in respect of those additional products or services that may apply in respect of the provision of financial products or services in terms of the Act.”
Paragraphs (a) and (b) of subsection (3) of Section 10 of the General Code relating to the custody of financial products and funds are amended as follows: “(3)(a) who receives, holds or in any other matter deals with premiums payable under a short-term or long-term reinsurance policy; or”; and “(3)(b) who is subject to section 45 of the Short-term Insurance Act, 1998 (Act No. 53 of 1998) or section 47A of the Long-term Insurance Act, 1998 (Act No. 52 of 1998), if the provider complies with the requirements contemplated in those sections.”
Section 13 of the General Code relating to the insurance that a provider must maintain is amended as follows: “A provider, excluding a representative, an insurer as defined in the Insurance Act, 2017 (Act No. 18 of 2017) or a bank as defined in the Banks Act, 1990 (Act No. 94 of 1990) must, if, and to the extent, required by the registrar maintain in force suitable guarantees or professional indemnity or fidelity insurance cover.”
For further information contact the Regulatory Framework Department of the FSCA by emailing Hannelie Hattingh at email@example.com.
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