What is the purpose of the Financial Advisory and intermediary services Act FAIS Act 37 of 2002?
The Financial Advisory and Intermediary Services Act 37 of 2002 intends: to regulate the rendering of certain financial advisory and intermediary services to clients; to repeal or amend certain laws; and. to provide for matters incidental thereto.
What is the purpose of the FAIS?
The FAIS Act regulates the rendering of financial advisory and intermediary services to clients. The Act’s main objectives are to protect the interests of consumers and to professionalise the financial services industry.
What is insurance intermediary services?
An intermediary for the purposes of the FAIS Act and the Short-term Insurance Act is someone who acts as a go-between interposed between a client and product supplier whose acts directly result in a financial transaction, for instance a policy, being entered into.
What does a Category 1 FAIS representative do?
(a) Category I A Category I FSP renders financial services other than the financial services mentioned in Categories II, IIA, III and IV.
Who does the FAIS Act apply to?
The FAIS Act was introduced to regulate the business of all Financial Service Providers who give advice or provide intermediary services to clients, regarding a wide range of financial products.
What is intermediary service?
Intermediary Service: A person acts as an intermediary between the client and the relevant product supplier where the client does not deal directly with the product supplier. Intermediary services include: receiving, submitting or processing a client’s claim against a product supplier.
Who regulates FAIS Act?
Financial Services Board
This is a regulatory body within the financial services industry, set up in terms of the Financial Services Board Act and is the “home-base for the FAIS legislation. Compliance Officers will have to work closely with the regulator to form part of the corporate governance structure of their organisations.
What are examples of intermediaries?
Examples of business intermediaries
- Real estate agents/brokers. Real estate agents and brokers work with property owners to sell houses and land.
- Entertainment agents.
- Literary agents.
- Investment bankers.
- Car salespeople.
- Grocery stores.
- Department stores.
- Shopping malls.
What are the types of intermediaries?
There are four main types of intermediary: agents, wholesalers, distributors, and retailers.
What is the purpose of the Financial Advisory and intermediary services Act?
The Purpose of the Financial Advisory and Intermediary Services Act is to protect Consumers of financial products and services; regulate the selling and advice-giving activities of FSPs; ensure that the Consumers are provided with adequate information about the financial product they use and about the people and …
Who qualifies intermediary services?
The use of intermediary services is only available: To children/mentally disabled persons under the mental or biological age of eighteen (18) years who would be exposed to undue mental stress or suff ering if they were to testify in an open court.
What was the financial advisory and Intermediary Services Act of 2002?
The Financial Advisory and Intermediary Services Act 37 of 2002 intends: to regulate the rendering of certain financial advisory and intermediary services to clients; to provide for matters incidental thereto.
When does a person act as an intermediary?
A person acts as an intermediary between the client and the relevant product supplier where the client does not deal directly with the product supplier. Intermediary services include: Please note that is only as a brief summary of the main provision of the Code and should not be relied upon as a legal document.
What do you need to know about financial advisory?
All advertising must have references, dates, basic assumptions for forecasts (including returns; costs and charges); make clear there are no guarantees and include a risk warning; clear indication of investment return dependence. Records of all telephonic or electronic advertising must be kept and a copy provided to the registrar on request.
What is the division of FIAS in South Africa?
The FIAS division is divided into four separate departments, namely Registration, Supervision, Compliance and Enforcement.