1. Key Individuals chapter 5

2. Operational ability of FSP in regulatory environment Compliance functionAll licensing requirements Services under supervision Training and developmentDebarment Manage and oversee Appointment of RepsActivities of Reps Source: Section 8,13 and 14 of FAIS Act and BN 106

3. Change in personal circumstances of KI may affect fit and proper status Renders person not to be fit and proper and cannot take part in conduct or management or oversight of FSP Source: Louis Wessels Legal Adviser FSB and Section 8 (4) (b) (iii)

4. Appointing Reps Rep Register Activities of Reps Complaints resolution Operational ability Product provider contracts Compliance with Codes and FAIS Act Accounting and auditing Reporting to Registrar Competency and integrity checks Source: Section 13(2) of FAIS Act

5. Business changes reported in 15 days Business Name Business Name Business address Business address Compliance Officer Any contact details Banking details Banking details Shareholder Representatives Auditors Source: FAIS Introductory Provisions Definitions

6. Fixed business address Storage and filing Policies, procedures and systems Internal control structures, procedures and controls Access rights and data security Disaster recovery and back ups Source: BN 106 Communication facilities Bank account 3rd party SLA Segregation of duties System application testing Appropriate FAIS training

7. Training advice and intermediary services Business Continuity Plan Systems, controls and compliance measures Financial and system procedures for accounting Risk control measures accurate timeous and complete processing of data Guarantees and professional indemnity FSP to have and maintain operational ability

8. Not un-rehabilitated insolvent Assets to exceed liabilities Current assets to meet current liabilities Liquid assets equal to 4/52 weeks of annual expenditure

9. Maintain full accounting records monthlyAnnually prepare financial statements reflecting: Receipt and payment of cash Changes in equity Financial position at financial year end Summary of accounting policies and notes Source: Section 19 of FAIS ACT

10. Registrar may impose conditions and restrictions on authority granted by license having regard to: Facts and information Category of financial services Category of financial services providers Advisory Committee Guidelines After date of granting license KI replaced, appointed or personal situation changes and not fit and proper person cannot manage FSP Source: Section 8 (4) of FAIS ACT

11. Compliance officer Any change in directors or members Change in Auditor Financial year end Bank detailsContact person FSP must have procedures in place to report changes w/i 15 days Business nameChange in type of business entity

12. Provider to maintain comprehensive complaint policy Transparency, accessible facilitiesProcedures at any office and fair outcome Investigate and respond promptly Not resolved satisfactorily for clientAdvise client further steps ito FAIS Client requested to lodge complaint in writing Maintain record for 5 yearsHandle complaint timely and fairly Source: Section 16,17 of Code of Conduct

13. Internal complaints resolutions system and procedures must provide for Available and adequate manpower Adequate training of all relevant staff who know FAIS and Code complaints procedures Responsibilities and mandates are delegated and non routine serious complaints escalated Internal follow up to ensure avoidance of occurrence and improve processes Source: Section 18 of FAIS Act Complaints Resolution Complaints Resolution

14. After receipt and recording of complaint it will be forwarded to relevant person appointed to consider resolution The complaint must receive proper consideration. Appropriate management controls in place. Client informed of results, outcome not favourable to client, full written reason furnished and complaint may go to Ombud within 6 months Have summary of provisions of Act applicable if complaint dismissed Include name, address and contact details of Ombud Must stipulate that all complaints reduced to writing and receipts acknowledged Source: Section 16,17 of Code of Conduct

15. An advertisement by a provider must not contain any statement, promise or forecast which is fraudulent untrue or misleading. Any performance data, illustration or forecast must include references to source and date as well as clearly state that they are not guaranteed and are for illustrative purpose only. Services advertised by telephone must have electronic voice logging. Where no financial service results records may not be maintained after 45 days. If promotion results in rendering of financial service full details provided to client in writing within 30 days. Public radio advertisement must include business name of provider Source: subsections 14 to 15 in General Code of Conduct

16. Direct marketer must furnish: Business or trade name, confirm it is authorised FSP, Telephone contact details, compliance department details, whether professional indemnity is held Providing advice direct marketer must: Establish appropriateness of product regarding clients risk profile, financial needs and circumstances ands furnish client with business details and product details Take reasonable steps to establish whether financial product is wholly or partially a replacement of existing product, is so, inform client of actual and potential financial implications,costs and consequences before transaction concluded Source: subsections 14 to 15 in General Code of Conduct

17. Prior to conclusion of transaction, where information provided orally, provide in 30 days: Telephone details of compliance dept, extent product realisable, manner benefits will be paid, restrictions or penalties for early withdrawal, charges and fees levied, commission fees payable, on request investment performance,non compliance with contractual obligations by client, premium increase details, terms and conditions, loadings, guaranteed minimum benefit and recordings will be available on request Provide record of advice Record all telephonic conversations and have systems and procedures in place to record conversations and ensure all information provided to client in writing within 30 days Source: subsections 14 to 15 in General Code of Conduct

18. T h e f o l l o w i n g c a n c a u s e b u s i n e s s r i s k t o a F S P : A d i s r u p t i o n t o a b i l i t y t o c o n t i n u e t o s e r v i c e c l i e n t s A l o s s o f k e y c l i e n t s i n p r a c t i c e A c o n c o m i t a n t l o s s o f p r a c t i c e i n c o m e E x p o s u r e t o p o t e n t i a l r e g u l a t o r y a c t i o n P r i v a t e l i t i g a t i o n f o r f a i l i n g t o s a t i s f y p o s s i b l e l e g a l, r e g u l a t o r y o r c o n t r a c t u a l d u t i e s t o c l i e n t s I r r e p a r a b l e l o s s o f b u s i n e s s r e p u t a t i o n Source: Sections 18 and 19 FAIS Act and BN 106