Full Transcript
https://www.youtube.com/watch?v=WQt7ABrAt1U
[00:03] task 2.
[00:04] task 2 talks about contributing towards.
[00:05] talks about contributing towards maintaining an fsp license.
[00:08] maintaining an fsp license.
[00:13] task 2 has 9 qualifying criteria.
[00:19] let's look at task 2 qualifying criteria.
[00:22] let's look at task 2 qualifying criteria 1.
[00:23] explain the requirements an fsp must.
[00:26] explain the requirements an fsp must meet.
[00:26] meet to maintain an fsp license.
[00:30] to maintain an fsp license anyone who wants to render financial.
[00:32] anyone who wants to render financial services.
[00:33] services advice and or intermediary services.
[00:37] advice and or intermediary services must obtain authorization from the.
[00:39] must obtain authorization from the registrar to do so.
[00:41] registrar to do so this is according to section 8 of the.
[00:43] this is according to section 8 of the phase act.
[00:45] phase act that authorization comes in the form of.
[00:48] that authorization comes in the form of a phase license.
[00:53] please remember that in these videos we.
[00:56] please remember that in these videos we refer to the office of the.
[00:57] refer to the office of the fsca as the commissioner the registrar.
[01:01] fsca as the commissioner the registrar or even the authority these words are.
[01:05] or even the authority these words are used interchangeably
[01:06] used interchangeably to refer to the regulator which is the
[01:10] to refer to the regulator which is the fsca
[01:13] fsca in order to apply and obtain a face
[01:15] in order to apply and obtain a face license
[01:16] license the following process must be followed
[01:21] firstly an applicant will lodge an
[01:23] firstly an applicant will lodge an application
[01:24] application in a prescribed format with the fsca
[01:28] in a prescribed format with the fsca this must be sent with the relevant
[01:30] this must be sent with the relevant supporting documents
[01:32] supporting documents there is a prescribed license
[01:33] there is a prescribed license application fee that needs to be paid
[01:36] application fee that needs to be paid for the application to be considered
[01:39] for the application to be considered note that
[01:41] note that you are an applicant until authorization
[01:43] you are an applicant until authorization is granted
[01:45] is granted only then do you become an fsp
[01:51] in considering the application the fsca
[01:54] in considering the application the fsca may ask for additional information
[01:57] may ask for additional information some of this information may come from
[01:59] some of this information may come from external sources
[02:01] external sources such as the face on board and other
[02:03] such as the face on board and other regulatory bodies
[02:09] regulatory bodies the fsca will also look at the.
[02:11] the fsca will also look at the applicant's nominated key individual.
[02:14] applicant's nominated key individual to see if he or she complies with the.
[02:16] to see if he or she complies with the fit and proper requirements.
[02:21] if all the sets fit and proper.
[02:23] if all the sets fit and proper requirements are made.
[02:24] requirements are made as per the phase act the fsca will then.
[02:28] as per the phase act the fsca will then grant a face license.
[02:30] grant a face license to the fsp.
[02:33] each license may come with conditions.
[02:35] each license may come with conditions and.
[02:36] and or restrictions which must be complied.
[02:39] or restrictions which must be complied with at all times.
[02:41] with at all times should the fsp fail to comply then the.
[02:44] should the fsp fail to comply then the license may be suspended.
[02:46] license may be suspended and ultimately withdrawn.
[02:49] and ultimately withdrawn the next time you visit an fsp try to.
[02:52] the next time you visit an fsp try to find their license certificates.
[02:54] find their license certificates that must be visibly displayed on their.
[02:57] that must be visibly displayed on their walls.
[02:58] walls at their offices.
[03:04] at their offices the conditions and restrictions that may.
[03:07] the conditions and restrictions that may come with a face license.
[03:09] come with a face license can cover the following the.
[03:12] can cover the following the applicant and its key individual
[03:16] the category sub-category
[03:19] the category sub-category and financial services the fsp will
[03:22] and financial services the fsp will render
[03:25] the classification category in which the
[03:27] the classification category in which the fsp
[03:28] fsp will be licensed for under the phase act
[03:34] the category product or sub-category the
[03:38] the category product or sub-category the fsp will render
[03:43] there are five standard license
[03:45] there are five standard license conditions
[03:46] conditions these standard license conditions apply
[03:48] these standard license conditions apply to all fsps
[03:51] to all fsps let's go through each one
[03:56] the first license condition has to do
[03:58] the first license condition has to do with changes in the profile of the
[04:00] with changes in the profile of the original
[04:01] original fsp submission and authorization
[04:05] fsp submission and authorization called profile changes
[04:08] called profile changes the fsp must notify the fsca of
[04:11] the fsp must notify the fsca of any profile changes in the prescribed
[04:14] any profile changes in the prescribed format.
[04:15] format and submit this to the fsca within 15.
[04:18] and submit this to the fsca within 15 days.
[04:19] days of such changes haven't taken place.
[04:25] profile changes include a change of any.
[04:27] profile changes include a change of any of the following.
[04:30] the business structure and name.
[04:35] the directors or shareholders or members.
[04:40] the business address and contact details.
[04:46] the bank account details.
[04:50] the compliance officer details.
[04:55] the details of the key individuals.
[04:58] the details of the key individuals existing.
[04:59] existing and additional.
[05:03] the auditor and or accountant.
[05:09] addition or removal of financial.
[05:11] addition or removal of financial products.
[05:12] products or sub-categories.
[05:15] the addition or removal of any representatives and representatives information.
[05:26] note that some profile changes raise a prescribed fee.
[05:34] the second license condition has to do with an fsp always having a key individual.
[05:44] an fsp must at all times have a key individual.
[05:45] if there is a change in the details of a key individual, then the registrar must be notified within 15 days.
[05:54] please note that a change of a key individual could result in changes in the license conditions of sub categories or products.
[06:05] for example if a key individual is replaced with another that has lesser qualifications and experience on the initially authorized sub-categories.
[06:16] sub-categories or products then the license conditions
[06:19] or products then the license conditions will change
[06:21] will change there is an exception to this if a key
[06:24] there is an exception to this if a key individual
[06:25] individual is replaced with another that has the
[06:28] is replaced with another that has the same or greater levels of qualifications
[06:31] same or greater levels of qualifications and experience than the license
[06:33] and experience than the license conditions
[06:34] conditions may be left unchanged
[06:44] the third license condition has to do
[06:47] the third license condition has to do with the representatives register
[06:50] with the representatives register representatives information must be
[06:53] representatives information must be recorded
[06:53] recorded and updated on the representatives
[06:56] and updated on the representatives register
[06:58] register changes to this rep register must be
[07:01] changes to this rep register must be submitted
[07:02] submitted to the fsca within 15 days of changes
[07:05] to the fsca within 15 days of changes made
[07:09] the fourth license condition has to do
[07:11] the fourth license condition has to do with the changes to the business name
[07:15] with the changes to the business name an fsp must not in any way change the
[07:18] an fsp must not in any way change the name of the fsp name of the fsp that is on its license certificate that is on its license certificate without being granted permission.
[07:24] without being granted permission by the fsca.
[07:27] by the fsca changes in the business name will take changes in the business name will take place if the registration number of the company does not change otherwise.
[07:35] of the company does not change otherwise it would mean that a different phase license must be applied for.
[07:43] the fifth license condition has to do with products.
[07:47] with products and fsp is allowed or authorized to render financial services on an fsp is allowed to only deal with sub-categories sub-categories or products or from licensed product suppliers.
[08:02] suppliers this means that a licensed broker or fsp must not sell products of an unlicensed insurer or fsp.
[08:14] the five license conditions mentioned apply to all authorized fsps it is therefore the
[08:21] authorized fsps it is therefore the responsibility
[08:22] responsibility of an fsp through its key individual
[08:26] of an fsp through its key individual to ensure that it complies with these
[08:28] to ensure that it complies with these standard license conditions
[08:34] an applicant applying for health service
[08:36] an applicant applying for health service benefits
[08:37] benefits will also need to obtain accreditation
[08:39] will also need to obtain accreditation from the council for medical schemes
[08:43] from the council for medical schemes the council for medical schemes is the
[08:45] the council for medical schemes is the regulator for medical schemes
[08:48] regulator for medical schemes in south africa the license and
[08:51] in south africa the license and accreditation
[08:53] accreditation in this case are linked
[08:57] so if the face license is suspended
[09:00] so if the face license is suspended lapsed or withdrawn then the medical
[09:04] lapsed or withdrawn then the medical schemes accreditation
[09:05] schemes accreditation will also be suspended lapsed
[09:08] will also be suspended lapsed or withdrawn
[09:12] the issued license will make reference
[09:14] the issued license will make reference to specific categories
[09:16] to specific categories and the various subcategories or
[09:18] and the various subcategories or products
[09:19] products and there should be a key individual or
[09:21] and there should be a key individual or multiple key individuals
[09:23] multiple key individuals to oversee each product or sub-category
[09:27] to oversee each product or sub-category the fsp has been authorized for
[09:33] for representatives it's important for
[09:35] for representatives it's important for them to know about the different license
[09:37] them to know about the different license categories
[09:38] categories and sub-categories or products as
[09:41] and sub-categories or products as defined in the phase act
[09:44] defined in the phase act this is because they also need to meet
[09:46] this is because they also need to meet the fit
[09:47] the fit and proper requirements to render
[09:49] and proper requirements to render financial services
[09:50] financial services within the licensed categories and
[09:53] within the licensed categories and sub-categories
[09:54] sub-categories they are appointed for
[10:06] now we come to license categories which
[10:08] now we come to license categories which are classified
[10:09] are classified into categories and sub categories or
[10:13] into categories and sub categories or products there are five license
[10:16] products there are five license categories
[10:19] categories category 1 is for fsps who only give
[10:22] category 1 is for fsps who only give advice.
[10:23] advice and render financial services this is for fsps.
[10:26] and render financial services this is for fsps.
[10:27] for fsps that are not in specialist categories of.
[10:30] that are not in specialist categories of two 2 a 3.
[10:34] two 2 a 3 or 4.
[10:37] if the business activities of an fsp do not fall under one of the specialist categories.
[10:41] of an fsp do not fall under one of the specialist categories.
[10:42] specialist categories then category 1 license authorization will apply.
[10:45] then category 1 license authorization will apply.
[10:46] will apply.
[10:49] category 2 is for discretionary fsps.
[10:53] category 2 is for discretionary fsps also known as fund or investment managers.
[10:56] also known as fund or investment managers.
[10:57] managers these fsps invest funds on behalf of clients.
[11:01] these fsps invest funds on behalf of clients.
[11:01] clients at their own discretion this can be locally or outside of the republic of south africa.
[11:05] at their own discretion this can be locally or outside of the republic of south africa.
[11:07] locally or outside of the republic of south africa.
[11:09] south africa in this category there is no bulking or pulling of client funds.
[11:12] in this category there is no bulking or pulling of client funds.
[11:17] category 2a is for hedge fund fsps.
[11:21] category 2a is for hedge fund fsps these fsps function like the.
[11:23] these fsps function like the discretionary fsps.
[11:25] discretionary fsps but the funds that they invest are.
[11:27] but the funds that they invest are pooled funds.
[11:32] category 3 is for administrative.
[11:35] category 3 is for administrative fsps these fsps buy.
[11:38] fsps these fsps buy and sell financial products in bulk and.
[11:41] and sell financial products in bulk and reconcile their books on a daily basis.
[11:45] reconcile their books on a daily basis they do this for their clients who can.
[11:47] they do this for their clients who can be either category to fsps.
[11:50] be either category to fsps or natural persons.
[11:55] category 4 is for administration.
[11:58] category 4 is for administration functions.
[11:59] functions and are only considered for intermediary.
[12:01] and are only considered for intermediary services.
[12:03] services they intermediate between the insurance.
[12:05] they intermediate between the insurance companies.
[12:06] companies and the assistance business fsps like.
[12:09] and the assistance business fsps like funeral.
[12:10] funeral parlors and undertakers.
[12:13] parlors and undertakers they always have a binder agreement with.
[12:15] they always have a binder agreement with the insurance company.
[12:17] the insurance company to perform the intermediary function.
[12:22] please note that all categories except.
[12:25] please note that all categories except for category 1
[12:27] for category 1 are specialist categories or specialize
[12:30] are specialist categories or specialize in the functions they offer
[12:34] the license categories mentioned have
[12:36] the license categories mentioned have product sub categories
[12:39] product sub categories this means an fsp that applies for a
[12:42] this means an fsp that applies for a phase license
[12:43] phase license would also have to apply for a specific
[12:46] would also have to apply for a specific product subcategory
[12:48] product subcategory also when an fsp changes its license
[12:51] also when an fsp changes its license to include other financial services like
[12:54] to include other financial services like advice
[12:55] advice or intermediary or financial products
[12:59] or intermediary or financial products the fit and proper requirements of those
[13:01] the fit and proper requirements of those products
[13:02] products and or services must also be met
[13:09] we hope you enjoyed the video and learnt
[13:11] we hope you enjoyed the video and learnt a lot
[13:12] a lot please make sure to check out our other
[13:15] please make sure to check out our other ori videos
[13:41] you