Transcript The FAIS Report - Compli

The 2008 FAIS Report
Presented by Richard Rattue
Copyright 2005
Agenda
THE ANNUAL REPORT
Section 17(4) FAIS
Session 1
09.00 -10.30
Submission and Deadlines
Report Review: Category 1 (With / out
CO)
Break 15 mins
10.30-10.45am
Session 2
10.45 – 11.00
Report Review: Category 2
Session 3
11.00-11.30
Report Submission : FSB Presentation
Session 4
11.30-12.00
Questions & Close
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Housekeeping
Please make sure that you have registered
Copies of all presentations will be on our
website for download next Monday
Upon receipt of payment delegates will receive
our internal guidance papers on the report via
email.
FPI Members will get 3 CPD points
Delegates will need a copy of the relevant
report for this session.
Please switch off cell phones
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Introduction
Report to be completed by all FSP’s
in terms of Section 17(4) of FAIS
Report has four flavours
Category 1 FSP’s
Category 2 FSP’s
Category 3 FSP’s
Separate report if you do not
require a CO in terms of Section
17(1) of FAIS
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2008 Report Overview
Fewer sections overall
Fewer questions due to consolidation
More focus on key risk areas i.e J Reps
Amalgamation of prior questions
Additional Monitoring Areas for CO’s
Improved structure
New Sections i.e Risk Man &
Terminations
More Annexures for Cat 1 FSP’s
No efficacy or sampling submissions
required from CO’s
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Clarity of Terms
Report Date
Report Period
Submission Date
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Gazetted Table A
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FSP Yr End
Reporting Date
31 Jan
31 July
28 Feb
31 Aug
31 March
30 Sept
30 April
31 Oct
31 May
30 Nov
30 June
31 Dec
31 July
31 Dec
31 Aug
31 Dec
30 Sept
31 Dec
31 Oct
31 Dec
30 Nov
31 Dec
31 Dec
31 Dec
Revised Reporting Dates
Reporting Date
Submission Date
1. 31 May
15 August
2. 31 August
31 October
3. 31 December
28 February
Reporting Type
1. = Cat 1 FSP’s with CO
2. = Cat 2 & 3 & Forex Only FSP’s with CO
3. =FSP’s that DO NOT require a CO
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Report Columns
1
Yes
compliant
2 No
non compliant
3 Not applicable
Cannot enter in shaded areas of report
4 Developmental area
areas of concern identified and are to be
fixed in a reasonable time frame
5 Annexures or numbers
Number your submissions correctly
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1. License Conditions and Restrictions /
Financial Products
Fewer questions
Advise Registrar within 15 days of any
changes
1.4.1 / 1.4.2 Details of other regulators
1.5.4 – Details of related parties where
applicable
2. Key Individuals
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Control of K.I.’s.
Changes in circumstances.
Fit and Proper Advancement
2.3.3 Procedures to meet Column 4
3. FSP License
Display of original or certified copy of
license at every business premises .
4. Representatives
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4.3 / 4.4 Juristic Rep Controls
Keeping control of your Reps and their Fit &
Proper status.
Disclosure of supervised Reps and status
and No of supervisors
Ongoing reviews /assessment of Reps under
supervision.
Attachments re procedures
4.5.3.8.Non compliance Report
Compliance of all Reps with the Gen Code of
Conduct.
Debarment Details.
5. Insurance Cover
Fidelity guarantee
provides an employer with insurance
cover for financial loss resulting
from an employee's dishonesty.
PI Cover:
purpose is to cover your company
against the potential liability and
claims caused as a result of the
professional work you undertake.
Guarantees:
A guarantee is effected to provide
protection against an uninsured
contingencies Intermediaries
Guarantee Facility (IGF) .
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6. Compliance Function.
Status of Compliance
Function
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CO Function Status
Regular reports submitted by
the CO.
Quarterly Removed
Number of visits for
outsourced CO’s
6.4 CO to highlight additional
issues
Efficacy Statement Removed
7. Record Keeping.
Section 18
verbal communications with clients
complaints.
non compliance i.e. /breaches register
premature cancellation of transactions.
Continued compliance of Reps
Section 3.2 Gencode.
electronic /safe storage etc
accessible within 7 days
Longevity ( 5 years after product
termination date.
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8. General Code of Conduct.
8.1 General Provisions.
8.1.1 Conflict of Interest Policy
8.1.2 Submit as an Annexure
Receipt of non cash incentives.
Disclosure thereof.
8.2 Disclosures.
8.2.1. Direct Marketer
8.2.3. Details of non compliance iro
Section 4,5,7. of General Code
8.2.4. Provide copy of disclosure doc
as an Annexure
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8.3 Direct Marketing
Voice recording systems in place
CO monitoring of disclosures
required
8.3.2.4 Non Compliance Annexure
Required
8.4 Advice
CO monitoring of Analysis and
Record of Advice required
8.4.2.5 % iro Section 8(4)a
8.4.2.6 Non Compliance Annexure
Required –Record of Advice
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8.5 Fund Custody.
If yes you need.
Auditor. Section 19(3) Report
Separate Accounts
Premium Collection Section 45 of
STI Act
8.5.4 – Amount of IGF Cover
8.5.5 – IGF Number
8.5.6 - IGF Cover Schedule
CO to monitor procedures
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8.6 Risk Management.
Section 11 & 12 Gen Code
8.6.2 RM Plan Documented
8.6.3 CO to monitor RM Plan
8.6.4 Submit details of how RM plan is
monitored
8.7 Advertising.
8.7.1 –Does FSP Advertise
Procedures in place to comply with Section 14.
Telephonic Advertising
CO to monitor voice logging
8.8 Complaints .
Resolution mechanisms that comply with
Sections 16-19 of the Gen code
Records of Complaints
8.8.3 CO to submit annexure
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8.9 Termination Procedures
Procedures to comply with Section 20
(Termination of client relationship)
(Termination of FSP business)
(Termination of Rep)
8.10 Waiver of Rights.
Reps to use approved documents to ensure
no waiver of rights is requested or induced
form the client.
8.10.2 –CO Required to monitor compliance
with Sect 21 of Gen Code
8.10.3 – Details of non compliance on
Annexure
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9. Exemptions
Board Notice 104
Temp Exemption for Cat A providers
from minimum qualifications.
Board Notice 97
Exemption of executors , liquidators
and other related persons.
9.2.2.1. –CO Required to monitor
compliance with BN 97
9.2.2.2 – Details of non compliance on
Annexure
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10. Money Laundering Control
Customer Identification
Record Keeping
Staff Training
Reporting
Copy of Internal rules required
Money Laundering Control officer details
FICA Exemption 4 Usage
10.7. Procedures to enable staff to identify
and report
10.8 Procedures to Risk Rate clients
11. Financial Soundness
Solvency Requirements
Section 19 Monthly Records
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SECTION 2 – Forex FSP’s
Consolidated Questions in 2008
Forex FSP’s
Duties & Obligations 12.1 -12.4
Forex Investment Advisors 12.5.1 12.5.8
12.5.5 Details of trading platform
/system used
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SECTION 3- Health Service
Benefits
13.2.1 – Details of Suspensions ,
withdrawals or lapses in Annexure
13.2.2.- ORG and BR numbers
required
13.2.3 – Corporate Client Info
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Section 4
Attachments and Signature
All attachments to be
referenced to the relevant
question number
Both Compliance Officer and a
key individual to sign off the
report before submission is
made to the regulator
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Compliance Report 2008
NO CO
To be completed by all
individuals who do not need
to appoint a compliance
officer in terms of Section
17(1) of FAIS
Slimmed down version.
Less annexures
No sampling
Signed off by KI of FSP
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Report Structure
SECTION 1.
To be completed by all FSP’s
SECTION 2.
Forex FSP’s Only
SECTION 3
Health Services Benefits
SECTION 4
Annexure(s) and sign off
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1.License Conditions
Updating Information
Financial Product Controls
1.4 Other Regulators –New
Annexure
1.5.4 Related Party Information
2.Key Individuals
Circumstances and Conditions
2.2 Column 4 Fit and Proper
3.License
Display Original or Certified copy
4.Staff Compliment
Annexure Required
5.Insurance Cover
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Section Overview
6 Compliance function
7Record keeping
8.1 General Provisions
8.2 Disclosure
8.3 Direct Marketing
8.4 Advice
8.5 Product custody
8.6 Risk Management
8.7 Advertising
8.8 Complaints
8.9 Termination of Agreement or Business
8.10 Waiver of rights
9.0 Exemptions
10 Money Laundering
11 Financial soundness
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15min Break
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Welcome back to the
second session
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Discretionary FSP’s
Section 1 - same as Category 1
FSP’s.Except 9.3
Additional Exemption BN 15 of 2008
(Supervision)
9.3.1 CO to report on usage by FSP
Section 2
12.1 Obligations /Prohibitions
12.2 Mandates
12.3. Reporting
12.3.2 Section 6 Compliance
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Discretionary FSP’s
12.4 Administration
12.4.2 Details of Computer packages iro
admin
12.4.3 Outsource arrangements iro admin
12.5 Assets under Management
12.5.2 Audit Status of accounts
Nominee Companies
Questions Consolidated
General Functions
Wrap Fund Details
Hedge Fund Details
12.7.5 Names of product supplier used by
HF FSP
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FSB Presentation
Ronel Reyneke
Specialist Analyst
FAIS SUPERVISION
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Closing thoughts
Take it seriously
Honesty is the best policy.
Compliance Officer / Key
Individual should not
compromise report
content.
Get it in on time.
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Knowledge Service
(Logon for 14 Day Free Trial)
Financial Services
Compliance Portal
Key Regulatory Information
at your fingertips
Targeted to the Compliance
Community
Internal CO’s
Compliance Practices
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Thank you
We hope to see you again
soon
Copyright 2008