FAIS Fit and Proper

Financial Advisory and Intermediary Services-Fit and Proper Requirements

In terms of section 8 of the Financial Advisory and Intermediary Services Act (FAIS) the Registrar must after consultation with the Advisory Committee determine the proper requirements that financial services providers, key individuals and representatives of the provider must comply to.

These requirements are termed the Determination of Fit and Proper Requirements for financial services providers and their representatives. The FAIS fit and proper requirements were update in 2008 and subsequent several amendments have been effected. The requirements set the honesty and integrity, competency and operational ability requirements for all FSPs, key individuals and representatives. It also set out he solvency requirements applicable to FSPs.

The Fit and Proper requirements contain the following sections •Honesty and Integrity requirements that are applicable to all FSPs, key individuals, representatives and compliance officers

  • Competency requirements that consist of experience and qualification requirements that are applicable to all FSPs, key individuals and representatives
  • Operational ability requirements that are applicable to all FSPs, key individuals and representatives
  • Solvency requirements that are applicable to the FSP

New Fit and Proper Requirements effective from 31 December 2008

The amended versions of the fit and proper requirements can be obtained by using the Sabinet online version which includes all amendments (click here) if you wish to search Sabinet online version

    • Amendments Notice of the Determination of Qualifying Criteria and Qualifications for Financial Services Provider BN 268 of 2013

Board Notice 268 of 2013

    • Amendment to the Fit and Proper Requirements – Paragraph 9 – Financial Soundness Requirements (Board Notice 202 of 2012)

Please note that these amendments must be read in conjunction with Board Notice 106 of 2008

    • Amendment to the Qualifying Criteria and Qualifications – Qualification list (BN135 of 2012)

Please note that these amendments must be read in conjunction with Board Notice 105, 151 of 2008, Board Notice 64 and 95 of 2009 and Board Notice 44 and 60 of 2010 – Replaces all previous qualification lists

    • Amendments to the Fit and Proper Requirements, Exemptions in respect of services under supervision, Determination of Continues Professional Development and Qualifying Criteria and Qualifications (Board Notice 60 of 2010)

Please note that these amendments must be read in conjunction with Board Notice 105, 151 of 2008, Board Notice 64 and 95 of 2009 and Board Notice 44 of 2010

    • Amendments to the Qualifying Criteria and Qualifications, Determination of Continues Professional Development and Exemptions in respect of services under supervision (Board Notice 44 of 2010)

Please note that these amendments must be read in conjunction with Board Notice 105, 151 of 2008 and Board Notice 64 and 95 of 2009

    • Amendments to the Qualifying Criteria and Qualifications, Determination of Continues Professional Development and Exemptions in respect of services under supervision (Board Notice 95 of 2009)

Please note that these amendments must be read in conjunction with Board Notice 104 to 106 and 151 of 2008 and 64 of 2009

    • Amendments to the FAIS Fit and Proper Requirements, Qualifying Criteria and Qualifications and Exemptions in respect of services under supervision (Board Notice 151 of 2008)

Please note that these amendments must be read in conjunction with Board Notice 104 to 106 of 2008

    • Amendment Notice on the Determination of Qualification of Qualifying criteria and qualifications for Financial Services Providers,2008 (Board Notice 64 of 2009)

Please note that these amendments must be read in conjunction with Board Notice 105 of 2008 and 151 of 2008

    • In terms of the Fit and Proper requirements the Registrar has approved the following foreign qualifications

Approval of foreign qualification: ACI Dealing Certificate (Board Notice 570 of 2008)

FAIS – Fit and Proper

The Determination of Fit and Proper Requirements for Financial Services Providers, 2017 (Board Notice 194 of 2017) sets out the requirements that Financial Services Providers (FSPs), it’s key individuals and representatives must meet.

These requirement are:

  • Honesty, Integrity and Good Standing
  • Competence Requirements

– Part 1: Application and General Requirements
– Part 2: Minimum Experience
– Part 3: Minimum Qualifications
– Part 4: Regulatory Examinations
– Part 5: Class of Business Training and Product Specific Training

  • Continuous Professional Development (CPD)
  • Operational Ability
  • Financial Soundness
When new legislation is promulgated, the inherent risk will always be high as operational breakdowns have a higher probability/likelihood of occurring in the organisation.

Embedding compliance with all key legislation in the organisation is a function of certain critical activities and stems from collaboration across key governance functions such as Legal, Compliance, Risk Management, and Internal Audit.

These functions all form part of the “three lines of defence”. Business and its operational management however also form a critical (if not the most important) line of defense in ensuring a “compliant” organisation.

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