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Role of the Key Individual

Role of the Key Individual. Key Individual Chapter 1. 1. Role and responsibilities of KI. 3. management responsibilities of KI. Source: Section 8,13 and 14 of FAIS Act and BN 106. 4. Honesty and integrity for ki. Source: section 2 of BN 106 as amended. Prima facie evidence. 5 years.

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Role of the Key Individual

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  1. Role of the Key Individual Key Individual Chapter 1

  2. 1. Role and responsibilities of KI

  3. 3. management responsibilities of KI Source: Section 8,13 and 14 of FAIS Act and BN 106

  4. 4. Honesty and integrity for ki Source: section 2 of BN 106 as amended Prima facie evidence 5 years Disqualified from management of company

  5. 5. Change in KI personal situation no longer fit and proper ( implication KI) Source: Louis Wessels Legal Adviser FSB and Section 8 (4) (b) (iii) 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

  6. 7. Competence requirements of KI Source: Section 8 (1) (i) (ii) of FAIS Act and BN 106 Experience CPD Competence Qualifications Regulatory Exams 1 and 2

  7. 8. Experience requirements Source: BN 106 and substituted by BN 60 of 2010 One subcategory Advice minimum Experience Services Minimum Experiences Long term Insurance sub cat B1 and B2 Long term Insurance sub cat C Pension Fund Benefits Retail Pension benefits • Securities and instruments • Shares, Money market • Debentures • Warrants • Derivatives • Collective investments • Forex Long term Insurance sub cat A Short term Insurance Personal Lines 6 months 1 year 1 year 2 years 1 year 1 year 1 year 6 months 2 months 6 months 6 months 6 months 1 year 6 months

  8. 9. Ki management responsibilities Source: Section 13(2) of FAIS Act

  9. 10. When can individual start acting as KI Source: Section 8 (4) of FAIS Where any KI is replaced by new KI Is appointed or assumes office Change in personal circumstances of KI Such person not fit and proper

  10. 16. Qualifying criteria Source: Board Notice 106 FAIS Registrar published list of “recognised qualifications” for each category and subcategory Reps must meet qualifying criteria published in subordinate legislation. May select further qualifications from qualifications list and complete relevant qualification within 5 years of appointment Identify whether classified as part of transitional arrangements or as new entrant – (see BN 104)

  11. 16. Qualification requirements for reps Source: BN 106 section 5 FAIS Registrar published list of “recognised qualifications” for each category and subcategory Entry level requirements for each License Category Qualifications not listed may gain recognition by making application which MAY be added to qualification list Product specific Regulatory Exam and exemptions depending on qualifications

  12. 16. Regulatory Exams

  13. 16. Continuous Professional Development

  14. 18. Recruitment and appointment procedures for reps Source: Section 13 (3) of FAIS Act

  15. 18. Recruitment and appointment • Management and oversight requires processes to recruit and appoint representatives • KI’s will need to do the following: • Honesty and Integrity reference checks • - FSB debarred list • -Professional Body membership validity • Obtain details of previous experience • Obtain and verify details of qualifications • Check completion of Regulatory Exams • Obtain and verify CPD status

  16. 20. Manage rendering of services under supervision Source: BN 106 and 104 Competent to act and practical experience in financial services Active involvement and ongoing gain of knowledge, skills and expertise Pre-transaction and advice sign-off Attend meetings with Supervisee Post transaction sampling and client follow up

  17. 21. Disclosure requirements for reps Source: Section 13, 16 of FAIS Act and section 3 to 5 of Code of Conduct

  18. 21. Disclosure requirements for reps Source: Section 3 to 5 and 7 to 9 of Code of Conduct

  19. 22. Manage and oversee ongoing development/employment of reps Source: Section 8 and 13 of FAIS Act • Complies with fit and proper: • Personal character qualities of honesty and integrity • Competence and operational ability • Financial soundness FSP must at all times be satisfied that Reps and KI’s are when rendering a financial service competent to act and comply with Act and Code of Conduct Registrar may debar Reps and KI’s not meeting requirements (see REPS course)

  20. 22. Manage and oversee ongoing development/employment of reps Source: BN 106 • Competence requirements: • Qualifying criteria • List of qualifications • Minimum experience • Passed RE • CPD compliance • Sole proprietor and other KI must do above • FSP must have 1 KI with above • Juristic FSP must have 1 KI with above • Reps must have minimum experience and qualifications • Health services benefits accreditation • Experience requirements: • Active and ongoing gaining of knowledge and skills • Active involvement in rendering financial services • In or outside RSA • Intermittent periods not more than 5 yrs • Simultaneous or multiple categories • Rep must have same as KI but can be exempted and be under supervision • KI must have 1 yrs practical experience in management and oversight • Gained in similar or corresponding to financial services rendered by FSP • Qualifications: • List of qualifications in Table A • Must comply with Highest qualification required in respect of sub-categories • Regulatory Exams and CPD: • All Reps and KI’s must pass RE • Reps must do so w/i 2 yrs of first appointment • Second level with in 6 yrs of 1st appointment • CPD requires 15 to 60 notional hours of learning over 3 year cycle • Cycle starts after RE 1 passed

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