Acting as an authorised user or financial services provider (like an A conflict of interest refers to any situation in which an FSP or representative has an actual or or enhances a relationship between the FSP or FSPs and a product supplier. reflect the manner in which the Registrar of Financial Services Providers as they relate to the relationship between an FSP and its representatives, it also. “A person may not render financial services or contract in respect of financial services other than in the name of the financial services provider.
Acting as a representative A person may not act as a representative of an authorised financial services provider unless that person is able to provide confirmation to clients, as certified by the Financial Services Board, that: A service contract or other mandatory agreement to represent the financial services provider has been concluded; and The financial services provider accepts responsibility for the activities of the representative falling within the service contract or other mandatory agreement, as the case may be.
A financial services provider is both liable for the conduct of its representatives and takes responsibility for its employees of representatives; and a representative engages in the same activities as its principal, for and on behalf of the financial services provider that it represents.
This relationship is a financial services provider or that the representative has received a mandate from the financial services provider. The financial services provider is, furthermore, required to maintain an up-to-date register of its representatives with the Financial Services Board.
Legal Talk - The Licensing of Financial Service Providers
The application to be licensed To be licensed as a financial services provider the applicant must submit an application to the Registrar in the form and manner determined by the Registrar.
The application must be accompanied by the information necessary to satisfy the Registrar that the applicant complies with the fit and proper person requirements for financial services providers as indicated above.
The Registrar will grant the application for a licence to a financial services provider once satisfied that the applicant complies with the FATS requirements failing which the Registrar will refuse the application. When an application is approved the Registrar issues a licence to the applicant authorising the applicant to act as a financial services provider. The obligations of the licensed financial services provider The licensed financial services provider is required to: Display a certified copy of the licence in a prominent and durable manner within every business premises of the licencee; Ensure that a reference to the fact that such a licence is held is contained in all business documentation, advertisements and other promotional material; and ensure that the licence is at all times immediately, or within a reasonable time, available for production to any person requesting proof of licensed status under authority of a law or for the purpose of entering into a business relationship with the licencee.
The retention of the licence To retain the licence, a financial services provider is required to be compliant in various ways, including: The licence of a financial services provider may be suspended if that financial services provider no longer meets the requirements for the issue of the licence.
Legal Talk - The Licensing of Financial Service Providers | Portfolio Property
The licence may also be withdrawn under the circumstances listed in section 10 of FAIS. Conflicts of interests by Karin van Wyk SAIFM he basic principle in South African common law is that a principal the client is entitled to the benefit of the care and skill, which the agent financial services provider undertook to exercise on his or her behalf.
This right may be waived wholly or partially, but it must be done freely after all material facts have been disclosed to the client.
The agent must account to the principal not only for a profit made or reward received, but also for any savings made. It is not necessary that loss or harm or damage be proved on the part of the principal. A secret profit may also not be made by using information obtained for the performance of the duties under the agreement or otherwise obtained during the course of the agreement. Should these requirements not be met, the principal may claim any profits from the agent and terminate the relationship.
An agent may also forfeit his or her commission in connection with the transactions where he or she acted improperly. All significant financial markets recognise conflicts of interest as a source of potential detriment to investors. These markets usually have rules aiming to eliminate or control conflicts to ensure investor protection and confidence.
Acting as an authorised user or financial services provider like an investment manager when there is an incentive other than client reward represents such a conflict, unless this reward is fully disclosed and consented to by the client. The FSP or its representative must avoid and where this is not possible, mitigate any conflict of interest between an FSP or representative and the client. The interest may include but not be limited to a financial interest, an ownership interest and any relationship with a third party.
Travel and accommodation associated with the training are excluded.