Page 91 - Profile's Unit Trusts & Collective Investments - September 2025

Legislation and guidelines Chapter 5

In turn, the FSP must be satisfied that all representatives in its employ (and this includes “key
individuals” of the FSP if the latter is also a firm) are competent to provide the services offered by the
FSP. While representatives must comply with the Fit and Proper Requirements, the FSP must also
take some responsibility, in terms of the Act, for ensuring that FSPRs comply with the FAIS Code of
Conduct and the internal rules of the FSP. FSPs must maintain registers of representatives and key
individuals, which must be regularly updated and be available to the Registrar.

Compliance officers
Any FSP with more than one key individual or more than one representative must appoint a
compliance officer. The compliance officer can be an existing member of staff, but must be approved
by the Registrar. The job of the compliance officer is, broadly, to monitor compliance with the FAIS
Act. This includes monitoring both the FSP itself and representatives in the employ of the FSP.
As part of fulfilling his or her functions, the compliance officer must submit regular reports and
must liaise with the Registrar of financial services.
More specifically, the compliance officer is required to:
R Function independently and objectively
R Have personal characteristics of honesty and integrity
R Have a thorough knowledge of FAIS legislation
R Ensure proper compliance monitoring
R Enjoy the support of senior management
R Be equipped with the necessary resources to ensure compliance
In order to be approved by the Registrar, a compliance officer must meet the following criteria:
R A legal or accounting degree plus at least three years’ experience in financial services; or
R The compliance officer must have passed an industry-specific course recognised by the
FSCA (plus at least three years’ experience in financial services); or
R The compliance officer must already be appointed as a compliance officer according to the
provisions of any Act other than the FAIS Act; or
R The compliance officer must be an accredited member of the Compliance Institute of South
Africa, with at least three years’ experience.
These qualifications and experience requirements do not apply if the person to be appointed as a
compliance officer is a director or member of an FSP.
Code of Conduct
A key feature of the FAIS Act is that it requires all FSPs 2022 Amendments to the
and representatives (and all “key individuals”) to act in General Code of Conduct
accordance with a rigorous code of conduct. Essentially,
the code tries to ensure the highest possible levels of (GN2814)
professional conduct, integrity and transparency in the „ The addition of the obligation to disclose if
financial services industry. products or services that are not regulated
The entire code is available on the FSCA website under the Act are offered and to point out that
(www.fsca.co.za), and given the importance of the code, clients are not afforded the protections under
it should be read and re-read by all FSPs, FSPRs and key the FAIS Act in respect of those additional
individuals. It should be noted that the conduct of financial products or services.
advisers is also regulated by many other regulations and „ Excludes providers who handle premiums under
pieces of legislation, depending on the area of speciality the Short and Long Term Insurance Acts from
– the Code of Conduct does not encompass everything the requirement to have a separate bank account
with which an adviser must comply. for these.
Some of the more important elements of the code are „ Excludes providers subject to the Short or
as follows: Long Term Insurance Acts from maintaining
R Financial advisers must act honestly and fairly at guarantees, professional indemnity or fidelity
all times, exercising skill, care and diligence. insurance.

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