FAQ: CLASS OF BUSINESS
All Representatives working under supervision as at 1 April 2018 or appointed under supervision after 1 April 2018. Depending on the approved products for a licensed FSP, a Representative (Rep) will have to complete the applicable COB together with all subclasses which are relevant. A Key Individual (KI) must also, prior to managing or overseeing any financial service, complete COB training for those classes for which he/she is mandated.
Class of business in the context of financial services, is the generic training that focuses on general product category knowledge in relation to a specific Line of Business. According to Section 29 (4) of the Board Notice 194 of 2017 (the Act) which became operational on 1 April 2018, all product sub categories have been divided into nine Classes of Business. Within each class, there are relevant subclasses.
By meeting all the competency requirements which consists of the following:
- Obtain a qualification recognised by the FSCA
- Pass the applicable regulatory exam
- Complete the class of business training applicable to you and
- Gain the required experience while working under supervision in each product category.
Whilst under supervision, you will learn how to render financial services in the most appropriate way. Your supervisor should:
- Sign-off the advice given;
- Perform a pre-transaction sign-off where intermediary services are rendered;
- Attend meetings with you where financial services are rendered;
- Be involved with post-transaction sampling;
- Supervise follow-up calls to clients;
- Perform any other appropriate activities that enables him/her to scrutinise your activities. By going through this process, you should be able to render financial services professionally and in the best interest of your clients.
It is a process where an authorised FSP can restrict a person from rendering financial services who is or was a representative of the FSP if the financial services provider is satisfied based on available facts and information that the person:
- does not meet, or no longer complies with the fit and proper requirements,
- has contravened or failed to comply with any provision of the FAIS Act in a material manner.
If you ensure that you meet the Fit and Proper requirements and comply with the provisions of the FAIS act, debarment has no affect on you. If debarred, you will not be allowed to work as a representative in the financial services industry.
The FSP is responsible for debarring representatives where necessary.
An FSP will debar a representative if that representative no longer meets the fit and proper requirements, or if the representative has contravened a provision of the Act in a manner which is serious.
Not as a representative.
That depends upon your terms and conditions of employment. If your job requires you to be a representative, then debarment could lead to dismissal. If your conditions of employment specify that debarment would be grounds for dismissal, then you might be dismissed. These would not be FAIS matters. FAIS debarment is not the same as dismissal.
The FSP must notify the representative in writing that debarment proceedings are being implemented and give reasons. The representative must have a reasonable opportunity to respond, and the response must be considered. The FSP makes its decision. If it decides to debar, then the representative must be given the decision and reasons in writing and must also be told of the right to refer the decision to the Financial Services Tribunal for review. The FSP withdraws any authorisation to operate on its behalf, removes the representative from its register of representatives and notifies the Authority of the debarment so that the person can be placed on the central register of debarred representatives
Yes. Generally, 12 months must have passed since the debarment before reinstatement can be considered: but if the only reason for the debarment was a failure to meet a fit and proper requirement, then as soon as the requirement has been met the representative can seek re-appointment. An FSP must satisfy itself that all unfinished business that the Representative had at the time of debarment was properly dealt with, that all matters that arose from the debarment have been completed and that the person is fit and proper at the time of application. If the FSP is satisfied, it will notify the Authority that it has appointed the person as a representative and the Authority will remove the person from the debarment register.
Yes, there is. The Ombud is appointed by the Minister of Finance, as provided for in section 21 of the FAIS Act. The Ombud must be a person who is qualified in law and who possesses adequate knowledge of the rendering of financial services. The Minister may also appoint one or more persons as Deputy Ombud.
The FAIS Ombud’s role is to consider and dispose of complaints. These complaints can be sent by clients or companies. The Ombud must be procedurally fair, informal, economical, expeditious and equitable when assessing and acting on a complaint.