Compliance Monitoring Review for the months through December 2014 to February 2015


  • The FSP has juristic representatives registered on its licence

  • Juristic representatives: The representative is appointed in terms of a written agreement (mandate). <br>Confirm that:<br>• A certified copy of the FSP license and section 13 certification is clearly and prominently displayed<br>• The representative has the operational ability to conduct business<br>• All fit and proper requirements apply equally to the juristic representative<br>• All natural persons performing the functions of representatives are added to the representative register as well and remain fit and proper<br>

  • These areas require urgent attention as the liability of the FSP is at risk. The FSP remains responsible for the actions of its representatives and processes are required to ensure compliance with Section 13 of the FAIS Act.


  • At least one competent key individual been appointed to manage and oversee financial services and compliance aspect of the representative.

  • Where a key individual is not appointed, who can adequately monitor the representative, the business is in contravention of BN 106 of 2008 as well as Section 13 of the FAIS Act. This requires immediate addressing as it is a material non-compliance

  • Details on how proper monitoring occurs to ensure compliance: (PROCESS)

  • The FSP has obtained written/ verified confirmation that juristic representatives are ensuring that financial accounts/ management reports are being drafted on a monthly basis, and that these provide a fair reflection of the status of the business

  • Do you have copies of all product provider and third party contracts of your juristic representatives?

  • Time has been granted until 28 February 2015 to ensure that any contract which is currently held by a juristic representative, will be held in the name of the FSP. The juristic representative may still be a party, however it is important to note that contracts should be properly drafted to ensure that the roles and responsibilities of each party are clear, and that business documentation is amended to ensure that clients are clear that financial services are being provided in the name of the FSP. This can be done by means of a clear Section 13 certificate, as well as ensuring that compliance documentation reflects that financial services are being provided "in the capacity of" juristic representative of (name of FSP)


  • The FSP has employees, or intends appointing employees in the near future

  • The FSP can confirm and verify that every applicable staff member/ representative has the skills to communicate clearly and effectively both verbally and in writing, where this is required

  • The FSP has written Human Resources Policies and Procedures strategy / programme in place, including performance management and disciplinary procedures, and that all staff are aware of this. The FSP Disciplinary Code includes debarment-related offences and failure to comply with material requirements of the FAIS Act and reasons

  • Developing an effective HR strategy and programme not only ensures compliance, but can also help deliver concrete, quantifiable benefits for the business. Businesses that have documented human resources strategies effectively aligned to their business strategies, report higher levels of revenue per employee. Businesses need a people vision that will support the vision for the business. The HR strategy, forms part of our general risk management, and is effectively a plan to maximise the effectiveness of your people in supporting the business' strategy. If you require assistance with this, contact the compliance practise who are able to assist.

    This area requires your attention and should be addressed in the next quarter.


  • All employees and mandated persons have knowledge of, and access to internal human resources policies and procedures. In particular, there is reference to performance management and to debarment as a consequence of non-compliance in contracts of employment and mandatory agreements

  • Human resources procedures as well as record keeping ensures monitoring consent and protection of personal information, in line with the pending requirements of the Protection of Personal Information Act

  • Monitoring, surveillance and interception of employee correspondence, should be aligned to process and policies which comply with the requirements of protecting personal information. Employment contracts and processes, as well as human resources policies, should be updated to include POPi requirements.

  • Are all contracts held in the name of the FSP?

  • Attach evidence

  • Section 13 of the FAIS has been amended and is operative as of the end of February 2015. After this date, if any contracts are held directly, and only in the name of the juristic representative, then all commissions will have to stop, and the contracts will have to be terminated. This means that the juristic representative will no longer be able to provide any financial services in respect of that particular product provider. Any product supplier contravening this section will face severe penalties.

    Various options are available. Either a 3 way agreement between the Product supplier, FSP and juristic representative, or else, the FSP will have to contract on behalf of the JR, and obtain a sub-broker code. Please review all authorizations to ensure that contracts are correctly drafted.

  • Ensure that you audit the contracts of all juristic representatives and obtain copies of these. These will have to be amended to comply with the requirements of section 13 - where the contracts are held by the FSP


  • The FSP has adopted general compliance and risk management processes, with the adoption of a compliance mandate.

  • Please ensure that you address the corporate governance aspect of compliant. This should include the formal adoption of a compliance culture, by the Governing Authority. This will constitute a Board Resolution for a Company, a written acknowledgement by a close corporation, and a Trustees resolution for a Trust. A sole proprietor will adopt and ensure that the compliance manual is customized to ensure the commitment to following a proper process in line with TCF.


  • TCF requirements under the checklist on "Culture" and the associated Management Information, have been adopted and implemented in the FSP.<br>

  • The Key Individual must ensure compliance with Outcome 1 of TCF. Review the requirements of this outcome, and ensure, that as a minimum, the following is addressed:
    (1) Assess the requirements of TCF in the business and identify what needs to be addressed
    (2) Adopt a TCF policy statement
    (3) Train all employees / ensure you understand the requirements of TCF

  • TCF - The FSP's performance is measured in terms of compliance with service level agreements with providers and actual feedback from customers. This should be gathered to assess the FSP's services and products.

  • The FSP has an internal written or recorded service process (SLA) for dealing with customers<br>-what service must be provided <br>-times within which services must be completed<br>-standard of service to be provided to customers

  • An agreed service level agreement is important, as this will then provide the customer with a documented/ recorded agreement in respect of service provision. The service level agreement is what sets the expectation of the customer, and it is this which should dictate the relationship, and against which, performance can be measured

  • The FSP is collecting this information from its customers, as well as from third parties who are able to provide insight (such as product suppliers/ UMA's) as to the services provided

  • Treating Customers Fairly cannot succeed without good and fair communication. This includes communication from customers, as well as other parties in the value chain. It is important that business processed be reviewed to ensure that adequate information is collected to ensure that areas requiring improvement are identified. In addition, positive information can be used by the FSP to further encourage positive activities.


  • The FSP can confirm that customers have a good understanding of the services and products provided to them. This includes feedback from customers which helps confirm that what they think they get and what they actually get is the same thing. <br>

  • TCF and client centricity means ensuring that your customers understand their choices and are able to make informed decisions. Information which is measurable must be obtained in order to measure this. Implement a process in your organisation to address this going forward, and provide you with information to improve your services, and see what is working well

  • The responsible person is checking that the firm regularly collects, combines, analyses and uses management information to ensure its processes deliver fair outcome for its customers

  • Management information is critical to to measure the level of success of TCF principles, as well as general business practice. Without data being collected, analysed and actioned, the business cannot identify whether all persons are doing what they are supposed to, and whether business activities are in line with strategic goals and desired outcomes. It is important that processes be implemented in order to ensure that this area is adequately addressed, and properly documented.

  • Details:

  • The FSP has completed a product provider/ product due diligence

  • The FSP is going to have to be able to motivate why it has contracts with certain product providers,and also that it has done a due diligence on the products it markets. There needs to be enough documentary/ recorded support to show that the FSP has been reasonable and prudent in respect of its contracting, and product selection. Review the templates provided or conduct your own due diligence and ensure this is recorded.



  • THE FSP is a close corporation or company

  • The FSP has completed the Firm's Public Interest Score as this will have to be submitted together with the annual financial statements where appropriate. You may use the tool provided if necessary - (excel ) The FSP has determined whether it requires an appointed accountant or auditor, and has appointed an appropriate person. NB - where a company is not required to appoint an auditor, the Memorandum of Incorporation has been amended to reflect this<br>


  • The public interest score must be completed annually in order to determine whether the business requires an auditor or just a Verifier. It is important that the Governing Authority ensures this matter is rectified. A calculator is available from the compliance practice.
    Where an MOI is required to be amended, consult your accountant/auditor. Provide confirmation of this being actioned within the next quarter


  • Where applicable, sales/ staff meetings include compliance discussions, which are noted/ minuted

  • The firm’s compliance program is—<br>written in plain language so that all employees can easily understand the principles and intent;<br>communicated and readily available to all<br>updated annually to ensure it remains relevant

  • It is important that the compliance programme, policies and procedures be easy to understand, accessible and clear. Ensure this is addressed in order to mitigate risk in this respect.

  • DESCRIBE: Where this is kept, is the KI using the programme, are there any problems

  • The themed compliance report for the last review was reviewed with appropriate staff and senior management, and non-compliance areas actioned

  • It is important that the Governing Authority be notified of the compliance status of the business. Please ensure that any non compliance areas are addressed and confirmation of this, sent to the compliance practice.


  • The FSP advertises its financial services

  • All advertisements, (including website), are assessed for compliance and approved, in writing, or in some other verifiable format, by the responsible person. TCF / FAIS / CPA Advertising checklist or another form of sign-off to show compliance.)

  • In terms of compliant internal process, compliance monitoring as well as TCF, it is important that there is a clear and demonstrable process for confirming compliance in this area


  • Controls are in place to prevent personal information from being lost or damaged, or unlawfully accessed<br>as well as ensure that the purpose of the information collected is defined in the gathering and processing phases


  • The Protection of Personal Information requires that every business collecting or processing personal information, ensures that 1) the data subject is aware of the purpose of the collection of the data, and for what period it will be held, and who will have access to this. Data may not be held for longer than required, unless the data subject consents to this. In addition, all such information must be stored securely, and with sufficient security in place to ensure that this cannot be hacked or tampered with, or stolen, or copied, or accessed by unauthorised persons


  • Senior management / the KI has confirmed compliance with license conditions by: <br>(1) Review product list and confirm the firm is correctly licensed <br>(2) Product supplier due diligence complete and signed off <br>(3)Product supplier contracts reviewed, correct and signed<br>(4) Product due diligence complete and signed off


  • This should be addressed and confirmed. Compliance with all licensing requirements is an ongoing requirement, and should be regularly confirmed.


  • The chapter / requirements in respect of complaints, including the requirement for management information, has been reviewed.

  • It is recommended that the requirements relating to complaints management, and especially the TCF aspects thereof, be read and reviewed and understood. These will require implementation going forward, and it is very important that all staff members have been trained on the sensitivity, importance and requirements of properly managing complaints. Where a complaint is managed properly, it is a marketing exercise, and we recommend obtaining feedback from your customer to establish his perception of this.

  • Customers are made aware in writing of the availability of the internal complaint handling procedures (disclosures include reference to the complaints policy)<br>

  • This must be addressed as it is very important that your customers know where and how to complain, and access the Firm's complaints policy. Part of TCF is setting expectation. An easy, user friendly complaints process adds to the Firms reputation and can make the difference between securing a customer and making things more difficult.

  • Evidence:

  • The FSP has received complaints in the last 3 months

  • The complaints register is up to date with ALL complaints against the FSP or staff - SIGN OFF AND DATE MONTHLY to prove that it is being monitored (even if blank)

  • The compliance register needs to be brought up to date and the information analysed from a TCF perspective. Ensure this is addressed within the next 2 weeks

  • Ensure there is a record that no complaints were received. This could be by means of signing and dating the register, including in minutes, or by some other means.

FIT AND PROPER (BN 106 of 2008 as amended)

  • All representatives, key individuals and directors (if applicable) have confirmed their Fit and Proper status in writing, and have obtained the required qualifications and/or regulatory examinations

  • All such persons are to regularly confirm their fit and proper status. The requirements of section 13 include a key individual ensuring, and confirming in writing, (in the Section 13 certificate), that all representatives remain fit and proper at all times. Furthermore, all key individuals have a duty to remain and fit and proper, or be removed.

    Where a director of an FSP, who is neither a KI nor a Rep, is no longer fit and proper in terms of honesty and integrity, such person must be removed or the FSP risks having its license revoked. (- the Companies Act requires that all directors have honesty and integrity, therefore quarterly confirmation in Board Meeting minutes ensures compliance with both this piece of legislation as well as the FAIS Act)

    Ensure this is addressed and confirmation sent to your compliance practice.

  • Key individuals and/or Representatives were required to be debarred, in accordance with the internal debarment process, and have been debarred, since the beginning of the Annual reporting period (1 June - 31 May annually)

  • The internal debarment process was followed and recorded to ensure compliance


  • Where a Representative or Key Individual is no longer Fit and Proper, procedures need to be followed to ensure that this person is removed as KI and/or Representative. In the event of the person being a Representative, this person needs to be debarred, with the proper debarment procedure being followed and recorded.

    NOTE: if a KI is removed, an alternative KI must be identified or the FSP is at risk of losing its license.

  • Any KI's or REPS who should be/ have been debarred/ removed in the preceding or following month(s) are required to be debarred/ removed for lack of:
    (1) Qualification
    (2) RE exams
    (3) Honesty and Integrity
    (4) Resignation
    Update rep register and report to the Governing authority and compliance officer on debarments
    Ensure all debarment records are correct, complete and kept confidential.
    Where a person has been debarred, or should be debarred as result of failing to obtain a qualification or regulatory exam within the prescribed period, the FSP may apply for an extension of time, in order to ensure ongoing compliance. Contact your compliance officer should you need assistance with this.


  • The FSP has updated its documentation to ensure that the requirements of Section 13 are being disclosed to every client. This includes noting that :<br>1) The representative is appointed in terms of a written agreement<br>2) The FSP assumes responsibility for the actions of the representative in the normal course and scope of duties<br>3) Any product which fall outside FAIS cannot be forwarded to the FAIS Ombud<br>4) The fit and proper status of the representative is confirmed

  • Verification attached

  • Ensure that every representative, (INCLUDING sole proprietors) is issued with a correct, updated written confirmation of their section 13 requirements within the next week, and that all client verify/ confirm that they have had this disclosed to them at the earliest reasonable opportunity. These amendments may be included in the statutory disclosures.

    Forward to the compliance practise as confirmation of this process being implemented

  • Updated and correct records of engagement are implemented, with correct controls and risk management, and disclosures in terms of both POPi and TCF


  • In order to treat customers fairly, clear, concise and complete communication is required
    throughout the relationship. Words matter. They are the most basic building blocks of written and
    spoken communication, and in order to place customers in a position where they can make
    informed choices, full disclosures are required which are both precise and concise.
    Communication and disclosure vehicles include verbal engagements, printed, written material,
    product supplier produced documentation, advertisements and general correspondence. It includes
    policy and investment documentation, review, updates and analyses and recommendations.

  • Full records of all of disclosures and discussions, and explanations are to be kept. It is insufficient to include a “general acceptance” confirmed by customers as this does not detail WHAT information was provided. You need to be able to prove what information was given, and that the customer understood..

  • The importance of keeping accurate records with sufficient detail cannot be overemphasized. Records tell us what, where and when something was done and why a decision was made. They also tell us who was involved and under what authority. They provide evidence of firm, individual and customer activity and
    promote accountability and transparency.

    Reasons why it is important to document and maintain proper records:
    ∞ Help our people work more efficiently
    ∞ Enable each person to meet the legal obligations applicable to work done
    ∞ Protect the interests of the customer
    ∞ Protect each individual’s rights as an employee/ mandatory/ representative and citizen
    ∞ Enable review of processes and decisions
    ∞ Retain the memory of the firm
    ∞ Enable consistency and continuity in the firm

  • The FSP has representatives which it is required to monitor

  • There are set monitoring procedures in place which can be verified. These can include, for example:<br>Auditing 10% customer records per representative to ensure compliance. Use checklist.<br>Confirm all disclosures complete and can be proved<br>1)FSP<br>2)Rep<br>3)Product supplier<br>4)Product<br>5)TCF<br>Checking records: Where you check records, confirm that the customer receives the correct information and that confidentiality is kept.<br><br>Remember to PROVE the monitoring of representatives in a documented way by countersigning and dating client files, meeting minutes or by logging monitoring in a register, or electronically<br><br>Any non-compliance is entered in the non-compliance register and the appropriate action taken (training/ warnings/ commission not paid)

  • All FSP's are required to constantly monitor their representatives to ensure that there is continued compliance with the provisions of the FAIS Act, the General Code of Conduct, Fit and Proper, and all applicable legislation. In addition, it is good business practise to ensure that the message and services provided by the representatives are consistent with those of the Firm.

    This is required to be documented, as the information gathered can be used to identify training or other needs, as well as address issues before they escalate.


  • Attach sample

  • Adequate monitoring must be done in respect of all representatives, to ensure compliance with the general code of conduct. Ensure that this is attended to, and confirmation forward to the compliance practise within 3 weeks.

  • The FSP has identified training needs, from monitoring completed and addressed these



  • Important information in respect of records and the maintenance of these, is contained in the chapter on "Recording services and Transaction with Customers". Read through this section - it may be used as a training aid.

  • From a risk management perspective, backups on electronic information should not only be regularly done, but these backups require testing, to see if there is integrity in the process, if records are being backed up properly, and also, to assess whether records are retrievable within the required 7 day period. <br><br>The protection of personal information act is going to require secure and reliable backup services of information, together with a log of all information which has been backed up, who has access to this, and assurance that the information is correct. <br><br>The FSP has a recorded confirmation of backups being tested. This should include the date, how the backups are tested, as well as the result.

  • Include verification of date last tested, as well as results of the test

  • The FSP is to test its backup system for reliability on a regular basis. This should be logged/ recorded as a record of when last the data backed up can be confirmed as being correct and reliable. Forward verification of this to the compliance practice within the next 3 weeks.


  • Section 18 of the FAIS Act requires:
    Firms must keep records for five years of:
    a)Premature cancellation Register: known premature cancellations of transactions or financial products by clients of the provider;
    b)Complaints Register: complaints received, details, whether or not any such complaint has been resolved;
    c)the continued compliance with the requirements referred to in section 8;
    d)Non-compliance Register: cases of non-compliance with this Act, and the reasons for such non -compliance; and
    e)the continued compliance by representatives with the requirements referred to in section 13(1) and (2).

  • All your registers are up to date<br>□ Register of known premature cancelations<br>□ Register of complaints as well as how these were dealt with/ resolved<br>□ Register of representatives and key individuals<br>□ Register of non- compliance and reasons for this, as well as actions taken to rectify non - compliant areas<br>□ Non - cash incentive/ conflict of interest register<br>□ Training register reflecting all training in the organisation - FORMAL AND INFORMAL<br>□ Register of standard documents used in ensuring compliance


  • Please ensure that all registers are updated as these should be done at least quarterly, and copies forwarded to the compliance practice as confirmation of this being finalised


  • The FSP does replacements

  • The replacement advice record forms part of the record of advice. <br><br>Confirm that customers receive copies of BOTH documents (if not already combined) as this is a requirement of the General Code of Conduct.<br><br>The ASISA RPAR (if used) is not compliant by itself. The customer must receive a detailed explanation of the differences/ changes (see RPAR template) in order to be placed in a position to make an informed decision.

  • Verification attached

  • Review the requirements of the General Code of Conduct, with specific reference to replacements and the replacement advice record to ensure you correctly address this area. The compliance manual includes a section appropriate for review and training - please review this and refer the checklists.

    Make sure that the replacement form clearly makes a comparison between products that is in line with the requirements of the code of conduct and not just making use of a product supplier’s application form.

    Confirm within 2 weeks that this matter has been rectified.

  • Confirm that the replacement form clearly makes a comparison between risk, products and the potential or actual impact the replacement will have on the customer

  • Verification attached

  • Review the chapter on advice, with specific reference to replacements and the replacement advice record to ensure you correctly address this area. It is important that where replacements are done, clients are aware of the implications and the differences between the replacing and replaced solutions. This must be clearly recorded/ documented. Confirm within 2 weeks that this matter has been rectified


  • The business has persons who are rendering services under supervision

  • Confirm that when assessing a person under supervision, the FSP has records of assessing the Representative's:<br>* Initial competence,<br>* Technical knowledge and its application; <br>* Skills and their application; and <br>* Changes in the market and to products, legislation and regulation.

  • It is important to identify and assess representatives who are under supervision skills, knowledge and technical competence. It is also important to ensure these representatives are aware of, and keeping breast of industry updates and changes.

    This are requires attention.


  • Supervision records are complete and on file, and adequately completed. Audit and confirm that each representative under supervision has a supervision file, with the following:<br>- Signed supervision agreement<br>- Details of supervisor/s, experience, position in FSP, organogram of working relationship with supervisee<br>- Details of supervisee, experience, qualifications, starting date<br>- Training plan and records<br>- Reports of customer interaction monitoring<br>- Reports of customer engagement records/ advice given and checks for appropriateness<br><br>Records of: <br>(1) the criteria applied in assessing competence; and <br>(2) how and when the “competence decision” was arrived at.<br>- Performance appraisals (the supervisor must conduct performance appraisals/ progress assessments of the representative, to help the representative learn the necessary skills to function independently.)

  • Signed supervision agreement

  • Details of supervisor/s, experience, position in FSP, organogram of working relationship with supervisee

  • Details of supervisee, experience, qualifications, starting date

  • Training plan and records

  • Reports of customer interaction monitoring

  • Reports of customer engagement records/ advice given and checks for appropriateness

  • Performance appraisals (the supervisor must conduct performance appraisals/ progress assessments of the representative, to help the representative learn the necessary skills to function independently.)

  • Records of: (1) the criteria applied in assessing competence; and (2) how and when the “competence decision” was arrived at.


  • This area requires attention. Supervision processes must be followed, and full supervision records kept to prove this. Please ensure these are brought up to date.

    Failure to maintain proper records can be seen as a failure to supervise - this places the business at risk and requires addressing as a matter of priority.
    Where there is a break in the supervision period, or where there is a gap in recordkeeping / supervision, this period will have to be added to the end of the term, which means that this will then be extended.


  • The FSP is an accountable and/or reporting institution

  • All AML (FICA) registrations are correct



  • Ensure that all registrations are correct and complete on the FIC website - Obtain your registration number and details, and ensure these are kept in your compliance manual


  • Are you a direct marketer? (most of your business transacted on a non face-to-face basis such as email, website, telephone?

  • If yes: do you have proper voicelogging in place, with a written service level agreement, proper backups and voicelogging adequate filing system (to each client's file)?

  • This needs to be addressed as a matter of priority. Voicelogging, record retention and the retrieval of records is critical for any direct marketer. Where there is non-compliance here, the FSP is definitely at risk.

  • Where voice-recording is in place:<br>Confirm Quality assurance processes in place<br>Voice-logged calls must be audited in addition to being quality assured to monitor compliance with section 15 of the General Code of Conduct (where this applies).

  • This needs to be addressed and the proper quality assurance/ verification processes implemented in order to measure and ensure compliance. Address this area as soon as possible and confirm that the matter has been complied with within 2 weeks.



  • Telephone marketing is done

  • All scripts were confirmed compliant prior to any such telephone marketing happening

  • Ensure that this matter is addressed as a matter of priority, and compliance confirmed within 2 weeks.


Notes and Actions

Compliance Matters from previous audit that remain unresolved


  • Compliance matters which remain unresolved place your firm at risk. Please ensure any area which remains a compliance concern is urgently addressed or the matter may have to be reported to the Regulator. Material non-compliance is required to be reported, and may lead to penalties or regulatory action. Please contact our offices should you require assistance

Comments/ Notes

Actions - FSP (Action items should indicate what, by whom, and by when)






Actions - Compliance Practise (Action items should indicate what, by whom, and by when)






Profile changes

  • Have all changes to any business information (bank account/auditor/representatives/directors/shareholders etc.) been forwarded for updating at the FSB within the required 15 day period

  • Please ensure that all profile changes are addressed within 15 days of such change occurring. A copy of the requirements for various changes is available from the compliance practice offices on request

  • Updates or Information in respect of any profile changes:

  • Details:

Documents delivered/ Collected:

  • Please ensure that all documents either collected/ delivered are fully completed and checked before receipted. Incomplete documents cannot be collected/ delivered so if a profile change is requested, please ensure that all the requirements are submitted as one, and that you retain copies of these for your records. A copy of these requirements (profile changes) as well as the forms is available from the FSB's website, as well as the compliance officer's office .

  • Deliveries/ Collections

  • Add signature

  • Details of collection/delivery

File Reviews and Audits

File Audits

  • Files Audited for compliance

  • Files Audited
  • Name of representative and Date of transaction

  • Name of client/file

  • Has a due diligence been completed on products and product providers recommended?

  • Has the representative been trained on the products recommended. Please indicate details.

  • Consent to obtain information<br>

  • Disclosure document

  • Broker Appointment - on document/ application form or other

  • Full product and fees disclosures

  • Mandate/ Evidence of Instruction being provided by client

  • Information gathering in order for intermediary to perform analysis

  • Evidence of analysis

  • Quote signed and on record

  • Application form complete, with no blank areas (customer did not sign an incomplete form)

  • Claims History - (short term)

  • FICA verification (verified ID/Proof of address/Source of funds) DATED?

  • Record of advice - complete and copy provided to client.

  • Does the record of advice include full disclosures, TCF and customer confidentiality?

  • RPAR - correct, complete, copy to client

  • Correspondence/ File notes/ Records of engagement

  • Documents are correctly and comprehensively completed 1-not at all 10- Perfect!

  • Evidence of KI checking/ assessing content, plus appropriateness

  • When was the representative last product trained on this? (NOTE: in order to verify this training, it must be logged in the training register. This includes self study, BC training, launches etc.)

  • Notes/ Comments

File Audits - CAT II

  • Is the FSP authorised under a CAT II licence

  • Files Audited for compliance

  • Files Audited
  • Date of transaction

  • Name of client/file

  • Product due diligence complete

  • Disclosure document is correct and includes Section 13 certification?

  • Consent to obtain information<br>

  • Intermediary appointment on file

  • CAT II mandate on file, complete and signed

  • CAT II mandate still the approved version

  • Was advice provided?

  • Is there a record of advice on file, in compliance with the requirements of a CAT I provider?

  • Information gathering in order for intermediary to perform analysis

  • Evidence of analysis

  • Is there evidence of assessing the customer's risk profile or motivating why a certain risk approach is undertaken

  • Product due diligence complete

  • FICA verification (verified ID/Proof of address/Source of funds) DATED?

  • FICA risk rate document

  • Reporting in line with requirements

  • Correspondence/ File notes/ Records of engagement

  • Documents are correctly and comprehensively completed 1-not at all 10- Perfect!

  • Describe the process of ensuring that the Mandate is complied with. If there are any breaches, provide details on what these were as well as how they were addressed

  • Has a system of feedback from customers been implemented to identify any problematic areas?

  • Notes/ Comments

Finalising Audit

  • Compliance officer signature

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