SECTION 1 - GENERAL

SECTION 1 - GENERAL

QUESTION 1.4 REGULATORS

  • The Question relates to whether the FSP is regulated by any other law, within or outside South Africa
    (Please note that this does not include membership of professional bodies).

    The definition applied in this instance is where there is an appointed "Regulator" for the Financial Services Provider who oversees the enactment and governance of applicable legislation

  • The business is regulated by the following regulators:

  • Acountable Institution - Registration no:

  • S43 MLCO: Name and ID:

  • Reporting Institution - Registration no:

  • S43 MLCO: Name and ID:

  • The FSP is regulated by the National Credit Regulator as a:

  • NCR Registration No.:

  • ORG: (number and expiry)

  • Key Individual Name and BR: (number and expiry)

QUESTION 1.3.3 UNREGULATED AND UNDEFINED INVESTMENT FINANCIAL PRODUCTS

  • Question 1.3.4.1. Does the FSP render financial services on any product not regulated by the Act, or Regulated in terms of any other legislation? (roadside assistance that is not underwritten, etc.)

  • Question 1.5.1.1: Services and/or Product detail:

QUESTION 1.4.2 NON-COMPLIANCE ON CATEGORIES AND SUBCATEGORIES OF PRODUCT

  • Question 1.4.2. Did any non-compliance occur in respect of the limitation on categories and subcategories during the reporting period?

  • Question 1.4.3.1 Full details of the identified non compliance:

  • Question 1.6.3.1 Steps taken to reasonably ensure that such non-compliance does not occur again:

QUESTION 2 GROUP STRUCTURE

  • Question 2.1. Does the FSP form part of a group of companies? <br>IF YES, provide full details of the group ( including organogram or diagram as well as the FSP's relation to the group of companies)<br><br>A) Provide full details of relationships<br>B) Provide full details of outsourcing or insourcing<br>C) Provide full details of delegations of authority

  • Add media

  • Details:

QUESTION 3 KEY INDIVIDUALS

  • Question 3.2. Provide information on the business structure, with regards to Key Individuals. Details are required on their:
    1. Name
    2. Position
    3. Physical location (Where they are situated)

  • Key Individuals:

  • KI - Person Details
  • Name:

  • Location

  • Position:

  • Detail:

  • Question 3.4.1.Did any change occur in the personal circumstance of the Key Individual during the reporting period that adversely affected the fitness and propriety of the person, as set out in Part II of the Determination of Fit and Proper Requirements?

  • 3.4.2 Name of KI/s:

  • 3.4.2 Details of changes:

SECTION 2 - GENERAL CODE OF CONDUCT

SECTION 2 - GENERAL CODE OF CONDUCT

QUESTION 6.5: CLAIMS AGAINST PROFESSIONAL INDEMNITY

  • Question 6.5. Did the FSP have any claims against its professional indemnity cover, fidelity insurance cover or guarantees during the reporting period

  • Details of claims
  • Reason for claim

QUESTION 9: FURNISHING OF ADVICE AND THE RECORD OF ADVICE

  • Question 9.2.2. Does the FSP have procedures in place to ensure that an analysis of the client's financial situation and objectives is performed before advice is furnished?

  • Question 9.2.2. Details on how these procedures will be implemented or improved:

  • Question 9.2.4. Does the FSP keep a record of advice and provide it to clients in accordance with Section 9 of the General Code of Conduct?

  • Details of non-compliance:

  • Steps taken to ensure that this does not occur again:

QUESTION 9: CUSTODY OF FINANCIAL PRODUCTS AND OR FUNDS

  • Question 10.1. Does the FSP receive or hold products or funds on behalf of clients when rendering financial services?

  • Question 10.2.1. Products (subcategories of licence) in respect of which premiums or funds are held/ collected/ received:

  • Details of products:

  • 10.2.1 INFORMATION REGARDING IGF: This cover is:

  • We would like to bring to the Regulator's attention, the problem with IGF renewals. The term of the IGF coincides with the financial year of the FSP, however, in order to be renewed, completed financial statements are required. No FSP has its financial statements prepared exactly at financial year end. This means that an application for an interim cover or extension is required as a standard, in order to comply, and this could last for 4 months whilst the statements are being compiled, plus whatever period is required for the issuing of the certificate.

    In this instance, the updated or new certificate may not be attached to this report as it could still be awaiting issue.

QUESTION 13: COMPLAINTS

  • Question 13.2.1. Were any complaints against the FSP referred to the FAIS Ombud during the reporting period?

  • Question 13.2.1. Details of complaints:

  • Complaints:
  • Name of complainant:

  • Type/ details of complaint

  • Outcome:

QUESTION 15: TERMINATION OF AGREEMENT OR BUSINESS

  • Question 15.2. Does the FSP have a business continuity plan and procedures in place to ensure that their clients will be serviced if the business is terminated for any reason?

  • Question 15.2.1. Details of steps to be taken (together with timeframes) to ensure that clients will be serviced if the business is terminated

QUESTION 16: WAIVER OF RIGHTS

  • Question 16.1. Does the FSP have procedures in place to ensure that the FSP does not request or induce any client to waive any right or benefit?

  • Details of non-compliance:

  • Details of how this will be addressed to avoid a non-compliance repeat (include timeframe):

SECTION 3 - REPRESENTATIVES

SECTION 3 - REPRESENTATIVES

SERVICES UNDER SUPERVISION

  • Question 17.8.1. The FSP has representatives under supervision

  • Question 17.8.2.2. Does the FSP have procedures to monitor the compliance of supervisors with Paragraphs 4(7)(a) to (f) of the Exemption in respect of Services under Supervision: (one or more of the following activities)<br>7(a): sign off by supervisor on advice<br>7(b): pre-transaction sign off by supervisor where financial services are provided<br>7(c): attending meetings with supervisee where intermediary services are rendered<br>7(d): appropriate post transaction sampling<br>(e) follow up calls to clients after the rendering of services to confirm certain aspects of interaction with the client<br>(f) any other activity which enables the supervisor to scrutinise the activities of the supervisee in the rendering of financial services

  • Process:

  • Question 17.8.5. was any non-compliance found in terms of representatives under supervision?

  • Details of non-compliance:

  • Steps taken to reasonably ensure that such non-compliance does not occur again:

QUESTION 17.10 DEBARMENT OF REPRESENTATIVES

  • Question 17.10.2.1. Has the FSP taken steps to debar representatives who have not complied with the qualification requirements of Column 2 of Table E in Part X of the determination of Fit and Proper?

  • Details:

SECTION 4 - MONEY LAUNDERING CONTROL

SECTION 4 - COUNTER MONEY LAUNDERING CONTROL PROCEDURES

QUESTION 18. ACCOUNTABLE INSTITUTIONS

  • Question 18.7.1 Does the FSP establish and verify the identity of clients as required by FICA?

  • Question 18.7.1 Reasons why such verification was not done:

  • Steps to ensure that this matter is addressed:

  • 18.11 Does the FSP perform identification and verification on behalf of another accountable institution, as per Par.4 of the exemptions in terms of FICA

  • Details of institutions:

  • 18.12 Does another FSP perform identification and verification on behalf of the FSP

  • Details of institutions:

SECTION 5 - COMPLIANCE FUNCTION

SECTION 5 - COMPLIANCE FUNCTION

QUESTION 19: THE COMPLIANCE FUNCTION

  • Question 19.6 Issues with regard to the FSP that is not covered in this report that we want to bring to the attention of the Registrar?

  • Details:

QUESTION 20: MONITORING

  • Question 20.1.2 Were there any identified instances of non-compliance where the monetary value of a financial interest exceeded R1 000?

  • Details of non-compliance:

  • Steps taken to avoid a repeat of the non-compliance:

  • Question 20.3. Did you conduct monitoring of the FSP's risk management plan?

  • Question 20.3.1. Provide details on how the risk management plan is monitored:

MONITORING METHODOLOGY

MONITORING METHODOLOGY

  • Question 20.4.14 Details on other monitoring done:

  • Business process, either the documentation thereof or a system driven process, was checked.

  • Aspects of compliance with the Companies Act were checked, such as the requirement to complete a public interest score, the Board's requirements in terms of meetings and the minuting thereof, and the adoption of resolutions in respect of compliance.

  • Aspects of compliance with the Close Corporations Act were checked, such as the requirement to complete a public interest score, the Member's requirements in terms of disclosing the "cc" status, and the minuting of meetings, and the adoption of resolutions in respect of compliance.

  • An enquiry was forwarded to the offices of the Registrar to clarify whether UMA's, who provide binder and/or intermediary services only, should be registered as direct marketers, in terms of the definition of direct marketing. Direct marketing, as defined, means "the rendering of financial services by way of telephone, internet, media insert, direct mail, or electronic mail, excluding any such means which are advertisements not containing transaction requirements".

    A direct marketer is a provider who "in the normal course of business, provides all or the predominant part of the financial services concerned in the form of direct marketing". Our instruction was that UMA's should not be registered as "direct marketers".

  • We enquired into whether the FSP has internal human resources procedures. We enquired into the recruitment process of the FSP to establish whether representative appointments are being properly effected.

  • We spent time in assessing the licencing requirements and administrative needs of the business and assisting where required.

  • Assistance and guidance was provided in terms of registration matters.

  • Question 20.5 Details on how monitoring was done, as well as the extent thereof:

  • Quarterly visits are conducted, theme based and aligned to an annual monitoring plan. The purpose of these onsite visits is to collect sufficient verification of the aspects of compliance under review for that particular period, which collectively provide the practise with sufficient information to be able to complete the Statutory report and obtain insight into the business. The quarterly audits are based on an annual compliance plan and tasks provided to the FSP, broken up into monthly responsibilities.

    The fourth quarter comprises the completion of the Annual Compliance Report.

  • Monthly visits are conducted, themed and aligned to an annual monitoring plan. The purpose of these onsite visits is to collect sufficient verification of the aspects of compliance under review for that particular period, which collectively provide the practise with sufficient information to be able to complete the Statutory report and obtain insight into the business.

    The final monthly monitoring engagement comprises the completion of the Annual Compliance Report.

  • The FSP was identified as having juristic representatives. Onsite assessment verified compliance with Disclosure requirements, Section 13 certification, Mandates, Business Operations and FSP engagement with the representatives. Registration of both natural and juristic entities was verified.

    An approach of assessing that the compliance of the FSP is filtered down to the representatives is adopted.

  • The FSP was provided with an annual compliance plan. Compliance with this is integrated into the themed onsite assessments.

  • Updated and compliant templates, ensuring both effective control as well as efficient process, was provided where required, for customisation and implementation.

  • File audits focus not only on document compliance with FAIS, such as disclosures and records of engagement and advice, but we also check that there is consistency and accuracy in the offer to purchase, contract and delivery documentation.

    AML documentation is checked and we assess both the existence of the document as well as the completeness and correctness.

    When performing file audits, we furthermore check to see if these are being checked by a responsible KI.

  • Audits of files were conducted in

  • A checklist is used when performing these audits. File audits focus not only on document compliance with FAIS, such as consent to obtain information (where this is required), disclosures and records of engagement and advice, but we also check that correspondence, schedules, verification documents etc. are available and on record. Records of advice amy be evidenced not only through formal documents, but also by means of general email correspondence. AML documentation is checked and we assess both the existence of the documents as well as the completeness and correctness. When performing file audits, we furthermore check to see if these are being checked by a responsible KI.should this be a requirement.

  • Audits of files were conducted in

  • Where audits are conducted at UMA's, we assess whether there is any evidence of staff providing advice where this is not permitted, as well as whether process ensures compliance with the requirements of registration.

  • Call centre audits focus on script compliance and authorisation, quality assurance process as well as call-recording devices and the ability to recover recordings.

  • We checked whether the FSP has a written conflict of interest policy, whether this complies with the requirements of Section 3A of the General Code of Conduct, whether this is made known to the customers of the FSP, and whether there have been any breaches in respect of this, as well as whether any potential conflict of interest has been identified and disclosed.

    The existence of, and completion of the gifts register is physically verified and persons were interviewed in respect of the receipt of gifts.

    We furthermore checked to see whether persons have been trained on this, and are aware of what is permitted.

  • The disclosure documents was inspected for compliance and any amendments or updates forwarded as a recommendation, where this was required.

  • The FSP cannot ensure compliance with the requirements of Section 7, as most documentation providing this is issued or approved, by the product supplier, and the FSP is reliant on the integrity of these documents.

  • Registration on the Regulator's website was checked against the products and services provided by the FSP and its representatives

  • Verification of financial soundness was monitored by means of written confirmation being requested from the person responsible for the accounting or auditing of the business. This includes confirmation of compliance with the requirements of Section 19 as well as liquidity and solvency requirements.

  • Health accreditation was verified against the information available on the Council of Medical Schemes website

  • Licencing and Authorisation - information as per the online submissions part of the FSP website was forwarded to clients to check, and to notify us of any required changes.

  • Mailed verification: Where documentation, process or evidence was not immediately available for verification, the FSP is required to forward these by means of electronic mail.

  • Mandates are physically assessed to see if they are on file, properly completed, signed by all parties, and the approved version.

  • Counter Money Laundering policies, process, documentation and training was checked. Where required, updated information is provided to the business to ensure compliance. We also have been assisting with the re-registration process on the GoAML system and this is proving to have some challenges.

    The existence of required documentation, as well as the verification and dating thereof, was checked.

  • The auditing tool includes the facility of obtaining photographic evidence which is incorporated into the report itself. This obviates the requirement in many instances of obtaining a physical document.

  • Basic POPI understanding and training need was checked, including confidentiality disclaimers in email signatures

  • Each onsite assessment included requesting the FSP whether there were any profile changes.

  • The FSP was interviewed to establish whether it collects or holds premium or not. This includes a verification of process to ensure a proper understanding of what the definition is.

  • The recordkeeping process, as well as the physical recordkeeping was checked.

  • Representatives under supervision: The FSP was checked to establish whether any representatives are under supervision. Where supervised service is in place, records are checked, together with the process being followed to ensure skills transfer, and that adequate records of this are being maintained.

  • Risk Plan: A copy of the risk plan was requested for viewing. Currency and adequacy of the plan was discussed and verified. In addition to this, we adopted a new approach in respect of risk monitoring which includes discussing and identifying actual and real risks to the business, in an effort to try and create a more valuable tool.

SECTION 6 - FOREX

SECTION 6 - FOREX

  • Question 21.1. The FSP is licenced for Forex

SECTION 7 - HEALTH

SECTION 7 HEALTH

  • Question 22.1 The FSP is authorised for Health

  • Was the accreditation of the FSP in terms of Section 65(3) of the Medical Schemes Act 1998, during the reporting period suspended or withdrawn, or did it lapse?

  • Question 22.2.1 Details of suspension, withdrawal or lapse

  • Question 22.2.3 Provide a list of product suppliers the FSP utilises in respect of Health Service Benefits

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