Compliance

South Africa operates within the global arena. For example, as international FSP`s are transacting with South Africa on a daily basis they expect the South African market to be financially sound. This will be determined to a large extend, by monitoring the level of prudential supervision that the local FSP`s are subjected to.  If South Africa wishes to continue to be a global player, the country must meet and maintain the standards that are set internationally. As is the case locally, the intensity of regulation is also increasing internationally. FSP`s that fail to adapt to the regulatory environment will be subject to increasing severe disciplinary action, fines and even jail terms. Compliance with regulatory requirements may be interpreted as the necessity for an FSP to meet the regulatory requirements that apply to the financial services sector within which it operates. Regulatory requirements are a term that is collectively used to describe the requirements set out in:

  • Acts of parliament [also called statutes];
  • Subordinate legislation, for example, regulations to various acts; and
  • Supervisory requirements, namely, board notices issued by the Financial Services Board [FSB]

Not only must each Representative of a FSP satisfy the “Fit & Proper” requirements, they must also conduct their business adhering to the FAIS and FIC Acts, their regulations, the General Code of Conduct and Board Notices issued by the FSB. An FSP may outsource its compliance services to an Independent Compliance Officer [ICO] which is approved by the FSB. REGSERV [PTY] LTD is a FSB approved Compliance Practice [FSB Ref: CO 6975]. Examples of compliance services that could be outsourced include defining the applicable regulatory requirements, drafting of compliance policies & procedures, drafting of risk management framework, compliance monitoring, compliance reporting and compliance training