The Financial Services Board is an independent institution established by statute to oversee the South African Non-Banking Financial Services Industry in the public interest. The FSB is committed to promote and maintain a sound financial investment environment in South Africa.

The FSB advises consumers who wish to conduct financial services business with an institution or person to check beforehand with the FSB whether or not such institution or person is authorised to render financial services or whether the institution or person is appointed as a representative of an authorised financial services provider.

Industries

The financial services industries that fall within the ambit of the FSB are:

• Financial Services Providers
• Nominee Companies
• Retirement Funds
• Friendly Societies
• Insurers
• Short-term; Long-term; Re-insurers: short- and long-term
• Lloyd's correspondents; and Other Credit Agents
• Collective Investment Schemes
• Participation Bond Schemes
• Trusts in securities other than property shares
• Trusts in property shares

People working in these industries must be licensed by the FSB. This licensing is done on the basis of the person holding a qualification that meets "fit and proper" requirements. There are a range of levels within the service providers for which people are licensed as well.

Persons rendering financial services without a licence or without being appointed as a representative are acting in contravention of the Financial Advisory and Intermediary Services Act, No. 37 of 2002. Such contravention is an offence which carries, upon conviction, a hefty fine or imprisonment.

FAIS Fit and Proper Requirements

In terms of section 8 of the Financial Advisory and Intermediary Services Act the Registrar must after consultation with the Advisory Committee determine the requirements that financial services providers, key individuals and representatives of the provider must comply to. These requirements are termed the Determination of Fit and Proper Requirements for financial services providers and their representatives.

The attached letter from the FSB provides details of the recognition of the NQF7 qualification of Chartered Secretaries Southern Africa as a "fit and proper requirement" for practising in the financial services sector.

Please note that applications for recognition of the other qualifications of the Institute have also been submitted. The NQF6 qualification has been recognised and the Institute is awaiting a similar letter in this regard, which will be circulated as soon as we receive it.

The Institute will continue to provide the best possible support for our members.

Relevant PDF Downloads: Recognition of Board Qualification by the Financial Services Board