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Determination of Fit and Proper Requirements for FSP’s

Determination of Fit and Proper Requirements for FSP’s. What do I have to do to comply?. Be: honesty and integrity financially sound and have a basic infrastructure Competent and have the knowledge and skills

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Determination of Fit and Proper Requirements for FSP’s

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  1. Determination of Fit and Proper Requirementsfor FSP’s

  2. What do I have to do to comply? • Be: • honesty and integrity • financially sound and have a basic infrastructure • Competent and have the knowledge and skills NB: If you don’t comply you can’t practice as a financial advisor, nor sell insurance or financial products to clients

  3. The main issue: • Competence and qualifications. • Three categories: • Category I – FSP’s, key individuals, financial advisors, representatives and employees who advise on or sell products listed in the 14 sub-categories of Category I • Category II – Discretionary FSP’s, separately regulated, who have a mandate from clients to transact at their own discretion on behalf of the client • Category III – Those who require licenses as Administrative FSP’s

  4. Fit and Proper Determination • The Fit and Proper Determination has tables giving details of each sub-category of FSP • Every FSP needs to comply with minimum requirements for experience and academic standards. • FSP’s to note timeframes and conditions for further education and training

  5. The FSP has to register with the FSB • FSP then nominates key individuals • Key individuals personally responsible to ensure compliance with legislation for the products advised on or sold

  6. Category I • Includes majority of Financial Advisors • The are 14 sub-categories that cover insurers and financial products handled by FSP’s • Each sub-category has three columns that list: • Type of product • Minimum experience required for the product • The current minimum educational qualifications required to obtain a licence • A fourth column sets out qualifications and skills training required within two or three years of being licensed • See example

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