FAIS is an abbreviation for the Financial Advisory and Intermediary Services Act (no.37 of 2002). This legislation was passed on 15 November 2002 and applies to all financial advisory and intermediary services.
South Africa never had a formal system of regulating financial advisors and intermediary services and hence no recourse for clients. Therefore the aim of the Act is to regulate the rendering of certain financial advisory and intermediary services and to ensure that advice given to a client is properly provided.
Mutual & Federal falls within the Act both as a Product Supplier and as a Financial Services Provider, hence the FAIS Compliance Project was established to ensure compliance and to oversee implementation.
All intermediaries must comply with the FAIS Act and be registered as a Financial Services Provider with the Financial Services Board or one of their approved recognised bodies. More details as well as an application form are available on the FSB website at www.fsb.co.za
Intermediaries must please make use of the FAIS Update Form to confirm their latest detail. This will enable us to complete the FAIS mandating process successfully.
Applicable only to brokers e.g. servicing a financial product, collecting or accounting for premiums or receiving or processing claims.
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Any person who advises clients on financial products.
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Any person who issues a financial product (policy) by virtue of law e.g. Short -term Insurance Act.
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Any person or broker who provides financial advice or an intermediary service to a client.
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