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2020 not only brought with uncertainty and change but a plethora of regulatory changes which impacted the financial services industry. To ensure that our clients have their finger of the pulse we have developed a “Regulatory Compliance Dates to Diarise” newsletter such that you can rest assured that your organisation will make your compliance deadlines or provision for extension if required.

Last year saw amendments to the Fit & Proper Requirements and the General Code of Conduct(“GCOC”). The introduction of the Conduct Standards for Banks and the 3 July 2021 deadline for compliance with the provisions set out in the Protection of Personal Information Act (“POPIA”).

Each of these pieces of legislation have key deadlines for compliance which FSP’s should be monitoring to ensure that the business manages regulatory requirements and potentially avoids fines and penalties for non-compliance.

Listed below are key dates for your organisation to consider for 2021 where applicable:

Key DateLegislation/ RegulationRequirements
03 July 2020Conduct Standard 3 of 2020 (Banks)
  • Section 1 – Definitions
  • Section 2 – Applications and General Obligations
26 December 2020General Code of Conduct for Authorised Financial Service Providers and Representatives

Amendments to the GCOC became effective to be implemented:

  • Section 3A – Conflict of Interest
  • Section 7 – Monetary obligations disclosures
  • Section 14 – Advertising
  • Section 15 – Direct Marketing
  • Section 16 – Complaints
  • Certain provisions of Section 17, 18 and 19 – Complaints
28 February 2021Financial Intermediary and Services Act
BN 194 of 2017

Extended deadline for FSP’s who financial year end 30 June 2020 was to submit their Annual Financial Statements to the FSCA (if required “Annexure A” of FAIS Notice 82 of 2015 could be attached)

This regulatory deadline was extended by 4 months as a result of COVID 19

03 March 2021Conduct Standard 3 of 2020 (Banks)
  • Section 3 – Culture and Governance
  • Section 4 – Design, Suitability and performance requirements for financial products and services
  • Section 5 – Additional requirements in respect of retail financial customers
  • Section 6 – Advertising
14 April 2021Financial Intermediary and Services Act
Section 48(A) of BN 194 of 2017
Liquidity Calculation declaration must be submitted to the FSCA for Category II, IIA and III FSP’s whose financial year end is 28 February
31 May 2021Fit & Proper Requirements
CPD Requirements – Chapter 4
2020/2021 CPD cycle ends
NB* Note the reduction in hours for the 2020/2021 CPD Cycle
1 June 2021Fit & Proper Requirements
CPD requirements – Chapter 4
CPD Training Plans must be developed and approved for KI’s and representatives within the 2021/2022 CPD Cycle
1 June 2021Fit & Proper Requirements
CPD requirements – Chapter 4
  • CPD Cycle kicks off
  • KI’s and Rep’s nay begin accumulating CPD Hours
26 June 2021Amendments to the GCOC
(Complaints – remaining provisions)
  • Section 17(2)
  • Section 17(4)
  • Section 17(7)(b)(iii), (c) and (d)The above sections come into effect and must be implemented
30 June 2021Fit & Proper Requirements
Chapter 3
Competence Registers must reflect updated CPD Activities for the 2020/2021 CPD Cycle
30 June 2021POPIAFull Compliance with POPIA
30 June 2021Financial Advisory and Intermediary Services Act (FAIS)

BN 194 of 2017

Annual Financial Statements due to the FSCA for FSP’s with the year-end of 28 February
03 July 2021Code of Conduct 3 of 2020 (Banks)
  • Section 7 – Disclosures
  • Section 8 – Complaints
  • Section 9- Refusal, withdrawal or closure of financial products or financial services by a bank
  • Section 10 – Termination, closure or switching of financial products or financial services by the financial customer
31 July 2021Section 15A and 16 the Financial Services Board Act

Fit & Proper Requirements

Assets Under Management Declarations for Category I, II and III FSP’s must be submitted to the FSCA
15 October 2021Financial Advisory and Intermediary Services Act (FAIS)

BN 194 of 2017

Liquidity Calculation Declarations for Category I, II and III FSP’s must be submitted to the FSCA for those FSP’s who have a 28 February year-end
31 October 2021Financial Service Act
Financial Advisory and Intermediary Services Act
FSCA and Ombud Levies Due for payment

In addition, we encourage our FSP’s to also create placeholders to ensure the FSP’s compliance with the business-as-usual requirements set out in the table below.

FSP Responsibilities:

  • As of 31 August, of every year ensure that the FSP profile is updated to avoid the FSCA to prepare accurate levy statements for the year
  • Any changes to the FSP, KI’s, Rep’s etc. must be communicated to the FSCA within days of the changes occurring
  • Annual Financial Statements must be submitted 4 months after financial year end
  • Professional Indemnity cover must be renewed at a minimum of a 1 month before the renewal date
  • Ensure monthly management accounts are reviewed and updated

Risk Management & Governance:

  • Ensure that the Conduct Risk Framework & Sub frameworks or Policies for the business is reviewed annually (Claims Management framework, Competence Policy, Complaints Management Framework or Policy, Remuneration Framework/Policy, Conflicts of interest, Debarment Policy, BCP and DR Frameworks and Policy, and other identified impacted governance frameworks and policies)

Training responsibilities:

  • Ensure that 4 months prior to expiry Renewal for Broker Accreditation related to the Council for Medical Schemes is managed. This is valid for a two-year period
  • Ensure that Supervision plans are monitored between KI’s and Representatives under supervision to ensure that they are adhered too
  • Ensure that quarterly monitoring activities occur in respect of Representatives of the FSP’s
  • The Competence Register must be update with Product Specific Training within 15 days of training occurring
  • Ensure that the FICA Training programme is defined and rolled out for representatives
  • Ensure the compliance training is managed and documented for competence requirements:
    • Class of business
    • Product Specific
    • RE Examination Requirements

Should you require any assistance with the implementation of these requirements, Adept Advisory is robustly equipped to assist you in meeting these requirements. https://adeptadvisory.co.za/