Full annual report - African Bank - Investoreports

Regulatory
issue Description Risk/Impact Current position
FAIS Act The FSB expressed the view
that anyone selling an
insurance product is obliged to
be registered as a
representative as defined in the
FAIS Act and must meet the
FAIS Act qualification
requirements.
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The front end personnel both in
the Banking and Retail units do not
have the qualifications nor the
level of skill to meet the FAIS Act
qualification requirements in their
current form.
The failure to comply with the FAIS
Act requirements could result in
both the Banking and Retail units
losing its FSP licences resulting in
the inability to conduct the
business of selling credit life and
product insurance.
The FSB, after much lobbing by the
CGSA, the trade unions, SAIA and
other industry bodies have
acknowledged that a “one size fits
all” qualification requirement is not
an appropriate way to improve
the level of consumer protection
in the industry.
The FSB has therefore published
an amendment to the FAIS Act fit
and proper regulations introducing
a new subcategory of
representative that would need to
meet a lower level of qualification
as compared to the current level.
Until such time that the level of
qualification and examination
requirements are determined all
FSPs and representatives
conducting business in these new
subcategories are exempted from
the qualification and examination
requirements.