Will I be able to access my account if my bank closes?

​Banks have business continuity plans, including contingency plans in place, outlining how customers will be assisted in the result of branch closures due to business disruption.

It is expected of banks to have alternative arrangements in place, in order to continue providing services to you. This includes information on how to access banking services if some branches were to be closed. We will continue working with banks to ensure that where they must take the decision to close certain branches, that customers without online facilities will still be able to easily access basic banking services. Banks are expected to communicate with customers and advise them on any changes that might have a direct impact on their access to basic banking services.

​How do I know which bank branches remain operational during this period?

Various banking institutions have provided a list of both their operational and closed branches on their websites. Customers are urged to be on the lookout for this.

​Are ATMs still operational during the pandemic?

Banks have assured the continued operation of ATMs during this period.

​What if there are no bank specific ATM’s around my residential area?

​As a result of the difficulty experienced by customers in accessing bank specific ATMs, most banks have since waived additional charges levied for utilising a different ATM. This means that customers will not incur additional charges for using any ATM of their choice. We urge customers to confirm this with their respective banks’ prior using a different ATM.

​What happens if I lose my source of income or employment during the COVID-19 pandemic?

Banks are currently offering a range of relief measures to assist customers during this period. We urge customers to keep their banks and or credit providers informed if they have lost their source of income or employment. They must be open and honest with their banks and or credit providers, when declaring their financial position. This is to ensure that they receive suitable assistance in line with their current circumstance. Small businesses are advised to investigate other government-initiated measures to assist them during this period.

What should I do if I can no longer afford to make payments on my credit obligations?

Banks have introduced payment reliefs on mortgages, personal loans and business loans for customers affected by the COVID-19 pandemic. Lenders are working through the practical operation of these initiatives. We expect all regulated firms, including banks, to take a customer-focused approach and to act in their best interest. If you are facing potential difficulties in making loan repayments as a result of COVID-19, you should contact your bank using the following platforms:

• Responding to SMS's directly sent to you by your respective bank;
• Accessing further details using the banking applications, official bank website or USSD functionality;
• Contacting banks' dedicated relief centers; or
• Contacting your dedicated Relationship Banker or Business Manager.

A payment relief gives you as a customer, an opportunity to postpone or reduce your repayments. However, it is essential that your bank or credit provider explain to you the implications of the payment relief on your mortgage loan, or any other loans, including the overall costs and revised monthly repayments. Customers should speak to their banks or credit providers to discuss these terms and conditions. This is to ensure that they understand what a payment relief plan means for them.

How long does it take to process relevant applications?

Banks have committed to have these applications processed as soon as possible, so consumers are urged approach their respective banks immediately. Customers are urged to be mindful of the different approaches used by banks, including taking into consideration customers’ credit records and history.

Customers are urged to also consider their individual circumstances and credit profiles whilst awaiting feedback from their banks.

​Is it advisable to simply stop credit repayments without first approaching your bank or credit provider or while they are busy processing your relief application during this period?

Customers are urged not to stop their loan repayments without first engaging their banks or credit providers, as this will have an adverse impact on their credit profile or history.

We further urge customers who are able to pay their debts during this period, to continue doing so, as this will be advantageous for them in future.

​Is there a deadline for the submission of relief applications?

Various banking institutions have indicated and committed to offer payment relief options from 1 April 2020 until 30 June 2020.

It is recommended that customers engage their respective banks timeously in order to get the full details of stipulated deadlines.

​Do I need to apply for payment relief with all the financial institutions that I have credit obligations to and is this allowed?

We advise customers to direct this question to their respective financial institutions.

What other options are available to customers other than payment relief plans or holidays?

Prior to and/or during the process of seeking payment relief or holidays, customers are urged to first check with their banks if they do not have credit life policies attached to their respective loans and or mortgage. Credit life policies refer to an insurance type of an arrangement tied to a loan granted to a customer.

Such a credit life policy is meant to kick-in and assist or cover loan repayment obligations from customers, in cases where they can no longer afford to do so due to, amongst others, loss of income or employment.

Will I be allowed to claim from Credit Life Insurance on applicable products or apply for payment relief on other products where Credit Life Insurance is not available?

​We urge customers to engage their respective financial institutions in respect to this question.

​Will opting for payment relief impact my credit score or history in any way?

​As the various banks will be using different approaches, customers are urged to robustly raise these questions with their respective banks while exploring their options. From a regulatory perspective, banks are legally obligated and expected to provide detailed education regarding the implications attached to payment relief or holidays.

Will I still qualify for additional credit at the same institution or bank that has granted me payment relief?

Customers are urged to raise this question with their respective banks. We further advise customers to note that the rationale behind relief measures is to enable customers to repay or restructure their debts, rather than taking on extra credit.

​If I am unfortunately unable to maintain an adequate income post the three months payment relief or holiday, who should I notify of this and will I receive further assistance?

We urge consumers to raise this question with their respective banks, taking into consideration their individual financial position or circumstance.

What can I do if I am unhappy with the way my bank has handled a query or concern?

If you are unhappy with the service received from your bank, you are entitled to lodge a complaint with the bank concerned. The bank is obliged to handle the complaint fairly, efficiently and speedily.

If you are not happy with the response you receive from the bank, you are may escalate your complaint to the Ombudsman for Banking Services, who has the statutory powers to investigate complaints against banks. Please note that the Ombudsman for Banking Services will only consider a case once the relevant bank’s internal complaints procedure has been followed.

What can I do if I feel that I have been unfairly treated by my bank during this period?

We urge consumers to report any allegations of misconduct to the Financial Sector Conduct Authority. Please visit www.fsca.co.za or email info@fsca.co.za

NB: The FSCA urges customers to ensure that they fully understand the payment relief plans terms and conditions, as well as the implications thereof.

What is the objective of advertising, marketing and information disclosure regulation?

The objective of advertising, marketing and information disclosure regulation is to provide a legal framework within which managers of collective investment schemes must advertise and market their products in a way that protects investors from misleading or fraudulent conduct.

​Who is expected to comply with the rules for advertising, marketing and information disclosure?

​Any manager of a registered and approved CIS Scheme or portfolio, including foreign portfolios approved in terms of section 65 and anyone that acts as their agent, for example its marketing agents.

​What is plain and understandable language?

Plain and understandable language is language that is concise, clear and not misleading to the investor.

Who is responsible for providing investors with product information, CIS manager or intermediary?

The regulation is aimed at improving disclosure and understanding of CIS products by any potential investor. The regulation gives responsibility to the CIS manager to make sure that disclosures are available to its potential investor and the intermediary would similarly be responsible for obtaining and providing the information.

​How will the FSB handle Tweets/social media?

The regulation currently does not regulate any specific medium for the purpose of applying these rules, however it is expected that such medium used should not be in contravention of these rules.

​In terms of Sections 5(3), 10(1) 12 (1) and (2), 16 (3) (v), all refer to “the most expensive class offered by the manager for investment by members of the public, other than financial institutions”. What is referred as “financial institutions”?

One needs to distinguish between “offered to” and “offered through”. In other words it refers to a person ending up with the investment account not being a financial institution, even if the intermediary service is provided by a financial institution.

What are the requirements in terms of marketing rules?

​A manager may not advertise or market any collective investment scheme or portfolio in a manner that is likely to create a misleading or false statement. The advertisement should not be fraudulent or deceptive in any manner.

What are the advertising platforms that a manager can use?

The advertising platforms that a manager may use can be direct or indirect visual or oral communication transmitted by any medium. The manager may use brochures, prospectuses and websites as its advertising platforms.

Can a manager publish marketing and advertising information without lodging material with the registrar?

​No. A manager must lodge with the registrar copies of all advertising and marketing material to be published by the manager prior to the publication or use of the material.

Section 5(3) relates to requirements of an advertisement, does this also relate to marketing material and MDD? Paragraph 5(3) pertains specifically to advertisements.

​If the MDD or marketing material is being used as an advertisement (which is unusual due to its size), then it would need to comply with the requirements for advertising as well.

Section 5(3) (h) states that an advertisement must disclose “special areas of risk” relating to the investment? Please provide guidance on the term “special”?

​It is intended to refer to the risks other than the normal market risks. Investors generally understand the market risks associated with an investment, but they are not aware of risks associated with, for example investing in a third world country, or an illiquid currency, etc.

​In which material should mandatory disclosures be made?

Mandatory disclosures must be included in all marketing material about that specific portfolio as well as on the MDD. The statements must be clearly shown for investors to read and understand.

How should the risk and disclosure requirements be made for portfolios that include foreign securities?

​The disclosure of any material risk is expected prior to effecting the transaction. The method or medium is not prescribed and it should be considered as to whether the manager can prove that that disclosure took place when challenged thereon.

Is forecasting and commentary allowed?

​Forecasts or commentary is only allowed about future performance of asset classes or markets in general- i.e. performance projections are not allowed; however it should be based on disclosed reasonable assumptions. It must also be accompanied with a statement that the included commentary is not guaranteed to occur.

Is comparative advertising allowed?

​A manager may only make comparisons between its collective investment scheme or portfolio and another collective investment scheme or portfolio if the collective investment schemes or portfolios have sufficiently similar features and Commonality. The scheme or portfolio being compared to may not be mentioned by name.

The information used when making comparison based on portfolio returns must be accurate and up to date.

What are the disclosure requirements for pricing?

A manager must, in respect of each of its portfolios publish daily prices of the most expensive class offered by the manager for investment by members of the public other than financial institutions including the latest total expenses ratio applicable to that portfolio on its website if any, and in at least one national newspaper.

In terms of Section 7 (4)(b) a CIS Manager may not publish an advertisement which “includes returns over terms shorter three year’s other than in case of a money market portfolios. What if the portfolio has not been in existence for three years?

A manager may not advertise a performance of less than three years (except for Money Market Funds). However, in all other forms of disclosures and marketing it can show a return for 1 year, but not for shorter than 1 year.

What is the expectation of the general requirements for information disclosure?

Disclosure of any information in respect of a collective investment scheme should be fair, consistent, transparent and accurate. It should achieve the fair treatment of investors.

Can UCITS KIID be used for purposes of meeting requirements of the MDD?

​Yes, a UCITS KIID can be used provided that it includes a supplement for the requirements specific to the South African product. An addendum would need to be done and attached to the KIID where the information required falls short of the requirements of Board Notice 92.

When should communication of the MDD to investors be made?

​The MDD should be communicated to existing investors when the investor makes an additional investment and/or when the investor switches between investments.

All prospective investors must also receive an MDD. Investors always have the right to be provided with MDD on request. The managers generally place their Fund Fact Sheets on their websites and it is expected that the MDD, whether in the form of a Fund Fact Sheet or otherwise, would be placed on the manager’s website.

When reporting on investment returns to investors, are figures expected to be in monetary value or percentage form?

​It is expected that the reporting be done in a clear manner and easy to understand and as such monetary value changes should be used while percentage figures can be quoted alongside the monetary values.

​What is the medium of communication recommended regarding disclosure and reports to investors?

​Investors will communicate their preferred method of communication to the manager, with direct mailing being the default.

Where investors make investment instructions over the internet, how does a manager ensure investors read and understand material?

When making investment changes over the internet, investors must not be able to proceed without acknowledging having read and understood those disclosures.

Is an MDD a replacement of a fund fact sheet?

MDD is not necessarily a replacement and the manager can decide to have one or two documents, bearing in mind that the FSB does not regulate the term “fund fact sheet”. However should a CIS manager choose to continue using a fund fact sheet as an MDD, care must be taken to ensure it complies with the rules.

​Is the requirement to disclose “details, fees payable to and signature of the financial services provider” referring to intermediaries?

​This is in reference to the intermediary and not the asset manager. The CIS manager and the investor must know who the intermediary of record is.

With reference to the section 15 reporting, is the reporting done on various separate documents?

The different sub-paragraphs indicate the different documents required.

When reporting as required in terms of Section 15(5), is the requirement for reporting on changes in the asset allocation or detailed holding report?

​As is traditionally disclosed, the intention is to focus on anything that would affect the investor’s decision to be invested in the portfolio; as a minimum the asset allocation and top ten holdings.

​Will there be a transitional period for managers to comply with the new advertising, marketing and disclosure requirements?

Yes, the notice was published on 8 August 2014 and comes into effect on 1 March 2015; all managers will be required to comply with it by then.

How is file and use going to work?

The manager must lodge all material prior to publication and material may be used once the manager receives an acknowledgement of receipt from the registrar. The acknowledgment of receipt will be sent to the manager as soon as the necessary information and payment have been lodged with the registrar.

Does a manager need approval from the registrar to use the material?

A manager does not need approval from the registrar prior to using/publishing the material and can use the material immediately on receipt of the acknowledgement of receipt from the FSB.

An acknowledgement of receipt does not constitute approval of the material and the registrar has the right to object to material at any time after it has been lodged.

How long does the registrar have to object to material lodged?

The registrar has 30 days within which to object material lodged. In this instance the manager will not be able to use the material any further until the manager has satisfactorily addressed the registrar’s objection/s.

If it appears, at any time after the 30 day period that any material lodged is not appropriate the registrar may raise his or her concerns with the manager who will be required to address the registrar’s concerns. In this case if the manager is unable to address the Registrar’s concerns satisfactorily, then the registrar may require the manager to stop using the offending material until it has been modified to the registrar’s satisfaction.

How much is the fee a manager can expect to pay when lodging material?

A fee determined by the registrar must be paid and proof of payment should accompany the lodged material. The fees payable will vary depending on the type of material lodged and depending whether the material pertains to advertising, marketing or information disclosure. The exact amount applicable to each type of material will be provided as soon as possible.

What is the medium used to lodge material with the registrar?

​All material will be lodged online on the FSB website submission portal. The portal will be accessible to pre-registered individuals responsible for the submissions on behalf of the manager.

Managers are expected to provide details to the registrar of individuals to be pre-registered and granted access.

​When do managers have to start lodging material with the registrar and what are the submission periods?

All advertising, marketing and information disclosure material will be lodged with the registrar as from 1st of March 2015. Generally any new material must be lodged with the registrar prior to its use in terms of the file and use system.

Managers are expected to lodge application forms at least once annually within 30 days of the commencement of the manager’s new financial year and MDD must be submitted quarterly. Any updated versions of the MDD and application forms must be lodged with the registrar prior to any publication. Marketing material and advertising information must be lodged with the registrar any time prior to usage.

​How do I know if I am submitting my complaint to the correct place?

REGULATORY BODY

​What are some of the potential scams or fraudulent activities to look out for during this period?

Consumers are urged to remain vigilant and be on the lookout for possible scams and fraudsters during this period. Regulators have noticed that there are criminal elements purporting to be bank representatives during this period. Key to their mode of operation is requesting customers to compromise their product security features. We urge customers to avoid the following:

• Not to open unsolicited or suspicious e-mails and or attachments purporting to be from their banks.
• Not to give out or provide their username or passwords to anyone including those claiming to be from their banks.
• Not to provide their card and or PIN to anyone, including those claiming to be bank representatives.
• Not to provide their OTP (One-Time-Pin) to anyone, including those claiming to be bank representatives.
• And a fifth one

Customers should report any suspicious communication to their bank’s Fraud Prevention Channels.

How many credits do I get for my Matric?

There are no credits for Matric it is a school leaving certificate that is not credit bearing.

​I am a financial advisor and would like to find out how many credits do I have?

You can contact the Learning Provider where you studied for the credits and request a statement of credits because they should issue you with a statement reflecting the credits achieved.

​I have 30 years’ experience in the industry, how many FAIS credits do I qualify for?

​You do not get credits through experience but only through studying a credit bearing skills programme/qualification.

How do I go about obtaining the required credits?

You can contact INSETA on 011 544 2000 and ask them for their accredited training providers you can choose from to study for your credits if it is an insurance related programme you need; you can contact BANKSETA at 011 805 9661 if it is a banking related programme.

I obtained a total of 60 credits for communication unit standards, maths literacy unit standards and financial literacy unit standards; why are these not accepted for FAIS?

Communication, maths literacy and financial literacy unit standards are fundamentals that only work when one is completing a full qualification but as far as meeting the FAIS fit and proper requirements an appropriate skills programme made of core and elective unit standards only is required.

Can you convert the qualification I obtained into credits; the company that offered me employment wants me to have 60 credits?

​It is not the FSB primary function to convert qualifications/modules into credits; the only thing that the FSB can do if your qualification meets the 3 appropriate subjects as prescribed on Part IV of Board Notice 105 of 2008 is to recognise your qualification as a FAIS fit and proper qualification that will further be added to the list of recognised qualifications.

I would like to enquire if your organisation offers studies on credits?

The FSB is not a learning provider/institution, if you need to study for credits contact INSETA on 011 544 2000 or BANKSETA on 011 805 9661.

​I have a qualification; how do I go about adding it to the FSCAs list of recognised qualifications?

You need to first check that the qualification meets the 3 appropriate subjects (one must be a commercial subject and one a major subject) as prescribed on part IV of Board Notice 105 of 2008; if it meets the requirements, complete the fit and proper application form and submit it to the FSCA with the academic record/transcript and proof of payment for review by the Training and Development Subcommittee. Once the subcommittee approves the qualification it will be added to the list of recognised qualifications.

​I was appointed in the transitional period, when am I required to have a full qualification?

​A person appointed in the transitional period with maximum credits achieved per sub-category is authorised/appointed/approved for as prescribed on table E of Board Notice 106 of 2008. The only time a full qualification will be required is when a person adds or changes a product, but if you remain with the products you were originally authorised/appointed/approved for during the transitional period the credits achieved for the sub-category are sufficient.

I have a Certificate of Proficiency (“CoP”); will you direct me on the steps that I must follow for me to get proper recognition?

The Certificate of Proficiency is a short skills programme from the short term insurance qualification at NQF level 4, therefore the FSB cannot recognise it as a full qualification because the Short Term Insurance qualification is already recognised and is on the list.

​I have the RFP, how do I apply for it to be recognised as a qualification by the FSCA?

​The RFP is a skills programme from the Wealth Management qualification at NQF level 5, therefore the FSB cannot recognise it as a qualification because the Wealth Management qualification is already recognised and is on the list.

I have a Bachelor of Commerce that is recognised as ‘G’ (generic) on the list, how do I get it recognised as S or SP (specific)?

​On the fit and proper qualification application there is a mapping template (QA9) which should be completed if one requires a specific recognition of his/her qualification where you need to prove that the content of your qualification matches either 80/100% to the qualifying criteria on Board Notice 105 of 2008. Where you have proven on your mapping that the qualification content matches 80%, the qualification will be recognised as ‘S’ and where you have proven on your mapping that the qualification content matches 100%, the qualification will be recognised as ‘SP’.

I have a Diploma in Marketing & Sales Management from PE Technikon and would like to know if I qualify for any credits towards FAIS?

​The FSB does not allocate credits to qualifications but recognises them if they meet the 3 appropriate subject requirement as prescribed on part IV of Board Notice 105 of 2008; if the qualification meets this requirement whether it is credit bearing or not it will be recognised as a qualification that meets the fit and proper requirements. The important thing is that the qualification is recognised, credits or no credits.

​I want to enrol for insurance or banking learning programme/qualification?

​If you are looking at doing an insurance related programme or qualification you can contact INSETA and ask them to provide you with their list of accredited providers that can assist you. On that list you can select a training provider of your choice in your area. INSETA contact numbers are 011 544 2000. If you want a banking related programme or qualification you can call BANKSETA and request their list of accredited training providers on 011 805 9661.

​I wish to write regulatory exams. Who do I contact?

o register to write the regulatory examinations, you can contact the Examination Bodies i.e. Moonstone on 021 883 8000 or FPI on 011 470 6100. Click here to view Fees Schedule

Where can I find study material for the regulatory exams?

To prepare for the exam you need to first familiarise yourself with the Preparation Guide that is available on the FSB website. The regulatory examinations are based on a specific set of tasks and qualifying criteria that is set out in detail at the end of the Preparation Guide for both the RE 1 (Key Individual exam) and the RE 5 (representative exam).

You need to work through these tasks and criteria, and study all the information that relate to these tasks and criteria. To make it easier for you to identify where to find the information you need to study, you will see that references to the specific legislation that you need to study have been included with each task and criteria in the table at the end of the Preparation Guide.

You can also down load the latest version of the study guide from the INSETA website, because they developed the relevant study guide for the industry, and they are continuously updating this guide so the latest version will be available on their website.

Please go to www.inseta.org.za

• From the home page select FAIS and Regulatory Examination on the left-hand side of the page
• The select “RE learning material”
• Click on the “Click here” icon to access the learning material
• You will have to complete your information on a form to access the material. Please note that there are no fees included for this material. It is free of charge. The information you must provide in order to access the learning material is only for the INSETA record keeping purposes, because they want to track how many times their material was downloaded.
• Once you have completed this information, then a list of all their learning material will be displayed, and you will be able to download any of the study guides for the regulatory examinations.

​I wrote the regulatory examination but have not yet received my certificate?

You need to communicate with the Examination Body where you wrote the RE exams, they should be in a position to assist you as they are required to issue certificates for individuals who have successfully completed the regulatory examinations.

Could you please advise how many credits I have?

Contact the training provider where you studied for the credits; they will be able to issue you with a statement of credits for the credits you achieved. The FSB does not have such records as we are not a learning institution or training provider hence you need to contact the training provider where you studied for the credits.

​I would like to know which qualification can exempt one from writing the RE5 exams, I have attached a copy of my certificate can you please confirm?

Please note that obtaining a qualification does not exempt anyone from the regulatory examinations level 1 requirement. Having an appropriate qualification means you have met the qualification requirements in respect of FAIS Fit and Proper and you need to meet the additional requirements which are regulatory examinations. Therefore there is no qualification that exempts one from the 1st level regulatory examination.

The only time where one could be eligible for exemption is from the 2nd level regulatory examinations (product specific exams) but only if the qualification obtained is recognised as specific (S/SP) for the product subcategories they are appointed for.

​I noticed that the UCT Bachelor of Laws does not appear on the qualification list but there is Bachelor of Laws - SGB Legal Education and Training what does this mean?

The UCT Bachelor of Laws falls with other Universities under the generic SAQA ID 22993 which will reflect on the list as SGB Legal Education and Training. When you search on the SAQA website this SAQA ID shows all institutions that are included in this SAQA ID.

May I use the FSCA’ logo on my website or documentation to signal the fact that I have been authorised / licensed by the FSCA?

​No. The FSCA does not allow persons to use its logo for any purpose