LICENCE CATEGORIES Category I - Associated Compliance

[Pages:3]LICENCE CATEGORIES

Category I A Category I FSP renders financial services other than the financial services mentioned in Categories II, IIA, III and IV. Indicate

whether the applicant will be furnishing advice (A) and/or whether the applicant will be rendering intermediary services (B) in

Category II ? Discretionary FSP Discretionary FSP' means a discretionary FSP as defined in the Notice of Codes of Conduct for Administrative and Discretionary FSPs, 2003. A discretionary FSP renders intermediary services of a discretionary nature as regards the choice of a particular financial product referred to in the definition of `administrative FSP' but without implementing any bulking.

Category IIA ? Hedge Fund FSP `Hedge Fund FSP' means a Hedge Fund FSP as defined in the Notice of Codes of Conduct for Administrative and

Discretionary FSPs, 2003. A Hedge Fund FSP must also apply for a Category II licence.

Category III ? Administrative FSP Administrative FSP' means an administrative FSP as defined in the Notice of Codes of Conduct for Administrative and Discretionary FSPs, 2003. An administrative FSP renders intermediary services in respect of financial products referred to in paragraphs (a ), (b ), (c ) (excluding any short-term insurance contract or policy), (d ) and (e ), read with paragraphs (h ), (i ) and

Category IV ? Assistance Business FSP Assistance Business FSP' means an FSP that renders intermediary services in relation to the administration of assistance policies on behalf of the Insurer to the extent agreed to in terms of a written mandate between the insurer and the Assistance

Category I sub categories

1.1) Long term Insurance: Sub Category A Includes assistance policies < = R 18 000, for example: funeral policies. And excludes policies as defined in Cat B or C

1.2) Short term Insurance: Personal Lines Short term insurance by natural persons, for example short term household insurance.

1.3) Long term Insurance: Category B1 Long-term Insurance subcategory B1" means disability, health and life policies as defined in section 1(1) of the Long-term Insurance Act, 1998, which provide only risk benefits as contemplated in the Regulations under the Long-term Insurance Act, 1998, but excludes fund policies as defined in section 1(1) of the Long-term Insurance Act, 1998, fund member policies, investment policies as defined in Part 5B of the Regulations under the Long-term Insurance Act, 1998, and policies referred to in the definitions of Long-term Insurance subcategories A, B2 and C;

1.20) Long term Insurance: Category B2

"Long-term Insurance subcategory B2" means long-term policies as defined in section 1 of the Long-term Insurance Act, 1998, which are(a) investment policies as defined in Part 5B of the Regulations under the Long-term Insurance Act, 1998, which guarantee a minimum return of any premium paid at a specified future date or dates, and where such minimum is ascertainable in Rand terms at inception; (b) disability, health and life policies that provide risk benefits as contemplated in the Regulations under the Long-term Insurance Act, 1998,and have a guaranteed investment value or a materially equivalent value; (c) annuities which guarantee a minimum annuity for the term of the policy which annuity (d) Any policy which combines the policy features included in abovementioned paragraph (a) and (c ), but this excluded fund and fund member policies referred to Long Terms sub categories A, B1 and C

1.4) Long term Insurance: Category C Includes other insurance contracts not mentioned in categories A and B; excluding fund member policies and RA's, and Preservation funds, Investment policies (single and recurring premium) without a guarantee.

1.5) Retail Pension Fund Benefits Includes single premium RA; preservation fund policies, benefits provided by RA or preservation funds, Examples include transfers to a RA or preservation fund e.g. advice on what to do when the RA/preservation fund matures.

1.6) Short term Insurance: Commercial Lines Short term policies by juristic persons, for example short term insurance for business purposes

1.7) Pension Fund Benefits Benefits provided by a pension/ provident fund, for example advice on what to do when the client retires from the fund.

1.8) Securities and Instruments: Shares Where property syndication is in the form of unlisted shares, you must register in this license category. You must also supply a letter from either PIC or Sharemax, which authorizes you to sell their products, and specifies how long you have had a contract with them. Should you advise clients on other shares, please supply a motivational letter.*

1.9 to 1.13) Securities and Instruments Note: If any of the categories 1.9 ? 1.13 are chosen, you must supply a motivational letter* for each category chosen. Includes advice on shares; debentures and securitised debt, money market instruments , warrants and securities. These six categories imply that you receive client funds, or qualify as an investment manager.

1.9 - please note that Money market funds are covered under category 1.14. and money market accounts are covered under 1.17.

1.14) Collective Investment Schemes All unit trusts, including money market funds.

1.15) Foreign Currency Denominated Investments This category only applies if you trade with foreign currency and work through a foreign forex service provider, such as Leaderguard or Gardner Ross. This category does not include offshore investments (which is covered under category 1.4) Should you choose this category, please note that an additional fee of R 700 is payable, an FSP 11 must be completed and a copy of your trading mandate must be forwarded to these offices.

1.16) Health Service Benefits Include Medical Aids. Should you wish to include this category, a clear and certified copy of you're accreditation certificate with the Council for Medical Schemes must be forwarded to these offices.

1.17) Bank Deposits > 12 Months Include participatory bonds; fixed deposits for more than 12 months.Including Money Market Accounts.

1.18) Bank Deposits ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download