Financial Advisory and Intermediary Services Act 2002 (Act No. 37 of 2002)DeterminationsAmendment of the Determination of Fit and Proper Requirements, 2020Chapter 6 : Financial SoundnessPart 3 : Requirements applicable to specific Categories of FSPs and juristic representatives47. Definitions |
For purposes of this Part, unless the context indicates otherwise,—
means the additional asset requirement referred to in Table B of this Part;
means—
(a) the expenditure set out in the latest set of financial statements of an FSP; or
(b) in the case of an applicant commencing business, the budgeted expenditure as expressed in the budget or financial accounts,
less—
(i) | staff bonuses; |
(ii) | employees' and directors, partners' or members' share in profit; |
(iii) | emoluments of directors, members, partners or sole proprietor; |
(iv) | other appropriation of profits to directors, members and partners; |
(v) | remuneration that is linked to— |
(aa) | a percentage of the FSP’s revenue; or |
(bb) | a percentage of the revenue generated by an employee or representative of the FSP; and |
that in the absence of such revenue the FSP has no obligation to pay the remuneration;
(vi) depreciation;
(vii) bad debts; and
(viii) any loss resulting from the sale of assets;
[Definition substituted by section 6(a) of Notice No. 707, GG43474, dated 26 June 2020]
in relation to the general solvency requirement and the additional asset requirement means the assets of an FSP excluding the following assets:
(a) goodwill;
(b) intangible assets; and
(c) investments in and loans to related parties;
means the requirement referred to in section 48(1);
in relation to the general solvency requirement means the liabilities of the FSP excluding loans subordinated in favour of other creditors;
means—
(a) | cash; |
(b) | a participatory interest in a money market portfolio; |
(c) | 70% of the market value of a participatory interest in a collective investment scheme, other than an investment in a money market portfolio or a CIS hedge fund; or |
(d) | 70% of the market value of a security listed on a licensed exchange provided it does not constitute more than 50% of total liquid assets, |
(e) provided that—
(i) the assets referred to in paragraphs (a) and (b) are capable of being converted, without any penalty on capital in terms of the conditions of the asset, into cash as follows:
(aa) 50% within 7 days; and
(bb) 50% within 30 days; and
(ii) the assets referred to in paragraphs (c) and (d) are capable of being converted into cash within 7 days;
means the liquidity requirement referred to in Table B of this Part;
means a money market portfolio as contemplated in the Collective Investments Schemes Control Act;
for purposes of the definition of 'annual expenditure', includes salaries, wages, commissions, fees and any other payment, paid directly or indirectly by an FSP to an employee or representative of that FSP either directly or indirectly;
[Definition substituted by section 6(b) of Notice No. 707, GG43474, dated 26 June 2020]
means the working capital requirement referred to in Table B of this Part.