Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002)

Codes of Conduct

Notice on Codes of Conduct for Administrative and Discretionary FSP's, 2003

Chapter I : Code of Conduct for Administrative FSP’s, 2003

Part I : Introductory provisions

2. Definitions
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2.1In this Code "the Act" means the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002), any word or expression to which a meaning has been assigned in the Act shall have the meaning so assigned to it and, unless the context indicates otherwise—

 

"administrative FSP"

means a FSP, other than a discretionary FSP–

(a)that renders intermediary services in respect of financial products referred to in paragraphs (a), (b), (c) (excluding any short-term insurance contract or policy referred to therein), (d) and (e), read with paragraphs (h), (i) and (f) of the definition of "financial product" in section 1(1) of the Act, on the instructions of a client or another FSP and through the method of bulking; and
(b)acting for that purpose specifically in accordance with the provisions of this Code, read with the Act, the General Code (where applicable), and any other applicable law;

 

"bulking"
means the aggregation by an administrative FSP of—
(a)clients’ funds when buying or investing in financial products on behalf of clients, and the subsequent allocation of such financial products to each client separately in the records of the FSP;
(b)the financial products belonging to clients when selling such financial products on their behalf, and the subsequent allocation of the proceeds of such sale to each client separately in the records of the FSP;

 

"completed day"

means a period commencing at 16h00 on any business day and ending at 16h00 on the next business day;

 

"discretionary FSP"

means a FSP—

(a)that renders intermediary services of a discretionary nature as regards the choice of a particular financial product referred to in the definition of "administrative FSP" in this subsection, but without implementing any bulking; and
(b)acting for that purpose specifically in accordance with the provisions of the Code set out in Chapter II of this Schedule, read with the Act, the General Code (where applicable) and any other applicable law;

 

"FSF"

means an authorised financial services provider;

 

"General Code"

means the General Code of Conduct for Authorised Financial Services Providers, 2002;

 

"independent nominee",

in relation to an administrative FSP, means a company or trust referred to in section 9;

 

"netting"

means an offsetting of offers to purchase and repurchase financial products and where the administrative FSP buys and sells the financial products on behalf of clients;

 

"regulations’’

means the Financial Advisory and Intermediary Services Regulations, 2002.

 

2.2In the case of any inconsistency or conflict between a provision of this Code and a provision of the General Code, the first mentioned provision shall prevail.