Complying with FAIS

Who must comply with the provisions of FAIS?
How does Sanlam comply with the provisions of FAIS?
Contravening a FAIS provision

Who must comply with the provisions of FAIS?

Every financial service provider (FSP) must comply with the provisions of FAIS. A FSP may be a person or a company, such as Sanlam that as a regular feature of its business, gives advice and/or renders any intermediary services. All FSPs have to apply for a license. If an FSP is a legal entity, its key individuals as well as its representatives do not have to apply for a license. However, they must comply with the fit and proper requirements.

How does Sanlam comply with the provisions of FAIS?

Here are a few examples of what Sanlam are doing (and will continue to do) to ensure compliance:

• Sanlam Life accepts responsibility for the advice its representatives give.
• Our representatives are (and will continuously be) fully informed of what is expected of them and are trained (and will continuously receive proper training) in order to give appropriate advice to clients.
• All staff is and will be kept informed on what advice is and what advice is not.
• Sanlam will continue to communicate relevant information at the appropriate time to all employees.
• Sanlam's Code of Conduct will continue to be aligned with legal requirements.
• The activities of all business units within Sanlam Life are being monitored on a continuous basis to ensure compliance with FAIS requirements.

Contravening a FAIS provision

What will happen if any of the FAIS provisions are contravened?  A person who commits an offence in terms of FAIS – for instance by deliberately making a misleading, false or deceptive statement, or by concealing any material fact – is guilty of an offence. Upon conviction, such a person may be sentenced to a fine not exceeding R1 000 000 or to imprisonment for a period not exceeding 10 years, or to both such fine and such imprisonment.