Summary of the Bill To summarise the main points no person or product supplier may handle or manage a client s funds as a financial adviser unless he has a licence issued by the Executive Chairperson. A client is entitled to compensation for any loss sustained where money is invested or paid on the advice of a person who is not registered as a financial adviser, even where he is acting on behalf of licenced operators. Applicants for a licence must supply a business profile, proof of reputation, financial soundness and competency, and show that they are fit and proper . The same criteria holds for key individuals employed by the applicant. A licence is granted for a period of 12 months, for which the applicant must pay a prescribed fee.
Renewal fees are also payable.
The Executive Chairperson is to be established in terms of the Financial Services Regulatory Act. In terms of the provisions of this Act, applicants who are refused a licence may appeal to the Appeal Board . A licence may be withdrawn where the person is considered no longer fit and proper by virtue of the fact that he has contravened or not complied with the relevant provisions of the Financial Services Act. Such person may also appeal to the Appeal Board. The re-application procedure for a suspended person has still to be prescribed.