RSK4802
Assignment 2 2024
Detailed Solutions, References & Explanations
Unique number:
Due Date: 28 October 2024
Introduction
The Financial Advisory and Intermediary Services Act (FAIS Act) in South Africa governs the
regulation and operation of financial services providers (FSPs) and intermediaries. One of the
pivotal positions highlighted by the FAIS Act is the Compliance Officer, who plays a critical role
in ensuring that FSPs adhere to the legal and regulatory frameworks of the financial services
industry. The Act stresses that a Compliance Officer must meet the criteria of being “fit and proper”
to effectively fulfill their responsibilities. Section 8 of the FAIS Act outlines the key requirements
that a Compliance Officer must satisfy to be considered fit and proper, which include aspects
related to integrity, competence, operational ability, financial soundness, and adherence to the
requirements of honesty.
The importance of these fit and proper requirements in the context of risk management cannot be
overstated, as they help mitigate various operational and compliance risks within the financial
services sector. This discussion elaborates on the five fit and proper requirements outlined in
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Section 8 of the FAIS Act and •their
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a guide foreffective risk management
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