Task 1 — Regulatory Framework

The Financial Advisory and Intermediary Services Act 37 of 2002 (FAIS) is the foundational statute governing every person who renders financial services in South Africa. It establishes the Financial Sector Conduct Authority (FSCA) as the market-conduct regulator, defines who must be authorised to give advice or render intermediary services, and sets the boundary between regulated activity and ordinary factual product information.

• 01All advice and intermediary services on a 'financial product' (as defined in section 1) require FSP authorisation under section 7.
• 02Acting without authorisation is a criminal offence carrying personal liability for the individual and the firm.
• 03The Act prescribes exemptions and transitional arrangements — candidates must distinguish a genuine exemption from unlawful conduct.
• 04Co-regulation: the FSCA conducts market-conduct supervision while the Prudential Authority oversees solvency under the Twin Peaks framework introduced by the Financial Sector Regulation Act, 2017.

• 01Definitions you MUST know cold: 'financial product', 'advice', 'intermediary service', 'client', 'representative', 'key individual'.
• 02Distinguish factual information from advice — most candidates lose marks here.
• 03Section 7 authorisation versus section 13 representative appointment — never conflate them.
• 04Identify which entity supervises conduct (FSCA) versus prudential (Prudential Authority).