FSCA makes amendments to the General Code of Conduct (GCOC)

Introduction

The Financial Sector Conduct Authority (FSCA) has announced that the three amendments it proposed to its General Code of Conduct for Authorised FSPs ,and Representatives in November 2020 has come into effect. After hearing from industry stakeholders, two other proposed changes regarding advice fees were dropped, leaving us with a revised set of regulations effective as of 2 December 2022.

Amendment of section 7 of the General Code

2. Section 7 of the General Code is hereby amended by-
(a) the insertion after subsection (4) of the following subsection:

“(5) A provider who provides products or services to a client other than financial products or financial services, must disclose to the client the fact that the additional products or services are not regulated under the Act and therefore the client is not afforded the same protections in respect of those additional products or services that may apply in respect of the provision of financial products or services in terms of the Act.”.

Amendment of section 10 of the General Code

3. Section 10 of the General Code is hereby amended by-
(a) the amendment of paragraph (a) of subsection (3) as follows:

“(a) who receives, holds or in any other matter deals with premiums payable under a short-term or long-term reinsurance policy; or”;

and (b) the amendment of paragraph (b) of subsection (3) as follows:

“(b) who is subject to section 45 of the Short-term Insurance Act, 1998 (Act No. 53 of 1998) or section 47A of the Long-term Insurance Act, 1998 (Act No. 52 of 1998), if the provider complies with the requirements contemplated in [that] those sections.”.

Amendment of section 13 of the General Code

4. Section 13 of the General Code is hereby amended as follows: 

“A provider, excluding a representative, an insurer as defined in the Insurance Act, 2017 (Act No. 18 of 2017) or a bank as defined in the Banks Act, 1990 (Act No. 94 of 1990) must, if, and to the extent, required by the registrar maintain in force suitable guarantees or professional indemnity or fidelity insurance cover.

Conclusion

This Notice is called the Amendment of the General Code of Conduct for Authorised FSPs and Representatives, 2022, and came into operation on publication in the Government Gazette (2 December 2022).


View Official Amendment (PDF)

AUTHOR

Michelle Opperman

Head of Governance & Compliance

Michelle Opperman is an admitted attorney with over 10 years’ experience in the legal industry, specialising in insurance for the past 7 years. She has extensive knowledge of the insurance industry and providing legal and technical advice and support to the business. As the Head of Governance and Compliance Michelle is responsible for identifying, managing, and reporting regulatory risks and assisting the business with overall compliance with legislation. Michelle views her role as a passion rather than a career and thrives on solving complex legal and compliance challenges.

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