REGULATORY EXAMINATION –
Chapter 7
Content Covered:
Record-keeping
• Maintenance of records in terms of FAIS
• Maintenance of records in terms of FICA
• Accessibility of information
• Requirements when outsourcing
• Security requirements
Record-keeping Introduction
Effective record-keeping allows a business to continue without disruption and
protects both the client and the FSP in the event of a disagreement
FAIS prescribes requirements in terms of record-keeping to ensure that this
process is efficient and secure
Obligations
The FAIS G.C.O.C. requires the provider to have systems and procedures in place
to:
Record VERBAL and WRITTEN communication
Store and retrieve these records including any other documents relating to
the rendering of financial services
Keep these records safe from destruction for 5 years AFTER rendering of a
financial services
Maintaining Records
Records must be maintained for a minimum of 5 years after termination
This means that all records must be kept for AS LONG as the client is active regardless of the
time period;
and may only be destroyed 5 years after the client terminates
Maintaining Records
The records which must be maintained (kept safe etc.) are:
Premature cancellations
Complaints and whether they have been resolved
Documents proving compliance in respect of authorisation to act
Documents proving rep compliance
Cases of non-compliance with reasons therefore
FICA Requirements
An accountable institution is required to keep the following records:
The identity of the Info on whether the If the client is acting on
The identity of the client client is acting on behalf of another then
client behalf of someone those identities, must also
else be determined and
recorded
FICA Requirements
An accountable institution is required to keep the following records:
The documentary proof The nature of the business
The manner in which
which shows who the The nature of the relationship
the identity was client is, i.e licence, ID, business relationship
established passport
FICA Requirements
An accountable institution is required to keep the following records:
The “how much?” and Where is the money from,
the “who?” where is it going to?
The amount and the
The accounts involved
parties involved
FICA Requirements
An accountable institution is required to keep the following records:
Who obtained the What documents where
information? used to identify the client
Who obtained the Documents used to and other parties?
information? identify and verify
FICA Requirements
➔Files may be kept electronically
Records regarding a business relationship must be kept for 5 years from
termination of the relationship
Records regarding a transaction must be kept for 5 years from conclusion of
the transaction
➔ Third parties may keep record on behalf of accountable institutions as long as:
The accountable institution has free and easy access
The accountable institution remains liable for any failures
FIC is informed of the details of the third party
FICA: Accessibility of Info
An authorised representative of the FIC has access to information and may:
Access, examine, extract and make copies of the records during working
hours
FICA: Accessibility of Info
Where the records are not available to the general public, the FIC representative must have a
warrant issued by a judge or magistrate
An accountable institution which fails to provide assistance can be punished with:
Imprisonment of up to 15 years or; a fine of up to R100 million
Third Party Record-Keeping
If a third party keeps records on behalf of the provider then:
The records must be available within 7 days and;
There must be a detailed service level agreement in place which specifies:
Agreed services
Time standards
Roles and responsibilities
Applicable penalties
Format and retrieval
Records may be kept in an appropriate recorded or electronic format
Records must be easily accessible and;
Must be reducible to written or printed format
Must be available within 7 days from Commissioners request
THE END
