Regulatory Alerts2022-08-31
FSCA Communication 24 of 2022 (FAIS) – Financial Soundness Workshops and Survey for FSPs
The Financial Sector Conduct Authority (FSCA) issued Communication 24 of 2022 to announce a series of virtual financial soundness workshops and an accompanying survey for registered Financial Services Providers (FSPs). Scheduled throughout September 2022, the workshops will clarify financial soundness requirements through targeted sessions for premium-collecting and non-premium FSPs, followed by multilingual Q&A meetings. The subsequent survey, launching on 1 October and closing on 15 November 2022, will assess FSPs' regulatory understanding and evaluate how environmental risk factors impact their financial sustainability.
Page 1 of 3 FSCA COMMUNICATION 24 of 2022 (FAIS) Financial soundness workshops and survey for Financial Services Providers
- PURPOSE 1.1. The purpose of this Communication is to inform registered Financial Services Providers (FSPs) about an upcoming series of financial soundness workshops and a session explaining the launch of a financial soundness survey to be hosted by the Financial Sector Conduct Authority (FSCA).
- BACKGROUND 2.1. The FSCA will be hosting a series of financial soundness workshops for FSPs during September 2022. 2.2. The first two sessions will be split according to the type of business conducted, namely FSPs that collect premiums or hold assets and those that do not collect premiums or hold assets. 2.3. The sessions will also address, amongst others, the requirements for financial soundness as well as the different types of financial statements and supporting documents needed to demonstrate financial soundness. 2.4. These first two sessions will be followed by four Question and Answer (Q&A) workshops to allow FSPs to engage with the FSCA on the topic in various South African languages. 2.5. To wrap up the workshops, the FSCA will also host a session to explain a financial soundness survey for FSPs that will be launched on the FSCA website from 1 October 2022 to 15 November 2022. 2.6. The aim of the survey is to: • Gauge FSPs’ understanding of the financial soundness requirements as set out in the Determination of Fit and Proper Requirements for Financial Services Providers, 2017 (BN 194 of 2017); • Help enhance the ability of FSPs to meet these requirements; • Gain an understanding of the impact of broader environmental risk factors on the sustainability of FSPs; and • Assist the FSCA to better understand the impact of financial risks. 2.7. The workshops will be hosted virtually on the MS Teams platform, thereby enabling broader participation across the country. Please register using the links in section 3 below.
Page 2 of 3 3. FINANCIAL SOUNDNESS WORKSHOP DETAILS AND REGISTRATION LINKS Details Date Language Link to register for workshop Workshop 1: Financial soundness and financial statements for all FSPs that collect premiums or hold assets 15 September 2022 10:00 – 14:00 English Click here Workshop 2: Financial soundness and financial statements for all FSPs that DO NOT collect premiums or hold assets 16 September 2022 10:00 – 14:00 English Click here Q&A session 1 on both Workshops 19 September 2022 09:30 - 11:00 Afrikaans Click here Q&A session 2 on both Workshops 19 September 2022 12:00 - 13:30 isiNdebele, siSwati, isiXhosa and isiZulu Click here Q&A session 3 on both Workshops 20 September 2022 09:00 - 10:30 Setswana, Sesotho, Sesotho sa Leboa Click here Q&A session 4 on both Workshops 20 September 2022 11:30 - 13:00 Xitsonga, Tshivenda Click here Financial Soundness Survey Workshop 26 September 2022 10:30 - 11:30 English Click here
Page 3 of 3 4. ENQUIRIES 4.1. For more information regarding this Communication, kindly contact Ms Charene Nortier at charene.nortier@fsca.co.za. 4.2. This Communication is available on the FSCA’s website (www.fsca.co.za) at the following path: Home > Regulatory Frameworks > Industry Communication > FAIS > FSCA Communication. FARZANA BADAT DEPUTY COMMISSIONER FINANCIAL SECTOR CONDUCT AUTHORITY Date of publication: 31 August 2022