Regulatory & representative bodies
Financial Services Board
The Financial Services Board (FSB) is a government-appointed, independent regulatory body established to oversee the South African nonbanking financial services industry. The FSB is committed to promoting and maintaining a sound financial investment environment in South Africa.
The Financial Advisory and Intermediary Services (FAIS) Act 2002 regulates conduct within the South African financial services industry; its purpose is to provide consumer protection against improper conduct and improve upon the ethics of industry practitioners.
The FAIS Act makes provision for financial service providers to be licensed through the FSB and the FSB provides you with the right of recourse should the financial service provider not comply with the Act. The FSB regulates industry members in terms of how they provide advice and intermediary services relating to financial products as defined by the Act.
The FSB regulates the following licences within the Momentum group of companies:
- Long-Term Insurance
- Investment Management
- Linked Investment Service Providers
- Unit Trusts
- Retirement Fund Administration
Guernsey Financial Services Commission
Momentum Group Ltd., the long-term insurer in the Momentum group of companies, operates a branch office on the Channel Island of Guernsey. The Guernsey Financial Services Commission (GFSC) is the regulatory body for the finance sector in Guernsey and this business is subject to its regulatory authority and supervision.
National Credit Regulator
The National Credit Regulator (NCR) is a statutory body established under the National Credit Act (NCA) to regulate South Africa’s credit industry. The NCR registers industry participants, resolves complaints lodged against credit providers and ensures enforcement of the Act. Momentum is registered with the NCR and is an authorised credit provider.
The South African Reserve Bank
The South African Reserve Bank (SARB) is the central bank of the Republic of South Africa; it regulates banking institutions in the country and is responsible for foreign exchange regulations applying to the South African currency. These regulations directly influence Momentum's ability to invest in offshore assets and determine the kind of offshore products we are able to offer to our clients.
The South African Revenue Service
The South African Revenue Service (SARS) is a statutory body responsible for ensuring tax law compliance and for collecting revenue on behalf of the state in South Africa. The tax laws have strong regulatory impact on financial products and companies like Momentum must comply with the many provisions as stipulated in order to achieve a favourable tax result for clients. The Momentum group of companies offers no financial products on any of its licences without a thorough assessment of the tax dispensation that applies to them.
The Association for Savings and Investment South Africa (ASISA) is the representative body for asset managers, collective investment scheme management companies, linked investment service providers, multi-managers, and life insurance companies. ASISA was established in October 2008 when the Life offices’ Association (LOA), Association for Collective Investments (ACI), Investment Management Association of South Africa (IMASA) and the Linked Investment Service Providers Association (LISPA) merged to form one representative body for the savings, investment and long-term insurance industry. The aim of ASISA is to:
- Work towards greater level playing fields within the financial services industry;
- Create an environment enabling of more holistic regulation;
- Become more consumer focused and;
- Collectively engage with Government on policy issues.
For more information:
Association for Savings and Investment South Africa
Last updated 29 July 2010 17:57