Using the Brokertools application ensures that advice and information supplied by a FSP or Representative complies with the FAIS Act.
Compliance with the Act is sometimes problematic for Healthcare Intermediaries since many argue that the commission payable on medical schemes makes it cost and time ineffective to comply with the onerous documentary and disclosure requirements.
A careful analysis of the Act reveals that there is a total of 35 specific requirements to comply with relating to documents to be provides and disclosures to be made when giving advice or providing quotations.
When using Brokertools you will effortlessly comply with all of these requirements:
| *Requirements in terms of the General Code of Conduct for Authorised Financial Services Providers and Representatives, 2003 |  |
| Information given must be factually correct. | done |
| Information provided must be in plain language and must not be misleading. | done |
| Information given must be adequate and appropriate in the circumstances of the particular financial service. | done |
| Information must be in writing and in a clear and readable print size, spacing and format. | done |
| Information as regards all amounts, sums, values, charges, fees, and remuneration must be reflected in specific monetary terms. | done |
| Disclosure by provider of the existence of any personal interest in the relevant service and conflicts of interest. | done |
| The service must be rendered in accordance with the contractual relationship and reasonable requests or instructions of the client. | done |
| Procedures and systems to record written communications safely store and retrieve all material documentation. | done |
| All such records must be kept for a period of five years after the rendering of the financial service concerned. | done |
| Records must be available for inspection within seven days of the registrar's request. | done |
| Information must be given regarding the contractual relationship with the product supplier and other product suppliers. | done |
| Existence of any conditions or restrictions imposed by the product supplier on the service provider. | done |
| Whether the provider directly or indirectly holds more than 10% of the relevant product supplier shares. | done |
| Whether, during the preceding 12-month period, the provider received more than 30% of total remuneration from any product supplier. | done |
| Exercise objective judgment in the interest of the client where a choice of more than one product of different product suppliers is provided. | done |
| Compare different financial products making clear the differing characteristics of each. | done |
| Not make inaccurate, unfair or unsubstantiated criticisms of any financial product, product supplier, provider or representative. | done |
| Provider information to be furnished to a client must include: full business and trade names, registration number, postal and physical address, telephone, cellular numbers, internet and e-mail addresses, and contact details of appropriate contact persons. | done |
| Details of the legal and contractual status of the provider, details of which entity accepts responsibility for the actions of the provider and the extent to which the client will have to accept such responsibility. | done |
| Names and contact details of the relevant compliance department (internal and external) and request that any client who has a complaint against the provider must lodge such complaint in writing. | done |
| Details of the financial services which the provider is authorised to provide in terms of the relevant license. | done |
| Disclose whether the provider holds guarantees or professional indemnity or fidelity insurance cover or not, amount thereof and insurer. | done |
| Disclose whether the services are rendered under supervision. | done |
| Provide a reasonable general explanation of the nature and material terms of the relevant contract. | done |
| Provide full and appropriate information of the name, class and type of product, extent of benefits and the manner in which such benefits are derived or calculated. | done |
| Disclose the nature and extent of the monetary obligations assumed by the client including manner of payment and frequency thereof. | done |
| Disclose the extent and frequency of any incentive, remuneration, consideration, commission, fee or brokerages, which will become payable to the provider. | done |
| Provide details of any special terms or conditions, exclusions, waiting periods, loadings, penalties, excesses, restrictions or circumstances in which benefits will not be provided. | done |
| Provide information on any guaranteed minimum benefits. | done |
| Inform the client whether cooling off rights are offered and, if so, procedures for the exercise of such rights. | done |
| Inform a client in regard to the completion or submission of any transaction requirement that all material facts must be accurately and properly disclosed, and that the accuracy and completeness of all answers, statements or other information provided by or on behalf of the client, are the client’s own responsibility. | done |
| Inform the client of the possible consequences of the misrepresentation or non-disclosure of a material fact or the inclusion of incorrect information; and that the client must on request be supplied with a copy or written or printed record of any transaction requirement within a reasonable time. | done |
| Fully disclose to the client the actual and potential financial implications, costs and consequences of such a replacement where the financial product ("the replacement product") is to replace an existing financial product wholly or partially ("the terminated product") held by the client. | done |
| Maintain a record of advice furnished to a client with brief summary of information and material on which the advice was based, financial products considered, products recommended and reason for the advice given. | done |
| Provide client with copy of the above record in writing. | done |