Compli-Serve SA - FAIS Standard Compliance Outsource Service

Service Summary

Service Name: Compliance Outsource Service

Scope: Financial Advisory and Intermediary Services Act, No 37 of 2002 "FAIS" Ver 2.4 Updated August 2005

Introduction

This Standard Compliance Outsource Service is for those Financial Service Providers (FSP’s) that wish to outsource the compliance requirements specified in the Financial Advisory & Intermediary Services Act 2002 (FAIS) to a professional services provider. Compli-Serve will supply an independent and qualified compliance officer as required under Section 17 (1) (a) of the FAIS Act. The Outsource Service consists of several components as described below:

Initial Assessment

This is an essential first step of the compliance risk management process where a detailed assessment of the intermediary practice is undertaken by Compli-Serve to assess current readiness levels for the FAIS requirements. It is designed to identify areas of prime concern at an early stage. The assessment is conducted on an interview basis with the key persons in the practice and any other persons as deemed necessary. Feedback and recommendations are presented to the client at a follow up consultation.

FSP FAIS License Review

Compli-Serve will review the current FAIS license to ensure submission integrity.

Process Implementation

Once readiness levels have been assessed and conclusions reached Compli-Serve will advise upon implementation required and where current processes and documentation would require some amendment. Compli-Serve endeavours to amend rather than replace existing processes.

Monitoring

Compli-Serve utilises various monitoring techniques for this ongoing process and is undertaken with our clients during the course of the year:

• Initial follow-up
  This is generally undertaken approximately 30 days after the process implementation consultation to assess the level of client compliance with mutually agreed recommendations.
• Quarterly checks
  On-site visits to assess the progress of implementation. A feedback report is prepared for the client to summarise any action that may be required. Areas that remain outstanding from a previous visit are normally given a higher priority.
• Annual audit
  At this final check of the compliance calendar Compli-Serve will in conjunction with the client help prepare the annual compliance report for submission to the Financial Services Board.

Client Support Services

This is an important component of the Outsource Service and is delivered to our client via our Standard and Premium Support Services that are described in more detail below.

Standard Support

This level of support is delivered via our in house support facilities detailed below and is included in the monthly subscription fee:

• Telephonic support
  Make a call to the support centre on 0861 273783 /CSERVE. Service available during business hours 8.30 – 5.00pm Monday - Friday.
• E-mail support
  Send a mail to the support centre via support@compliserve.co.za we will send an immediate acknowledgement of your query and attend to your questions.
• Web Site Support
  Clients are allocated a user name and password to gain access to the protected areas of our Web site and gain access to the online support facilities.

Premium Support

Premium Support will relate to services that would not be required by the client on a regular basis and are therefore excluded form the monthly fee. Premium Support will be quoted on a case by case basis and priced at the ruling Compli-Serve rate shown in Table A in Section 4 of this proposal.

• On-Site interventions
  Mutually agreed onsite interventions that fall outside the schedule of visits detailed under the Monitoring section.
• Complaint Handling
  In the event of a client complaint Compli-Serve can get involved to prepare cases in conjunction with external counsel or liaise with the registrar/ regulator on their behalf on matters relating to the complaint.
• Access to legal Expertise
  ** Legal services are rendered through Compli-Serve Legal Services (Pty) Ltd a wholly owned subsidiary of the Compli-Serve Group. Charges for legal services will vary and is dependent on the nature level of service required.

Please Note

The Outsource Service is rendered on an annual contract basis and is subject to the Terms and Conditions of Service. Prices will vary depending on the number of authorised individuals operating under the license entity and the levels of client discretion.

Please note that some premium services are dependent of availability of specialist resources at the time of request)

**Legal services are rendered through Compli-Serve Legal Services (Pty) Ltd a wholly owned subsidiary of the Compli Serve Group.