It is new legislation that impacts on the financial services industry as a whole. This Act aims to regulate the giving of beneficial and proper advice and rendering of intermediary services to clients

The Act impacts on most financial institutions, financial service providers (such as LANTERN LIFE), their representatives and other intermediaries / brokers.  In short, FAIS will ensure that LANTERN LIFE protects you by providing you with trusted and appropriate advice and to act with integrity and transparency in a culture of discipline

Every financial service provider (FSP) who advises or renders any intermediaries services, must obtain a license from the Financial Services Board (FSB) and comply with the provisions of the Financial Advisory and Intermediary Services Act, 2002 (the FAIS Act). If an FSP is a legal entity, its key individuals as well as its representatives do not have to apply for a license .Authorized Financial Service Providers now listed on FSB website

The Financial Services Board (FSB) has launched a search function on its website to allow consumers access to information regarding authorized financial services providers (FSPs). They say the new function will make it easy for consumers to verify the credentials of FSPs. One can now search the website to check whether a specific FSP is authorized, and which products and services it is allowed to sell or advice on.

With the new function, consumers can verify whether a FSP has applied for a license, and on the status of the application, before using their services. The FSB website also provides contact details of FSPs, lists of their representatives and the financial products for which they are licensed.

Since authorization of FSPs in terms of the FAIS act commenced in October last year, only FSPs whose applications were successful may provide intermediary services or sell financial products. In some instances, FSPs whose applications are still pending may also conduct business. The FSB has authorized just under 11 000 FSPs since October 2004 to increase consumer protection

The FSB’s website address is http://www.fsb.co.za/ and the list may be found under FAIS - “Search for authorized FSPs”.