Unit Standard No.12164Page 103
THE CONCEPT OF A NATURAL PERSON IN THE FAIS LEGISLATION
In the Application to be licenced as a Financial Services Provider, under the form FSP 3, beneath the heading “Type of Person”, it is clearly stated that:
“In order to distinguish natural persons from juristic persons, humans are referred to as being natural persons.”
It goes on further to read as follows:
“A juristic person is recognised as a separate legal entity apart from it’s members and natural persons, which form part of it. The juristic person can act through natural persons only, the result of such action being that only the juristic person acquires rights and incurs duties and not such natural persons in their personal capacities e.g. company, close corporation, trust, etc.
It is apparent from the above definition that a natural person is a human being, whereas a juristic person is an entity such as a cc, company or trust.
It is often easier to “hide” behind the mask of an entity, and in order to allow natural persons who commit certain acts, to be responsible for their actions, this distinction is made quite clearly.
INSMAT final materials31/10/03