Unit Standard No.12164Page 33
SETTING THE SCENE – A LOOK AT FAIS IN CONTEXT
Before embarking on a learning path towards unpacking the FAIS legislation and what it aims to achieve, it is important to contextualize the Act in relation to other pieces of legislation which apply to the Financial Services Industry as a whole.
Whilst it is important to understand that FAIS does not exist in isolation, it ought to be borne in mind that there are many sub sectors which exist in the Financial Services Industry. As a result, some of the legislation is generic in nature and would apply to the industry as a whole, whereas other legislation would apply specifically to a sub sector/s. For example the Income Tax Act is generic and would apply to all sub sectors within the industry but the Collective Investment Schemes Act or Short Term Insurance Act is specific to a sub sector within the industry. More importantly though, the Acts which apply to an organisation, generic or specific, should be seen as interlocking pieces of a puzzle, which coherently work together to complete the big picture.
Here is an example, graphically illustrating this point. This particular organisation is a Long Term Assurer and therefore has to comply with The Long Term Insurance Act (specific), as well as the Financial Intelligence Centre Act, FAIS and the Companies Act (generic).
LONG TERM INSURANCE ACT
INSMAT final materials31/10/03