BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
FAISLEARNING GUIDE / MODULE 4
LESSON
3
Inter-Bank Compliance Training Project Sponsored by BANKSETA
The Role
of the
Registrar
Topics:
1 Role of Registrar and courts in complaints process
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004
BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
INTRODUCTION
Link / The FAIS Ombud liaises with the Registrar of FSPs and provides information to the Office of the Ombud on complaints received. This may lead to the identification of non-compliance.The Registrar is entitled to impose punitive measures on any non-compliance. This extends to persons who are likely to contravene/ fail to comply with FAIS.
Relevance to you / In this lesson we cover the powers of the Registrar and the court relating to persons who have contravened FAIS or failed to comply with any provision of FAIS.
Learning outcomes / This lesson focuses upon a single outcome:
· Describe the roles/ powers/ duties of the Registrar and courts in the complaints process.
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004
BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
L/O #1 ROLE OF REGISTRAR AND COURTS IN COMPLAINTS PROCESSL/O #1 / Describe the roles/ powers/ duties of the Registrar and courts in the complaints process.
Powers of Registrar / The Registrar has the power to institute action against any person who falls within the ambit of FAIS who has contravened or not complied with one or more provision of FAIS.
If… / Then the Registrar…
The Registrar is satisfied that a person has:
· Breached or is likely to breach FAIS
· Not complied with or is not likely to comply with any provision of FAIS. / · May apply to a court for an order restraining that person from:
o Continuing to commit that particular act / omission
o Committing that act/ omission in the future
· Requiring that person to take corrective steps to rectify the consequences of the act/ omission.
May institute a court action against a person for payment of:
· An amount to compensate the losses suffered by any other person as a result of the contravention or non compliance
· A penalty not exceeding three times the amount of any profit or gain that may have accrued to the aggrieved person
· Interest
· The cost of the lawsuit.
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004
BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
L/O #1 ROLE OF REGISTRAR AND COURTS IN COMPLAINTS PROCESS – cont.Powers of Registrar – cont. / If… / Then the Registrar…
The Registrar is satisfied that there is an undesirable business practice. / May declare by notice in the Gazette that the FSP’s practices are undesirable and FSPs must refrain from continuing such practice.
Duties of Registrar regarding payments / The Registrar must establish a trust account with an appropriate financial institution.
The Registrar must deposit any amounts recovered from persons who have contravened/ not complied with FAIS, into that specially designated trust account.
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004
BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
L/O #1 ROLE OF REGISTRAR AND COURTS IN COMPLAINTS PROCESS – cont.Distribution of funds / The Registrar has control over the funds accrued in the specially designated trust account. These funds are distributed in the following order:
Note: No money may be distributed to any person who has contravened or failed to comply with FAIS.
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004
BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
L/O #1 ROLE OF REGISTRAR AND COURTS IN COMPLAINTS PROCESS – cont.Withdrawal of civil proceedings / The Registrar has the power to withdraw, abandon or settle any civil proceedings instituted against non-compliant persons.
Any agreement or settlement must be made an order of court.
Board of appeal / Any person who feels wronged by a decision made by the Registrar or Ombud in terms of FAIS may appeal to the Board of Appeal.
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004
BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
CONSOLIDATIONActivity 1 / Explain in your own words your understanding of the powers of the Registrar.
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004
BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
CONSOLIDATIONCheck your thinking –
Activity 1 / Your answer should include the following points:
The Registrar has the power to institute action against any person who has contravened FAIS. The Registrar can:
· Institute a court action against a person for payment of
o A penalty
o Interest
o The cost of the lawsuit
· May declare by notice in the Gazette that the FSP’s practices are undesirable and FSPs must refrain from continuing such practice.
The Registrar:
· has control over the funds accrued in the specially designated
· has the power to withdraw, abandon or settle any civil proceedings instituted against non-compliant persons.
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004
BANKSETA Sponsored Project
The role of the Registrar
Module 4: Lesson 3
ASSESSMENTTest your knowledge & understanding / Answer these short questions to test your knowledge and understanding of this material. Choose the right answer.
Statement / True/False?
4.3.1 / The Registrar has the power to institute action against any person who falls within the ambit of FAIS who has contravened or not complied with one or more provision of FAIS.
4.3.2 / The Registrar has no legal powers.
4.3.3 / The Registrar may declare by notice in the Gazette that the FSPs practices are undesirable and that FSPs must refrain from continuing such practice.
4.3.4 / The Registrar cannot withdraw, abandon or settle any civil proceedings instituted against non-compliant persons.
Question 4.3.5 / The Registrar may institute a court action against a person for payment:
a Of an amount to compensate the losses suffered by any other person as a result of the contravention or non compliance
b Bank Charges
c Interest
d The cost of the lawsuit.
4.3.5.1 / All of the choices are true
4.3.5.2 / None of the choices are true
4.3.5.3 / Choices (a), (b) and (c) are true
4.3.5.4 / Choices (a), (c) and (d) are true
4.3.5.5 / Choices (b), (c) and (d) are true.
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Learner guide Developed by Gray Training 011 472 3516 Jan 2004