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Financial Statements and Audit Requirements

 

Section 19 of the FAIS Act states that financial statements must be submitted by authorised financial services provider to the registrar not later than four months after the end of the providers financial year end.

Type of financial statements submitted

In terms of section 19 all financial statements must be audited, the Registrar however exempted certain providers from the audit requirements. The following financial statements must be submitted.

  • Category II, IIA, III and IV FSPs – audited financial statements
  • Category I FSPs
    • Companies - audited financial statements
    • Sole proprietors and close corporations that do not receive client funds or premiums - unaudited financial statements
    • Sole proprietors and close corporations that do receive client funds or premiums – audited financial statements

Documentation relating to submission of financial statements

1. Extensions

 

An application for an extension to submit financial statements can be submitted to the Registrar in terms of section 4(1) of the FAIS Act by:

1.1 Preferred method - a request submitted electronically via the FSB’s FAIS Online system. To submit a request for extension, log onto the FAIS Online system on the FSB’s website and apply for extension online.
 
1.2 Send a facsimile to (012) 422 2973. Specify the FSP number and the word "Extension" on the front page of the fax. Please do not use any other fax number.
 
1.3 Send an email to faisfins1@fsb.co.za. It is important that you include the word "Extension" as well as the FSP number in the subject line in order to expedite the request.
 
All request for extension must be done 15 days prior to the submission date. Please note that extension will not granted if any financial statements or compliance reports is outstanding.
 

2. Procedures on the submission of financial statements

 
Financial statements can be submitted electronically using the online submission process or by sending a copy of the financial statements
 
2.1 Preferred method electronic submission via the FAIS Online system. To submit the financial statements, log onto the FAIS Online system on the FAIS Page on the FSB’s website. The FSP must capture the information on the system and attach a copy of the signed financial statements as an annexure. All key individuals and compliance officers can use the FAIS Online system. For assistance please refer to the FAIS Online manual or send an email to faisfins1@fsb.co.za.
 
2.2 Post - the Financial Statements can be posted. If the financial statements are posted, it remains the FSPs responsibility to prove that it has been sent. It is therefore suggested that FSPs send all post per registered mail and retain the proof (tracking number) thereof. FSPs must allow for sufficient time to ensure that the statements are received by the Registrar before the due date. The statements must be addressed to:
 
The Registrar of Financial Services Providers
Attention: FAIS Supervision - Financial Statements
PO Box 35655
Menlo Park
0102
 
2.3 Hand Delivery - the financial statements can be hand delivered or couriered to:
 
The Registrar of Financial Services Providers
Attention: FAIS Supervision Department, Financial Statements
Riverwalk Office Park
Block B
41 Matroosberg Road
Ashlea Gardens Extension 6
Pretoria
 
PLEASE DO NOT FAX THROUGH THE FINANCIAL STATEMENTS AS WE DO NOT ACCEPT FAXES
 
Acknowledgement of receipt of financial statements will be sent within 120 days of receipt
 

3. Non submission of financial statements:

 
In terms of section 41(2) of the FAIS Act, an FSP who fails to submit its financial statements within the period prescribed or any extension thereof is liable to pay a penalty for every day during which the failure continues.
 
3.1 The Registrar will impose a penalty up to R1000 per day from the day on which the financial statements become due until the date on which it is received by the Registrar
 
3.2 FSPs must, therefore, submit their financial statements within 4 months after their financial year-end or such longer period granted in terms of an extension to avoid the imposition of a penalty under section 41(2) of the FAIS Act.
 
3.3 In addition, the non-submission of financial statements and/or the non-payment of penalties may result in the suspension of an FSP’s licence.
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