Category Financial Planners

FICA stands for the Financial Intelligence Centre Act, which is a piece of legislation introduced in South Africa in 2001. The purpose of FICA is to combat money laundering and the financing of terrorist activities by requiring certain financial institutions and other accountable institutions to implement measures to identify and verify the identity of their clients.

FICA applies to a wide range of accountable institutions, including banks, insurance companies, estate agents, and attorneys, and requires these institutions to implement procedures to identify and verify the identity of their clients, monitor their clients’ financial activities, and report suspicious transactions to the Financial Intelligence Centre (FIC).

The main requirements of FICA include:

1. Customer due diligence: Accountable institutions must identify and verify the identity of their clients before establishing a business relationship with them. This includes obtaining proof of identity and address, as well as information on the client’s financial activities and sources of income.
2. Record-keeping: Accountable institutions must maintain records of their clients’ information and financial activities, and must keep these records for a minimum of five years.
3. Reporting: Accountable institutions must report any suspicious transactions to the FIC, and must also report any transactions that exceed a certain threshold amount.
4. Compliance programs: Accountable institutions must implement compliance programs to ensure that they comply with the requirements of FICA, and must also provide training to their staff on anti-money laundering and counter-terrorist financing measures.

FICA is an important piece of legislation in South Africa, as it helps to prevent the use of the financial system for illegal activities such as money laundering and terrorist financing. By requiring accountable institutions to implement measures to identify and verify the identity of their clients, FICA helps to promote transparency and accountability in the financial sector.

The Code of Conduct for Financial Planners is a set of ethical and professional standards that guide the behavior of financial planners in South Africa. The code is set out by the Financial Planning Institute of Southern Africa (FPI) and applies to all FPI members.

The Code of Conduct for Financial Planners includes the following key principles:

1. Integrity: Financial planners must act with integrity and avoid any actions that could damage the reputation of the profession.
2. Objectivity: Financial planners must act objectively and in the best interests of their clients, taking into account their clients’ financial goals and objectives.
3. Professionalism: Financial planners must maintain a high level of professionalism in their dealings with clients and other stakeholders.
4. Competence: Financial planners must possess the necessary knowledge, skills, and experience to provide competent financial planning services to their clients.
5. Confidentiality: Financial planners must maintain the confidentiality of their clients’ personal and financial information.
6. Compliance: Financial planners must comply with all applicable laws, regulations, and professional standards.
7. Transparency: Financial planners must provide clients with clear and transparent information about their services, fees, and any conflicts of interest that may arise.

The Code of Conduct for Financial Planners is designed to promote trust and confidence in the financial planning profession and to ensure that financial planners act in the best interests of their clients. By adhering to the standards set out in the code, financial planners can build strong relationships with their clients and contribute to the growth and development of the financial planning industry in South Africa.