The term compliance describes the ability to act according to an order, set of rules or request.

  • In the context of financial services businesses, compliance operates at two levels.

    Level 1 – compliance with the external rules that are imposed upon an organisation as a whole
    Level 2 – compliance with internal systems of control that are imposed to achieve compliance with the externally imposed rules.

  • The term ‘regulation’ generally refers to a set of binding rules issued by a private or public body with the necessary authority to supervise compliance with them and apply sanctions in response to violation of them.

    All our discounting partners is registered in terms of the The National Credit Act, 2005 (Act No. 34 of 2005), and registered financial services providers with a valid FSP number obtained from the FSB. The FSB is an independent institution, established by statute to oversee the South African non-banking financial services industry in the public interest, and fully funded by fees and levies imposed on this industry.

  • We also comply with The South African National Consumer Protection Act (CPA) which came into effect on 1 April 2011. The Act is aimed at promoting fairness, openness and good business practice between the suppliers of goods or services and consumers of such goods and services. The Act only applies to contracts signed after 1 April, and won’t affect anything signed before then. All suppliers of goods and services need to comply with the Act.

Although there is no unified theory of financial services the key objectives of regulation is as follows.

  1. The protection of investors/consumers
  2. Ensuring that the markets are fair, efficient and transparent
  3. The reduction of systemic risk
  4. The reduction of financial crime
  5. The maintenance of consumer confidence in the financial system

For more information please do not hesitate to contact our Business Development Officers (BDO) to provide you with more details