The key definitions as set out in the FAIS General Code of Conduct:
Conflict of interest: Means any situation in which a provider or a representative has an actual or potential interest that may, in rendering a financial service to a client:
a) influence the objective performance of his/her obligations to that client; or
b) prevent a provider or representative from rendering an unbiased and fair financial service to that client, or from acting in the interests of that client, including, but not limited to:
i. a financial interest;
ii. an ownership interest;
iii. any relationship with a third party.
Financial interest: includes any cash, cash equivalent, voucher, gift, service, advantage, benefit, discount, domestic or foreign travel, hospitality, accommodation, sponsorship, other incentive or valuable consideration, other than:
a) an ownership interest;
b) training, that is not exclusively available to a selected group of providers or representatives, on:
i. products and legal matters relating to those products;
ii. general financial and industry information;
iii. specialised technological systems of a third party necessary for the rendering of a financial service; but excluding travel and accommodation associated with that training.
Immaterial financial interest: means any financial interest with a determinable monetary value, the aggregate of which does not exceed R1, 000.00 in any calendar year from the same third party in that calendar year, received by:
a) a provider who is a sole proprietor;
b) a representative for that representative’s direct benefit;
c) a provider, who for its benefit or that of some or all of its representatives, aggregates the immaterial financial interest paid to its representatives.
a) An equity ownership interest, for which fair value was paid by the owner, other than equity or ownership interest held by an approved nominee on behalf of another person; and
b) includes any dividend, profit share or similar benefit derived from that equity or ownership interest.
Third party: means
a) a product supplier;
b) another provider;
c) an associate of a product supplier or a provider;
d) a distribution channel;
e) any person who in terms of an agreement or arrangement with a person referred to in paragraphs (a) to (d) above provides a financial interest to a provider or its representatives.
a) in relation to a natural person, means:
i. a person who is recognized in law or the tenets of religion as the spouse, life partner or civil union partner of that person;
ii. a child of that person, including a stepchild, adopted child and a child born out of wedlock;
iii. a parent or stepparent of that person;
iv. a person in respect of which that person is recognized in law or appointed by a Court as the person legally responsible for managing the affairs of or meeting the daily care needs of the first-mentioned person;
v. a person who is the permanent life partner or spouse or civil union partner of a person referred to in subparagraphs (ii) to (iv);
vi. a person who is in a commercial partnership with that person.
b) in relation to a juristic person:
i. which is a company, means any subsidiary or holding company of that company, any other subsidiary of that holding company and any other company of which that holding company is a subsidiary;
ii. which is a close corporation registered under the Close Corporations Act, 1984 (Act No. 69 of 1984), means any member thereof as defined in section 1 of that Act;
iii. which is not a company or a close corporation as referred to in subparagraphs (i) or (ii), means another juristic person which would have been a subsidiary or holding company of the first-mentioned juristic person
(1) had such first-mentioned juristic person been a company; or
(2) in the case where that other juristic person, also, is not a company, had both the first mentioned juristic person and that other juristic person been a company;iv. means any person in accordance with whose directions or instructions the board of directors or members of, or in the case where such juristic person is not a company or close corporation, the governing body of such juristic person is accustomed to act.
c) in relation to any person:
i. means any juristic person of which the board of directors or members, or in the case where such juristic person is not a company or close corporation, of which the governing body is accustomed to act in accordance with the directions or instructions of the person first-mentioned in this paragraph;
ii. includes any trust controlled or administered by that person.