1.2 Subordinate Legislation Map

1.2 Subordinate Legislation Map

Quick Answer: The FAIS Act 37 of 2002 is the primary Act, but RE5 competence depends on knowing the map of subordinate and related instruments: General Code of Conduct (Board Notice 80 of 2003, as amended), Determination of Fit and Proper Requirements (Board Notice 194 of 2017), FAIS Regulations, Ombud proceedings rules, Board Notice 82 of 2003 (reappointment of debarred representatives), FSCA FAIS Notice 86 of 2018 (services under supervision), plus interaction with the FIC Act and the Twin Peaks architecture of the FSR Act 9 of 2017.

If the Act is the constitution of advice-and-intermediation regulation, subordinate legislation is the operating manual. Task 1 expects you to recognise that “FAIS compliance” is never only a single statute — it is a stack of instruments with different jobs.

Why a map matters on RE5

Exam questions rarely ask you to quote a full Board Notice. They do test whether you know which tool applies:

• Conduct toward clients? → General Code of Conduct (GCOC) and related code instruments.
• Can this person act as a representative / what competence is required? → Fit and Proper Determination (BN 194 of 2017) and related RE/CPD rules.
• May a not-yet-competent rep work? → Services under supervision framework (FSCA FAIS Notice 86 of 2018).
• Client complaint outside the firm? → FAIS Ombud and the rules on Ombud proceedings.
• After debarment, return path? → BN 82 of 2003 (reappointment conditions) read with section 14 of the Act.
• Client onboarding / suspicious activity? → FIC Act duties that apply to FSPs and shape representative behaviour.

Mixing these up is a classic RE5 trap (for example, treating the GCOC as if it issues FSP licences, or treating the FIC Act as if it creates the FAIS Ombud).

The regulatory stack (high level)

General Code of Conduct (BN 80 of 2003, as amended)

The General Code of Conduct for Authorised Financial Services Providers and Representatives is the everyday rulebook for how financial services must be rendered. RE5 dedicates a large share of Task 4 to GCOC themes: general duties, conflicts of interest, disclosures, advice process and suitability, custody, complaints handling, and termination.

For the framework map, remember:

• The GCOC is subordinate legislation / code made under FAIS power — it is not a substitute for holding an FSP licence.
• It applies to providers and representatives in the rendering of financial services.
• Amendments matter: do not treat a 2003 snapshot as frozen forever; the industry works with the amended Code. RE5 scenarios test principles (honesty, fairness, skill, care, diligence; disclosure; suitability; conflicts), not obscure repealed wording.

Map cue: If the question is about client-facing conduct (what must be disclosed, how conflicts are managed, how complaints are handled inside the firm), start with the GCOC.

Determination of Fit and Proper Requirements (BN 194 of 2017)

Board Notice 194 of 2017 is the modern centrepiece for fit and proper requirements for FSPs, key individuals, and representatives (honesty and integrity; good standing; competence including experience, qualifications, regulatory examinations, class of business training; and continuous professional development, among other elements depending on role and product tier).

For representatives writing RE5:

• RE5 itself is a regulatory examination component of the competence framework for many representatives.
• “Fit and proper” is continuous — not a one-day appointment checkbox. Loss of honesty/integrity or competence can trigger supervision, removal from the register, or debarment pathways covered in later chapters.
• Product tiers and categories/subcategories affect which competence requirements apply (including known RE5 exemptions for certain limited product sets — covered in exam-logistics and rep chapters).

Map cue: If the question is about who may act, what competence is needed, RE/CPD, or honesty and integrity standards for appointment, think BN 194 / fit and proper.

FAIS Regulations

The FAIS Regulations support the Act with prescribed regulatory detail (forms, procedures, and other operational requirements as set out in the regulations from time to time). You do not need a encyclopaedic list of every regulation clause for RE5, but you must know that:

• The Act often empowers regulations and notices.
• “Comply with FAIS” includes regulations and notices, not only the Act’s main sections.
• When a question refers to “prescribed” requirements, the answer may sit in regulations or a determination rather than in a GCOC disclosure rule.

Map cue: Regulations are the plumbing that makes authorisation, reporting, and prescribed processes work.

Rules on proceedings of the FAIS Ombud

The FAIS Ombud is a critical client-protection mechanism. Separate rules on proceedings govern how complaints are brought, considered, and disposed of in a procedurally fair, informal, economical, and expeditious manner, with regard to equity and the parties’ legal relationships.

For the map:

• Ombud rules of process ≠ GCOC internal complaints duties (firms must still have internal complaint procedures under the Code).
• A representative should know when a matter may escalate beyond the firm and why records and disclosures matter in that forum.
• Deep process, jurisdiction, and outcomes are expanded in the Ombud chapters; here you only need the existence and purpose of the rules on the map.

Map cue: Internal first-line complaints → GCOC/firm procedure; independent statutory complaint pathway → Ombud + proceedings rules.

Board Notice 82 of 2003 — reappointment of debarred representatives

Section 14 of the FAIS Act deals with debarment of representatives (and related persons as defined) who no longer meet fit and proper requirements or who have contravened the Act in ways that justify prohibition from rendering financial services.

Board Notice 82 of 2003 is the classic subordinate instrument candidates must know exists for the reappointment of a debarred representative. High-level points for the framework chapter:

• Debarment is not a “quiet HR exit”; it has industry-wide effect on the person’s ability to render financial services as a representative.
• Return to the industry is not automatic; reappointment is governed by specific requirements (including waiting periods and satisfaction that fit and proper concerns have been addressed, as set out in BN 82 and related practice).
• Later RE5 chapters cover debarment process and recourse in depth; here, place BN 82 correctly on the map as the reappointment instrument.

Map cue: Debarment = Act (s 14 pathway) + FSCA/register consequences; reappointment after debarment = BN 82 framework.

FSCA FAIS Notice 86 of 2018 — services under supervision

Many representatives begin rendering services before they meet every competence requirement. The modern instrument RE5 materials emphasise is FSCA FAIS Notice 86 of 2018 on the exemption of services under supervision (subject to conditions).

High-level map facts:

• A supervised representative is typically someone who does not yet meet one or more competence requirements (such as experience, qualification, regulatory exam, and/or class of business training) and who renders financial services under supervision.
• Supervision means structured guidance, instruction, and oversight by a supervisor using assessment and oversight methods appropriate to the person’s competence level.
• Notice 86 sets conditions (including written supervision arrangements between the FSP and supervised representative before services under supervision are rendered) and replaced older supervision board-notice arrangements for this purpose.
• Supervision is time-bound and conditional — not a permanent alternative to becoming fully competent.

Map cue: “Can this rep work while still completing RE/experience/class-of-business?” → supervision framework / Notice 86, not “ignore fit and proper.”

FIC Act interaction (not a FAIS schedule, but on every RE5 map)

The Financial Intelligence Centre Act (FIC Act) is a separate statute, but Task 6 of RE5 requires FSPs and representatives to understand ML/TF control duties as they apply in the FSP environment. On the framework map:

Representatives often perform the client-facing steps (collecting KYC information, recognising unusual transactions, escalating to the firm’s MLRO/compliance processes). Understanding that FIC duties sit alongside FAIS — and do not replace the GCOC — is essential.

FSR Act / FSCA placement on the same map

Do not draw the map as “FAIS alone in a vacuum.” Place:

• FSR Act 9 of 2017 — Twin Peaks architecture; FSCA as market-conduct authority; interaction with sectoral laws including FAIS.
• FSCA — licences/authorisations administration, supervision, enforcement activity, notices (such as FAIS Notice 86), and industry communication formerly associated with the FSB FAIS division functions.

When older textbooks say “Registrar,” translate to the Authority/FSCA context unless the question is historical.

Worked scenario — picking the right instrument

Scenario A: A client says a representative never disclosed a material conflict before recommending a product replacement.
Start with: GCOC conflict and disclosure duties (conduct map).

Scenario B: An FSP wants to appoint a person who has not yet completed the required regulatory exam for the product category.
Start with: Fit and proper (BN 194) + whether services under supervision conditions in Notice 86 can apply.

Scenario C: A representative was debarred 14 months ago and a new FSP wants to reappoint them.
Start with: Debarment consequences under the Act + BN 82 reappointment requirements — not the GCOC advertising rules.

Scenario D: Cash-intensive premium payments and inconsistent identity documents raise ML concerns at onboarding.
Start with: FIC Act controls and the firm’s AML policies — in parallel with FAIS advice/intermediation rules, not instead of them.

Study method for the map

1. Memorise the instrument names and jobs in the table above.
2. Drill “which map cell?” questions until selection is automatic.
3. Defer deep section-by-section GCOC, FIC, Ombud, and debarment procedure to their dedicated chapters — but never lose the map.
4. Use SA legal spelling and titles in answers: licence, authorised, Board Notice, FSCA, representative.

A clean mental map is the difference between recognising an RE5 question’s real topic in ten seconds and drowning in similar-looking options.