The exemption under the FAIS Act of registered banks from the need to comply with the FAIS Act in respect of certain sophisticated or major clients has been extended once again to 30 June 2023.
The exemption relates to clients who are another bank, a South African insurer, a foreign bank or similar business, a central bank, an asset manager administering more than R1 billion, and other persons with assets exceed R20 million who are not other than natural persons, pension funds, friendly societies and medical schemes.
The exemption recognises that these clients will have sufficient or sufficient access to know-how and expertise to look after themselves in a financial transaction. The exemption is extended from time-to-time and is not made permanent in case things change in the economy or business practices.
