Supervision Agreement Fais

The FSP is now required to determine the supervisory procedures and intensity of the oversight that must in any event be applied taking into account the nature, breadth and complexity of the financial services and financial products to be provided by the prudentially supervised agent, the level of competence of the reps and the risk to clients and the FSP. PPs must set evaluation criteria so that they can demonstrate how they decided on the intensity of a rep under surveillance and why the intensity level is reduced. In other words, the representatives under control must have a monitoring agreement by June 1. If renewed, this should be part of their employment contract. This is not only a precondition for the agreement between the FSP and the representative – the details of such a contract are actually set out in THE FAIS Communication 86. Under the transitional arrangements, representatives appointed under supervision before February 1, 2019 have until February 1, 2020 to comply with the company`s training requirements. The condition is also that the monitoring agreement – condition 7 sets a new obligation of the FSP that relates to the intensity of monitoring. Previously, the intensity of monitoring was prescribed. However, the definitions of “direct monitoring” and “routine monitoring” and the timing of each monitoring have been removed.

The “new” communication on the provision of supervised services (new communication) meets the requirements for Supervised Reps to the new accommodation and compliance requirements that came into effect in early April 2018. This notice exempts, under certain conditions, a PSF and a supervised representative, to the extent that they relate to Reps, general competency requirements, business training class, minimum experience and qualifications, regulatory reviews and CPDs. In accordance with condition 3 of FAIS Communication 86, the PSF and the supervised representative must enter into a written monitoring agreement before providing controlled services. This agreement may be part of another relevant agreement or in the PSF`s performance management process. A supervisor has an obligation to implement and ensure compliance with the monitoring agreement, to supervise and coach the supervisory agent, to verify and evaluate the learning activities and progress made by the monitored representative, to report to the PSF all acts of the supervised representative that have resulted in unfair treatment of clients, and to record the maintenance of all monitoring documents.

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