South Africa

Details

  • Service: Tax
  • Type: Regulatory update
  • Date: 2011/03/28

Corporate Tax

KPMG’s Corporate Tax practice provides a wide range of taxation services to clients in several sectors including financial services, mining, as well as consumer and industrial markets.

Conflict of Interest - Code in terms of FAIS 

In April 2010, the “General Code of Conduct for Authorised Financial Services Providers and Representatives Amendment Notice” was gazetted. This notice, in essence, amends the General Code of Conduct by incorporating additional provisions that further regulate the Conflicts of Interest Code (COI Code).
The implementation of the COI Code has been staggered over a period of time, the final implementation date being 19 April 2011 when Sections 3A(1)(b) and 3A(2) will take effect.  Section 3A(1)(b) regulates financial interests to representatives in terms of how representatives may be incentivised – for example, it will not be permissible to offer a financial interest to a representative that prefers the quantity of business secured to the exclusion of the quality of service.  Section 3A(2) regulates the requirement that financial services providers have a conflict of interest management policy, as well as the minimum content thereof.