Regulation
The Commission's licensing policy for Fiduciary Service Providers
A Fiduciary Service Provider licenceholder and its key staff are required to be fit and proper persons. The Commission's licensing policy is to apply a test of fitness and properness in the key areas of integrity, competence and solvency. FSP licenceholders are required to comply with regulatory codes and guidelines as follows:-
The Financial Services Rule Book 2008 contains the general requirements for the conduct of FSP business in a number of areas such as:
a) Anti-Money Laundering Codes
b) Client agreements/ terms of business
c) Dual control (the '4-eyes' criterion)
d) Compliance systems, procedures and returns
e) Provision of directors
f) Financial resources, going-concern and reporting requirements
g) Matters to be notified to the Commission
h) Complaints
i) Avoidance of conflicts of interest
j) Advertising
k) Professional indemnity insurance cover
The Financial Services Rule Book 2008 requires that clients' money (as defined) must be held on trust for the client or the client's company and must be segregated from the fiduciary's own moneys. The Rule Book also sets out the operational procedures for handling clients' money and the requirements for the payment of interest on the same.