S 40 of the communication of the board of directors (appointment of representatives) provides that a PSF may not appoint a legal representative in liquidation, provisional liquidation or rescue of a company. The financial soundness requirements for legal representatives, as set out in Communication 194 of the Board of Directors 2017 (BN 194), will come into force on 1 March 2019.In summary will apply to the following requirements: S 45 applies to legal representatives of Class 1 PSPs. As of March 1, 2019, the assets of a legal representative of a Class I PSP must at all times exceed the liabilities of that legal officer. The FSB has issued three notices facilitating certain PSPs providing certain types of services on behalf of insurers and certain legal representatives. However, these derogations only apply if certain conditions are met by both the insurer and the PSP or legal representative. 1. Legal representative of a Class I PSP who does not hold client assets, does not control or has access to client assets, or who does not collect, maintain or receive bonuses or other funds in respect of a financial product: in my opinion, there is no reason to terminate his appointment as a representative, unless the PSP is concerned, among other things, that such an appointment would significantly increase the risk to the PSP or the fair treatment of its clients or the quality of the PSP`s governance framework, including the ABILITY of the PSP to manage its risks and meet its legal and regulatory obligations. S 44 provides that any right-wing unified representative from 1 March 2019 is required at all times to maintain appropriate financial resources, both in terms of level and quality, to be able to carry out his activities and ensure that debts are honoured at maturity. The requirements for the financial health of the legal representatives of Category II, IIA, III and IV PSPs are set out in S 46 – S 49 of the Chamber communication, but they have not been taken into account in this article.
These provisions should be carefully examined and the dates of entry into force set out in point S 53(1) of the Chamber`s notification should be respected. The notification of early warning by legal representatives must be sent to the PSF of the legal representatives. A person designated as the legal representative from more than one class of PSP must meet the most onerous financial soundness requirements applicable to the various classes of PSPs for which that person has been appointed. A copy of the financial health requirements can be downloaded here. Legal representatives of Class I or IV PSPs, who are also insurers and who, on behalf of that insurer, collect, charge, receive or hold premiums for the financial products of that insurer are exempt from the requirements of Section 13(1)(c) of the FAIS Act. Section 13(1)(c) prohibits any person from providing a financial service or providing a financial service except on behalf of the PSP. of which that person is a representative. . . .