PART I 1. The following substances, namely

Hydrochloric acid.
Methyl ethyl ketone.
Potassium permanganate.
Phenylacetic acid.
Piperidine.
Sulphuric acid.
Toluene.
2. The salts of all substances included in this Part, except hydrochloric acid and sulphuric acid, where the existence of such salts is possible.
Schedule 2
[Schedule 2 amended by Government Notice No. R.1765 of 1 November 1996, by Government Notice No. R.760 of 11 June 1999 and by Government Notice No. R.521 of 15 June 2001.]
PART I
DependenceProducing Substances
1. The following substances, namely—
Amobarbital, cyclobarbital and pentobarbital, except preparations and mixtures containing not more than 30 milligrams per minimum recommended or prescribed dose when intended for continued use in asthma or containing not more than 50 milligrams per minimum recommended or prescribed dose when intended for continued use in epilepsy.
Buprenorphine.
Butalbital.
Cathine ((+)norpseudoephedrine), except preparations and mixtures containing 50 milligrams or less of cathine per dosage unit.
Chlorphentermine.
Diethylpropion (amfepramone).
Flunitrazepam.
Gluthethimide.

Meptazinol.
Pentazocine.
2. Unless expressly excluded, all substances included in this Part include the following:
(a)
The salts and esters of the specified substances, where the existence of such salts and esters is possible; and

(b)
all preparations and mixtures of the specified substances.

PART II
Dangerous DependenceProducing Substances
1. The following substances or plants, namely—
Acetorphine.
Acetyldihydrocodeine, except preparations and mixtures containing not more than 20 milligrams of acetyldihydrocodeine per recommended or prescribed dose.
Acetylmethadol.
Alfentanil.
Allylprodine.
Alphacetylmethadol.
Alphameprodine.
Alphamethadol.
Alphaprodine.
Anileridine.
Benzethidine.
Benzphetamine.
Benzylmorphine.
Betacetylmethadol.
Betameprodine.

Betamethadol.
Betaprodine.
Bezitramide.
Butorphanol.
Chlorodyne (Chloroform and Morphine Tincture BP 1980) or any preparation or mixture thereof described as chlorodyne, except preparations and mixtures containing not more than 5,0 per cent of chloro dyne in combination with other active medicinal substances.
Clonitazene.
Coca leaf and any salt, compound, derivative or preparation of coca leaf, and any salt, compound, derivative or preparation thereof that is chemically equivalent or identical to any of these substances, whether obtained directly or indirectly by extraction from material or substances obtained from plants, or obtained independently by chemical synthesis, or by a combination of extraction and chemical synthesis, except decocainized coca leaf and extractions of coca leaf where such extractions contain no cocaine or ecgonine.
Codeine (methylmorphine), except preparations and mixtures containing not more than 20 milligrams of codeine per recommended or prescribed dose.
Codoxime.
Desomorphine.
Dextromoramide.
Dextropropoxyphene, except preparations and mixtures for oral use containing not more than 135 milligrams dextropropoxyphene, calculated as the base, per dosage unit, or with a concentration of not more than 2,5 per cent in undivided preparations.
Diampromide.
Diethylthiambutene.
Difenoxin (or diphenoxylic acid), except mixtures containing, per dosage unit, not more than 0,5 milligrams of difenoxin, calculated as the base, and a quantity of atropine sulphate equal to at least 5,0 per cent of the quantity of difenoxin, calculated as the base, which is present in the mixture.
Dihydrocodeine, except preparations and mixtures containing not more than 20 milligrams of dihydrocodeine per recommended or prescribed dose.
Dihydroetorphine.
Dihydromorphine.

Dimenoxadol.
Dimepheptanol.
Dimethylthiambutene.
Dioxaphetylbutyrate.
Diphenoxylate, except preparations containing not more than 2,5 milligrams of diphenoxylate, calculated as the base, and not less than 25 micrograms of atropine sulphate per dosage unit.
Dipipanone.
Dronabinol [()transdelta9tetrahydrocannabinol].
Drotebanol.
Ecgonine and the esters and derivatives thereof which are convertible to ecgonine and cocaine.
Ethylmethylthiambutene.
Ethylmorphine, except preparations and mixtures containing not more than 20 milligrams of ethylmorphine per recommended or prescribed dose.
Etonitazene.
Etorphine and analogues.
Etoxeridine.
Fenproporex.
Fentanyl.
Furethidine.
Hydrocodone (dihydrocodeinone).
Hydromorphinol (14hydroxydihydromorphine).
Hydromorphone (dihydromorphinone).
Hydroxypethidine.
Isomethadone.
Ketobemidone.
Levomoramide.

Levophenacylmorphan.
Levorphanol.
Mecloqualone.
Mefenorex.
Metazocine.
Methadone.
Methadoneintermediate.
Methorphan, including levomethorphan and racemethorphan, but excluding dextromethorphan.
Methyldesorphine.
Methyldihydromorphine.
Methylphenidate and the derivatives thereof.
Metopon.
Moramideintermediate.
Morpheridine.
Morphine, except preparations and mixtures of morphine containing not more than 0,2 per cent of morphine, calculated as anhydrous morphine.
Morphine methobromide and other pentavalent nitrogen morphine derivatives.
MorphineNoxide and the derivatives thereof.
Myrophine (myristylbenzylmorphine).
Nicocodine.
Nicodicodine.
Nicomorphine.
Noracymethadol.
Norcodeine, except preparations and mixtures containing not more than 20 milligrams norcodeine per recommended or prescribed dose.

Norlevorphanol.
Normethadone.
Normorphine (demethylmorphine or Ndemethylated morphine).
Norpipanone.
Opium and opiates and any salt, compound, derivative or preparation of opium or opiates, whether obtained directly or indirectly by extraction from material or substances obtained from plants, or obtained independently by chemical synthesis, or by a combination of extraction and chemical synthesis, except mixtures containing not more than 0,2 per cent of morphine, calculated as anhydrous morphine.
Opiumpoppy and poppy straw, whether obtained directly or indirectly by extraction from material or substances obtained from plants, or whether obtained independently by chemical synthesis, or by a combination of extraction and chemical synthesis.
Oxycodone (14hydroxydihydrocodeinone or dihydrohydroxycodeinone).
Oxymorphone (14hydroxydihydromophinone or dihydrohydroxymorphinone).
Pethidine, pethidineintermediate A, pethidineintermediate B and pethidineintermediate C.
Phenadoxone.
Phenampromide.
Phenazocine.
Phendimetrazine.
Phenomorphan.
Phenoperidine.
Pholcodine, except preparations and mixtures containing not more than 20 milligrams of pholcodine per recommended or prescribed dose.
Piminodine.
Piritramide.
Proheptazine.
Properidine.
Propiram.

Racemoramide.
Racemorphan.
Remifentanil.
Secobarbital.
Sufentanil.
Thebacon.
Thebaine.
Tilidine.
Trimeperidine.
Zipeprol.
2. Unless expressly excluded, all substances or plants included in this Part include the following:
(a)
The isomers of the specified substances or plants, where the existence of such isomers is possible;

(b)
the esters and ethers of the specified substances or plants and of the isomers referred to in subparagraph (a), as well as the isomers of such esters and ethers, where the existence of such esters, ethers and isomers is possible;

(c)
the salts of the specified substances or plants, of the isomers referred to in subparagraph (a) and of the esters, ethers and isomers referred to in subparagraph (b), as well as the isomers of such salts, where the existence of such salts and isomers is possible; and

(d)
all preparations and mixtures of the specified substances or plants and of the isomers, esters, ethers and salts referred to in this paragraph.

PART III
Undesirable DependenceProducing Substances
1. The following substances or plants, namely—
Amphetamine.

Brolamfetamine.
4bromo2,5dimethoxyphenethylamine (2CB), (“Nexus”).
Bufotenine (N,Ndimethylserotonin).
Cannibis (dagga), the whole plant or any portion thereof, except dronabinol [()transdelta9 tetrahydrocannabinol].
Cathinone.
Dexamphetamine.
Diethyltryptamine [3(2(diethylamino)ethyl)indole;cb.
2,5dimethoxyamphetamine (DMA).
2,5dimethoxy4ethylamphetamine (DOET).
(±)N,μ dimethyl3,4(methylenedioxy) phenethylamine (3,4methylenedioxymetamfetamine (MDMA).
3(1,2dimethylheptyl)7,8,9,10tetrahydro6,6,9trimethyl6Hdibenzo [b, d] pyran1ol (DMHP).
Dimethyltryptamine [3(2(dimethylamino)ethyl)indole].
Etryptamine (3(2aminobutyl)indole).
Fenetylline.
Fentanylanalogues:
acetylalphamethylfentanyl;
alphamethylfentanyl;
alphamethylfentanylacetanilide;
alphamethylthiofentanyl;
benzylfentanyl;
betahydroxyfentanyl;
betahydroxy3methylfentanyl;
3methylfentanyl and the two isomeric forms thereof, namely,

cisN(3methyl1(2phenethyl)4piperidyl)propionanilide and transN(3methyl1(2phenethyl)4piperidyl)propionanilide;
3methylthiofentanyl;
parafluorofentanyl; and
thiofentanyl.
Gammahydroxybutyrate (GHB).
Harmaline (3,4dihydroharmine).
Harmine [7methoxy1methyl9Hpyrido (3,4b)indole].
Herion (diacetylmorphine).
Levamphetamine.
Levomethamphetamine.
Lysergide (lysergic acid diethylamide).
Mescaline (3,4,5trimethoxyphenethylamine).
Methamphetamine and methamphetamine racemate.
Methaqualone, including Mandrax, Isonox, Quaalude, or any other preparation containing methaqualone and known by any other trade name.
Methcathinone (2(methylamino)1phenylpropan1one).
2methoxy4,5methylenedioxyamphetamine (MMDA).
4methylaminorex.
4methyl2,5dimethoxyamphetamine (DOM) and the derivatives thereof.
Methylenedioxyamphetamine (MDA):
Nethylmethylenedioxyamphetamine; and
Nhydroxymethylenedioxyamphetamine.
Nabilone.
Parahexyl.
Paramethoxyamphetamine (PMA).

Phencyclidine and the congeners thereof, namely, Nethyl1phenylcyclohexylamine (PCE), 1(1phenylcyclohexyl) pyrrolidine (PHP or PCPY) and 1 [1(2thienyl) cycohexyl] piperidine (TCP).
Pethidineanalogues:
1methyl4phenyl4propionoxypiperidine (MPPP);
1methyl4phenyl1,2,5,6tetrahydropiperidine (MPTP); and
1phenylethyl4phenyl4acetyloxypiperidine (PEPAP).
Phenmetrazine.
Psilocin (4hydroxydimethyltryptamine).
Psilocybin (4phosphoryloxyN,Ndimethyltryptamine).
Tetrahydrocannabinol.
3,4,5trimethoxy amphetamine (TMA).
2. Unless expressly excluded, all substances or plants included in this Part include the following:
(a)
The isomers of the specified substances or plants, where the existence of such isomers is possible;

(b)
the esters and ethers of the specified substances or plants and of the isomers referred to in subparagraph (a), as well as the isomers of such esters and ethers, where the existence of such esters, ethers and isomers is possible;

(c)
the salts of the specified substances or plants, of the isomers referred to in subparagraph (a) and of the esters, ethers and isomers referred to in subparagraph (b), as well as the isomers of such salts, where the existence of such salts and isomers is possible; and

(d)
all preparations and mixtures of the specified substances or plants and of the isomers, esters, ethers and salts referred to in this paragraph.

Schedule 3

LAWS REPEALED (SECTION 66)

No. and yearof law

Short title

Extent of repeal

Act No. 41 of 1971

Abuse of Dependenceproducing Substances and Rehabilitation Centres Act, 1971

So much as is unrepealed.

Act No. 80 of 1973

Abuse of Dependenceproducing Substances and Rehabilitation Centres Amendment Act, 1973

So much as is unrepealed.

Act No. 14 of 1977

Abuse of Dependenceproducing Substances and Rehabilitation Centres Amendment Act, 1977

So much as is unrepealed.

Act No. 76 of 1978

Abuse of Dependenceproducing Substances and Rehabilitation Centres Amendment Act, 1978

The whole.

Act No. 97 of 1986

Transfer of Powers and Duties of the State President Act, 1986

Section 40.

Act No. 101 of 1986

Abuse of Dependenceproducing Substances and Rehabilitation Centres Amendment Act, 1986

The whole.

Act No. 78 of 1990

Abuse of Dependenceproducing Substances and Rehabilitation Centres Amendment Act, 1990

The whole.

Repealed Act

Act 41 of 1971 has been repealed by s 52 of Act 20 of 1992

Repealed Act

Act 80 of 1973 has been repealed by s 66 of Act 140 of 1992

Repealed Act

Act 14 of 1977 has been repealed by s 66 of Act 140 of 1992

Repealed Act

Act 76 of 1978 has been repealed by s 66 of Act 140 of 1992

Repealed Act

Act 101 of 1986 has been repealed by s 66 of Act 140 of 1992

Repealed Act

Act 78 of 1990 has been repealed by s 66 of Act 140 of 1992

FINANCIAL ADVISORY AND INTERMEDIARY

SERVICES ACT

NO. 37 OF 2002
[View Regulation]
[ASSENTED TO 15 NOVEMBER, 2002]

[DATE OF COMMENCEMENT: 15 NOVEMBER, 2002]

(Unless otherwise indicated)
(English text signed by the President)

This Act has been updated to Government Gazette 31561 dated 31 October, 2008.

as amended by

Financial Services Laws General Amendment Act, No. 22 of 2008
[with effect from 1 November, 2008, unless otherwise indicated]

GENERAL NOTE

Kindly note that although the Securities Services Act, No. 36 of 2004 repealed the Financial Markets Control Act, No. 55 of 1989, the Amendment Acts to the latter have not been repealed and in most instances also deal with legislation still in force.

ACT
To regulate the rendering of certain financial advisory and intermediary services to clients; to repeal or amend certain laws; and to provide for matters incidental thereto.

TABLE OF CONTENTS
INTRODUCTORY PROVISIONS

1.

Definitions and application

CHAPTER I

ADMINISTRATION OF ACT

2.

Registrar and deputy registrar of financial services providers

3.

General provisions concerning registrar

4.

Special provisions concerning powers of registrar

5.

Advisory Committee on Financial Services Providers

6.

Delegations and authorisations

CHAPTER II

AUTHORISATION OF FINANCIAL SERVICES PROVIDERS

7.

Authorisation of financial services providers

8.

Application for authorisation

9.

Suspension and withdrawal of authorisation

10.

. . . . . .

11.

Lapsing of licence

12.

Exemptions in respect of product suppliers

CHAPTER III

REPRESENTATIVES OF AUTHORISED FINANCIAL SERVICES PROVIDERS

13.

Qualifications of representatives and duties of authorised financial services providers

14.

Debarment of representatives

14A.

Debarment by registrar

CHAPTER IV

CODES OF CONDUCT

15.

Publication of codes of conduct

16.

Principles of codes of conduct

CHAPTER V

DUTIES OF AUTHORISED FINANCIAL SERVICES PROVIDERS

17.

Compliance officers and compliance arrangements

18.

Maintenance of records

19.

Accounting and audit requirements

CHAPTER VI

ENFORCEMENT
Part I

Ombud or financial services providers

20.

Office of Ombud for Financial Services Providers

21.

Appointment of Ombud and deputy ombuds

22.

Funding of Office

23.

Accountability

24.

General administrative powers of Ombud

25.

Disestablishment and liquidation of Office

26.

Powers of Board

27.

Receipt of complaints, prescription, jurisdiction and investigation

28.

Determinations by Ombud

29.

Recordkeeping

30.

Report of Ombud

31.

Penalties

32.

Promotion of client education by registrar

Part II

Other enforcement measures

33.

Civil remedies

34.

Undesirable practices

35.

Regulations

36.

Offences and penalties

37.

Consideration of quantum of fines and penalties

38.

Voluntary sequestration, windingup and closure

39.

Right of appeal

CHAPTER VII

MISCELLANEOUS

40.

Saving of rights

41.

Fees and penalties

42.

Exchange of information

43.

. . . . . .

44.

Exemptions by registrar and Minister

45.

Exemptions, and amendment or repeal of laws

46.

Commencement and short title

Schedule

Laws amended or repealed

BE IT ENACTED by the Parliament of the Republic of South Africa, as follows:—

INTRODUCTORY PROVISIONS
Repealed Act

Act 55 of 1989 has been repealed by s 117 of Act 36 of 2004

1. Definitions and application.—(1) In this Act, unless the context indicates otherwise—

“advice” means, subject to subsection (3) (a), any recommendation, guidance or proposal of a financial nature furnished, by any means or medium, to any client or group of clients—
(a)
in respect of the purchase of any financial product; or

(b)
in respect of the investment in any financial product; or

(c)
on the conclusion of any other transaction, including a loan or cession, aimed at the incurring of any liability or the acquisition of any right or benefit in respect of any financial product; or

(d)
on the variation of any term or condition applying to a financial product, on the replacement of any such product, or on the termination of any purchase of or investment in any such product,

and irrespective of whether or not such advice—
(i)

is furnished in the course of or incidental to financial planning in connection with the affairs of the client; or

(ii)

results in any such purchase, investment, transaction, variation, replacement or termination, as the case may be, being effected;

“Advisory Committee” means the Advisory Committee on Financial Services Providers referred to in section 5;
“application”, in relation to the performance of any act by the registrar, means, except where in a specific case other specific provision is made, an application referred to in section 3 (2);
“auditor” means an auditor registered in terms of the Auditing Profession Act, 2005 (Act No. 26 of 2005);
[Definition of “auditor” substituted by s. 45 (a) of Act No. 22 of 2008.]
Wording of Sections
“authorised financial services provider” or “provider” means a person who has been granted an authorisation as a financial services provider by the issue to that person of a licence under section 8;
“Board” means the Financial Services Board established by section 2 of the Financial Services Board Act;
“board of appeal” means the board of appeal established by section 26 (1) of the Financial Services Board Act;

“client” means a specific person or group of persons, excluding the general public, who is or may become the subject to whom a financial service is rendered intentionally, or is the successor in title of such person or the beneficiary of such service;
“code of conduct” means any published code of conduct contemplated in section 15;
“collective investment scheme” means a collective investment scheme as defined in the Collective Investment Schemes Control Act, 2002;
“complainant” means, subject to section 26 (1) (a) (ii), a specific client who submits a complaint to the Ombud;
“complaint” means, subject to section 26 (1) (a) (iii), a specific complaint relating to a financial service rendered by a financial services provider or representative to the complainant on or after the date of commencement of this Act, and in which complaint it is alleged that the provider or representative—
(a)
has contravened or failed to comply with a provision of this Act and that as a result thereof the complainant has suffered or is likely to suffer financial prejudice or damage;

(b)
has wilfully or negligently rendered a financial service to the complainant which has caused prejudice or damage to the complainant or which is likely to result in such prejudice or damage; or

(c)
has treated the complainant unfairly;

“compliance officer” means a compliance officer for an authorised financial services provider referred to in section 17;

“Court” means any court having jurisdiction;
“document” includes a document created, recorded, transmitted or stored in digital or other intangible but readable form by way of electronic, magnetic, optical or any similar means;
[Definition of “document” inserted by s. 45 (b) of Act No. 22 of 2008.]
“exempt” means to exempt, on application by a person or on the registrar’s own initiative, on any of the grounds mentioned in section 44 (1) (a), (b) or (c) and (4) (a);
“financial product” means, subject to subsection (2)—
(a)
securities and instruments, including—

(i)

shares in a company other than a “share block company” as defined in the Share Blocks Control Act, 1980 (Act No. 59 of 1980);

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