How to appoint a representative: the representative register and the DOFA

To appoint a representative, the FSP must be satisfied that the person is fit and proper or will work under supervision, give them a service contract or mandate under which it accepts responsibility for the rep (confirmed to clients by the FSP), and add them to its representative register (FAIS Act s13). It must also record the rep's date of first appointment (DOFA) correctly, because the supervision deadlines run from that date (FSCA FAIS Notice 86 of 2018, Condition 2).

The FSCA must be told too. The FSP completes Form FSP 5 for every representative it appoints, and any later change to that information, including a change in supervision status, must be reported to the FSCA in writing within 15 days (FSCA FAIS Notice 29 of 2023, Form FSP 5, note 6).

What are the steps to appoint a representative, and in what order?

1. Get the candidate's disclosure. The person must disclose anything relevant to honesty, integrity and good standing "promptly and on own initiative" (Board Notice 194 of 2017, s10). A signed declaration is the simplest record. Our guide to the fit and proper requirements for representatives covers the full set.
2. Check for a debarment. A debarred person may not act as a representative unless the reappointment requirements are met: normally 12 months since the debarment, outstanding business settled, complaints resolved and the person fit and proper again (FAIS Act s14(9); Board Notice 82 of 2003, paragraph 2). The Financial Services Tribunal applied Board Notice 82 of 2003 as the current reappointment rule in July 2024 (Sabeka v First National Bank). The FSCA publishes the list of debarred persons (s14(7)).
3. Check financial soundness. Confirm the person is not an unrehabilitated insolvent, not under liquidation or business rescue, and has no pending proceedings that could lead to these (BN 194, s40(1)).
4. Decide: fully competent or supervised? If the person has not passed the RE5 and met the other competence requirements, they may only be appointed to work under supervision (BN 194, s26(6); FAIS Notice 86 of 2018). If so, put the written supervision agreement in place now, before any service is rendered (Condition 3). There are two limits. A supervised rep must still meet the entry requirements in Condition 1. And if the person's DOFA is more than 2 years ago and they have not passed the RE5, supervision no longer covers the exam: they must pass it before appointment (Condition 2(1)). See supervision of representatives under FAIS for how the arrangement works.
5. Complete the training that must come first. Product specific training is required before the rep renders any financial service on that product, except in Category II, IIA and III FSPs (BN 194, s29(1)(b); s28(3)). Class of business training also comes before rendering services, unless the rep is supervised (12 months, Notice 86, Condition 2(3)(a)) or an exclusion applies (s28(2)). Record it in the competence register within 15 days (s30(a)).
6. Give the mandate. There must be a service contract or mandate. Before the rep renders a service, clients must get confirmation, certified by the FSP, that it exists and that the FSP accepts responsibility for the rep's activities within it (FAIS Act s13(1)(b)(i)). The rep may act only in the FSP's name (s13(1)(c)).
7. Add them to your representative register. Record the rep's name and business address, whether they act as an employee or a mandatary, and the categories they are competent in. Keep the register up to date and available to the FSCA (s13(3)(a) and s13(4)). Mark a supervised rep as supervised (Notice 86, Condition 4(2)).
8. Update the FSCA's central register. The FSCA keeps a central register of representatives (s13(5)). Complete Form FSP 5 for the new rep, and report any later change to that information, including a change in supervision status, within 15 days (FSCA FAIS Notice 29 of 2023, Form FSP 5, note 6).
9. Record the DOFA. The date of first appointment is "the date on which a person was first appointed as a representative" (Notice 86, paragraph 1). For a supervised rep, the 2-year RE5 deadline runs from the first appointment as a representative. The 12-month class of business and 6-year qualification deadlines run from the first appointment for each product (Condition 2).

Appointing several reps at once? The 90-day plan for a new rep cohort sets out what to do in the first weeks after appointment.

Once a rep is appointed, how to set up RE5 and RE1 training for your team covers getting them through the RE5 on time.

What does the DOFA date mean, and how do you check it?

The DOFA is the date the person was first appointed as a representative, not the date they joined you (Notice 86, paragraph 1). So it does not reset when a rep moves to a new FSP. For class of business training and the qualification, the clock runs from the first appointment for each product (Condition 2(3)).

To check a DOFA, start with the appointing FSP's own records and representative register. For a rep who worked somewhere else before, ask them for their FSCA DOFA report, or for written consent to request it (Masthead). An error here moves every deadline that follows.

If a rep has a DOFA date, by when do they need the RE5 and their qualification?

These deadlines apply to a rep working under supervision. The RE5 must be passed within 2 years of first appointment as a representative. Class of business training is due within 12 months, and the recognised qualification within 6 years, of first appointment for each product (Notice 86, Conditions 2(1) and 2(3)). A rep who has not met these requirements can only be appointed to work under supervision. The RE5 deadline timeline explains each date, and the DOFA deadline calculator works them out from the rep's DOFA.

Where are the rules unclear?

Two points. First, the 15-day deadline now has a current source: note 6 to Form FSP 5 says any change to the information on the form must be reported to the FSCA in writing within 15 days (FSCA FAIS Notice 29 of 2023, Form FSP 5, note 6). It is worded around changes, and does not set a separate deadline for the first submission when a rep is appointed, so confirm the timing with the FSCA or your compliance practitioner if it matters.

Second, no rule expressly requires a search of the debarment list. The duty follows from s14(9), which bars a debarred person from acting as a representative (FAIS Act s14). In practice a search is the only way to show you checked.

What goes in the competence register, and what else stays on file?

Keep the competence register updated regularly, with a record that you evaluated each rep's competence at regular intervals (BN 194, s13(3) and (5)). Training must be recorded in it within 15 days (s30(a)). Our guide on what belongs in a representative competence register goes through it entry by entry.

You also need the supervision file for a supervised rep (Notice 86, Condition 5), and records of each rep's continued compliance with the fit and proper rules, kept for at least 5 years (FAIS Act s18).

Sources

• FAIS Act 37 of 2002, s13 (representatives and FSP duties)
• FAIS Act 37 of 2002, s14 (debarment)
• FAIS Act 37 of 2002, s18 (records)
• Board Notice 194 of 2017 (2017 text, before the 2020 amendments)
• Board Notice 194 of 2017, s10, s13, s28 and s40 (consolidated text)
• FSCA FAIS Notice 86 of 2018, published by the FSCA on 3 December 2018
• Masthead: Supervising a representative, your FAQs answered (secondary)
• Board Notice 82 of 2003 (reappointment of debarred representatives)
• Financial Services Tribunal: Sabeka v First National Bank, FSP15/2024, 30 July 2024 (Board Notice 82 of 2003 applied)
• FSCA FAIS Notice 29 of 2023, Form FSP 5 (Representatives), note 6

Once the DOFA is recorded, the free DOFA deadline calculator shows the rep's RE5 deadline and how long is left.

PassPath is an independent study platform. The RE1 and RE5 are written through Moonstone; PassPath is not affiliated with Moonstone or the FSCA.