Subject to the provisions of this Schedule-
| (a) |
A person who is a Category I or IV provider and who does not receive or hold clients' financial products or funds on the date of commencement must, with effect from a date 12 months after that date, maintain in force in respect of clients— |
| (i) |
suitable guarantees of a minimum amount of R1 million; or |
| (ii) |
suitable professional indemnity cover of a minimum amount of R1 million. |
| (b) |
A person who is a Category I or IV provider and who receives or holds clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date 12 months after that date, maintain in force in respect of clients- |
| (i) |
suitable guarantees of a minimum amount of R1 million; or |
| (ii) |
suitable professional indemnity and fidelity insurance cover of a minimum amount of R1 million. |
| (c) |
The provisions of paragraphs (a) and (b) apply to any person who after the commencement date becomes a Category l or IV provider. |
| (d) |
A person who is a Category II provider and who does not receive or hold clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients— |
| (i) |
suitable guarantees of a minimum amount of R1 million; or |
| (ii) |
suitable professional indemnity cover of a minimum of R1 million. |
| (e) |
A person who is a Category II provider and who receives or holds clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients— |
| (i) |
suitable guarantees of a minimum amount of R5 million; or |
| (ii) |
suitable professional indemnity and fidelity insurance cover of a minimum amount of R5 million, respectively. |
| (f) |
A person who is a Category IIA provider and who does not receive or hold clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients— |
| (i) |
suitable guarantees of a minimum amount of R5 million; or |
| (ii) |
suitable professional indemnity cover of a minimum amount of R5 million. |
| (g) |
A person who is a Category IIA provider and who receives or holds clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients— |
| (i) |
suitable guarantees of a minimum amount of R5 million, or |
| (ii) |
suitable professional indemnity and fidelity insurance cover of a minimum amount of R5 million, respectively. |
| (h) |
A person who is a Category III provider and who receives or holds clients' financial products or funds of or on behalf of a client on the date of commencement must, with effect from a date six months after that date, maintain in force in respect of clients— |
| (i) |
suitable guarantees of a minimum amount of R5 million; or |
| (ii) |
professional indemnity and fidelity insurance cover of a minimum amount of R5 million, respectively. |
| (i) |
The provisions of paragraphs (d), (e), (f), (g) and (h) apply to any person who after the commencement date becomes a Category II, IIA or III provider. |
Tobacco Products Control Act, 1993
