Non-compliant from Cullinan had an interesting question regarding compliance after their F&I resigned.

She writes

Dear SuperSpark,

Why am I, as the Juristic Representative (Dealership), in non-compliance if I continue rendering financial services to my customers after my F&I has left my employ?

SuperSpark replies:

Dear Non-compliant,

The Juristic Representative employs the services of a qualified natural person to provide finance and insurance-related services on behalf of the Juristic Representative.

Financial services can only be rendered by a natural person and not by a legal entity.
The Natural Representative will need to be appropriately qualified and authorised to provide any of such services as requested. (Remember, by signing our mandatory agreement, you are only allowed to render intermediary services.)

The FSP appoints the Representative as a mandatory of the FSP for the duration of the agreement subject to the terms and conditions contained therein. The Natural Representative is then authorised and mandated to render financial services on behalf of the FSP and the Juristic Representative according to the FAIS Act.

By signing the mandatory agreement, the Juristic Representative acknowledges the fact that the Natural Representative is authorised by the FSP and the Juristic Representative also undertakes to inform the FSP should any changes occur at the dealership.

Should you fail to inform the FSP of such changes, and you keep on rendering such services, it will mean that you are in contravention of the FAIS Act and in breach of your mandatory agreement and as owner you will personally carry the risk.

The mandatory agreement also states that the agreement between the FSP, Juristic Representative and Natural Representative will be terminated with immediate effect in case of the Natural Representative resigning from the dealership, but please remember that we do have alternatives that we can offer you such as Remote F&I Services to assist you in carrying on doing business.

Hope this answers your question, dear Non-compliant...

Gotta fly,

Best until next time

SuperSpark