Secondary

Action against RE Defaulters

FAIS Circular 2 of 2013 contains details of the action to be taken against those who failed to comply with the requirement to write the regulatory exams by the end of June last year.

Regulatory action commenced during December 2012. Letters of intention to suspend were issued to sole proprietors that, according to the FSB records, are in breach of the level 1 regulatory examination requirements. This process is now continuing for the remainder of FSPs that are in breach of these requirements.

A number of FSPs were very indignant when they received warnings from the FSB that it intends suspending their licences. They had the proof that they had written and passed, so what was this all about?

Regulatory action may be taken (in error) against FSPs that did not update and maintain their basic information records with the FSB (such as ID numbers and passport numbers) because, based on this outdated information, it may appear that the FSPs do not meet the regulatory examination requirements. This creates unnecessary frustration for all parties concerned. As a result, unnecessary time and resources are used to investigate and eventually correct the FSP’s basic information in order for the examination records to link up correctly to the FSP profile.

Therefore, all FSPs are urged to take immediate action to ensure that all their FSB records are updated and correct. This would prevent further frustration and confusion caused by inaccurate records.

In essence, the problem stems from inaccurate ID or passport numbers on the FSB website, or people using different means of identification than what is reflected on the regulator’s records when going to write the REs.

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