Question: I am an FSP, and some of my reps failed to pass the RE 5. Am I allowed to remove all other licence categories, barring Categories 1.1 (Assistance policies) and 1.19 (Friendly Societies), for them to continue working?
Response: The first requirement is, of course, that your FSP, and you as key individual, should be licensed to market these products.
If the reps only advise on licence category 1.1 and 1.19 as indicated above, they may continue after March, provided you inform the Regulator of this by means of a change to the rep’s register. Reps in these two categories are, of course, exempt from having to write the REs.
They will not, however, be allowed to market any other products until such time as they pass the RE 5.
If you have category B1 and B2 in mind, you need to apply for an exemption from the level 1 REs in terms of the new bespoke exam which is being developed.
The FSB indicated that they currently receive many requests for exemption from complying with the 31 March 2013 deadline for completion of the regulatory exams. They did not indicate on what grounds they would consider such requests favourably. We suggest that those who want to follow this route should contact the Regulator directly.