Secondary

Applications for Exemption

The publication of Board Notice 116 of 2012 contains details of exemptions granted to 16 FSPs from having to write the Level 1 REs by 30 June 2012. The periods of grace allowed range from 31 July 2012 to 31 December 2013, with other dates in between. We have no idea on what grounds these various dates were determined.

Last week, we reported on the extension of the 30/6 deadline (to 15 July 2012) for applications for exemption from writing the Level 1 REs. We were informed that this only applies to those FSPs and reps identified in Board Notice 102 of 2012.

We have since learnt that it actually refers to anyone with a compelling reason why they could not write the level 1 RE in time. We understand that instances where a person was, for instance, hospitalised, and can produce documentary proof, will be considered favourably.

This news was conveyed in a press release on Friday 29 June, but this was only placed on their website this week, as far as we could ascertain. This is quite a concern, given the fact that the extension is only for two weeks, and was not conveyed by means of a circular.

The News Release ends thus:

The FSB has repeatedly communicated that those who fail to attempt the examinations at least once by the current deadline, face the possibility of not being able to conduct business any further, as per the FAIS Act. However, as a responsible regulator the FSB has allowed room for FSPs and their representatives to apply for an exemption by 30 June 2012. The Registrar will consider each individual application on its own merits and take a decision regarding each of the applications. FSPs that have not yet applied for the exemption are therefore urged to do so urgently. Those that have neither attempted to write, nor applied for the exemption have until the 15th of July 2012 to come forward and state their case to the registrar who will review each individual case and take a decision on the matter.

Such FSPs/key individuals/representatives should contact the FSB on the following email address: FAIS.Exemptions@fsb.co.za

The cost of such an application is R5 200.

We recently reported that a similar fee is payable by those who missed the deadline for applying for an exemption from having to submit audited financial statements.

A colleague remarked on the irony of it all, as the motivation for allowing the exemption is given as follows:

The Registrar is satisfied that the requirement for all FSPs to provide financial statements that are audited could cause undue hardship to some FSPs.

I suspect that paying R5 200 for this relief could be termed the same.

In all fairness, though: this allowance was published on 28 November last year, and qualifying FSPs had until the end of May this year to apply.

If you snoozed, you will lose R5 200, or you can continue to submit audited statements.

Nou ja, soos ons in Afrikaans sê: van uitstel kom afstel. Anders gestel: die Wet van Transvaal is die prys wat jy betaal.

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