Readers may recall that certain categories of FSPs were allowed to apply for exemption from the obligation to submit audited financial statements. The deadline for such applications was 31 May 2012.
Bronwen Allan, a Moonstone Compliance Officer, submitted the following enquiry:
If an FSP is not sure whether they want to be audited in future, but are currently being audited, how will the FSB apply the exemption request? If they did not apply before 31 May 2012, can they apply in future?
The exemption concerned the compulsory submission of financial statements to the FSB. In view of the cost involved, the FSB decided to grant an exemption to certain categories of licence holders. There was a window period in which they could apply for this relief, but the deadline was 31 May 2012.
The FSP does, of course, retain the right to have the business audited externally without necessarily having to submit those to the FSB. It merely removes the onus of trying to get your statements audited within four months after the end of your financial year.
We submitted Bronwen’s question to the FSB, who responded as follows:
If the FSP did not apply before the deadline, they can still do so. The transitional stage was introduced to allow FSPs to apply without having to pay the prescribed fee. If they do apply now, the fee is as follows:
- R4 550 if the application forms part of a new licence application
- R5 200 if the FSP is already approved.
If you do qualify, but neglected to apply before 31 May, you are still required to submit audited financial statements as and when required.
This matter was fully covered in our newsletters before the due date. To see the actual application form, which also provides a guide as to who qualifies, please click here.