The FSB published Board Notice 102 of 2012 last week providing an extension to certain licence category FSPs. Our compliance division provided the following synopsis:
This board notice provides for an exemption for certain categories of persons from having to complete the 1st level regulatory exams by 30 June 2012. These persons will have to complete a bespoke RE exam when such exams are made available.
In short this has an impact on:
- Underwriting managers
- Private Equity managers
- Representatives who are limited to advising on certain types of Long Term B1 and B2 products and certain short term personal lines products.
We are expecting an explanatory circular from the FSB. We have already received a number of enquiries concerning the Long Term B1 and B2 products, as well “…certain short term personal lines products”. Unfortunately, we are unable to make this distinction before we had time to study the promised explanatory note – you will have to approach the product provider for clarity on this.
Please note the requirement that any person wishing to make use of the exemption has to apply to the FSB before 30 June. The application forms are available on the FSB website.
A possible rationale for this decision is contained in a media release by the FSB in response to an article in FANews which questioned the RE statistics released in May.
The concern expressed by FA News regarding the pass rates of those candidates that must complete the REs by the June deadline is shared by the FSB. The overall picture provided by the statistics does not take into account measures that are in place to address specific sectors of the industry and their examination obligations that are currently (under) review.
Our assumption is that the nature of the products have played a role in this decision, but will rather wait for the explanatory document before we comment.