Exemptions from making deadlines – The why, what and how

The FAIS Act and other legislation prescribe a number of requirements that individuals who provide financial advice must adhere to. Throughout your career you are reminded of these deadlines.

The successful completion of the regulatory exam and the annual deadline to adhere to CPD requirements, are only two of these requirements.

Failure to comply with fit and proper requirements within the set timelines may lead to debarment, an action that will prevent you from rendering further financial services and functioning as a representative.

However, in terms of section 44(4)(a) of the FAIS Act any person may apply to be exempted from any provision/s of the FAIS Act.

The FSCA website contains a fair number of FAIS Notices regarding individuals and others who were granted exemptions from complying with certain regulatory requirements. Some of the common examples include:

1. Fees Payable to Registrar
2. Qualifications deadline requirements
3. Level 1 Regulatory exam deadline extensions

Therefore, if you feel that you have a case in requesting an exemption from a legislative requirement, the following procedure is prescribed by the FSCA:

How to apply for exemption

1. In order to apply for exemption from any provision of the Financial Advisory and Intermediary Services Act, 2002, you must complete Form FSP 13 – download below.
2. The application must be accompanied by proof of payment of the prescribed fee that is payable to the Financial Sector Conduct Authority (“FSCA”). The fee currently amounts to R1751.00 when the application for exemption relates to either examination or qualification requirements.
3. You can also seek exemption from the requirement to pay the prescribed fee. You must apply for such exemption by including it on Form FSP 13 as referred to in paragraph 1 above.
4. The application for exemption must contain the following information:
   4.1  Your name, surname, ID number and FSP number (where applicable).
   4.2 Your contact details. Where you are a representative, your personal contact details must be provided.
   4.3 The period for which the exemption is required and the reasons for such period.
   4.4 A detailed explanation / motivation of why the exemption should be considered and, where applicable, evidence in support of the motivation must be provided. For example, if you are stating that you require an exemption based on medical grounds, then a letter from the relevant specialist or doctor must be submitted.
   4.5 If you apply for exemption from the competency requirements, it is recommended that you include in the explanation/motivation details of any previous attempts made to meet the competency requirements. If no attempts have been made, you must provide an explanation as to why no attempts have been made.
   4.6 A copy of your ID / passport must accompany the application.
   4.7  If you seek exemption from the prescribed fee and claim affordability as the reason, you must submit bank statements of all your bank accounts for the last 3 months as evidence that you cannot afford the fee.
   4.8 The application and all the supporting documents together with the proof of payment must be submitted simultaneously.
5. There are different bank accounts that may be used for the payment of the fees. Ayanda Mgagula (012 367 7155) or Kefilwe Mushi (012 428 8193) in the FSCA’s Finance Department can be contacted to obtain the correct banking details.
6. The application can be emailed to FAIS.exemptions@fsca.co.za.
7. It should be noted that the average turn-around time in respect of any application for exemption is 6 weeks, although the FSCA endeavours to finalise it as quickly as possible.

In our experience, the FSCA has always been more than fair in accommodating reasonable requests, so if you or your reps have a good case, do not refrain from making use of this opportunity.

Click here to download Form FSP 13