Secondary

Explanatory Note on Board Notice 65 of 2013

We received the document below in the form of a media release on 24 April 2013. It appears that a substantial number of people applied for an extension of the final date to write the regulatory examinations (REs). Many of these applications have not yet been processed.

The relevant Board Notice makes provision for such applicants to apply for permission to continue working until such time as their applications for extension have been granted or refused.

This dispensation must not be seen as an extension of the final date for passing the applicable REs, although it does afford them the opportunity to write again while they await the outcome of their requests.

Explanatory note on the exemption granted to applicants for exemption until finalisation of their applications for exemptions
The Financial Services Board (FSB) has set 30 April 2013 as the date by which financial services providers (FSPs), key individuals and representatives who have not successfully completed the relevant Level 1 regulatory examination by 31 March 2013, may apply to continue rendering financial services until their exemption applications are processed, and the Registrar has either granted or refused the applications (“the Dispensation”).

It is important to note that the Dispensation referred to above will only apply to those persons who have:
(a) Written the relevant regulatory examination at least once before 30 June 2012;
(b) Submitted, on or before 30 April 2013, to the Registrar an application for exemption; and
(c) Paid the prescribed fee or have applied for exemption from having to pay the prescribed fee.

Therefore, the Dispensation would only apply to a person who complies with ALL the requirements detailed in paragraphs (a) to (c) above.

The Dispensation is called the ‘Exemption from Level 1 Regulatory Examination until finalisation of Application for Exemption, 2013’, and it has been published by Board Notice 65 of 2013 in Government Gazette No. 36399 of 23 April 2013. The detailed notice is available on the FSB website, www.fsb.co.za.

The Registrar regarded it as necessary to grant the Dispensation in view of the fact that a multitude of exemption applications have been received, some of which remain unprocessed at this stage, which, in the absence of the Dispensation would mean that a large number of FSPs, key individuals and representatives would be regarded as not being fit and proper and, therefore, not be able to continue rendering financial services, irrespective of whether or not they have submitted an application requesting an extension of the examination deadline.

The Dispensation is further only valid pending the outcome of an applicant’s exemption application. In other words, the Dispensation expires when the applicant’s exemption application is granted or refused by the Registrar.

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