The latest figures showing suspensions and cancellations of FSP licences, as well as the reinstatement of authorisations, was published yesterday.
The overall tally was a gain for the industry, with 159 suspensions being lifted, and 19 licences reinstated. This report only listed 8 suspensions and 9 withdrawals of licences.
We were expecting the figures of regulatory exam defaulters to be included in this announcement, as the letters of “intention to suspend” was sent in December already.
Announcements concerning FSP numbers usually create quite a buzz in the industry. The last time that figures were published, it appeared that about 81% of the KIs and 90% of reps in the industry had written, meaning that roughly 19% and 10% of these failed to write at least once before the end of June last year. This, of course, made them ineligible for the final deadline of 31 March 2013, although it did not preclude them from writing and passing, thus being able to prevent the suspension of their licences.
It has since come to light that a number of FSPs have in fact written the REs successfully, but their details could not be uploaded or verified on the Regulator’s database. The single biggest cause was discrepancies between the identification details reflected on the FSB database, and what candidates used as ID at the exam venues. This is explained in the FSB’s Circular 2 of 2013.
It is possibly due to these discrepancies being rectified that we may have to wait another month before knowing the true facts.
The list of cancellations and reinstatements, which is published on the FSB website, does of course serve a very important purpose.
No product provider may do business with an unauthorised FSP, nor one whose licence is suspended. Some heavy fines have been imposed by the Enforcement Committee where this rule was not complied with.