The long anticipated amended “Determination of Fit and Proper Requirements for Financial Services Providers, 2017” was finally printed in December last year.
Do not be fooled by the fact that the determination, sans the annexures, only consists of 40 pages. There is a lot to consider. We will cover this in more detail in the coming weeks.
Possibly the biggest changes are contained in Chapter 3 – Competence Requirements and Chapter 4 – Continuous Professional Development.
The amended determination comes into effect on 1 April 2018, with the following exceptions:
|Section in Notice||Effective Date|
|Section 13(3) – FSP recording obligations and (5) – establishment of a competence register.||1 May 2018|
|Section 29(1)(a) – Class of Business training||1 August 2018|
|Section 29(1)(b) – Product Specific training||1 May 2018|
|Section 29(2) – KI class of business training||1 August 2018|
|Section 31 – 34 – Continuous Professional development||1 June 2018|
|Section 38 – Automated advice requirements||1 May 2018|
|Sections 44(1) and (2): 45: 48 and 49 -Financial soundness, but only insofar as it relates to a juristic representative||1 March 2019|
Regulatory Exam Study Material
The amended requirements will have a substantial impact on the content of the study material for the REs.
We believe that the FSB will provide guidance on the deadline by when the amended requirements are to be incorporated in the regulatory exam questions.
Candidates who are currently preparing to write the exams should consider the possible implications of such changes, and endeavour to write the exams before it becomes effective.
Candidates are advised to carefully consider the above and to only write the REs once they are absolutely ready.
Click here for a copy of the Determination of Fit and Proper Requirements for Financial Services Providers, 2017