The March edition of the Bowman Gilfillan Financial Services Newsflash contains an article entitled Extension of Certain Exemptions Granted under the Financial Advisory and Intermediary Services Act, 2002 (FAIS). We reprint the article below:
The Financial Services Board (FSB) has granted and published an extension to the Exemption of Banks in Respect of Certain Clients, 2004, as well as to each of the similar exemptions granted to specific individual entities (Exempted Entities) rendering non-discretionary financial services to certain institutional clients (collectively, the Exemptions). The Exemptions were initially set to expire on 1 March 2013 and have now been extended to 1 March 2014.
The FSB indicated its intention that the Exemptions are effectively to be replaced by a new category of financial services provider (FSP) licence under FAIS, namely the “Category V” FSP licence, which category is to apply to those FSPs providing financial services to so-called “professional clients”. Banks or Exempted Entities presently operating under the Exemptions, therefore, will be required to make application for a Category V FSP licence under FAIS in order to lawfully continue servicing the relevant clients. Owing to the fact that the Category V FSP licence has not yet been formally implemented by the FSB, the extension of the Exemptions became a necessary interim measure.
Details of the bodies exempted appear in Board Notice 27 of 2013.
Michael Stoker from Insurance Gateway shared the above article with us.