Practical implications of Licence Suspension

We obtained a copy of a “Notification of Suspension of Authorisation” sent to an FSP who failed to write the level 1 regulatory examination by 30 June 2012.

The FSP in question failed to write his RE 1 (KI) exam before the end of June 2012. Despite two unsuccessful attempts after this date, he was informed of the intention to suspend his licence in December, followed by the actual letter of notification on 14 March 2013.

The period of suspension is from 14 March to 14 May 2013. The notification also contains an additional clause which states that failure to meet the requirements by this date will lead to the withdrawal of his licence. Should he pass the exam in this time, he is required to submit a copy of his results to the FSB and request that the suspension be lifted.

There are several requirements which are to be adhered to by the affected FSP:

  1. He is prohibited to conclude any new business, with immediate effect.
  2. All affected clients AND product providers must be informed of the suspension, and the FSB copied in such notification.
  3. Any outstanding new business must be transferred to another authorised FSP, and the FSB must be advised accordingly.

Please note that we offer exams on a daily basis for those who still need to write. If you were unable to attend the preparation and exam techniques workshops run by the FSB, click here to order a copy of the DVD which should help you approach the exams in a more positive manner.

We have just received a media release from the FSB, containing more detailed information on suspensions. Please click here to download a copy.

The article below explains why the FSB may, on occasion, send a suspension notification to an FSP who may well have written the exams successfully.

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