Below the response received from the FSB regarding the above.
Board Notice 106 of 2008 section 6(f) states that representatives have two years from date of first appointment to complete their level one RE exams. Board Notice 95 of 2009 6(e) on the amendment of supervision requirements in terms of RE exams, states that a representative under supervision has two years and up to 31 December of the second year from date of first appointment to complete their level one RE exams.
The above two sections of legislation caused a lot of confusion. An amendment will be published in due course to rectify this disparity. I have spoken to our Senior Legal Advisor who confirmed that representatives entering the financial services industry under supervision for the first time, will have two years and until 31 December of the second year to complete level one RE Exams.
In the case under discussion, the representative’s date of first appointment (DOFA) is February 2011. This person will have until the 31st of December 2013 to complete level one RE exams, provided that he remains under supervision. Even if he has completed the required supervision periods in terms of experience, as well as qualifications, he will be required to remain under supervision until he has completed the level one RE exams. If, however, the level one RE is not completed by 31 December 2013, he will no longer be Fit and Proper in terms of the RE requirements.
Please note that the above explanation only applies to new representatives operating under supervision and who entered the financial services industry after 01 January 2010. Therefore if a new and first time representative enters the financial services industry with the required qualifications and experience, but has not passed level one RE 5, they will be required to work under supervision. The time frames of supervision in respect of RE exams, as explained above, will apply.
Also sprach Zaratustra.