Secondary

Regulatory Exams not passed – What to do

This serves as a reminder of steps to be followed if a person has not successfully completed a regulatory exam by the cut-off date.

You must keep in mind that the date of first appointment (DOFA) is of utmost importance when determining the two year period in which these regulatory exams must be completed.
The two year period ends in December of each calendar year:

  • DOFA: 1 February 2011
  • Completion date: 31 December 2013
  • DOFA: 1 June 2011
  • Completion date: 31 December 2013
  • DOFA: 1 August 2012
  • Completion date: 31 December 2014

The information below is in respect of those representatives, key individuals and financial services providers (who are sole proprietors) who had to complete the relevant regulatory exams by 31 March 2013.

The information may be affected if you have not received results yet or applied for an exemption but did not receive a reply from the registrar yet. We suggest that you also consult with your compliance officer if you have one.

Representative

  • The provider or key individual must terminate the mandate/contract of employment of
    the representative and the name of the representative must be removed from the
    register of representatives.
  • The provider or key individual must inform the registrar in writing within 15 days of
    the event by sending an e-mail to faispfc@fsb.co.za. Mention that the removal is due
    to the representative not yet completing the relevant exam successfully.
  • Keep record of yor correspondence.

It will therefore not be necessary to go through a process of debarment in these cases. An ordinary profile change will suffice. A debarment places an additional administrative burden on both the provider and the FAIS department to ensure that all due processes are followed.

A key individual or provider who passed the key individual exam but failed to pass the representative exam must inform the registrar accordingly and may not give advice or render intermediary services until the relevant exam has been completed successfully.

Providers must in this case also comply with the provisions of section 20(c) of the General Code of Conduct.

Key individual

  • The key individual or provider of the key individual must inform the registrar in writing
    within 15 days of the event by sending an e-mail to faispfc@fsb.co.za. Mention must
    be made that the key individual failed to complete the relevant exam successfully by
    due date.
  • The key individual may not act as a key individual until such time that the relevant
    exam has been completed successfully. After successful completion an application
    for appointment as a key individual can be submitted to the registrar.
  • The registrar will on notification probably suspend the authorisation of the key
    individual for a period and will then withdraw the authorisation if the key individual still
    did not pass the exam within the period of suspension.
  • The key individual register must be amended accordingly.
  • If the key individual passed the representative exam he/she may continue operating
    as a representative in his/her own brokerage if there is another key individual who
    can continue the management and overseeing functions. If not, the brokerage will
    basically become dormant as the key individual (and other representatives under the
    license) will have to cease giving advice and/or rendering intermediary services.

The provisions of section 20 of the General Code of Conduct will also apply in this case.

Failure to inform the registrar may lead to the registrar questioning the integrity or honesty of the key individual.

Financial services provider who is a sole proprietor

  • A sole proprietor (licensed in own name) must inform the registrar in writing within 15
    days of the event by sending an e-mail to faispfc@fsb.co.za. Mention must be made
    that the provider did not pass the key individual exam by due date.
  • The registrar will on notification probably suspend the authorisation of the provider for
    a period and will then withdraw the authorisation if the provider still did not pass the
    exam within the period of suspension.
  • In this case the brokerage will basically cease to exist as the provider (and other
    representatives under the license) will have to cease giving advice and/or rendering
    intermediary services.

The provisions of section 20 of the General Code of Conduct must be adhered to.

Failure to inform the registrar may lead to the registrar questioning the integrity or honesty of the provider.

FAIS enforcement measures

The above steps should be followed in order to comply with legislation.

Please remember that a key individual is authorised (appointed) by the registrar and a FSP (licensed) is authorised by the registrar and only the registrar may debar a key individual in terms of section 14A of the FAIS Act or suspend or withdraw a license in terms of section 9 of the FAIS Act. It is our interpretation that until such time that the registrar has acted in terms of either section 9 or 14A of the FAIS Act the authorisation granted will stand.

It is our understanding (not officially confirmed by the FSB) that the following processes are probably underway as far as enforcement of legislation is concerned:

  • Examination bodies are providing the FSB with the examination results;
  • The FSB will check the results against their own data base to ensure that they have
    all the correct information of individuals who took the exams;
  • Only then will they send letters to all affected FSPs to seek confirmation whether the
    exam information on sole providers, key individuals and representatives is correct;
  • Further steps may then include –
    – letters of caution to providers who failed to remove representatives who had not yet passed from registers;
    – letters of caution to providers who failed to inform the registrar of noncompliant key individuals or sole proprietors;
    – letters spelling out the intention to suspend or withdraw authorisation of a key individual or sole proprietor;
    – the actual suspension or withdrawal of authorisations.

As stated, the above steps are an indication of the enforcement process that may probably be followed by the FSB and which may begin by the end of April 2013. We trust that the FSB will soon formally inform industry of what is to follow now that 31 March 2013 has gone.

We urge members to continue registering for the exams. From the outset our credo has been that failure is not an option.

Members are once again invited to contact me should they need assistance in preparing for the exams or if they need suggestions on structuring their brokerages where someone still has to pass an exam.

 

REGULATORIESE EKSAMENS NIE GESLAAG – WAT OM TE DOEN
Hierdie dien as ‘n herinneraar van die stappe wat gevolg moet word indien ‘n persoon nie die regulatoriese eksamens suksesvol voltooi het teen die keerdatum nie.

U moet in gedagte hou dat die datum van eerste aanstelling (DVEA) van uiterste belang is wanneer die twee jaar periode bepaal word waarteen hierdie regulatoriese eksamens voltooi moet wees. Die twee jaar periode eindig in Desember van elke kalender jaar:

  • DVEA: 1 Februarie 2011
  • Voltooiing datum: 31 Desember 2013
  • DVEA: 1 Junie 2011
  • Voltooiing datum: 31 Desember 2013
  • DVEA: 1 Augustus 2012
  • Voltooiing datum: 31 Desember 2014

Die inligting hieronder is ten opsigte van daardie verteenwoordigers, sleutelpersone en finansiëlediensteverskaffers (wat alleeneienaars is) wat die relevante regulatoriese eksamens teen 31 Maart 2013 moes voltooi het.

Die inligting mag geaffekteer word indien u nog nie uitslae ontvang het nie of aansoek gerig het vir ‘n vrystelling maar nog nie ‘n antwoord van die registrateur ontvang het nie. Ons stel voor dat u ook met u voldoeningsbeampte konsulteer indien u een het.

Verteenwoordiger

  • Die verskaffer of sleutelpersoon moet die mandaat/diensooreenkoms van die
    verteenwoordiger beëindig en die naam van die verteenwoordiger verwyder van die
    register van verteenwoordigers.
  • Die verskaffer of sleutelpersoon moet die registrateur binne 15 dae van die
    gebeurtenis skriftelik in kennis stel deur ‘n e-pos te stuur aan faispfc@fsb.co.za. Meld dat die verwydering te wyte is daaraan dat die verteenwoordiger nog nie die relevante eksamen suksesvol voltooi het nie.
  • Hou rekord van u korrespondensie.

Dit sal dus nie nodig wees om deur ‘n proses van beletting te gaan in hierdie gevalle nie. In baie gevalle mag dit ook wees dat die finale uitslae van die verteenwoordiger nog nie bekend is nie. ‘n Gewone profielverandering sal dus in orde wees. ‘n Beletting plaas ‘n addisionele administratiewe las op beide die verskaffer en die FATD afdeling om te verseker dat alle toepaslike prosesse gevolg is.

‘n Sleutelpersoon of verskaffer wat die sleutelpersoon eksamen geslaag het maar die verteenwoordiger eksamen gedruip het moet die registrateur dienooreenkomstig in kennis stel en mag nie advies gee of tussengangerdienste lewer totdat die relevante eksamen suksesvol voltooi is nie.

Verskaffers moet in hierdie geval ook voldoen aan die voorskrifte van artikel 20(c) van die Algemene Gedragskode.

Sleutelpersoon

  • Die sleutelpersoon of verskaffer van die sleutelpersoon moet die registrateur binne15 dae van die gebeurtenis skriftelik in kennis stel deur ‘n e-pos te stuur na faispfc@fsb.co.za. Vermelding moet gemaak word dat die sleutelpersoon nie geslaag het om die relevante eksamen teen die keerdatum suksesvol te voltooi nie.
  • Die sleutelpersoon mag nie as sleutelpersoon optree totdat die relevante eksamen suksesvol voltooi is nie. Na suksesvolle voltooiing kan ‘n aansoek om aanstelling as sleutelpersoon aan die registrateur gerig word.
  • Die registrateur sal ná die kennisgewing moontlik die magtiging van die sleutelpersoon vir ‘n periode opskort en die magtiging dan terugtrek indien die sleutelpersoon steeds nie die eksamen geslaag het tydens die periode van opskorting nie.
  • Die register van sleutelpersone moet dienooreenkomstig gewysig word.
  • Indien die sleutelpersoon die verteenwoordiger eksamen geslaag het mag hy/sy voortgaan om as verteenwoordiger in sy/haar eie makelary te handel indien daar ‘n ander sleutelpersoon is wat kan voortgaan met die bestuur en oorsig funksies. Indien nie, sal die makelary basies dormant raak omdat die sleutelpersoon (en ander verteenwoordigers onder die lisensie) sal moet ophou om advies te gee en tussengangersdienste te lewe.

Die bepalings van artikel 20 van die Algemene Gedragskode sal van toepassing wees.

Versuim om die registrateur in kennis te stel mag daartoe lei dat die registrateur die integriteit of eerlikheid van die sleutelpersoon bevraagteken.

Finansiëlediensteverskaffer wat ‘n alleeneienaar is

  • ‘n Alleeneienaar (in eie naam gelisensieer) moet die registrateur binne 15 dae vanaf die gebeurtenis skriftelik in kennis stel deur ‘n e-pos te stuur na faispfc@fsb.co.za. Vermelding moet gemaak word dat die verskaffer nie die sleutelpersoon eksamen teen die keerdatum geslaag het nie.
  • Die registrateur sal ná die kennisgewing moontlik die magtiging van die verskaffer vir ‘n periode opskort en die magtiging dan terugtrek indien die verskaffer steeds nie die eksamen geslaag het tydens die periode van opskorting nie.
  • In hierdie geval sal die makelary basies ophou bestaan omdat die verskaffer (en ander verteenwoordigers onder die lisensie) sal moet ophou advies gee en/of tussengangersdienste lewer.

Die bepalings van artikel 20 van die Algemene Gedragskode moet nagekom word.

Versuim om die registrateur in kennis te stel mag daartoe lei dat die registrateur die integriteit of eerlikheid van die verskaffer bevraagteken.

FATD afdwinging maatreëls

Bogenoemde stappe moet nagevolg word ten einde te voldoen aan wetgewing.

Onthou asseblief dat ‘n sleutelpersoon deur die registrateur gemagtig (aangestel) word en ‘n FDV (lisensie) deur die registrateur gemagtig word en slegs die registrateur mag ‘n sleutelpersoon belet in terme van artikel 14A van die Wet op FATD en ‘n lisensie opskort of terugtrek in terme van artikel 9 van die Wet op FATD. Dit is ons interpretasie dat tot tyd en wyl die registrateur in terme van óf artikel 9 óf artikel 14A van die Wet op FATD opgetree het die toegestaande magtiging bly staan.

Dit is ons begrip (nie amptelik deur die RFD bevestig nie) dat die volgende prosesse moontlik onderweg is wat afdwinging van wetgewing betref:

  • Eksaminering liggame verskaf die eksamenuitslae aan die RFD;
  • Die RFD sal die uitslae nagaan aan die hand van hulle eie databasis om te verseker
    dat hulle al die korrekte inligting het van individue wat die eksamens afgelê het;
  • Slegs dan sal hulle briewe stuur aan alle geaffekteerde FDV’s om bevestiging te verkry dat die eksamen inligting oor alleeneienaars, sleutelpersone en
    verteenwoordigers korrek is;
  • Verdere stappe mag dan insluit –

– briewe van aanmaning aan verskaffers wat versuim het om verteenwoordigers wat nog nie geslaag het nie van registers te verwyder;
– briewe van aanmaning aan verskaffers wat versuim het om die registrateur in te lig van sleutelpersone of alleeneienaars wat nie voldoen nie;
– briewe wat die intensie uitspel om magtiging van ‘n sleutelpersoon of alleeneienaar op te skort of terug te trek;
– die daadwerklike opskorting of terugtrekking van magtigings.

Soos gestel, is bogenoemde stappe ‘n aanduiding van die afdwinging proses wat moontlik deur die RFD gevolg mag word en teen einde van April 2013 kan begin. Ons vertrou dat die RFD die industrie binnekort formeel sal inlig wat gaan volg nou dat 31 Maart 2013 verby is.

Ons moedig lede aan om voort te gaan om vir die eksamens te registreer. Vanuit die staanspoor was ons standpunt dat mislukking geen opsie is nie.

Lede word weer eens uitgenooi om my te kontak indien hulle hulp nodig het met voorbereiding vir die eksamens of indien hulle voorstelle nodig het oor strukturering van hulle makelarye waar iemand nog ‘n eksamen moet slaag.

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