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Transitional provisions under New Fit and Proper Determination

Whilst the 2017 Determination of Fit and Proper requirements rings in a new era of onerous obligations, it also provides a substantial amount of relief for the “oud-stryders” in terms of a number of exemptions.

It is important to note that the interim arrangements often refer to the “commencement date” of the 2017 Determination, which is 1 April 2018.

Qualifications

The qualifications obtained by a FSP, key individual or a representative —

  1. relating to a particular financial product and particular financial service in relation to a specific category of FSP in respect of which the FSP, key individual or representative was authorised, approved or appointed prior to 1 January 2010; and
  2. that complied with the relevant requirements set out in section 10 of the 2008 Determination of Fit and Proper Requirements,

is deemed to meet the minimum qualification requirements but only insofar it relates to that particular financial product and particular financial service in respect of which it was so authorised, approved or appointed.

The qualifications recognised by the Registrar and published on the List of Recognised Qualifications is deemed to be recognised for the particular financial product and particular financial service for which the qualification was recognised.

Experience

The experience gained by a FSP or a representative, excluding a representative working under supervision, who was authorised or appointed for a particular financial product and particular financial service in relation to a specific category of FSP prior to the commencement of the 2017 Determination is deemed to meet the minimum experience requirements for that particular financial product and particular financial service.

The experience gained by a key individual approved prior to the commencement of the 2017 Determination to manage or oversee the rendering of a particular financial service in respect of a particular financial product in relation to a specific category of FSP is deemed to meet the minimum experience requirements.

Product specific training

A FSP or representative, excluding representatives working under supervision, authorised or appointed prior to the commencement of the 2017 Determination is deemed to have completed the product specific training for which they were authorised or appointed.

This provision is limited to the particular financial products for which the FSP or representatives was authorised or appointed and in respect of which financial services were rendered prior to 1 April 2018, and does not apply to the requirement to complete product specific training on amendments to particular financial products where those amendments occurred after the commencement of this Notice.

A representative working under supervision at commencement of the 2017 Determination has three months from 1 May 2018 to comply with the product specific training requirements.

A person authorised or appointed after commencement of the 2017 Determination, but prior to 1 May 2018, also has three months from this date to comply with the product specific training requirements.

Class of business training

Similarly, a FSP, key individual, other than a key individual of a Category I FSP, or representative authorised, approved or appointed prior to 1 April 2018 is deemed to have completed the class of business training in respect of the financial products for which they were so authorised, approved or appointed.

A key individual of a Category I FSP, approved prior to 1 April 2018, is deemed to have completed the class of business training in respect of the financial products for which the key individual was approved to manage or oversee or, in the case of a Category I FSP, in respect of which the key individual was approved, was authorised, during any period prior to the commencement of this Notice.

Such a key individual must, within six months after commencement of the 2017 Determination, inform the Registrar of the classes of business it currently manages and oversees in respect of all FSPs for which it is approved and submit the information in the manner and format prescribed by the Registrar.

A representative working under supervision on 1 April 2018 must complete Class of Business training prior to 1 August 2019 to comply with the class of business training requirements for the financial products in respect of which they are working under supervision.

The flipside of the coin for those who enjoy an exemption from the above requirements is that the long delayed Continuous Professional Development kicks in from 1 June 2018.

For a proper understanding of the above it is essential that you read the full text of Chapter 7 of the 2017 Determination of Fit and Proper Requirements.

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