FINANCIAL ADVISORY AND INTERMEDIARY SERVICES ACT 37 OF 2002 DETERMINATION OF FIT AND PROPER REQUIREMENTS FOR FINANCIAL SERVICES PROVIDERS, 2008

Transcription

1 FINANCIAL ADVISORY AND INTERMEDIARY SERVICES ACT 37 OF 2002 DETERMINATION OF FIT AND PROPER REQUIREMENTS FOR FINANCIAL SERVICES PROVIDERS, 2008 Published under Board Notice 106 in Government Gazette of 15 October 2008 I, DUBE PHINEAS TSHIDI, the Registrar of Financial Services Providers, after consultation with the Advisory Committee on Financial Services Providers, hereby under section 8(1) of the Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002), amend the Determination of Fit and Proper Requirements for Financial Services Providers as set out in the Schedule. (Signed) D P TSHIDI Registrar of Financial Services Providers SCHEDULE AMENDMENT OF THE DETERMINATION OF FIT AND PROPER REQUIREMENTS FOR FINANCIAL SERVICES PROVIDERS Definitions 1. In this Schedule, 'the Fit and Proper Determination Notice means the Determination of Fit and Proper Requirements for Financial Services Providers, 2008, published by Board Notice 106 of 2008 in Gazette No of 15 October Amendment of Part I of the Schedule to the Fit and Proper Determination Notice 2. Part I of the Schedule to the Fit and Proper Determination Notice is hereby amended- (a) by the insertion of the following definitions: CHE means the Council for Higher Education; QCTO means the Quality Council for Trades and Occupations. (b) by the replacement of the definition of qualification : qualification includes qualifications that are - (i) (ii) registered by SAQA, the CHE or the QCTO, which can be either an award, a certificate, a diploma or a degree at undergraduate or postgraduate level; or a qualification obtained prior to the promulgation of the South African Qualifications Act, 1995, or before the implementation of the National Qualifications Framework in 2001, that does not consist of unit standards registered by SAQA: Provided that- such qualification was obtained through a South African educational institution or training provider and recorded by the Human Sciences Research Council; and

2 (iii) (iv) (bb) the modules or subjects are clearly identified on the learner record provided by the educational institution or training provider; or an industry or professional programme offered through a professional body recognised by the Registrar or accredited training provider; or a fully completed foreign qualification similar to qualifications in (i) to (iii) above and has been evaluated against the qualifying criteria and is recognised by the Registrar; Provided further that all qualifications or programmes must be fully completed and meet the requirements of appropriateness, which means- (A) (B) that an appropriate award, certificate, diploma, skills programme or degree, refers to such qualifications obtained in the fields of commerce and/or commercial law which includes modules on financial accounting, financial markets, commercial law, insurance law, estate and trust law, economics, insurance, investments and similar subjects; or other particular fields of study which equip such person to render a financial service in a specialised class of financial product, registered by SAQA, the CHE or the QCTO and provided by a registered educational institution/ provider whether local or foreign. (c) by the insertion in of paragraph 10 in part III: (10) An FSP, who is a sole proprietor, a Key individual and a representative who have not held a regulated role in terms of the Act for a period of 5 years or longer, will be deemed to be a new applicant and will need to obtain the competence requirements relevant to the specific appointment at the point of application. (d) by the replacement of Table A in Part IV: TABLE A: CATEGORY I: EXPERIENCE REQUIREMENTS FOR AN FSP AND REPRESENTATIVE Column Two Column One: Subcategory Advice: Minimum Experience Column Three Services: Minimum Experience 1.1 Long-term Insurance subcategory A 6 months 2 months 1.2 Short-term Insurance Personal Lines 1 year 6 months Long-term Insurance subcategory B1 1 year 6 months 1.4 Long-term Insurance subcategory C 1 year 6 months 1.5 Retail Pension Benefits 1 year 6 months 1.6 Short-term Insurance Commercial Lines 1 year 6 months 1.7 Pension Fund Benefits 1 year 6 months 1.8 Securities and instruments: Shares 2 years 1 year 1.9 Securities and Instruments: Money market instruments 1.10 Securities and Instruments: Debentures and securitised debt 1.11 Securities and Instruments: Warrants, certificates and other instruments acknowledging debt 2 years 1 year 2 years 1 year 2 years 1 year

3 TABLE A: CATEGORY I: EXPERIENCE REQUIREMENTS FOR AN FSP AND REPRESENTATIVE Column One: Subcategory Column Two Advice: Minimum Experience Column Three Services: Minimum Experience 1.12 Securities and Instruments: Bonds 2 years 1 year 1.13 Securities and Instruments: Derivative 2 years 1 year instruments excluding warrants 1.14 Participatory Interests in one or more 1 year 1 year collective Investment schemes 1.15 Forex Investment Business 2 years 1 year 1.16 Health Service Benefits 2 years 2 years 1.17 Long-term Deposits 6 months 3 months 1.18 Short-term Deposits 6 months 3 months 1.19 Friendly Society Benefits 6 months 2 months 1.20 Long-term Insurance subcategory B2 1 year 6 months (c) by the replacement of Table B in Part IV: TABLE B: CATEGORY II EXPERIENCE REQUIREMENTS FOR FSP AND REPRESENTATIVE COLUMN ONE: SUBCATEGORY COLUMN TWO: MINIMUM EXPERIENCE 2.1. Long-term Insurance subcategory B1 2 years 2.2 Long-term Insurance subcategory C 2 years 2.3 Retail Pension Benefits 2 years 2.4 Pension Fund Benefits 2 years 2.5 Securities and Instruments: Shares 3 years 2.6 Securities and Instruments: Money market instruments 3 years 2.7 Securities and Instruments: Debentures and securitised 3 years debt 2.8 Securities and Instruments: Warrants, certificates and 3 years other instruments acknowledging debt 2.9 Securities and Instruments: Bonds 3 years 2.10 Securities and Instruments: Derivative instruments 3 years excluding warrants 2.11 Participatory interests in one or more collective 2 years investment scheme 2.12 Forex Investment Business 3 years 2.13 Long-term deposits 1 year 2.14 Short-term deposits 1 year 2.15 Long-term Insurance subcategory B2 2 years (d) by the replacement of Table C in part VI: TABLE C: CATEGORIES I and IV: REGULATORY EXAMINATIONS COLUMN ONE: SUBCATEGORY COLUMN TWO: FIRST LEVEL CATEGORY I COLUMN THREE: SECOND LEVEL

4 TABLE C: CATEGORIES I and IV: REGULATORY EXAMINATIONS COLUMN ONE: SUBCATEGORY COLUMN TWO: FIRST LEVEL 1.1 Long-term Insurance subcategory A: Applies to FSP (who is a sole proprietor) and a Key Individual only Applies COLUMN THREE: SECOND LEVEL Applies 1.2 Short-term Insurance Personal Lines Applies Applies 1.3. Long-term Insurance subcategory B1 Applies Applies 1.4 Long-term Insurance subcategory C Applies Applies 1.5 Retail Pension Benefits Applies Applies 1.6 Short-term Insurance Commercial Lines Applies Applies 1.7 Pension Fund Benefits Applies Applies 1.8 Securities and instruments: Shares Applies Applies 1.9 Securities and Instruments: Money market instruments Applies Applies 1.10 Securities and Instruments: Debentures and securitised Applies Applies debt 1.11 Securities and Instruments: Warrants, certificates and Applies Applies other instruments acknowledging debt 1.12 Securities and Instruments: Bonds Applies Applies 1.13 Securities and Instruments: Derivative instruments Applies Applies excluding warrants 1.14 Participatory Interests in one or more collective Applies Applies Investment schemes 1.15 Forex Investment Business Applies Applies 1.16 Health Service Benefits Applies Applies 1.17 Long-term Deposits Applies Applies 1.18 Short-term Deposits Applies Applies 1.19 Friendly Society Benefits Applies to FSP (who is a sole Applies Applies proprietor) and a Key Individual only 1.20 Long-term Insurance subcategory B2 Applies Applies Category IV IV Category IV: Assistance Business FSP Applies Applies (e) by the replacement of Part VII: PART VII: CONTINUOUS PROFESSIONAL DEVELOPMENT Subject to paragraph 3(2) of Part III, the Registrar may determine the requirements for continuous professional development in accordance with the following principles: (1) An FSP (who is a sole proprietor), a key individual and/or a representative, must meet the continuous professional development requirements, as determined by the Registrar that applies to the Categories and subcategories he or she is authorised, approved or appointed for: (a) Continuous professional development will require five (5) to twenty (20) CPD hours each year as provided for in Table D below; (b) the CPD process will start the year after the competence requirements (experience, qualification and regulatory examination) was met by the FSP who is a sole proprietor, key individual or representative, as the case may

5 be, and will not start later than on the completion of a six year period from date of appointment in the case of a representative; (c) (d) (e) (f) where an FSP (who is a sole proprietor), key individual or representative is authorised, approved or appointed to provide financial services for a specific Category and subcategory, and already complies with the qualifications and regulatory examinations requirements, and is required to meet the continuous professional development requirements, such requirements will not be affected should the licensing restrictions or appointment requirements be amended to include additional subcategories that may require additional qualification and/or regulatory examinations to be achieved; where an FSP (who is a sole proprietor), key individual or representative is authorised, approved or appointed to provide financial services in respect of multiple Categories and subcategories, the highest requirement in terms of CPD hours will apply; the FSP (who is a sole proprietor), key individual and representative, as the case may be, must record the outcomes of any continuous professional development activities with the Registrar s office, in the form and manner as determined by the Registrar from time to time. a representative is required to meet the requirements in column two of Table D as it would apply to the FSP in the Categories or subcategories concerned: Provided that a representative is not required to meet the requirements in respect of subcategory 1.1 Long-term Insurance Category A, 1.17 Long-term Deposits, 1.18 Short-term Deposits and 1.19 Friendly Society Benefits. (2) The Registrar will maintain a list of programmes that is suitable for purposes of CPD. Industry associations, statutory professional bodies, voluntary professional bodies, employers, Higher Education Institutions and training providers may apply to the Registrar, in the prescribed format, for recognition of their programmes for the purposes of CPD, which will, upon such approval, be added to the Registrar s reporting mechanism for recording purposes. (3) The Registrar may exempt any group of persons from meeting the prescribed CPD requirements, if such person(s) holds membership in a statutory or voluntary professional body that must comply with similar CPD requirements, provided that the professional body records its membership on the Registrar s reporting mechanism and satisfies the Registrar on an annual basis that CPD requirements are monitored and enforced as a condition of membership of the professional body.

6 TABLE D: CONTINUOUS PROFESSIONAL DEVELOPMENT REQUIREMENTS COLUMN 1: CATEGORY CATEGORY I 1.1 Long-term Insurance subcategory A (key individual and FSP who is a sole proprietor only) 1.2 Short-term Insurance Personal Lines Long-term Insurance Subcategory B Long-term Insurance subcategory C Retail Pension Benefits Short-term Insurance Commercial Lines Pension Fund Benefits Securities and Instruments: Shares Securities and Instruments: Money market instruments Securities and Instruments: Debentures and securitised debt Securities and Instruments: Warrants, certificates and other 20 instruments acknowledging debt 1.12 Securities and Instruments: Bonds Securities and Instruments: Derivative instruments excluding warrants Participatory Interests in one or more collective Investment schemes Forex Investment Business Health Service Benefits Long-term Deposits Short-term Deposits Friendly Society Benefits (key individual and FSP who is a sole 5 proprietor only) 1.20 Long-term Insurance Subcategory B2 10 OTHER CATEGORIES: Category II, IIA and III 20 Category IV 5 (f) by the replacement of Part X: PART X: TRANSITIONAL PROVISIONS COLUMN 2: CPD HOURS PER YEAR (1) Subject to the provisions of the Act and Parts I to IX above, the transitional requirements will apply to all FSPs, key individuals and representatives authorised, approved or appointed in relation to a specific Category or subcategory prior to and including 31 December 2009 and provides for the transitional arrangements until 31 December (2) For purposes of this Part- 5 (a) (b) foreign qualification recognised by the Registrar means an appropriate qualification recognised by the Registrar purposes of this Determination; foreign qualification evaluated by SAQA means an appropriate foreign qualification evaluated by SAQA as being equivalent to a South African qualification;

7 (c) qualification includes- (i) (ii) (iii) (iv) an appropriate qualification registered by SAQA or the CHE which can be either a certificate, diploma or degree at undergraduate or postgraduate level; an appropriate foreign qualification recognised by the Registrar or evaluated by SAQA; an appropriate skills programme registered by a registered training provider with a SETA ETQA which must be based on core or elective unit standards: Provided that a reference to a skills programme consisting of a minimum of can be interpreted to refer to one or more skills programmes, provided that the cumulative number of credits, and the level are at the same level or higher than is required; a fully completed appropriate qualification obtained prior to the promulgation of the South African Qualifications Act, 1995, or before the implementation of the National Qualifications Framework in 2001, that does not consist of unit standards registered by SAQA: Provided that- (bb) such qualification was obtained through a South African educational institution or training provider and recorded by the Human Sciences Research Council; and the modules or subjects are clearly identified on the learner record provided by the educational institution or training provider; (v) a partially completed appropriate qualification that does not consist of unit standards registered by SAQA: Provided that- (bb) (cc) (dd) (ee) such qualification is registered on the National Qualifications Framework: the level and credits assigned to the completed modules or completed subjects are clearly identified on the learner record provided by the educational institution; the completed subjects or completed modules meet the requirements regarding appropriate ; the level and credits of the completed modules or completed subjects are equivalent to the level and credits required for the skills programmes in respect of the subcategories of financial products in Column Two of Table E below in respect of which the person intends to render financial services; such qualification is recognised by the Registrar; and

8 (ff) such qualification must be completed by 31 December 2011; or (vi) an appropriate credit-bearing short course registered by an accredited institution of higher education in accordance with the prescriptions of the Council for Higher Education is acceptable: Provided that- (bb) the level and credits of such short course is clearly identified; and such course is recognised by the Registrar: Provided further that all qualifications or skills programmes must meet the requirements of appropriateness, which means- (A) (B) that an appropriate certificate, diploma, skills programme or degree, refers to such qualifications obtained in the fields of commerce and/or commercial law which includes modules on financial accounting, financial markets, commercial law, insurance law, estate and trust law, economics, insurance, investments and similar subjects; or other particular fields of study which equip such person to render a financial service in a specialised class of financial product, registered by SAQA and provided by a registered higher institution whether local or foreign. (3) The provisions of this Schedule apply to all FSPs (who are sole proprietors), key individuals and representatives of providers that have been authorised, approved or appointed before or on the date of coming into operation of this Schedule as follows: (a) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 30 September 2004 and 31 December 2007 must comply with: (i) the qualification requirements in column two of Table E, applicable to the Categories or subcategories they are authorised, approved or appointed for, by 31 December 2009; (ii) the first level of Regulatory Examinations requirements in column three of Table E, applicable to the Categories or subcategories they are authorised, approved or appointed for, by the date stated; (iii) the second level regulatory examinations requirements in column four of Table E, applicable to the Categories or subcategories they are authorised, approved or appointed for, by 31 December (b) All FSPs (who are sole proprietors) authorised during the period 30 September 2004 to 31 December 2007, that changed their licensing restrictions during this period to include additional Categories or subcategories must comply with the qualification requirements in column two of Table E by 31 December 2009, as applicable to the additional Categories or subcategories they are authorised for.

9 Column 1: Category Category 1 TABLE E: TRANSITIONAL PROVISIONS FOR CATEGORIES I, II, IIA III AND IV Column 2: Qualification Requirements 1.1 Long-term insurance subcategory A 1.2 Short-term insurance personal lines 1.3. Long-term insurance Subcategory B1 1.4 Long-term insurance subcategory C Representatives: ABET level 1 or the proven ability to read and write to the satisfaction of the provider. FSPs and key individuals: Recognized qualification on NQF level 2; or a recognized skills programme of 30 credits at NQF level 2 by 31 December 2011 or an appropriate qualification as recognised in the Determination Of Qualifying Criteria And Qualifications For Financial Services Providers. An appropriate NQF level 4 skills minimum of 30 credits; or an level 4 or an appropriate Financial Services Providers An appropriate NQF level 4 skills minimum of 30 credits; or an level 4 or an appropriate An appropriate NQF level 5 skills minimum of 60 credits; or an level 5 or an appropriate Column 3: First Level Regulatory Examination Not applicable Column 4: Second Level Regulatory Examination Not applicable 31/12/ /12/2013, integrated in the level one Regulatory examination as per the Determination of qualifying criteria and qualifications for financial services providers. 1.5 Retail pension An appropriate NQF level 5 skills

10 Column 1: Category benefits TABLE E: TRANSITIONAL PROVISIONS FOR CATEGORIES I, II, IIA III AND IV Column 2: Qualification Requirements 1.6 Short-term insurance commercial lines 1.7 Pension fund benefits 1.8 to 1.13 Securities and instruments 1.14 Participatory interests in one or more collective minimum of 60 credits; or an appropriate qualification at NQF level 5 or an appropriate An appropriate NQF level 4 skills minimum of 60 credits; or an level 4 or an appropriate An appropriate NQF level 5 skills minimum of 60 credits; or an level 5 or an appropriate An appropriate NQF level 6 skills minimum of 60 credits; or an appropriate qualification at NQF level 6, provided 3 years of experience is obtained; or an appropriate qualification as recognised in the Determination Of Qualifying Criteria And Qualifications For Financial Services Providers, or an appropriate qualification at NQF level 5, provided 2 years of experience is obtained; or an appropriate qualification at NQF level 6, provided 1 year of experience is obtained. An appropriate NQF level 5 skills minimum of 60 credits; or an Column 3: First Level Regulatory Examination Column 4: Second Level Regulatory Examination

11 Column 1: Category TABLE E: TRANSITIONAL PROVISIONS FOR CATEGORIES I, II, IIA III AND IV Column 2: Qualification Requirements investment schemes 1.15 Forex investment business 1.16 Health service benefits level 5 or an appropriate An appropriate NQF level 6 skills minimum of 60 credits; or an appropriate qualification at NQF level 5 or 6 or an appropriate qualification as recognised in the Determination Of Qualifying Criteria And Qualifications For Financial Services Providers An appropriate NQF level 5 skills minimum of 60 credits; or an appropriate certificate at NQF level 5 or an appropriate 1.17 Long-term deposits An appropriate NQF level 4 skills minimum of 30 credits; or an level 4 or an appropriate 1.18 Short-term deposits An appropriate NQF level 2 skills minimum of 30 credits; or an level 2 or an appropriate 1.19 Friendly society benefits Representatives: ABET level 1 or the proven ability to read, write and calculate to the satisfaction Column 3: First Level Regulatory Examination Column 4: Second Level Regulatory Examination 30/6/2012 Not applicable 30/6/2012 Not applicable Not applicable Not applicable

12 Column 1: Category TABLE E: TRANSITIONAL PROVISIONS FOR CATEGORIES I, II, IIA III AND IV Column 2: Qualification Requirements 1.20 Long-term Insurance Subcategory B2 OTHER CATEGORIES Category II Category IIA Category III Category IV of the provider. FSPs and key individuals: Recognized qualification on NQF level 2 or a recognized skills programme of 30 credits at level 2 by 31 December 2011 or an appropriate qualification as recognised in the Determination Of Qualifying Criteria And Qualifications For Financial Services Providers. An appropriate NQF level 4 skills minimum of 30 credits; or an level 4 or higher An appropriate qualification at NQF level 5 or 6 or an appropriate qualification as recognised in the Determination Of Qualifying Criteria And Qualifications For Financial Services Providers. An appropriate qualification at NQF level 6 consisting of a minimum of 360 credits (full business degree/ diploma) An appropriate NQF level 6 skills programme of 60 credits; or an level 5 or 6 or an appropriate A minimum of an appropriate NQF level 2 skills programme consisting of a minimum of 30 credits; or an appropriate qualification at NQF level 2 or an appropriate qualification as recognised in the Determination Of Qualifying Criteria And Qualifications For Financial Services Providers. Column 3: First Level Regulatory Examination Column 4: Second Level Regulatory Examination 30/6/2012 Not applicable 30/6/2012 Not applicable

13 (d) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed for Category I or IV during the period 1 January 2008 to 31 December 2009 are required to- (i) meet the following entry level qualification requirements at appointment: (bb) Matric (Grade 12); or an appropriate certificate at NQF level 4; or (cc) a skills programme referred to in column two of Table E, where the credit value is half of the requirement as set out in column two when 60 credits are required in respect of column two, and 12 credits when the column two requirement is a total of 30 credits: Provided that in respect of representatives in subcategory 1.1 Longterm Insurance Category A and/or 1.19 Friendly Society Benefits, the qualification requirement is either ABET level 1 or the proven ability to read, write and calculate to the satisfaction of the provider; (ii) comply with the qualification requirements: (bb) in column two of Table E by 31 December 2011, as applicable to the Categories or subcategories they are authorised, approved or appointed for; or complete a qualification, from the list of recognised qualifications, in accordance with Part V of this Determination, as applicable to the Categories or subcategories they are authorised, approved or appointed for, by 31 December 2013; (iii) meet the experience requirements as determined in paragraph 4(1) and (5) of this Determination. (e) All FSPs (who are sole proprietors) authorised during the period 30 September 2004 to 31 December 2008, that changed their licensing restrictions during the period 1 January 2008 to 31 December 2009 to include additional Categories or subcategories are, in relation to the additional Categories or subcategories they are authorised for, required to- (i) (ii) comply with the qualification requirements in column two of Table E by 31 December 2011, as applicable to the Categories and subcategories they are authorised for; or complete a qualification, from the list of recognised qualifications, in accordance with Part V of this Determination, as applicable to the Categories and subcategories they are authorised for, by 31 December 2013.

14 (f) All key individuals and representatives approved/appointed during the period 30 September 2004 to 31 December 2008, whose approval and/or appointment conditions were amended during the period 1 January 2008 to 31 December 2009 to include additional Categories or subcategories, are, in relation to the additional Categories or subcategories they are approved or appointed for, are required to- (i) meet the column two requirements of Table E by 31 December 2011, as applicable to the Categories or subcategories they are authorised, approved or appointed for; or (ii) complete a qualification, from the list of recognised qualifications, in accordance with Part V of this Determination, as applicable to the Categories or subcategories they are authorised, approved or appointed for, by 31 December (g) (h) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 1 January 2008 to 31 December 2009 must meet the: (i) requirements relating to the first level of Regulatory Examinations, as applicable to the Categories or subcategories they are authorised, approved or appointed for by the date stated in column three of Table E; and (ii) requirements relating to the second level of Regulatory Examinations, as they apply to the Categories or subcategories they are authorised, approved or appointed for, by 31 December 2013, unless exempted by the Registrar by notice in the Gazette. All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed for Category II, IIA or III during the period 1 January 2008 to 31 December 2009 are required to (i) meet the following entry level qualification requirements at appointment: A qualification that is recognised as appropriate in the Determination of Qualifying Criteria and Qualifications for Financial Services Providers; or (bb) an appropriate skills programme of 30 credits at NQF level 6; (ii) comply with the qualification requirements: (bb) in column two of Table E by 31 December 2011, as applicable to the Categories or subcategories they are authorised, approved or appointed for; or complete a qualification from the list of recognised qualifications, in accordance with Part V of this Determination, as applicable to the Categories or subcategories they are

15 authorised, approved or appointed for, by 31 December 2013; and (iii) meet the experience requirements: (bb) (cc) in paragraph 4(2) of this Determination in respect of Category II; in paragraph 4(3) of this Determination in respect of Category IIA; in paragraph 4(4)(a) of this Determination in respect of Category III. (4) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 1 January 2009 to 31 December 2009 must comply as follows: (a) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed for Category I or IV during the period 1 January 2009 to 31 December 2009 are required to- (i) meet the following entry level qualification requirements: (bb) (cc) Matric (Grade 12); or an appropriate certificate at NQF level 4; or a skills programme as indicated in column two of Table E of this Determination, where the credit value is half of the requirement as set out in column two when 60 credits are required in respect of column two, and 12 credits when the column two requirement is a total of 30 credits: Provided that in respect of representatives in subcategory 1.1 Longterm Insurance Category A and/or 1.19 Friendly Society Benefits, the qualification requirement is either ABET level 1 or the proven ability to read, write and calculate to the satisfaction of the provider; (ii) comply with the qualification requirements by completing a qualification: (bb) from the list of recognised qualifications, in accordance with Part V of this Determination, as applicable to the Category or subcategory they are authorised, approved or appointed for, by 31 December 2013; or in column two of Table E by 30 June 2012, as it applies to the Category or subcategory they are authorised, approved or appointed for; and

16 (iii) meet the experience requirements as determined in paragraph 4(1) and (5) of this Determination; (iv) meet the requirements relating to the first level of regulatory examinations, as applicable to the Categories or subcategories they are authorised, approved or appointed for, by the date stated in column three of Table E; (v) meet the requirements relating to the second level of regulatory examinations, applicable to the Categories or subcategories they are authorised, approved or appointed for, by 31 December (5) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 30 September 2004 to 31 December 2009 and who wrote the relevant first level regulatory examination before 30 June 2012, and did not successfully complete (pass), have an additional 3 months, up to and including 30 September 2012, in which to attempt a rewrite of the regulatory examination. (6) All FSPs must comply with the continuous professional development requirements, as described in Part VII of this Determination, from the year after the year of completion of the experience, qualifications and regulatory examinations as set out in paragraphs 2 to 4 above. (7) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 30 September 2004 to 31 December 2009 who have met the applicable experience requirements as provided for in the Determination of Fit and Proper Requirements for Financial Services Providers, 2006, are not required to render financial services under supervision while they complete their qualifications or obtain the relevant regulatory examinations. (8) All FSPs authorised on or before 31 December 2008 must meet the financial soundness requirements as required in paragraph 9(2), (3)(b) and (c), (4)(b) and (c), and (5)(b) and (c) within 24 months from such date, provided that the assets of the FSP (excluding goodwill and other intangible assets) must exceed the FSP s liabilities (excluding loans validly subordinated in favour of all other creditors). (9) All FSPs authorised for Long-term Insurance subcategories B1, B2 and Long-term Insurance subcategory C between 2004 and 31 December 2008, that render financial services in respect of retirement annuity policies and policies issued in respect of preservation funds, have until 31 October 2009 to amend the restrictions on their licences to include Retail Pension Benefits. (10) All FSPs that amend the restrictions on their licences to include Retail Pension Benefits in terms of requirements of paragraph 10 (9), are exempt from complying with the qualification requirement for Retail Pension Benefits, but are required to complete the second level regulatory examination in respect of Retail Pension Benefits by 31 December 2013.

17 (11) All Category I FSPs authorised for Long-term Insurance subcategory A between 2004 and 2008 that render financial services in respect of the administration of assistance policies, have until 31 October 2009 to amend the restrictions on their licences to include Category IV. (12) All FSPs authorised between 2004 and 1 April 2010 for Long-term Insurance subcategory B as defined in paragraph 1 (1) before the commencement of the Amendment of Fit and Proper Requirements and Accompanying Measures, 2010, have until 30 November 2010 to- (a) (b) (c) amend the restrictions on their licences to indicate whether they render financial services in respect of one or both of Long-term Insurance subcategories B1 and B2; indicate who the key individual is in respect of one or both of Long-term Insurance subcategories B1 and B2; amend the representative register to indicate whether a representative must be recorded for one or both of Long-term Insurance subcategories B1 and B2. (13) All FSPs and key individuals authorised or approved on or before 31 December 2008 must meet the operational ability requirement in paragraph 8(3) to (8) within 12 months from such date. (14) This Part X (Transitional Provisions) does not apply to any applicants, key individuals or representatives authorised, approved or appointed on or after 1 January 2010 in respect of the experience and qualification requirements. (15) All FSPs (who are sole proprietors), and key individuals authorised or approved during the period 1 January 2010 to 30 December (a) (b) have until 31 December 2012 to meet the requirements for the relevant first level regulatory examination and until 31 December 2014 to meet the requirements for the relevant second level regulatory examination as applicable to the Categories or subcategories they are authorised or approved; and must comply with the continuous professional development requirements, as described in Part VII of this Determination, from the year after the year of completion of the applicable requirements as set out in paragraphs (a) above. (16) All representatives who were appointed during the period 1 January 2010 to 30 December 2010 have until 31 December 2012 to meet the requirements for the relevant first level regulatory examination. The requirements regarding experience and qualifications apply as dealt with in part IV and V of this notice and the requirements for continuous professional development applies as dealt with in part VII of this schedule.

18 Short title and commencement This Determination is called the Amendment of the Determination of Fit and Proper Requirements for Financial Services Providers, 2012, and comes into operation on date of publication.