The FSB has published FAIS Notice 110 of 2017 which exempts Category I Financial Services Providers (FSPs) that are only licensed for Long-term Insurance subcategory A and/or Friendly Society Benefits, from paragraphs 3(a) to (c) of the Professional Indemnity and Fidelity Insurance Cover requirements.
Category I FSPs that qualify for this exemption will therefore not be required to maintain in force suitable guarantees, professional indemnity or fidelity insurance cover irrespective of whether the FSP receives or holds clients’ financial products or funds.
The exemption is valid for a further period of 3 years and, unless extended, will expire on 21 August 2020.
Click here to read FAIS Notice 110 of 2017