The Financial Sector Conduct Authority (FSCA) has recently published FSCA FAIS Notice 17 of 2020 on the exemption from and the extension of period to comply with the Fit and Proper Requirements. This Notice comes after the FSCA published FSCA Communication 9 of 2020 which dealt with various extensions to regulatory requirements in light of the impact of COVID-19 on the financial services industry. These two Notices should be read together. To read our article on FSCA Communication 9 of 2020 published in the previous issue of Mastering Compliance, click here.
Some of the provisions in FSCA FAIS Notice 17 of 2020 include:
CPD
2019/2020 CPD cycle (current cycle)
FSPs, key individuals and representatives, including supervised representatives where applicable, must obtain the minimum CPD hours for the 2019/2020 CPD Cycle by 31 August 2020, which gives FSPs, KIs and Reps an extra 3 months to complete the required CPD hours.
2020/2021 CPD cycle
Although the 2019/2020 CPD cycle deadline date has been extended by 3 months, the 2020/2021 CPD Cycle deadline dates remains unchanged as 31 May 2021. This means that the 2020/2021 CPD Cycle is effectively only 9 months and therefore, the required number of CPD hours for the 2020/2021 CPD cycle that will be applicable to an FSP, key individual, or representative (including a supervised representative where applicable) has also been reduced. In terms of FAIS Notice 17 of 2020, an FSP, KI or a Rep that is authorised, approved or appointed to render or manage or oversee the rendering of financial services in respect of:
– a single subclass of business within a single class of business will be required to complete a minimum of 4 and a half hours of CPD activities.
– more than one subclass of business within a single class of business will be required to complete a minimum of 9 hours of CPD activities.
– more than one class of business will be required to complete a minimum of 13 and a half hours of CPD activities.
Regulatory Examinations, Class of Business, and Qualifications
All Regulatory Examinations, Class of Business, and Qualifications deadlines applicable to supervised representatives which falls between 1 January 2020 and 30 November 2020 has been extended to a deadline of 15 December 2020. This extension gives relief not only to those representatives with deadlines falling into the lockdown period, or those impacted beyond the lockdown, but also to those representatives who did not meet their deadline even before the COVID-19 crisis hit South Africa.
Subsequent to publication of this article, the FSCA has withdrawn FSCA FAIS Notice 17 of 2020 and replaced it with FSCA FAIS Notice 22 of 2020 which changes the terms of the extension of deadline dates for supervised representatives. This ‘new’ Notice states that all RE Exams, COB and Qualification deadlines applicable to supervised reps which fall between 27 March 2020 and 30 November 2020 has been extended to a deadline of 15 December 2020. This means that this extension no longer applies to a supervised rep who had a deadline in the period 1 Jan 2020 to 26 Mar 2020. FSPs and supervised reps that are affected by this revised period should urgently consider what steps need to be taken to ensure compliance with FSCA FAIS Notice 22 of 2020. Please contact your Masthead Compliance Officer for assistance.
While these extensions and exemptions provide FSPs, KIs and Reps with some breathing space, we encourage those concerned to avoid putting things off for too long, to use their time wisely and to complete as much as they can online.
Masthead’s online learning activities provide individuals with an opportunity to grow, improve their knowledge and learn new skills. The online learning activities consist of online courses, RE Mock Exams, newsletters and Express CPD activities.
With our online learning activities, you have total flexibility – learn whenever you want, wherever you want.
To find out more or to register for our online learning activities, visit the Masthead Learning Centre.