The Appellant, who was the FSP, had its licence withdrawn by the Registrar of the Financial Services Board (FSB). The withdrawal of authorisation is a result of the FSP not complying with many regulatory requirements as set out in the FAIS Act, as well as the FIC Act.
The Registrar held that some of duties which the FSP did not fulfil was:
- Repeatedly failing to pay the prescribed levies and interest;
- Repeatedly failing to successfully complete the first level regulatory examination;
- Failing to maintain suitable professional indemnity cover;
- Failing to register with the FIC as an Accountable Institution.
The Appellant was repeatedly given warnings and extensions to comply but failed to do so. The Appellant also did not appear at the hearing, nor was there an application for postponement or a doctor’s note stating that the Appellant was ill. The Appeal Board therefore struck the matter from the roll because of the Appellant’s failure to appear for his appeal hearing.
It is advised that all FSPs take communication from the FSB seriously and comply with their timelines. If you are not able to submit certain documents before the due date, communicate with the FSB by applying for an extension within the prescribed guidelines. It is also advised that FSPs go through their Compliance Reports thoroughly to identify which non-compliance areas require remediation. Remedial actions must be addressed timeously and records should be kept which can evidence the FSP’s attempt at addressing the non-compliance area.
Speak to your Masthead Compliance Officer if you are unsure about your regulatory obligations.