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Financial Advisory and Intermediary Services Act, 2002 (Act No. 37 of 2002)

Determination of Fit and Proper Requirements for Financial Services Providers, 2008

Part X Transitional Provisions

 

 

10.

 

1) Subject to the provisions of the Act and Parts I to IX above, the transitional requirements will be applicable to all FSPs, key individuals and representatives that was authorised, approved or appointed in relation to a specific Category or subcategory on 31 December 2009 and provides for the transitional arrangements until 31 December 2014 as applicable.

 

2) For purposes of this Part-
a) "foreign qualification recognised by the Registrar" means an appropriate qualification recognised by notice in the Gazette for purposes of this Determination by the Registrar, after consultation with the Advisory Committee;
b) "foreign qualification evaluated by SAQA" means an appropriate qualification recommended by SAQA as being equivalent to a South African qualification;
c) "qualification" includes-
i) an appropriate qualification registered by SAQA which can be either a certificate, diploma or degree at undergraduate or postgraduate level;
ii) an appropriate foreign qualification recognised by the Registrar or evaluated by SAQA;
iii) 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;
iv) 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-
aa) such qualification was obtained through a South African educational institution or training provider and recorded by the Human Sciences Research Council; and
bb) 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-
aa) such qualification is registered on the National Qualifications Framework;
bb) the level and credits assigned to the completed modules or completed subjects are clearly identified on the learner record provided by the educational institution;
cc) the completed subjects or completed modules meet the requirements regarding "appropriate";
dd) 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;
ee) such qualification is recognised by the Registrar, after Consultation with the Advisory Committee, by notice in the Gazette; and
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-
aa) the level and credits of such short course is clearly identified; and
bb) such course is recognised by the Registrar, after consultation with the Advisory Committee, by notice in the Gazette:

Provided further that all qualifications or skills programmes must meet the requirements of appropriateness, which means-

1A) 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
1B) 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 the qualification requirements in column two requirements of Table E by 31 December 2009, as applicable to the Categories or subcategories they are authorised, approved or appointed for.
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.
c) All key individuals and representatives appointed during the period 30 September 2004 to 31 December 2007, whose approval and/or appointment conditions were amended during this period to include additional Categories and/or subcategories, must comply with the qualification requirements in column two of Table E by 31 December 2009, applicable to the additional Categories or subcategories they are approved or appointed for.
d) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 30 September 2004 to 31 December 2007 must comply with 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.
e) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 30 September 2004 to 31 December 2007 must, unless exempted by the Registrar, comply with the second level of 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 2013.

 

TABLE E: TRANSITIONAL PROVISIONS FOR CATEGORIES I, II, IIA III AND IV

 

COLUMN ONE CATEGORY

COLUMN TWO QUALIFICATION REQUIREMENTS

COLUMN THREE FIRST LEVEL REGULATORY EXAMINATION

COLUMN FOUR SECOND LEVEL REGULATORY EXAMINATION

 

Category I

 

 

 

 

 

 

 

1.1

 

 

 

 

Long-term Insurance subcategory A

Representatives:

ABET Level 1 or the proven ability to read and write to the satisfaction of the provider.

 

 

Not applicable

 

 

Not applicable

FSPS and key individuals:

Recognised qualification at NQF level 2; or a recognised skills programme of 30 credits at NQF level 2 by 31 December 2011.

 

 

31/12/2013

 

 

Not applicable

1.2

Short-term Insurance

Personal Lines

An appropriate NQF level 4 skills programme consisting of a minimum of 30 credits; or an appropriate qualification at NQF level 4

 

 

31/12/2011

 

 

31/12/2013

1.3

Long-term

Insurance:

 

 

 

 

 

1.3.1

subcategory B1

An appropriate NQF level 4 skills programme consisting of a minimum of 30 credits; or an appropriate qualification at NQF level 4

31/12/2011

31/12/2013

1.3.2

subcategory B2

An appropriate NQF level 4 skills programme consisting of a minimum of 30 credits; or an appropriate qualification at NQF level 4.

31/12/2011

31/12/2013

1.4

Long-term Insurance Category C

An appropriate NQF level 5 skills programme consisting of a minimum of 60 credits; or an appropriate qualification at NQF level 5.

31/12/2011

31/12/2013

1.5

Retail pension benefits

An appropriate NQF level 5 skills programme consisting of a minimum of 60 credits; or an appropriate qualification at NQF level 5.

31/12/2011

31/12/2013

1.6

Short-term Insurance Commercial Lines

An appropriate NQF level 4 skills programme consisting of a minimum of 60 credits; or an appropriate qualification at NQF level 4.

31/12/2011

31/12/2013

1.7

Pension Fund Benefits

An appropriate NQF level 5 skills programme consisting of a minimum 60 credits; or an appropriate qualification at NQF level 5.

31/12/2011

31/12/2013

1.8 to 1.13

Securities and Instruments

An appropriate NQF level 6 skills programme consisting of a minimum 60 credits; or an appropriate qualification at NQF level 6, provided 3 years of experience is obtained; or

31/12/2011

31/12/2013

 

 

an appropriate qualification at NQF level 5, provided 2 years of experience is obtained ; or

31/12/2011

31/12/2013

 

 

an appropriate qualification at NQF level 6 provided 1 year of experience is obtained.

31/12/2011

31/12/2013

1.14

Participatory Interests in one or more collective Investment schemes

An appropriate NQF level 5 skills programme consisting of a minimum of 60 credits; or an appropriate qualification at NQF level 5.

31/12/2011

31/12/2013

1.15

Forex Investment Business

An appropriate NQF level 6 skills programme consisting of a minimum of 60 credits; or an appropriate qualification at NQF level 5 or 6.

31/12/2011

31/12/2013

1.16

Health Service Benefits

An appropriate NQF level 5 skills programme consisting of a minimum of 60 credits; or an appropriate certificate at NQF level 5.

31/12/2011

31/12/2013

1.17

Long-term Deposits

An appropriate NQF level 4 skills programme consisting of a minimum of 30 credits; or an appropriate qualification NQF level 4.

31/12/2011

Not applicable

1.18

Short-term Deposits

An appropriate NQF level 2 skills programme consisting of a minimum of 30 credits; or an appropriate qualification at NQF level 2.

31/12/2011

Not applicable

1.19

Friendly Society Benefits

Representatives:

ABET Level 1 or the proven ability to read, write and calculate to the satisfaction of the provider.

Not applicable

Not applicable

FSPs and key individuals:

Recognised qualification at NQF level 2 or a recognised skills programme of 30 credits at level 2 by 31 December 2011.

31/12/2013

Not applicable

 

Category II

An appropriate qualification at NQF level 5 or 6.

31/12/2011

31/12/2013

 

Category IIA

An appropriate qualification at NQF Level 6 consisting of a minimum of 360 credits (full business degree/diploma).

31/12/2012

31/12/2013

 

Category III

An appropriate NQF level 6 skills programme of 60 credits; or an appropriate qualification at NQF level 5 or 6.

31/12/2011

31/12/2013

 

Category IV

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.

31/12/2011

Not applicable

 

f) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 1 January 2008 to 31 December 2008 are required to-
aa) comply with the qualification requirements 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
bb) complete a qualification, from the list of recognized 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.
g) 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 December 2008 to 31 December 2008 to include additional Categories or Subcategories are, in relation to the additional Categories or subcategories they are authorised for, required to-
aa) comply with the qualification requirements 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
bb) complete a qualification, from the list of recognized 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.
h) All key individuals and representatives appointed during the period 30 September 2004 to 31 December 2008, whose approval and/or appointment conditions were amended during the period 1 December 2008 to 31 December 2008 to include additional Categories or subcategories, are, in relation to the additional Categories or subcategories they are approved, required to-
aa) 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
bb) complete a qualification, from the list of recognized 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.
i) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 1 January 2008 to 31 December 2008 must 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.
j) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 1 January 2008 to 31 December 2008 must meet the 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.

 

3) 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 during the period 1 January 2009 to 31 December 2009 are required to complete a qualification, from the list of recognized qualifications, in accordance with Part V of this Determination, as applicable to the Category or subcategory they are authorised, approved and/or appointed for, by 31 December 2013.
b) 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 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.
c) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 1 January 2008 to 31 December 2008 must 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 2013.

 

4) All FSPs (who are sole proprietors), key individuals and representatives authorised, approved or appointed during the period 30 September 2004 to 31 December 2009 must comply with the Continuous Professional Development requirements, as described in Part VIII of this Determination, from the date of completion the applicable requirements as set out in paragraphs 2 and 3 above.

 

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 that 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.

 

6) This Part X (Transitional Arrangements) 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. All FSPs (who are sole proprietors), and key individuals authorised or approved during the period 1 January 2010 to 31 December 2010-
a) 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
b) must comply with the Continuous Professional Development Requirements, as described in Part VIII of this Determination, from the date of completion the applicable requirements as set out in paragraphs (a) above

 

7) All FSPs and key individuals that have been authorised or approved before the coming into operation of this Schedule must meet the operational ability requirement in paragraph 8(3) to (8) within 12 months from such date.

 

8) All FSPs that have been authorised before the coming into operation of this Schedule 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.