The Financial Advisory and Intermediary Services Act, 2002
THE PROPOSED AMENDMENTS TO THE QUALIFICATIONS, EXPERIENCE AND CRITERIA FOR APPROVAL AS COMPLIANCE OFFICER, AND THE EXEMPTION IN RESPECT OF SERVICES UNDER SUPERVISION RENDERED BY COMPLIANCE OFFICERS.
On 14 April 2016, The Registrar of the Financial Services Providers (“The Registrar”), published for public comment, the proposed amendments to the Notice on Qualifications, Experience and Criteria for approval as a Compliance Officer, 2010 as published by Board Notice 127 of 2010 in Government Gazette No 33537 of 9 September 2010.
The purpose of the proposed amendments to the qualifications, experience and criteria for compliance officers, is to ensure that compliance officers are competent to perform compliance functions. It is not the intention of the Regulator to determine a regulatory examination. The Financial Services Board (“FSB”) seeks to achieve this outcome through the implementation of a new competency framework for compliance officers, which is currently under development by the FSB.
The consequences of the proposed amendments are briefly discussed hereunder:
1. Regulatory Examination Requirements:
- Compliance officers will be required to successfully complete the first level regulatory examination applicable to the financial service provider (FSP) in respect of which he/she intends to render compliance services, whilst approved compliance officers, will be afforded the opportunity to successfully complete the regulatory examinations, within a period of six months after the commencement of the proposed amendments.
- Paragraph 9 (3) of the Board Notice 127 of 2010, which provided that compliance officers’ licenses would lapse after the expiration of twenty –four (24) months from the date of approval, in the absence of a reapplication for approval prior to expiration, has been deleted in order to remove the administrative burden on the affected individuals. The FSB is of the view that less burdensome methods are available to achieve the desired outcome.
2. Proposed amendments to the Exemption
- In terms of the proposed amendments, a supervisee who does not meet the required experience and regulatory examination requirements on approval may render compliance services under supervision, whilst obtaining the necessary. The proposed amendments seek to reduce the period which a compliance officer works under supervision, from three years to two years, in order to ensure alignment with a similar exemption granted to representatives rendering services under supervision.
For more information contact: Aatika Kaldine, Legal Manager : Aatika@saia.co.za