The FSCA released three FAIS Notices on 12 December that extend the duration of three exemption Notices that were due to expire on 31 December.
FAIS Notice 79 of 2023: Amendment of the Notice on Exemption of Particular FSPs from Section 13 of the General Code Conduct.
Section 13 requires FSPs to maintain in force suitable guarantees or professional indemnity or fidelity insurance cover.
In terms of FAIS Notice 122 of 2017 (Exemption of Particular FSPs from Section 13 of the General Code of Conduct), Category I or Category IV FSPs that are also underwriting managers and that only render specific financial services are exempt from section 13 of the General Code of Conduct, subject to conditions.
FAIS Notice 79 of 2023 replaces the previous extension Notices and substitutes the exemption expiry date of 31 December 2019 in paragraph 2(3) of FAIS Notice 122 of 2017 with 30 June 2026.
FAIS Notice 80 of 2023: Amendment of the Notice on Exemption of Particular FSPs from Section 19(3) Audit Report and Liquidity Requirements.
In terms of FAIS Notice 123 of 2017 (Exemption of Particular FSPs from Section 19(3) Audit Report and Liquidity Requirements), Category I FSPs that render a specific financial service and that do not collect, account, receive, or hold premiums or monies relating to a financial product other than premiums contemplated in the definition of “specific financial service” are exempt from section 19(3) of the FAIS Act and sections 48(2), 48(3)(b), 49(1)(b) of Board Notice 194 of 2017, subject to conditions. These sections relate to the Financial Soundness Audit Report and Liquidity Requirements.
FAIS Notice 80 of 2023 replaces the previous extension Notices and substitutes the exemption expiry date of 31 December 2019 in paragraph 2(3) of FAIS Notice 123 of 2017 with 30 June 2026.
FAIS Notice 81 of 2023: Amendment of the Notice on Exemption of Juristic Representatives from Section 13(1)(c) of the Act.
Section 13(1)(c) of the FAIS Act provides that a person may not render or contract in respect of financial services other than in the name of the financial services provider of which such person is a representative.
In terms of FAIS Notice 15 of 2021 (Notice on Exemption of Juristic Representatives from section 13(1)(c) of the Act), a juristic representative is exempt from section 13(1)(c) of when rendering a specific financial service (as defined in the Notice) on behalf of a particular FSP (as defined in the Notice). The exemption is subject to specific conditions.
FAIS Notice 81 of 2023 substitutes the exemption expiry date of 31 December 2023 in paragraph 2(3) of Notice 15 of 2021 with 30 June 2026.
