Those FSPs whose financial year ends on 28 February, received a reminder from the FSB about the deadline for the compulsory submission of their financial statements..
The Regulator’s website contains guidelines on how to submit these returns, but the information provided in the reminder still reflects the path as reflected on the website prior to recent changes. The required document can be found by accessing the FAIS page on the FSB website. Under the heading: FAIS DIVISION, click on the fifth heading from the top.
Or click here, and save the document for when you need it.
We publish below an extract from FAIS Newsletter 13 which provides full details of amendments to the financial soundness requirements:
The financial soundness requirements that all authorised Financial Services Providers (FSPs) must comply with, can be found in the Determination of Fit and Proper Requirements, 2008 (the Fit and Proper).
On 11 December 2012 certain of the definitions in respect of the financial soundness requirements were amended under Board Notice 202 of 2012.
The following key amendments were made:
• The definition of annual expenditure was amended;
• The definition of liquid assets was amended
• A definition of “management accounts” was inserted
• Paragraph 9 of the Fit and Proper was amended in that subparagraphs (2), (3)(a) and (4)(a) were substituted.
The major amendment to subparagraphs (2), (3)(a) and (4)(a) of Paragraph 9 of the Fit and Proper has to do with what is specifically excluded from the total assets of the FSP when calculating whether the FSP satisfies the financial soundness requirements or not. The following is now excluded from the total assets calculation:
• Goodwill;
• Intangible assets;
• Investments in related parties;
• Loans to related parties;
• Investments with persons to whom the FSP renders financial services; and
• Loans to persons to whom the FSP renders financial services.
These amendments came into effect on the date of publication i.e. with effect from 11 December 2012.
