Another tragic fallout resulting from the Covid-19 pandemic is that a number of FSPs may be considering closing down.
The FSCA published a Guidance Notice to assist such entities in complying with all the regulatory requirements. This includes how to go about lapsing your license, the requirements laid down by the FAIS Act when doing so, and the implications of not complying with these obligations.
It is evident that you cannot just close your doors and walk away. Amongst other requirements, you have to advise the FSCA as well as your clients in writing of your decision, attend to all unfinished business and provide the Authority with proof of compliance with the requirements of the General Code of Conduct.
Failure to adhere may lead to the FSCA to “discount” the lapsing of the licence, which means you will remain a regulated entity subject the Authority’s regulatory oversight.
We plan to unpack this in more detail in Monday’s Investment Indicators, but in the meantime you may want to read the official guidance notice to understand the requirements and implications.
Moonstone Compliance and Risk Management offers a licensing service to FSPs – click here for more information.
