IMPORTANT REGULATORY UPDATES: FAIS NOTICES 79-81 AND 85 OF 2023
Recently, the Financial Sector Conduct Authority (FSCA) issued a series of amendments through FAIS Notices 79 to 85 in 2023, impacting various aspects of the financial services industry. Let's delve into these updates and understand their implications.
FAIS Notice 79 of 2023 - Amendment to Exemptions under Section 13 of the General Code of Conduct
The FSCA, through FAIS Notice 79, has introduced amendments to FAIS notices related to the exemption of certain Financial Service Providers (FSPs) who are insurers from section 13 of the general code of conduct. This means that certain Financial Service Providers (FSPs) who are insurers are exempted from having suitable guarantees or professional indemnity or fidelity insurance cover. These changes are applicable from December 31, 2023, to June 30, 2026. Notably, this notice replaces the previous extension notices and updates the exemption expiry date outlined in FAIS Notice 122 of 2017.
FAIS Notice 80 of 2023 – Changes to Audit Report and Liquidity Requirements
FAIS Notice 80 exempts specific FSPs from section 19(3) audit report and liquidity requirements. These changes are effective from December 31, 2023, to June 30, 2026. Category I FSPs providing specific financial services and not handling premiums or monies beyond the scope of these services are eligible for the exemptions, subject to specified conditions. Similar to FAIS Notice 79, this notice replaces prior extension notices and updates the expiry date in FAIS Notice 123 of 2017.
FAIS Notice 81 of 2023 – Exemption for Juristic Representatives
Addressing exemptions for juristic representatives from section 13(1)(c), FAIS Notice 81 is applicable from December 31, 2023, to June 30, 2026. The notice modifies the exemption expiry date mentioned in Notice 15 of 2021, allowing juristic representatives rendering specific financial services on behalf of particular FSPs to operate beyond the usual constraints of section 13(1)(c), with adherence to stipulated conditions.
FAIS Notice 85 of 2023 – Extension of Compliance Officer Exemptions
FAIS Notice 85 introduces an extension to the exemption granted to Compliance Officers regarding minimum prescribed intervals of visits and reports to FSPs. This exemption, initially granted in 2017 and extended subsequently, is now prolonged until June 30, 2026.
Compliance Officers must adhere to specific conditions, including conducting sufficient visits, implementing a comprehensive monitoring program, and regularly reporting on control environments and identified risks.
The recent FAIS Notices 79-85 of 2023 reflect the ongoing efforts of the FSCA to adapt to the dynamic financial landscape, ensuring a balance between regulatory requirements and industry flexibility. FSPs are encouraged to thoroughly review these amendments and adjust their practices accordingly to maintain compliance and efficiency in their operations.
