Category V Financial Services Provider License
The Advisory Committee on Financial Services Providers has recently approved the creation of a new category of financial services provider (FSP) namely the Category V FSP. The Category V FSP license will apply to those persons rendering financial services to “professional clients” as defined in the “Specific Code of Conduct for Authorised Financial Services Providers and Representatives conducting Financial Services Business with Professional Clients” (Code).
The Code is currently only in draft form, however, we have been advised that the FSB is in the process of finalizing the Code as well as the application forms in respect of applying for a Category V FSP license.
The effect of the Category V FSP license is that those entities previously operating under the “Exemption of Banks in respect of certain Clients” and any other similar exemptions (together the Exemptions) will be required to register as Category V FSPs and/or any other relevant category of FSP.
On 30 May 2012 the operation of the Exemptions was extended to 1 March 2013. It is likely that the FSB will require that entities operating under the Exemptions obtain the relevant license under the Financial Advisory and Intermediary Services Act, 2002 by 1 March 2013.
For further information, please contact any member of the financial services and investment management team.