The Regulatory Examination implemented by the Financial Services Board as part of the Fit and Proper requirements of individuals in the Financial Services industry, is intended to form a foundation for increased levels of competence of these enterprises and their representatives. It aims to professionalize the sector and, most importantly to protect the consumer.
Whilst the nature of this imposed governance stems from a sound commitment of the Financial Services industry to its consumer, the implementation of this process has proven to be challenging. There has been a resistant and slow response from the financial services industry and low pass rate of intended Key Individuals. This meant that if the Fit and Proper requirements could not be met, it resulted in high costs when employing a qualified Key Individual with sufficient experience and industry knowledge. Many experienced representatives and Financial Services enterprises simply found the process expensive and time consuming, opting out and closing their practices – resulting in the loss of invaluable business growth and industry development in South Africa.