Old Mutual is the first

Old Mutual is the first of the major players to be awarded a licence under the new law regulating financial advisors, the Financial Services Board announced today.

Head of the FSB's Financial Advisory and Intermediary Services department, Manasse Malimabe, said: "So far 108 licences have been approved. This is a drop in the ocean as we estimate there to be in excess of 20 000 Financial Services Providers to be licensed."

After September, a Financial Services Provider may not operate without a licence issued by the Registrar of Financial Services and will be responsible for the actions of its representatives.

Malimabe added: "When the effective date for licensing was announced at the beginning of March, the FSB indicated it would take up to two months to process applications for licences.

"The FSB has issued guidelines to prospective licence applicants.

"Completed applications received before the end of April will be issued before the end of June; applications received before the end of May will be issued before the end of July; and before the end of July in order to be issued by the end of September.

“The FSB has given the undertaking that all complete applications received by 31 July will be finalised by the effective date."