TPC matters and submission for REA application, please refer TPC section. This section is about completion of registration as a new REA.
Upon payment of RM350 to the Board, En Wan will verify payment with the accounts department and proceed to register a qualified person as REA in the Register - S.22A. This is referred to as Fourth Schedule Part III of the Rules 1986.
This part can only be done after a candidate for registration has earlier on submitted all the required documents - see Submission for REA Registration. And, this application has been approved by the Board in a meeting. Mine was approved on 25 July, 2023 (courier sent on 12 July and received on 14 July, 2023). Despite, there is no notification or reference as on when this meeting was held or when a PEA is successfully registered as a new REA.
Nevertheless, this date will be shown in bis.lppeh.gov.my as the date of PEA switch to REA. On this date, PEA becomes "INACTIVE" and REA becomes "ACTIVE". See below the screenshot of bis system under My Profile.
At this point, bis.lppeh.gov.my will send out an email notifying the candidate that there is a new licence registration as REA and to make payment. However, ignore this automatic generated payment notification as online payment had been made. See the email below.
There after, the updated bis.lppeh.gov.my system will include the successful registration of REA, and show 2 types of licences - PEA and REA. Notwithstanding, PEA record is now "inactive" and REA is "active" to take over as mentioned above. Indeed, a REA cannot be a PEA at the same time, and vice versa.
At this stage, the system in Search.lppeh.gov.my will reflect the new licence being registered. In the initial phase, both numbers - PEA and REA numbers will populate the search result, but subsequently, only the ACTIVE number is shown.
Below is the search performed after payment made to Board for the registration as REA - online payment on TUESDAY, search performed on THURSDAY. This is rather quick, but do give about 1 week for this process as it depends on the system updates by bis.lppeh.gov.my.
Above search performed on 10 Aug, 2023 whereby payment was made on 08 Aug, 2023.
On the following day, the search yielded single registration which is REA without PEA, see below:
Hence, upon completion of registration as a new REA, the previous PEA registration is no more in use (inactive) and will be deleted from Search/lppeh.gov.my.
From the moment of E Licence registration - in my case on 25 July, 2023, a new REA assumes full responsibility as a registered person as in the law.
As the application was done under the existing firm, the new REA is considered still attached to the existing firm.
Arrangement with existing firm is a private matter between the new REA and the management of the firm. If the new REA wishes to continue his attachment with the existing firm (sole-proprietorship, partnership or Sdn Bhd), he is under employment.
To understand this, just imagine that it is like a Pharmacist being employed to work for a Pharmacy outlet but does not have ownership of the business of this pharmacy. Similarly, a doctor can be employed by a medical center or a clinic but he does not own the practice but just as an employee.
The new REA assumes professional liability for all professional work under his duty and responsibility. However, the firm is the employer, he is the employee. The risk of professional liability is jointly with the firm, however being an employee, the law has to establish vicarious liability within this relationship if there is any legal action taken against the firm or the new REA.
On the other hand, if a new REA prefers to register a new firm practice, the next process is to apply for a new firm formation.
This is a entirely new process for firm formation.