Fit and Proper
- Break a relevant law or regulations
- Do not comply with the general code of conduct
- Bring the industry into disrepute
- Mislead the regulator
Product Knowledge – before selling the product of any product provider the representative needs to attend and be assessed as competent in the companies products. This must be completed before the adviser deals with any client at the start of their training
Class of Businesses Training – before providing any advice to any client an adviser needs to attend and pass training on the generic products and the environment in the various classes of business the adviser is licensed to provide advice for. This includes:
- Short-term Personal Lines
- Short term COmmercial Lines
- Long-term Insurance and private pensions
- Short and Long-term Bank Deposits
- Investment and CIS
- Advanced Investments
- Health Funding and Medical Aids
Acceptable Qualification – The FSB issued a list of acceptable qualifications but the FSCA realised they are not the experts in this area and in future the various professional bodies will update this list by evaluating various qualifications against the needs of the industry for specialists in the following areas. These include but would not be limited to:
- Financial Advice and planning – FPI
- Insurance sales and administration – IISA
- Insurance Underwriting – IISA
- Advanced Investments – FPI and SAIFM
- Compliance – Compiance Institute
There are a range of exams for different players in the industry but the two we focus on are RE 1 for key Individuals and FSP and the RE 5 for representatives
- Short term insurance personal lines advisers must work under supervision for at least 1 year
- Short tern=m deposit advisers must work under supervision for at least 1 year
- Short-term commercial lines advisers are required to work for 2 tears under supervision
- Long-term Cat C advisers are required to work for 2 tears under supervision
- RE1 for Key Individuals
- RE5 for representatives
- Self Study – we make the INSETA reading material and PDF of the relevant legislation available to any RSC learners at no cost and this is available on our website.
- Facilitated and/or guidance on writing these exams provided in class for 6 or more learners at R1000 for a 2 day workshop OR on a one to one coaching session at R500 per hour.
- eLearning will be available end of August 2018 for RE1 and 5 at R550 per learner. This will include video lectures and online practice exams to help prepare for the RE exam with Moonstone. We do not offer the exam as Moonstone is currently the only accredited examiner for RE.
- Product Knowledge – usually provided by company or product providers
- Class of Business training would be done at the same time and provides context to understand the generic products in your area and would ensure you understand the strengths and weaknesses of the various products your client could use. We would complete the Class of Business Exam for CAT C( Life Insurance and Personal Pensions) and provide a letter for Complaince confirming learner has completed this required FAIS assessment.
- Skills Program 1 Environment which provides 41 credits in legal, regulatory environment and provides and insight into Current Affairs and Financial Services Environment
- On completion of this module usually 4 months into the program I would recommend completion of the RE for representatives as this is required to be completed in the first two years after DOFA.
- Write external RE through Moonstone.
- Skills Program 2 Risk management and FNA to complete the core and fundamental knowledge required for this qualification. This would provide a further 50 credits to the above from SP 1
- Complete the training and write the exam for the Class Of Business Training for Investments prior to attending the thrived and third and final module for the NC Wealth management qualification. Learner could also complete any other specialised CoB if required – Health, Short term, Pensions and Group Benefits
- Skills program 3 Wealth Management to complete the qualification 45 credits which covers retirement, investments and estates to complete the generic wealth management qualification.
- After 2 years in the industry this learner is now full “fit and proper “ and is not working under supervision and is required to complete CPD or continuing professional development which needs to be completed and recorded for the adviser to stay fit and proper. The above adviser would need about 17 credits per year over a 3 year cycle and if this is not done the Representitive could be debarred. This will include:
- Attending lectures that are credit bearing
- Reading journals and completing assessments to provide knowledge acquired
- Short programs in specialist financial advice areas:
- Business Insurance
Adviser to Planner
- Complete a level 6 program in financial advice and introduction to financial planning – these occupational programs have been developed and are being registered at the moment and you could start on one of these early next year. Or could attend a specialised B.Com Degree program with various universities or Milpark
- Complete a level 7 program which is available through various universities
- Enrol for a Post Graduate in FInancial Planning and on completion write the FPI board exam and become a financial planner.
- Using your current level 5 program and your experience as a financial adviser to attempt the RPL process, but this is very difficult if you have not developed the required practical skills and these were not a requirements when you completed the level 5 qualification.
- Complete the level 6 occupational qualification which will teach the calculation skills and other practical skills required in the RPL process to succeed, and then to complete the RPL and enrol for post graduate in financial planning and CFP board exams.