Icon

Directory

IconAccounting & Tax
IconActuaries
IconAdministrators
IconAppraisers & Valuers
IconArbitration Services
IconASIB
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconAuditors
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconCall Centre Outsourcing
IconCompany Secretarial Services
IconCompliance
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFAIS
IconFire, Storm, Flood Damage Specialists
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLegal
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOmbud
IconOutsourcing Companies
IconPremium Financing
IconPublic Loss Adjustors
IconPublications
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
IconZZZZZZ
Image
  Subscribe To »

FAIS Credits and Competence

Published

2012

Fri

08

Jun

Over the last two weeks we received a number of enquiries from readers regarding the regulatory exams and credits.

 

  • How many credits do I need to to qualify to write the REs?
  • Do I get any credits for writing the REs?
  • Where can I obtain extra credits?

The following is a brief history lesson, not a legal treatise to be used as the gospel according to Paul.

Between 2004 and 2009, little monitoring was done to regulate the quality of training available to FSPs. There were guidelines, but no quality control, leading to FSPs being duped by training providers into completing a qualification or skills program which was not SAQA approved.


In order to bring some sanity to the situation, the FSB decreed, as an interim measure, that all FSPs and representatives had to have a minimum of 30 or 60 SAQA approved credits by the end of 2009 in order to stay in the industry.


As indicated above, this was an interim arrangement, while the regulator held discussions with the industry to determine what competence, knowledge and skills would be required to provide financial advice and intermediary services as decreed by the FAIS Act, going forward.


We asked Paul Rabenowitz, of Lightbulb learning and training, for his views.


Competence in terms of the FAIS Act consists of the following four components:

 

  • Regulatory examinations
  • Qualification
  • Experience
  • Continuous professional development (CPD)

The regulatory examinations, qualification and experience requirements can be attained on a once-off basis while CPD is an on-going process of ensuring that knowledge and experience remains up to date with the latest developments in legislation and financial products.

The knowledge component of competence is made up of the regulatory examinations and a qualification.


Prior to 2010, a sole proprietor, key individual or representative had to attain a suitable qualification or credits, depending on the subcategories registered in. Since the introduction of Board Notice 106, as from 2010, credits are no longer applicable and instead one must have a full, recognised and approved qualification as listed in Board Notice 105.

Over and above an approved and recognised qualification, a sole proprietor, key individual or representative must have passed the relevant level 1 and 2 regulatory examinations, unless they possess a qualification that allows them an exemption from the level 2 RE.

The revised fit and proper regime therefore makes provision for two kinds of knowledge requirements, both of which must be attained – a qualification AND the regulatory exams (unless a suitable qualification provides exemption from the level 2 exams

What is the educational recognition of the REs?

In short – there is none. The regulatory exams are not listed or approved by SAQA as a qualification. Much like the Bar exam taken by candidate attorneys and other professions, the regulatory exams are a legislated competency test to allow one to practice in this profession while a qualification is the knowledge base which a practitioner uses to practice.

Credits then, merely for the sake of credits, are no longer valid currency, in a manner of speaking, unless it forms part of the buildup to a full, approved qualification which will consist of a number of credits, depending on the level and scope of the qualification.

The industry is holding its breath for the announcement of the roll out of the level 2 REs. Currently, the official deadline for completion is the end of 2013, but it is highly likely that this date will be extended.

It is clear that learning will remain part and parcel of the modern advisor’s ongoing obligations. We recommend that you make no long term commitments in this regard until we see the “what” and “how” of the level 2 REs.

Nobody has time for duplication, or re-doing things, especially these days.

 
Source: Paul Kruger: Moonstone Information Refinery (Pty) Ltd
 
« Back to previous page Print this page » |
 

Breaking News »

Compliance as a Competitive Advantage in the Insurance Industry

Transforming compliance activities from a reactive task to a proactive process The insurance sector faces a myriad of compliance challenges and has been for a number of years. In South Africa, the pace ...
Read More »

  

The illicit flow of funds moves thousands of millions of dollars in Africa - Thabo Mbeki

LUANDA, Angola: The continent of Africa loses over 50 thousand million dollars each year as a result of the illicit flow of funds, former president of South Africa Thabo Mbeki told the meeting of the Group of African ...
Read More »

  

Over 600 children of Ga-Rankuwa townshipto benefit from the gift of education

The perfect Spring Day was had as the learners of Lebogang Primary School in Ga-Rankuwa received DeskBags for their school thanks to the generous support of The Insurance Institute of South Africa (IISA) along ...
Read More »

  

Castel appoints Powell to new claims manager role

London: Castel Underwriting Agencies, the club-style MGA formation platform, has today appointed Vanessa Powell as its first claims manager. Powell joins from Mitsui Sumitomo Insurance Group where she was aviation ...
Read More »

 

More News »

Image

Healthcare »

Image

Investment »

Image

Life »

Image

Retirement »

Image
Image
Image
Image
Image
Image
Image
Image
Image
Image
Image
Image

From The Glossary »

Icon

Whole-life Contract:

Insurance that may be kept in force for a person’s entire life by paying one or more premiums. It is paid for in one of three different ways: _ ordinary life insurance (premiums are payable as long as the insured lives); _ limited payment life insurance (premiums are payable over a specified number of years); and _ single-premium life insurance (a lump sum amount paid at the inception of the insurance contract). with profits policy A term used ...
More Definitions »

 
 
By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2015.
All Rights Reserved.
Icon

Advertise

  Icon

eZine

  Icon

Contact IG

Icon

Media Pack

  Icon

RSS Feeds