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 »

SAIA Insurance Risks Update February 2015

By Dawie Buys South African Insurance Association Green Geyser Replacement Project On 30 January 2015, the Department of Energy (DOE) met with SAIA to discuss a Public Private Partnership regarding the ...
Read More »

  

Norton Rose Fulbright works with Right Honourable Baroness Scotland of Asthal QC on diversity

Global legal practice Norton Rose Fulbright has hosted Baroness Scotland of Asthal QC at their Johannesburg office during her week-long visit to South Africa. Baroness Scotland is the UK Prime Minister’s ...
Read More »

  

Beware of insurance pitfalls while partaking in outdoor activities or at gym

      Christelle Fourie, Managing Director MUA Insurance Acceptances       Insurers are seeing an increase in theft, mainly of motor vehicles, due to ...
Read More »

  

PwC announces new Africa and Southern Africa CEO appointments

PwC is proud to announce that its current Southern Africa CEO Hein Boegman has been appointed as its new Africa CEO, with effect from 1 July 2015. Boegman takes over the reins from Suresh Kana, who ...
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

Cancellation, Rewrite:

The process of terminating a policy prior to the expiration date and issuing a new policy to supersede the one terminated. The new policy is usually written for a period of one year to avoid a short-rate premium charge. Most changes in the insurance agreement between the insurer and insured are made by an endorsement attached to the policy, but the cancellation rewrite method may be used for this purpose and also extend the time of the insurance ...
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