Making sense of the latest 2008 changes to FAIS legislation
11-MAR-09
The latest amendments to the FAIS Fit and Proper regulations that were published in October 2008 bring both amnesty to financial service providers who were first registered with the Financial Services Board (FSB) before 2008, and the realisation for others that a full qualification is now the minimum requirement.
Even when these requirements are met, you cannot assume that no more studying lies ahead.
While the detail of the law is intricate and includes many different types of advisors, this article aims to assist you to start making sense of the key changes.
According to INTEC School of Insurance, the first point to note is that the 2008 FAIS deadline to obtain 30 and 60 credits has definitely been extended to the end of 2009, although the FSB has warned that financial service providers must not expect this to be extended again.
This means that if you first registered with the FSB between 2004 and 2007, you have until 31 December 2009 to obtain your 30 or 60 required credits, depending on the type of products you sell.
If you first registered with the FSB in 2008, you have until 31 December 2011 to obtain your 30 or 60 credits, or you have the choice to do a full qualification at the appropriate NQF level which will have to be completed by December 2013.
Herein lies the amnesty, in that everyone appointed between January 2004 and December 2007 need only complete an appropriate skills programme of 30 or 60 credits by the required dates above to meet the FAIS Fit and Proper requirements.
The stricter control is now exercised for people who are appointed for the first time with the FSB in 2009 and thereafter, as the 30 and 60 credit qualifications are no longer valid and they must complete a full qualification.
In other words, there are no 30 or 60 credit skills programmes on the list of FSB recognised qualifications for people entering the industry after 2009.
Legislation also stipulates that organisations employing new individuals must provide for an undertaking that those individuals are willing to complete a full qualification in the required time.
It is important to note that if you add a product category to your license, you will need to complete the qualification requirement to sell that product.
Also new to the legal requirements is the introduction of regulatory exams.
This has been introduced to make sure that advisors remain abreast of legislative and product changes and other issues impacting on the industry.
Regulatory exams apply to key individuals or representatives across the board, and are divided into First Level Regulatory Exams or core exams, and Second Level Regulatory Exams which are product specific.
All individuals – including those who registered between January 2004 and December 2008 – will have to write and be declared competent against the First Level Regulatory Exam by 31 December 2011.
Apart from representatives in Long-term Category A and Friendly Society Benefits, the exams are compulsory, with no exemptions and no exceptions.
The Second Level Regulatory Exams are product specific, and must be completed successfully by 2013. There are some exemptions and exceptions.
This includes key individuals who are not giving advice and categories not required to write the First Level Regulatory Exams as well as some exceptions around specific categories or products that are not being sold.
If that is not already a lot to digest, there will also be a three-year cycle of Continuous Professional Development (CPD) requirements, which will take effect once the applicable regulatory exams have been completed.
INTEC School of Insurance has been preparing for these changes for a while.
This has given the company intricate knowledge of the enormous task that lies ahead for advisers and the best advice they can give is to start early and not to leave all studying to the last minute.
INTEC School of Insurance offers quality distance learning and facilitated studying options for six full qualifications, as well as skills programmes to acquire the relevant 30 and 60 credits in the time required, which leads to a full qualification (see attached table).
INTEC’s study material has a reputation of being of excellent quality, and this national company has an established infrastructure with over 100 years of experience in distance and facilitated learning and study methods.
All INTEC School of Insurance’s courses are INSETA approved and in line with SAQA requirements.
Enrolments for 2009 are now open, however, as it takes four to six months to study towards and obtain 30 credits, and about eight months to a year to obtain 60 credits, INTEC School of Insurance strongly urges financial advisers to enrol now by calling 0860 10 40 14.
The INTEC School of Insurance consultants will also be able to provide guidance and advice on all study option questions, as well as highlight what is required for each adviser to be FAIS compliant and ‘Fit and Proper’ in the required time.
Issued by:Sandy Dobrin Ogilvy PR, CapeContact: 021 467 1385 or 083 459 9958
On behalf of: Intec School of Insurance
Contact: Varenka Newton
(021) 417 6700 or 082 453 9898
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