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Moonstone Monitor - 18 January 2018 |
We are extremely grateful for your support over the years and
proud to announce that
Moonstone newsletter subscribers now exceed 50 000 |
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Paul Kruger
Author/Editor |
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Success is a journey, not a destination. The doing is often more important
than the outcome – Arthur Ashe |
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Distributed to 50,100 subscribers.
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From the Crow's Nest |
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Continuous Professional Development |
Under the old dispensation, Continuous Professional Development (CPD)
was the third leg of the journey towards becoming a true professional, after
successfully completing the level 1 and 2 regulatory examinations.
Now that the level 2 REs have been replaced by line of business and product
specific training under the new Fit and Proper requirements, CPD is a current
reality, especially for those who benefit from the grandfathering clause in
terms of qualifications.
Who needs to do CPD?
The fit and proper requirements relating to CPD apply to all FSPs, key
individuals and representatives except the following:
(a) |
a Category I FSP, its key individuals and
representatives that are authorised, approved or
appointed only to render financial services or manage or
oversee financial services in respect Long-term
Insurance subcategory A and/or Friendly Society
Benefits; |
(b) |
a representative of a Category I FSP that is appointed
to only - |
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(i) |
render a financial service in respect of a Tier 2
financial product; and/or |
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(ii) |
render an intermediary service in respect of a Tier 1
financial product, including “execution of sales”. |
General requirements
(1) |
A FSP, key individual and representative must - |
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(a) |
maintain the required competence to render or manage or
oversee the financial services for which the FSP, key
individual and representative are authorised, approved
or appointed; |
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(b) |
comply with the prescribed minimum CPD requirements; |
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(c) |
ensure that the type and combination of CPD activities
undertaken - |
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(i) |
are relevant to the functions and role of the FSP, key
individual and representative; |
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(ii) |
contributes to the skill, knowledge, expertise and
professional and ethical standards of the FSP, key
individual and representative; |
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(iii |
addresses any identified needs or gaps in - |
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(aa) |
the technical knowledge of the FSP, key individual and
representative; |
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(bb) |
the generic knowledge and understanding of the
environment in which the financial service is rendered
or managed or overseen; and |
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(cc) |
the knowledge and understanding of applicable laws; and |
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(iv) |
adequately takes into account changing internal and
external conditions relevant to the classes and
subclasses of business, the category of financial
services and the financial products for which the FSP,
key individual or representative is authorised, approved
or appointed. |
(2) |
A FSP must establish and maintain policies and
procedures on CPD that include: |
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(a) |
how the FSP, key individual and representative will - |
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(i) |
maintain knowledge and skills that are appropriate for their
activities and responsibilities; |
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(ii) |
update their knowledge and skills; and |
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(iii) |
develop new knowledge and skills to assist with their
current functions and responsibilities or functions
contemplated in the future; |
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(b) |
training plans for each CPD cycle to ensure that CPD - |
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(i) |
is relevant and appropriate for the authorisation,
approval and appointment of the FSP, key individual and
representative; |
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(ii) |
addresses any identified needs, knowledge and skills
gaps; and |
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(iii) |
continually improves the professional standards and
practices of the FSP, its key individuals and
representatives. |
(3) |
An FSP must - |
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(a) |
within 30 days after the expiry of each CPD cycle,
record in the competence register the - |
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(i) |
CPD activities of the FSP, its key individuals and
representatives; and |
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(ii) |
reduction of CPD hours of a representative as indicated
below; |
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(b) |
calculate the total number of CPD hours completed by
each person referred to in (a) as at the end of each CPD
cycle; |
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(c) |
obtain and retain relevant supporting evidence of the
CPD activities recorded in the competence register; |
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(d) |
record the dates of, reasons for and retain supporting
evidence for, any decision of the FSP to reduce CPD
requirements in accordance with section 34; and |
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(e) |
retain the evidence referred to in (c) and (d) for a
period not less than five years from the end of the CPD
cycle concerned. |
The Fit and Proper Requirements also list the minimum CPD
hours required, and conditions under which such hours may be
reduced.
The effective date for CPD is 1 June 2018. We suggest that
you study
the relevant section in the 2017 Fit and Proper
Determination to assess the impact on your business and what
is required of you.
There can be little doubt that these stringent
requirements, coupled with similar record keeping demands
under the competency requirements, including training, will
add yet another layer of costs to an already over-burdened
industry, which will inevitably trickle down to clients.
A far bigger concern is how many more of the straws that we
know are coming, this camel’s back can handle. |
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What if you could focus on doing what you love - looking after your
clients?
Leading Independent Financial Advisory (IFA) practices are using GTC’s
Strategic Partner solution to:
- increase time with clients
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Shouldn’t you too?
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With offices nationally, we are well-placed to help you.
Call us to discuss a strategic partnership.
t. +27 (0) 10 597 6831
e. info@gtc.co.za
w. www.gtc.co.za
An authorised Financial Services Provider FSP no. 731 |
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Your Practice Made Perfect |
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Key Individual Operational Ability |
The Fit and Proper Requirements 2017 published recently, also provides
stipulations on operational ability.
Billy Seyffert, COO of Moonstone Compliance and Risk Management, pointed
out an important consideration for Key Individuals:
A FSP must have at least one key individual per class of business in
respect of which the FSP is authorized. This could be a single person
responsible for managing or overseeing the rendering of financial
services in respect of all or multiple classes of business of the FSP
provided that it -
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is approved for all such classes of business; and
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has the operational ability to oversee or manage the rendering of
financial services in respect of all such classes of business.
A key individual, where he or she is-
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approved or appointed as a key individual of
more than one FSP or
juristic representative; or
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approved or appointed as a key individual of an FSP or juristic
representative and appointed as a representative of an FSP other than
the first mentioned FSP,
must be able to demonstrate to the Registrar, in a form and manner which
may be determined by the Registrar, that he or she has the required
operational ability to effectively and adequately manage or oversee the
financial services related activities of all the FSPs or juristic
representatives for which the key individual was approved or appointed.
In addition, a FSP must, on a regular basis, assess the operational
ability of its key individuals to adequately and effectively perform
their functions taking into account individual circumstances, the
nature, scale, range and complexity of the FSP's financial services
related activities and whether the key individuals are approved as key
individuals or appointed as representatives of other FSPs.
The intent of this clause is possibly to address the issue of rent-a-KI
where someone fills the position but does not have the ability or
capacity to fulfil the legal obligations required of a key individual.
If this applies to you, note the double whammy above: You cannot wait
for the FSB or your compliance officer to tell you. “…a FSP must, on a
regular basis, assess the operational ability of its key individuals to
adequately and effectively perform their functions…” |
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Changes to Regulatory Exam Questions
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The long anticipated amended “Determination of Fit and Proper
Requirements for Financial Services Providers, 2017” was finally printed
in December last year.
The amended determination comes into effect on 1 April 2018.
The competence requirements relating to regulatory examinations
contained in the amended Determination apply to all FSPs, key
individuals and representatives except:
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a Category I FSP, its key individuals and representatives authorised,
approved or appointed only to render financial services or manage or
oversee financial services in respect of the financial products:
Long-term Insurance subcategory A and/or Friendly Society Benefits;
and
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a representative of a Category I FSP that is appointed only to perform
execution of sales in respect of a Tier 1 financial product
provided that the requirements in section 22(b)(ii) are complied with;
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a representative of a Category I FSP that renders financial services
in respect of a Tier 2 financial product only.
Regulatory Exam Study Material
The amended requirements will have a substantial impact on the content
of the study material for the REs.
We believe that the FSB will soon provide guidance on the deadline by
when the amended requirements are to be incorporated in the regulatory
exam questions.
Candidates who are currently preparing to write the exams should
consider the possible implications of such changes, and endeavour to
write the exams before it becomes effective.
Candidates are advised to carefully consider the above and to only write
the REs once they are absolutely ready. |
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Technologically Speaking
Moonstone Information Refinery
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Expand Your Practice through Social Media |
I have a confession to make. My name is Paul and I have not skipped
Facebook once this week. In fact, I have not missed going there once
this entire year.
The problem is that it was for fun and socialising only. Not that it
is a problem having fun, but the trick is to combine fun and work.
Thinkadvisor recently published an article titled
4 Ways to Build Your Practice Through Social Media which
contains easy to understand tips on how you can utilise a number of
platforms to promote your business, create awareness and leave
clients with a lasting impression.
Social media can generate immense opportunities if used
effectively. For advisors looking to cultivate their digital
footprint in an impactful way, here are four ways you can build an
online network and establish inimitability for yourself and your
practice…
Click on the link above to read the 795 word article.
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Regulatory Examinations
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2018 RE Schedules updated |
Please note: Registration cut-off is 11 working days before date of exam. |
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Frequently Asked Regulatory Exam
Questions |
1. |
What exam must I write?
Both the RE 5 and RE are Level One exams. RE 5 is for Representatives and
RE1 for Key Individuals. The RE 3 exam is for licence category II
candidates.
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2. |
How much does it cost?
The FSB determines the fee. Currently it costs R1163 per exam, also in
the case of a re-write.
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3. |
What preparation material is available?
Fully updated resources are available for those requiring access to the
legislation applicable to the regulatory examinations:
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Please make sure that you first read the
FSB’s Preparation Guide to
make sure you follow the right process in preparing. Page seven includes
a recent amendment to guide candidates in studying in the correct
manner. |
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Click on the following highlighted sections to download the relevant
updated Inseta learning material for key individuals,
RE 1, and
representatives,
RE 5. |
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LexisNexis provides a “Legislation Handbook” together with a
“Preparation Guide” containing the qualifying criteria, with a link to
the relevant legislation. |
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The
Juta FAIS Pocket Statutes also contains a CD with a comprehensive
list of updated supplementary legislative material for reference
purposes. Please click here to order this from our online shop. |
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The FSB’s telematics broadcast on the RE 1 and RE 5
provides a good introduction and overview, and can also be ordered
online in: |
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DVD format or on a
USB memory stick
MP4 direct download - 2 Gb |
4. |
Where can I write?
Go to:
http://www.faisexam.co.za/show_venues |
5. |
What dates are available?
Go to:
http://www.faisexam.co.za/view_schedule |
6. |
What training is available?
As an Exam body we are not allowed to recommend companies that offer
face-to-face Regulatory exam classes. You can try Google for someone in
your area.
Bear in mind that this exam tests your knowledge about the laws
applicable to the provision of financial advice and intermediary
services. The questions are based on very specific qualifying criteria
set out in the FSB preparation guide. Any training that does not have
this as a basis will not prepare you properly for the exam. Do your own
research and don’t just accept what others say. |
7. |
Where can I buy old question papers?
There are no genuine “old question papers” available. Be very careful
when buying such preparation aids as some of those on offer are not in
line with the high standard prevailing in the actual exams and often
lead to a false sense of knowledge which is sadly exposed when
confronted by the actual exam. Follow the guidelines provided in the FSB
Preparation Guide and you are far more likely to achieve success. |
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Careers Platform
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Are you hiring? Advertise your position on Moonstone’s Career Platform
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The Moonstone website -
www.moonstone.co.za
- enjoys an average of 20 000 visits and approximately 39 000 page views per month. |
• |
Moonstone boasts an exclusive newsletter mailing list of over 49000
dedicated financial decision makers who receive 2 newsletters per week. |
• |
Our audience is relevant and industry specific: individual and corporate advisors and brokers in the following financial sectors:
Investment, Risk, Healthcare, Banking, Retirement, and Insurance. |
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Featured Positions |
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Insurance Field Sales
Reps:
Quantum Invest, Nationwide - We are looking for field Reps
nationwide. RE5 qualification is recommended. We offer a
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Read More
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Financial Advisor:
Kaizen Solutions, Gauteng - We are currently recruiting an unlimited
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Senior Credit Controller:
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Short Term Insurance
Underwriter:
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If you have a minimum of 3 years experience and, live in the vicinity of
the brokerage, then
Read More
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In Lighter Wyn |
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More ashes to ashes… |
The batsmen strolled up to the crease and carefully took guard.
He looked round the field, noting the position of each player. With
great elegance, he patted down several invisible bumps on the pitch
and at last signalled that he was ready to accept the first
delivery. The ball came and uprooted the middle stump.
"What a shame," said the wicketkeeper. "Just as you were getting
set!"
In a local match, the umpire was being jeered and heckled
unmercifully from the crowd. At length he walked over to the
boundary and sat down next to his chief critic.
"What are you doing?" asked the spectator. "Well," said the umpire,
"it seems you get the best view from here."
In school, the teacher asked Johnny to spell "bowling". Back
came the answer : "B-o-e-l-i-n."
"That," said the teacher, "is the worst spell of bowling I've ever
seen."
During the match, the fieldsman positioned just behind the
umpire kept trying to distract the batsman as the ball was bowled to
him. Several appeals for lbw were turned down, and finally the
umpire turned to the fieldsman and said sternly:
"I've been watching you for the last 20 minutes."
"I thought so," came the reply, "I could tell you weren't watching
the game!"
Maurice Leyland of Yorkshire and England was getting heckled
because of some less-than-perfect fielding on tour in Australia. One
barracker, in particular, was having a great time jeering at
Leyland's errors. He could hardly contain himself when Leyland
dropped a high catch.
"Idiot," he yelled, "I could have caught it in my mouth!'
Leyland grinned at the man and said: "If I'd a mouth as big as
yours, I could have too."
In a club match a fast bowler was terrorising a visiting
side. As the new batsman slowly reached the middle, he was asked by
the umpire if he wanted the sightscreen moved. He thought and said
he would.
"To the left or right?" asked the umpire.
"Neither," the frightened batsman replied. "Couldn't I have between
him and me?"
It was the after-lunch session and the batsman had been
drinking too heavily during the break. He staggered up to the
captain and confessed that he could see three of everything.
'Well,' said the captain, 'when you get out there and the three
balls come towards you, just hit the middle one.'
The batsman weaved his way to the crease and was bowled first ball.
He made his way back.
'What happened?' demanded the captain. 'Didn't you hit the middle
ball?'
'Yesh,' replied the batsman, 'but I used the outside bat!' |
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Tel: +27 21 883 8000 | Fax: +27 21 883 8005
info@moonstoneinfo.com
www.moonstone.co.za
P.O. Box 12662, Die Boord, Stellenbosch, 7613, Republic of South Africa
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The complete disclaimer can be accessed
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