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Moonstone Monitor - 15 February 2018 |
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Paul Kruger
Author/Editor |
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Politicians and nappies should be changed often and for the same reason
– Mark Twain |
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Distributed to 50,025 subscribers.
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From the Crow's Nest |
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Training requirements under the new Fit and Proper
Determination |
The Latest Determination of Fit and Proper requirements refers to three
types of training under the competence requirements. A look at the definitions
will help readers distinguish more clearly what impacts on them, and what not. I
underlined what I regard as important aspects of the definitions.
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"class of business training" means training in respect of a class of business
and which training is provided and assessed by an accredited provider or an
education institution;
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"CPD" means continuous professional development. A "CPD activity" means an
activity that is accredited by a Professional Body, allocated an hour value or a
part thereof by that Professional Body and is verifiable. CPD excludes an
activity performed towards a qualification and product specific training, but
class of business training is not, provided that the provider is duly
accredited.
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"product specific training" refers to training in respect of a
particular
financial product and which training is assessed, including any amendments to
that particular financial product.
The following are important definitions relating to the above:
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"assessed" in relation to competence requirements, means the
structured
process of gathering reliable evidence to determine the level of a person's
competence in relation to a pre-determined standard. We queried this with the
FSB who advised that this standard is determined by the training provider.
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"accredited provider" means a person that is
recognised and certified or
accredited by a Quality Council as having the capacity or provisional capacity
to offer a qualification or part-qualification registered on the NQF at the
required standard.
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"professional body" means a body recognised by the SAQA as a professional
body for purposes of the NQF Act. We have only been able to identify 4 such
bodies in South Africa, and this may yet prove to be a challenge.
Class of Business training
Section 29 of the Determination indicates the following requirements, in respect
of COB training, inter alia.
A FSP and representative must complete the class of business training relevant
to those financial products for which they are authorised or appointed prior to
rendering any financial service in respect of such products.
A key individual must, likewise, complete the class of business training in
respect of the classes of business it manages or oversees and for which it is
approved to act as key individual prior to managing or overseeing the rendering
of any such financial services.
The FSP must ensure that it, its key individuals and representatives are:
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proficient in respect of,
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understand, and
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have completed adequate and appropriate class of business training relevant to
the financial products in respect of which they render financial services.
What must be included in Class of Business training?
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the range of financial products within the class of business;
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general and specialist characteristics, terms and features of such financial
products;
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typical fee structures, charges and other costs associated with such
products;
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general risks associated with investing, purchasing or transacting in these
products;
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Investment and risk principles, options and strategies in respect of such
products;
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the appropriateness of different products or product features in the class of
business for different types of clients or groups of clients;
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the typical role players or market participants in respect of these products,
including their legal structure;
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the impact of applicable legislation, including taxation laws, on such
products;
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the impact of applicable economic and environmental factors e.g. economic and
business environment and cycles, inflation, government monetary and fiscal
policies and interest rates and exchange rates on the products and the
performance of those products;
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any inter-relationship within and between particular classes of business;
and
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industry standards and codes of conduct relevant to the class of business.
Who should attend Class of Business training?
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All FSPs, Key Individuals and Representatives appointed after 1 April 2018.
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FSPs, Key Individuals and Representatives who seek authorisation, approval or
appointment for new financial product categories after 1 April 2018.
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Representatives working under supervision as at 1 April 2018, or appointed
under supervision after 1 April 2018.
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Certain exemptions apply, depending on the type of business one does, and how
it is conducted, e.g. execution of sales. We strongly advise that prospective students seek advice from their
Compliance Officers.
For information on what will be available, have a look at this
Moonstone
presentation. |
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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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CPD and Reps Working Under Supervision |
K writes:
I read your article on the effective date of 1 June 2018 for Continuous
Professional Development, and your comment that it leaves little time to
plan for compliance. Please clarify whether representatives under
supervision will also have to comply with CPD from 1 June 2018 or only
when they have met all the other requirements with regards to
experience, qualifications, product and class of business training?
We responded as follows:
The new Fit and Proper Board Notice kicks in from 1 April, and states
that a representative under supervision will have to comply with CPD
from 1 June 2018.
However, the FSB has indicated that they are looking at revising Board
Notice 104 (the Supervision Board Notice).
We anticipate that the new Supervision Board Notice will be published
prior to the 1st of April and that the Board Notice will provide that
the CPD Cycle for a Representative working under supervision will only
commence once the other requirements have been met.
Until such time as this is officially announced, one has follow the
route outlined in
Board Notice 194 of 2017. |
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Fit and Proper Competence Register
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Those who love record keeping will be elated by the new requirements
contained in Board Notice 194 of 2017.
“A FSP must establish, maintain and update on a regular basis a
competence register in which all qualifications, successfully completed
regulatory examinations, product specific training, class of business
training and CPD of the FSP, its key individuals and representatives are
recorded.”
General requirements
A FSP, key individual and representative must have adequate, appropriate
and relevant skills, knowledge and expertise in respect of the financial
services, financial products and functions that it performs in order to
comply with the minimum requirements contained in BN 194 of 2017, and
maintain such competence.
Recordkeeping
The FSP must be able to demonstrate and record that it has evaluated and
reviewed, at regular and appropriate intervals, the competence of its
representatives and key individuals and has taken appropriate action to
ensure that they remain competent for the activities they perform. It
also has to ascertain the appropriateness of the training and CPD, so
choosing the cheap and easy route may turn out to be quite costly in the
long run.
What needs to be included in the Register?
A FSP must establish, maintain and update a competence register, within
15 days after the training has occurred, in which the following is
recorded:
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all qualifications,
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successfully completed regulatory examinations,
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product specific training,
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class of business training and
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CPD
All such information and documentation relating to the training must be
retained for a period not less than five years.
The FSP is obliged to provide confirmation, on request, to a product
supplier that it, or its representatives have obtained the requisite
class of business and product specific training.
FSPs are also obliged to provide training record information to other
FSPs where, for example, it is required to for appointment purposes.
At Moonstone we are currently field testing a Fit and Proper Tracker
system which will do far more than merely act as a record of activities.
This should be good news to the other 99% who are not overly fond of
paper work. |
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FSB Regulatory Exam Update
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The amended requirements contained in the 2017 Determination of Fit and
Proper Requirements will have a substantial impact on the content of the
study material for the REs.
The FSB’s FAIS Information Circular 1/2018 confirms a number of matters
we discussed since the publication of the new Fit and Proper
Determination, which comes into effect from 1 April 2018.
Certain questions in the RE 1 (key individuals) and RE 5
(representatives) will change to align with the new regulations.
Current Version of RE 1 and RE 5
Persons already registered to write the regulatory examination BEFORE or
on 29 March 2018, will still write the current version of the regulatory
examination (without the updated questions included).
The last date for registration to write on 29 March 2018 is close of
business on 13 March 2018.
Updated Version of the RE 1 and RE 5
Persons who registered to write the regulatory examination ON or
AFTER
Tuesday, 03 April 2018 are obliged to write the new version of the
regulatory examination, which will contain the updated questions. It is
very important for these candidates to ensure that they use updated
preparation material that is aligned with the qualifying criteria in
Annexure Four of Board Notice 194 of 2018.
Registration/cancellation/amendments of examination dates
It is important to take note of the time lines involved for
registration, as well as amendments to the exam dates. The standard
cancellation policy will apply to all registrations for the regulatory
examinations. Candidates who wish to re-schedule their examinations
should take careful cognisance of the FSB’s cancellation policy. If at
all unsure, please speak to our call centre staff to make sure you do
the right thing.
Study Material
The updated FSB Preparation Guide for RE 1 and RE 5, together with the
relevant legislation, and the relevant Training Manuals from BANKSETA/INSETA
may not yet be available at the time that the updated RE 1 and RE 5 roll
out on 3 April 2018. More information in this respect will be made
available as soon as possible.
As always, we urge candidates to make sure that they are fully prepared
before they write. Do not rush to write before the end of March simply
to avoid having to acquire the new study material, and run the risk of
not passing.
Similarly, those registered to write from April onwards, must please
ensure that they have covered the amended information in sufficient
detail before they write.
Please click here to download the
FAIS Information Circular 1/2018. |
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2017 Moonstone Compliance Report Webinar
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Register here
We have closed registration for the
normal Moonstone workshops for Cat I FSPs without a Compliance Officer,
but the webinar is still open for registration. Please note that your
2017 Compliance Report must be submitted prior to 28 February 2018.
A very important additional item on the agenda is a discussion on the
new Fit & Proper requirements such as Class of Business Training,
Product Specific Training, Continuous Professional Development as well
as the new Operational Ability aspects. This information is of critical
importance for your business from 1 April 2018.
The Live Webinar will be held on Thursday 22 February 2018.
Should you wish to claim CPD points, Moonstone will issue a certificate
of attendance on request.
Cost
Register
now
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Technologically Speaking
Moonstone Information Refinery
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Expand your reach via Facebook
by
Janine Geldenhuys |
Whether you like it or not, social media and technology have changed
the way that we do business. It has changed the way that we
interact, not only with our friends, but also with our clients.
A recent US research study has shown that 81% of the financial
advisors surveyed are using social media in their marketing plan for
their business and products. 79% of these advisors reported that
they have received new business from their effort on social media.
It’s therefore important for South African financial advisors to
take note of this trend in order to stay ahead of the game.
Facebook, as one of the social media channels, is not just a place
to share funny videos or photos of your cat; it’s a place where
financial advisors can grow their business.
But how do you leverage the benefits of Facebook …where do you start
and why?
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In order to use Facebook and any social media channel effectively
it’s first of all important to check your company’s social media
policy. Stay within the guidelines to ensure compliancy.
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It’s also important not to use your personal profile. Create a
Facebook business page, a public page that lets you share relevant
information with your followers.
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If you share an article online and your followers share it with
their friends, you reach a new audience.
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A Facebook page also helps new clients to find you through search
engines like Google.
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Share insightful information, whether it's articles, videos, or
images, on a regular schedule.
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A good starting point to increase your Facebook followers is to
add a link to your Facebook business profile on all your emails and
website. This will increase your page visibility and make connecting
with you on Facebook easier.
If you haven’t already done so, log in to
Facebook today, create
your page, start sharing content and take advantage of the change in
client behaviour.
Just remember, managing a Facebook page is similar to starting a
herb garden. You will only reap the benefits if you nurture your
creation regularly.
Janine Geldenhuys is a communication officer at Moonstone
Information Refinery.
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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 |
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What exam must I write?
Both the RE 5 and RE 1 are Level One exams. RE 5 is for Representatives and
RE 1 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. PLEASE NOTE the
new fee of R1226.00 VAT Inclusive per examination apply
to all examinations registered for exam date
9 March 2018 and onwards – if the booking date is before
9 March 2018 and the exam date is on or after
9 March 2018, the Invoice will reflect the new fee.
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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 |
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4. |
Where can I write?
Go to:
http://www.faisexam.co.za/show_venues |
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5. |
What dates are available?
Go to:
http://www.faisexam.co.za/view_schedule |
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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. |
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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. |
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Moonstone boasts an exclusive newsletter mailing list of over 50000
dedicated financial decision makers who receive 2 newsletters per week. |
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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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Short Term Insurance
Representative:
JFA Shortterm Insurance Brokers, Milnerton, Cape Town - If you have
at least 3 years of experience and preferably live in the vicinity of
the brokerage then
Read More
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Client Service
Administrator:
Southwood Financial Planning, Tokai, Western Cape - An FPI approved,
professional practice, based in Tokai, is looking for a client service
administrator.
Read More
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Experienced Short Term
Underwriter:
The Insurance Center, Westville, KZN - Vacancy for an experienced
short term commercial and domestic underwriter.
Read More
-
Jnr Compliance
Administrator:
Saxo Capital Markets (Pty) Ltd, Sandton - Seeking Jnr Compliance
Administrator to assist internal Head of Legal & Compliance in
conjunction with external Compliance Officer.
Read More
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Compliance Research &
Developer:
Moonstone Compliance, Stellenbosch - The successful applicant will
work closely with the R&D Manager and will be registered as a compliance
officer under supervision with the FSB.
Read More
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Senior Regulatory
Compliance Manager:
Clientèle Limited Group, Johannesburg - The successful incumbent
will be responsible for proactively and constructively assisting the
Clientèle Group in managing its responsibility to comply with all
relevant regulatory requirements and minimise compliance risks.
Read More
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Commercial
Underwriter:
HIC Underwriting Managers, Bedfordview - Join our dynamic team if
you are Fais compliant with 120 credits and 5 years of experience.
Read More
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In Lighter Wyn |
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Hystorically yours |
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How Yodeling Began
Many years ago, a man was travelling through the mountains of
Switzerland. Nightfall was rapidly approaching and he had nowhere to
sleep. He went up to a farmhouse and asked the farmer if he could
spend the night. The farmer told him that he could sleep in the
barn.
As the story goes, the farmer's daughter came down from upstairs and
asked her father, "Who was that man going into the barn?"
"That's some fellow traveling through," said the farmer. "He needed
a place to stay for the night, so I said that he could sleep in the
barn."
The daughter said, "Perhaps he is hungry."
So she prepared him a plate of food and took it out to the barn.
About an hour later, the daughter returned, her clothing dishevelled
and straw in her hair, straight up to bed she went.
The farmer's wife was very observant. She then suggested that
perhaps the man was thirsty. So she fetched a bottle of wine, took
it out to the barn, and she, too, did not return for an hour. Her
clothing was askew, her blouse buttoned incorrectly and her hair all
messed up. She also headed straight to bed.
The next morning at sunrise, the man in the barn got up and
continued on his journey, waving to the farmer as he left. When the
daughter awoke and learned that the visitor was gone, she broke into
tears. "How could he leave without even saying good-bye," she cried,
"after we made such passionate love last night?"
"What?" shouted the father, and angrily ran out of the house looking
for the man, who by now was halfway up the mountain. The farmer
screamed up at him, "I'm gonna get you! You had your way with my
daughter!"
The man looked back down from the mountain side, cupped his hand
next to his mouth, and yelled out, "ILAIDTHEOLDLADEEETOO!"
And that's how yodeling began.
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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
Disclaimer:
Services and products advertised by external product suppliers in
this newsletter are paid for by the respective suppliers. Moonstone
does not endorse any opinions, conclusions, data, products, services
or other information contained in this e-mail which is unrelated to
the official business of Moonstone and furthermore accepts no
liability in respect of the unauthorised use of its e-mail facility
or the sending of e-mail communications for other than strictly
business purposes.
The complete disclaimer can be accessed
here.
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©2015 Moonstone. All rights reserved. |
