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Moonstone Monitor - 12 April 2018 |
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Paul Kruger
Author/Editor |
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The wonderful thing about the game of life is that winning and losing are
only temporary… unless you quit. - Dr. Fred Mills |
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Distributed to 51,725 subscribers.
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From the Crow's Nest |
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Complex F & P Competency Requirements |
The natural tendency is to approach these obligations in the same manner
as we did in the past - tick the box, close the file and carry on regardless.
BIG MISTAKE.
Like the long and winding road, it starts off in a general direction, only to
get more and more specific as we proceed on the journey.
For starters, training is not simply a matter of getting some credits, or
obtaining a qualification. Apart from Class of Business, Product Specific and
continuous professional development (CPD), you have to ensure that you stay
abreast of developments in a number of other areas as well.
General competence requirements
Section 12 of Board Notice 194 of 2017 determines the following:
A FSP, key individual and representative must –
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have adequate, appropriate and relevant skills, knowledge and expertise in
respect of the financial services, financial products and functions that it
performs;
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comply with the minimum requirements set out in Part 2, 3, 4 and 5 of this
Chapter; and
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maintain their competence.
Section 13 then elaborates on the responsibilities of a financial services
provider (FSP) in respect of the above.
The FSP must establish, maintain and apply adequate policies,
internal systems,
control and monitoring mechanisms to ensure that it (the FSP), its
key
individuals and representatives are compliant, and REMAIN compliant with the
general competence requirements as well as the minimum requirements contained in
Chapter 3, including product knowledge and CPD.
Competence register
A FSP is required, by 1 May 2018, to 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.
This document will assist the FSP in complying with the demands of Part 3 and 4
which reads:
An FSP must be able to demonstrate and record that it has evaluated and
reviewed
at regular and appropriate intervals-
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its representatives' and key individuals' competence and has taken appropriate
action to ensure that they remain competent for the activities they perform; and
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the appropriateness of the training and CPD
The evaluation and review contemplated above must, inter alia, take into account
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technical knowledge and its application;
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skills and expertise; and
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changes in the market, to financial products, financial services and legislation.
As a clincher, Part 8 reads:
The requirements set out in Parts 2, 3, 4 and 5 of Chapter 3 and Chapter 4 are
minimum requirements and compliance with that requirements does not in itself
serve as evidence that a person complies with the general competence
requirements in section 12.
A question that arises is how to ascertain what is “…adequate, appropriate and
relevant skills, knowledge and expertise in respect of the financial services,
financial products and functions” that you perform?
Will this only be determined during an onsite visit from the Regulator, or
assessed as part of your Conduct of Business return?
Will the person making such a call know enough of your business to be able to do
so objectively and fairly?
Where, in the past, you could tick the boxes in the compliance quiz and move on,
there are no boxes now.
Remember the Pete Seeger song, “Little boxes”?
And the people in the houses all went to the university
And they all get put in boxes, little boxes all the same
And there's doctors and there's lawyers
And business executives
And they all get put in boxes, and they all come out the same. |
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Your Practice Made Perfect |
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Supervision Department Feedback and Focus |
At the March 2018 FSB FAIS Conference, Ms Felicity Mabaso reported back
on the Supervision Department’s activities in 2017 and 2018, and
provided insights into its plans for 2018/2019.
FSB Theme Visits: 2017/2018
One of the three main focus areas was small FSPs without a compliance
officer.
The visits were more of an educational Intervention, continuing an
initiative started in 2014. A total of 60 FSPs were visited between
1 April 2017 and 28 February 2018.
The main concerns from the onsite visits were:
• Inadequate disclosure to clients
• Inadequate record keeping of the advice given
• No complaints handling policy or procedures
• Failure to register with the FIC
• No or inadequate FICA internal rules
Plans for 2108/2019
FICA will be a major focus for small FSPs, based on last year’s
findings.
If you are in this category, and need to jack up your FICA compliance,
please look at Moonstone’s very affordable on-line FICA training, which
was recently updated in line with the latest amendments.
Ad hoc visits to other FSPs will be based on complaints and information
from other sources such as statutory returns or irregularity reports.
Here too, FICA will be an important focus area.
We offer gratis FICA training for
Moonstone Compliance and Risk
Management clients.
Click here if you
are interested, but not a Moonstone client.
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Class of Business Training from Moonstone
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Short-Term Insurance: Personal Lines
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Short-Term Insurance: Commercial Lines
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Long-Term Insurance
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Pension Fund Benefits
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Short- and Long-Term Deposits
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Structured Deposits
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Investments
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Forex Investments
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Health Services Benefits
The Class of Business modules include all the sub-classes of the
specific class i.e. if a person does Short-term Insurance: Personal
Lines they will do all the sub-classes for that class of business as
well.
For more information, please visit the relevant section on the
MBSE Website.
For more detailed information on Corporate Packages, please contact
Sheila Olckers on 021 883 8000 or
sheilao@moonstoneinfo.com
Non-corporate clients can speak to Veronica Grobler on
087 702 6429 or
veronica@mbse.ac.za
Click here to
Register today. |
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Continuous Professional Development Update
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The legislative turbulence we forecast in 2017 became a storm in 2018.
We are currently inundated with enquiries from advisers who want to get
their show on the road.
Please bear in mind that the first Fit and Proper CPD cycle kicks off on
1 June 2018. It therefore does not make sense to start activities
related to CPD unless it is required by a professional body.
Moonstone Compliance and Risk Management’s comprehensive, practical
workshops, unpacking the Fit and Proper requirements, were scheduled to
start in May. It makes a lot more sense to run these in June, not so?
We will ensure that these workshops are duly accredited to ensure that
attendees gain the maximum number of CPD hours.
There will be other workshops, later in the year, in addition to a
variety of offerings from Moonstone Business School of Excellence, to
ensure that CPD becomes an essential part of your education, rather than
something you merely do because you have to.
More detailed information will follow shortly. |
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Technologically Speaking
Moonstone Information Refinery
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Advisers embrace Social Media |
“Advisors today are increasingly using social media as a tool not only to
communicate with their clients and prospects, but also to deepen and evolve
their ongoing relationships with clients” This is the conclusion of the Putnam
Investments Social Advisor Study that was recently released. Although the survey
only targeted US advisors, it is true that the digital boom is giving rise to
trends not only in the US but universally as well.
The survey found that social media has changed the nature of the advisors client
relationships a “great deal” in a number of ways:
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Two-thirds (67%) of advisors find that it is easier to share information with clients
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Nearly six in ten (59%) report having more frequent communication with clients
overall, although 38% say they connect less frequently by phone or in person
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More than half (54%) of advisors say they have a better professional
relationship with their clients, while 47% report a better personal relationship
with their clients
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Half (50%) report decision making is faster and easier
Click here to download the report.
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Regulatory Examinations
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RE Study material update |
Inseta provided the following update on its website:
RE 1 & RE 5 Material
“INSETA is currently reviewing and updating the Regulatory Material. The
estimated time of completion for this exercise is unknown, for further
information regarding the Regulatory Material, INSETA advises you to
contact the FSCA for further information.”
FAIS Circular 1 of 2018, in which the changes resulting from the new Fit
and Proper requirements were announced, states the following:
There are two sets of material which can be used for preparation
purposes:
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The FSCA Preparation Guide for
RE1 and RE5 together with the relevant
legislation, and
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The relevant Training Manuals that are made available by the BANKSETA
/ INSETA on their official websites.
Click on the link above to view and download the guide.
We undertake to place the amended study material on our website the
minute it is available.
Frequently asked Questions
Please
click here to access a list of questions and answers,
including information on what exams to write, the cost
thereof, study material, training and a lot more. |
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2018 RE Schedules updated |
Details for UK training opportunity
Date: 01 October 2018
Venue: CCT Venues-Barbican Aldersgate House London
Polaris Room
Sessions:
Enquiries:
Please contact Marietjie Grant:
mgrant@moonstoneinfo.com /
faisexam@moonstoneinfo.com
Telephone: +27 21 883 8000 |
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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 51000
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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Key Individual:
Destinata Capital Ltd, Faerie Glen, Pretoria & Somerset West - We
have a position for a key individual who is licensed for at least
category 1.8.
Read More
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Personal Lines
Sales/Underwriter:
Venshaw Insurance Administrators, Bellville, Western Cape - We are
looking for a candidate with 2 years' experience, RE5 and NQF4 (150
credits).
Read More
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Short Term Insurance
Representative: External Marketer/Service:
Venshaw Insurance Administrators, Bellville, Western Cape - The
candidate should be Xhosa speaking, and have completed RE5 and NQF4 (150
credits).
Read More
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Short Term Insurance
Representative: Claims Consultant:
Venshaw Insurance Administrators, Bellville, Western Cape - The
candidate should be Xhosa speaking, and have completed RE5 and NQF4 (150
credits).
Read More
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In Lighter Wyn |
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New Outbreak of Beatle Mania |
The picture we placed in Monday’s newsletter elicited a number of
comments and queries, so we thought a follow-up might be of interest
too.
The album it referred to is, of course, Abbey Road, where the
Beatles had their recording studio. The picture was taken on
8 August 1969 by photographer Iain Macmillan and became one of the
most iconic album covers ever.
There are two stories related to this album
cover which I enjoy.
The first relates to rumours that this is in fact a coded message to
say that Paul McCartney had died. John Lennon, in white, is the
priest, Ringo Starr, in black, the undertaker and George Harrison
the mourner. Paul’s bare feet are apparently the give-away.
A reader, Prem Harrilall, send me this picture, obviously from a
die-hard (no pun intended) fan wishing to make sure Paul became a
Sir one day.
The second story relates to a persistent
rumour about the so-called fifth Beatle. A
Wikipedia article provides more information on any number of
people who could possibly qualify for this singular honour. That was
until a prankster looked more closely at the background and
uncovered the truth.
Here is a fascinating article
on the
Abbey Road topic for all you fellow Beatles Fans.
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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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