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Moonstone Monitor -  10 May 2018
In This Week's Newsletter
 
From the Crow's Nest
Continuous Professional Development Refresher - practical points to consider
 
Your Practice Made Perfect
Moonstone Regulatory Update Workshops – registration opens tomorrow!
The Apprentice – do you have what it takes?
‘Fairer’ Credit Bill balances constitutional rights
 
Technologically Speaking
Insurtech is the new buzzword
 
Regulatory Examinations
RE Deadline 30 June 2018 - check RE registration date deadlines
How to prepare for the REs
Schedules for 2018
 
Careers Platform
Are you hiring? Moonstone offers biggest industry platform for employers
Featured Positions
 
In Lighter Wyn
The job interview
 
 
 
 
 

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From the Crow's Nest
From the Crow's Nest
Continuous Professional Development Refresher
There is a lot of interest from industry members in obtaining their required CPD hours. In fact, some are so keen that they want to start before the time. If you do, it will be wasted money, time and effort as the first CPD cycle only kicks in from 1 June 2018.

Also bear in mind that not any old training will do. To avoid attending invalid interventions, you need to ensure that the activity is accredited by a professional body, who will stipulate a time apportionment to the activity.

A current proposal to amend the definition of a “CPD activity” has the intention to require of Professional Bodies to only accredit activities that are verifiable. This term is defined as follows:

"verifiable" in relation to CPD activities means activities that can be objectively verified and includes
  • evidence of the identity of the person who partook in such activities and

  • proof of the completion thereof

CPD activity” means an activity that is-
  1. Accredited by a Professional Body who confirmed that the activity is verifiable; and

  2. Allocated an hour value or part thereof by that Professional Body; and

  3. Verifiable.

The definition further excludes the following from the definition of a CPD activity:
  1. An activity performed towards a qualification and

  2. Product specific training.

This means that activities performed towards Class of Business training is in fact a CPD activity, provided that it complies with points a), b) and c) above.

Further requirements

Board Notice 194 of 2017 stipulates that a FSP must establish and maintain policies and procedures on CPD to ensure that the FSP, key individual and representative has the required knowledge and skills appropriate for their activities and responsibilities.


You should also have training plans for each CPD cycle to ensure that activities are relevant and appropriate for the authorisation, approval and appointment of the FSP, key individual and representative and continually improves the professional standards and practices of all three entities.

Am I affected by CPD?

The following categories are excluded:

  • Category I FSPs, their KIs and Reps that are only authorised to render financial services in respect of Long-term Insurance subcategory A and/or Friendly Society Benefits are excluded.

  • A representative of a Category I FSP that is appointed to only render a financial service in respect of a Tier 2 financial product; and/or render an intermediary service in respect of a Tier 1 financial product.

Minimum CPD hours

An FSP, key individual and representative authorised, approved or appointed to render or manage or oversee the rendering of financial services in respect of -
  • a single subclass of business within a single class of business must complete a minimum of 6 hours of CPD activities per CPD cycle;

  • more than one subclass of business within a single class of business must complete a minimum of 12 hours of CPD activities per CPD cycle; or

  • more than one class of business must complete a minimum of 18 hours of CPD activities per CPD cycle.

How many CPD hours are required?

The minimum number of CPD hours per 12-month cycle that FSPs, KIs and Reps need to go through depends on how and for what they are authorised. In summary, where FSPs, KIs and/or Reps are authorised to render or oversee the rendering of financial services in:
  • more than one class of business (e.g. Investments and Long-Term Insurance) they must complete a minimum of 18 hours of CPD activities (this should be the case for most Masthead members),

  • more than one subclass of business within a single class of business (e.g. Motor policy and Property policy under ST Insurance: personal lines) – 12 hours of CPD activities,

  • single subclass of business within one class of business must complete 6 hours of CPD activities.

In certain circumstances, a proportionate “quota” will prevail, for instance where a rep takes maternity leave, or is appointed during a CPD cycle. Please see the attachment linked below for more information.

CPD Cycles

A CPD cycle will run for 12 months, from 1 June every year to 31 May of the following year.

FSPs are required to update the CPD information in their competence register within 30 days after each cycle. In our view, this is not practical. One should rather do this at least on a monthly basis to ensure that you do not run out of time and opportunity as the end of the cycle approaches.

Mind over matter

One can approach CPD as a grudge obligation, or embrace the opportunity as a further step towards becoming a true professional. Please just make sure you make use of a professional body whose services are aligned with the requirements noted above.

Click here to download the relevant CPD section from the Fit and Proper Determination.
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Your Practice Made Perfect
Your Practice
Moonstone Regulatory Update Workshops – registration opens tomorrow!
Moonstone Compliance and Risk Management’s comprehensive, practical workshops will run in June 2018 as recently published.

This year our workshops will be accredited by a recognized body and will qualify as a CPD activity towards the accumulation of CPD hours as required by the FSCA.

The workshops will again be facilitated by Billy Seyffert and Alan Holton and will cover:
 
A concise overview of:
  The Insurance Regulations, the impact and what’s next?
  The most important Policyholder Protection Rules considerations
  Debarments – What has changed?
  Financial Sector Regulation Act – What is important to me?
The proposed changes to the General Code of Conduct and the impact on FSPs
An in-depth unpacking of the 12 elements of the New Fit and Proper Requirements and what it will take to comply.

The workshops will run from 09h00 until 13h00 and take place on the following dates and venues:

VENUE DATE
East London - EL Golf Club 5 June 2018
Port Elizabeth - PE Golf Club 6 June 2018
Cape Town - The River Club 18 June 2018
Johannesburg - Houghton Golf Club 19 June 2018
Pretoria - Diep in die Berg 20 June 2018
Durban - Coastlands Hotel Umhlanga 21 June 2018
Bloemfontein - Emoya Estate 26 June 2018

Cost (no increase from 2017)

Moonstone Compliance clients: R650 per person (excl VAT).

Other attendees: R1 000 per person (excl VAT).

Registration opens tomorrow!

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The Apprentice
Do You Have What It Takes?
  • Are you younger than 35?

  • Been in the short term insurance industry for more than 4 years?

  • Hold a short term insurance study or qualification?

Entries for The Insurance Apprentice 2019 close on 31 August 2018. If you think you have what it takes to be the next Insurance Apprentice, why not take a chance and apply?

After this date, the top thirty candidates will be identified, with three elimination rounds in Johannesburg, Cape Town and Durban in October.

The eight qualifying apprentices for series five of The Insurance Apprentice will be revealed mid-November and filming will take place early in January 2019. The series will be aired early 2019 via the FAnews and The Insurance Apprentice websites, YouTube and Facebook.

Don’t wait until the last minute to apply. If we haven’t convinced you yet, remember that, in addition to promoting and recognising talent, the exposure provided by The Insurance Apprentice is immeasurable.

The winner, which could be YOU, will:
  • fly to London, business class, for a week to visit Lloyds of London;

  • receive a bursary from INSETA;

  • win a cash prize from Masifunde Training Centre and

  • go to the Insurance Conference at Sun City in 2019.

Go on, what have you got to lose?
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‘Fairer’ Credit Bill balances constitutional rights
Legalbrief Today recently reported that a sixth draft of the National Credit Amendment Bill was presented to the National Assembly’s Trade and Industry Committee. The draft seeks to balance the constitutional rights of credit providers and those of over-indebted low-income consumers. According to parliamentary legal adviser Charmaine van der Walt, there has been no change in the objectives of the National Credit Amendment Bill. The sixth draft is more explicit in its intention to balance the constitutional rights of credit providers and those of over-indebted low-income consumers. Pam Saxby for Legalbrief Policy Watch notes that the Bill’s impact on credit providers is expected to be far less than its first draft tended to suggest, as the focus is on providing relief to consumers whose financial circumstances make it impossible to repay their debts. It was apparently never the committee’s intention to propose legislation aimed at ‘writing off all debt’. Instead, the process envisaged for determining whether an over-indebted consumer qualifies for relief is underpinned by the principle that, where possible, the outstanding amounts concerned are paid – if over a longer timeframe and in accordance with case-specific pre-conditions.

It is Van der Merwe’s view that the process now proposed is ‘procedurally fair’, it ensures that both parties are ‘heard’; and takes cognisance of the need for ‘proportionality’ in rearranging a consumer’s debt obligations.

The Bill does provide for retrospectivity in suspending or extinguishing debt, but there should be compelling reasons for doing so. Van der Merwe however expressed concern about the constitutionality of empowering the tribunal to be both investigator and adjudicator. While she would like to see this addressed, she is confident that, by isolating the provisions concerned in a single clause, should that section of the amended Act be declared unconstitutional, this would not impact negatively on the remainder of the statute.

Click here to download the sixth draft.

Should you have any queries or questions related to the National Credit Act, please feel free to contact Gerrit Viviers, Moonstone’s NCA compliance specialist at 021 883 8000 or write to him at gviviers@moonstonecompliance.co.za.
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Technologically Speaking
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Insurtech is the new buzzword
With the emergence of financial technology companies (“fintechs”) the new buzzword in the insurance industry is “insurtech” or “insurance technology”. AlphaCode, a club for entrepreneurs, intrapreneurs and businesses and initiative of RMI Holdings recently posted that “insurtech is transforming a staid industry in SA”. Dominique Collett, senior investment executive at RMI Holdings commented that although the insurance industry initially identified insurtech as a threat it has gained momentum over the last two years as insurers are now taking a far more proactive approach to grab at opportunities in this space and are starting to collaborate with start-ups.

Collette has identified four major trends in South African insurtech:
  • The first trend is the digitisation of product distribution and the exploration of innovative ways to deliver products to customers.

  • The second trend is innovation and disruption of the actual product itself

  • The third trend is a combination of distribution and product innovation

  • The fourth trend is companies that are working with insurers to digitise them.

Click here to read the article where Collette shares more about insurtech and highlights the startups and companies that have seized the opportunity.
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Regulatory Examinations
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RE Deadline 30 June 2018
The table below indicates who has to successfully complete the RE 5 by 30 June 2018.
 
Representatives’ DOFA RE 5 Deadline
30/06/2015 – 31/12/2015 30/06/2018
01/01/2016 – 29/06/2016 30/06/2018
30/06/2016 – 31/12/2016 30/06/2019

DOFA refers to your date of first appointment. For instance, if you were appointed on 1 September 2015, you actually have two years and nine months in which to pass the RE 5 for representatives.

Unfortunately, time is now running out for those who are compelled to pass in less than two months.

  1. Remember that bookings close about two weeks before the actual exam, for logistical reasons. Today registration closes for the examination of the 25th of May.

  2. Not everyone passes at the first attempt. If you wish to give yourself enough time to re-register in such an event, bear in mind that you should allow for time for your paper to be marked and the results sent to you. This means that you should try and write by 8 June, given that our venues have always been fully booked in the last few weeks of the DOFA deadline.

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How to prepare for the REs
The FSCA Preparation Guide recommends the following approach:

 
STEP ACTIVITY DESCRIPTION
1 Refer to the mapping document for the exam you are planning to write. This is the map of the tasks/criteria that will be assessed in your exam, and it contains a reference to the relevant legislation that you are required to study in order to understand the task / criteria. Appendix A in the Preparation Guide
2 Look at the number of criteria for each task. These are the knowledge and skill components you require to be able to perform.
RE 1 has 16 tasks that will be tested
RE 5 has 8 tasks that will be tested

If you have studied all the criteria for every task, then you would be properly prepared to write the RE 1 or RE 5 – whichever exam applies to you.
3 To prepare for the exam, you must spend time each day and study the legislation and supporting training material. One should systematically select one criteria at a time. Group the criteria together in groups of 3 or 4 and allocate study hours per day to prepare. The total number of hours will individually differ due to ones circumstances. At least 2 hours per day is the suggested number of hours.
4 To start, read the task, and then the first criteria. Then refer to the legislation for these criteria, and read the legislation referred to. It is important to first read the legislation so that you can see what terms are used and how the legislation is structured.
5 Now refer to the additional support or training material and study the section in the training material dealing with those particular criteria. The support material explains the particular concepts in simple language so that it is easier to understand what the legislation is actually saying and what it means.
6 Then go back to the legislation itself, and read it again.
NB The questions are based on the actual legislation, NOT external training material.
Now that you have gained a better understanding of what the legislation is about, you may find reading the legislation again will make more sense to you if you didn’t understand it the first time around.
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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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Careers Platform
Are you hiring? Advertise your position on Moonstone’s Career Platform
Careers Platform Packages

•   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 51000 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.


Advertise


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Featured Positions
  • Experienced Financial Advisers: Centered Financial Solutions Pretoria / Centurion - Top franchise with the most comprehensive product range that included risk, investment, RA, short term & medical aid looking for dynamic financial advisers. Read More

  • Broker Consultant: CIA - Commercial & Industrial Acceptances, KZN Umhlanga - We are looking for a candidate with at least 5-10 years working experience in the insurance industry, short term insurance qualifications and RE1. Read More

  • Offshore Property Consultant: Salesforce Recruitment Johannesburg and Durban - This is your opportunity to offer a unique, capital growth investment opportunity to the market without bumping heads with direct competitors. Read More

  • International Buy to Let Sales Consultant: Salesforce Recruitment Johannesburg and Durban - Join this stable, Offshore Property Investment House and elevate your sales career to the next level. Read More

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In Lighter Wyn
In Lighter Wyn
The job interview
An applicant was filling out a job application. When he came to the question, "Have you ever been arrested?" He answered, "No."

The next question, intended for people who had answered in the affirmative to the last one, was "Why?" The applicant answered it anyway: "Never got caught."

_________________________________


HR Manager to job candidate: "I see you've had no computer training. Although that qualifies you for upper management, it means you're under-qualified for our entry level positions."

_________________________________

Job interview
 

'n Vrou kom skaam-skaam by die dokter aan.

Dokter: “Waarmee kan ek help, Mevrou?”

Vrou: “’n By het my gesteek.”

Dokter: “Waar het die by u gesteek?”

Vrou: “Ek wil liewer nie sê nie.”

Dokter: “Maar ek kan u nie behandel as ek nie weet waar die by u gesteek het nie.”

Vrou: “Ek kan nie sê nie. Die skande is te groot. Niemand wat dit te hore kom sal ooit weer met my wil vriende wees nie. O, ek wens ek was dood...”

Dokter (streng): “Mevrou, ons dokters kry elke dag met allerlei snaakse dinge te doen. Buitendien is ons gebind tot streng professionele etiket om geen besonderhede oor pasiënte bekend te maak nie.”

Vrou: “Belowe u om vir niemand te sê nie?”

Dokter: “Ja, ek belowe op my erewoord. Sê nou vir my waar het die by u gesteek.”

Vrou (skaam): “Op Loftus Versveld."

Voeg die veld van jou keuse by voor jy dit aanstuur.
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