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Moonstone Monitor - 14 June 2018 |
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Read Moonstone Monitor for CPD
purposes
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Choose a job you love, and you will never have to work a day in your life.
- Confucius |
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Distributed to 51,833 subscribers.
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From the Crow's Nest |
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CPD via Moonstone Monitor Clarified |
It is evident from enquiries received after last week’s Moonstone
Monitor that there is a lot of general misunderstanding and uncertainty about
Continuous Professional Development, and more particularly, how this publication
can assist you in acquiring CPD hours.
Question: Will I have to pay for the Moonstone Monitor in future to be able
to acquire CPD hours?
Answer: No, and yes. You will still receive the Moonstone Monitor,
crammed full of valuable information free and gratis. In order to qualify for
CPD points, however, we have to verify that you did indeed read the newsletter.
This will be done by posing a few questions that you have to answer correctly to
qualify for the approved CPD time allocation. We have set up a system to do
this, and will issue you with a certificate which you can store in your Fit and
Proper file as proof.
Question: The approved allocation is 30 minutes for every Moonstone Monitor I
read. If I read 52 newsletters, will I be allocated 26 CPD hours?
Answer: We normally publish 48 Moonstone Monitors in a year (even Chuck
Norris takes a break sometimes). At most, you will only need 18 hours, so yes,
you can reach your goal in the comfort of your own office.
Question: Will the articles cover all the categories I am licensed for?
Answer: There is currently no requirement “per category”. Broadly
speaking, the FSP has to ensure that the type and combination of CPD activities
undertaken:
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are relevant to the functions and role of the FSP, key individual and
representative;
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contributes to the skill, knowledge, expertise and professional and ethical
standards of the FSP, key individual and representative
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addresses any identified knowledge needs or gaps and
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adequately takes into account changing internal and external conditions.
Question: What CPD must I complete/How many hours of CPD am I required to
complete?
Answer: This will depend on your role and the development needs
identified for you by your FSP. In terms of BN194 of 2017, the minimum CPD hours
required are:
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If you are authorised to render financial services for a single subclass of
business within a single class of business - six hours of CPD activities per CPD
cycle.
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If you are authorised to render financial services for more than one subclass
of business within a single class of business - 12 hours of CPD activities per
CPD cycle
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If you are authorised to render financial services for more than one class of
business - 18 hours of CPD activities per CPD cycle.
See article below for more detail.Question: It appears that I will have to pay for every CPD questionnaire I
complete?
Answer: No, you register for 100 days during which you can complete the
questions, of which there will be a maximum of five, every week.
Question: What is the pass mark?
Answer: 100%. But, before you panic: it is an “open book” assessment, and
you can retry as often as you like, at no extra cost.
Question: Is there a platform where I can monitor my progress?
Answer: For every successful assessment you will receive a certificate,
but the monitoring is your responsibility. Our Compliance division is in the
final stages of the development of an advanced system that will automate the
tracking of the Fit and Proper status of every member of any size FSP. We are
confident that this will set a new standard in the industry.
General notes
We have applied for approval of our other newsletter, the Moonstone Investment
Indicators, as well, and will keep you posted on developments there.
In addition to our newsletters, those required to attain CPD hours can also do
so via other obligatory training, including Class of Business, FICA Awareness
and other training interventions from Moonstone Business School of Excellence.
This applies to both reps currently working under supervision as well as new
appointees. The exact requirements regarding reps appointed after April 2018 and
working under supervision still have to be spelt out by the FSCA.
Click here to register for access to the weekly
Moonstone Monitor Assessment.
For more information about other CPD activities from Moonstone,
click here. |
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Your Practice Made Perfect |
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CPD Obligations and Classes of Business |
The required hours of continuous professional development required is
determined by the extent of the products which you advise on.
Board Notice 194 of 2017, the Fit and Proper road map, decrees as
follows:
A FSP, key individual and representative authorised, approved or
appointed to render or manage or oversee the rendering of financial
services in respect of –
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a single subclass of business within a single class of business must
complete a minimum of 6 hours of CPD activities per CPD cycle;
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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
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more than one class of business must complete a minimum of 18 hours
of CPD activities per CPD cycle
Let’s try and explain this at the hand of practical examples. In order
to follow this, please download and print the
Classes of Business table.
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Mary works as a representative for a small brokerage and only sells
motor insurance. This is one of 8 sub-classes which resort under the
“Short-term Insurance, Personal Lines” Class of Business. She only needs
to acquire 6 hours of CPD per annual cycle.
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Joseph, her husband, specialises
in motor, transport and property insurance, all of which are sub-classes of “Short-term Insurance,
Personal Lines” Class of Business. He will need to complete 12 hours of CPD training per cycle.
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Frank, the owner of the business, advises on both Personal AND
Commercial lines. As these are classified as two Classes of Business, he
will need to attain 18 hours of CPD training per annual cycle, between
1 June and 31 May the following year.
The Board Notice also provides for a reduction in the number of CPD
hours.
A FSP, key individual and representative that is authorised, approved or
appointed for a period of less than 12 months in a particular CPD cycle,
must by the end of that CPD cycle complete a pro-rated minimum number of
CPD hours calculated as follows:
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(X + 12) x Y = Z |
X = Number of annual required CPD hours |
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Y = number of months authorised, approved or appointed during a
particular CPD cycle |
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Z = Required pro rata CPD hours |
A FSP may pro rata reduce the CPD hours in respect of a representative
for the period of time during which that representative is continuously
absent from work if that absence is due to
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maternity, paternity or adoption leave;
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long-term illness or disability; or
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the representative's responsibilities to care for a family member of
that representative who has a long-term illness or disability.
If such an occasion arises, please refer to the
Board Notice for
full details. |
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FSCA halts Regulatory Examinations administered by the FPI
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The Financial Services Conduct Authority (FSCA) has instructed the
Financial Planning Institute (FPI) to discontinue the delivery of the
Regulatory Examination (RE) with immediate effect.
All current and future exams will now be delivered by exam body
Moonstone until further notice.
There will be no disruptions to the dates or the venues of the
examinations. Moonstone will communicate directly with all candidates
regarding any details pertaining to the RE exam.
Click here to download a copy of the
FSCA Press Release. |
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Debarment notification simplified
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The rather cumbersome “Form and manner of debarment notification for
representatives” is replaced by a far more user-friendly document
contained in FSCA FAIS Notice 17 of 2018.
Part I of the Debarment Notification is a simple two-page document which
the FSP is required to submit to the FSCA within five days of the
debarment of a representative. It merely indicates who the FSP is, the
debarred person, and personal details of the rep, including ID and
contact details, and grounds on which the debarment was effected.
Part II, which must be submitted within 15 days of the debarment,
requires attachment of documentation providing reasons and grounds for
the debarment, including, but not limited to the following:
- All documentary evidence and information supporting the
grounds/reasons for the debarment.
- A copy of the employment contract or mandate between the FSP and the
debarred representative.
- A copy of transcript/minutes and outcome of debarment hearing and
- Forensic/investigation report and any other relevant documents
It follows then that due process will have to be adhered to in order to
provide such documentation.
The original debarment process was a flawed attempt at justice, and
replaced in its entirety.
The new section 14 provides substantially more requirements, including
the stipulation that “…the provider must ensure that the debarment
process is lawful, reasonable and procedurally fair.”
Please also bear in mind that aggrieved persons will now have access to
a tribunal. This will put pressure on both the FSP and the FSCA to
ensure that all documentation conforms to the above requirements.
Reappointments
The amended requirements will also provide FSPs who wish to reappoint
debarred reps with a valuable tool to assess the real reason for the
debarment, and not just a one-sided version. Obviously, one would need
to have the written consent from the debarred person to gain access to
the documentation.
In its reappointment guidelines, published late last year, the FSCA was
at great pains to indicate that it was not responsible for saying yes or
no to a request for reappointment. This was a rather peculiar stance,
given that the FSCA’s mandate is the protection of the public. This is
even more important if the Authority is in possession of information
which indicates that a potential reappointment is not fit and proper.
The FSP assumes responsibility when it reappoints a debarred rep, and
also the consequences should things go wrong. It therefore makes sense
to do your homework, using all the information at your disposal.
Click here to download the new
Debarment Notification.
Click here to download the
Reappointment Guidelines. |
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Marking time while data is exploited
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Legalbrief Today reports:
The failure of the government to adequately protect our privacy – having
produced a world-class data protection law and then failed, thus far, to
get it off the ground – could well have economic consequences in light
of a new set of privacy rules adopted by the European Union, warn Alison
Tilley, of the Open Democracy Advice Centre, and Murray Hunter, of the
Right2Know Campaign, in an article on the Daily Maverick site.
They note a huge new wave of data protection has just swept across most
of the globe in the form of the General Data Protection Regulation (GDPR),
essentially a new set of privacy rules adopted by the European Union to
protect the privacy of all EU residents. They warn the GDPR has
far-reaching implications for any business, organisation and entity that
handles personal information of any kind. It is probably the strongest
privacy protection yet.
Under the GDPR, individuals have greatly expanded rights over their
data, including the right to be informed and notified as to what
someone’s doing with the data, the right to object to what they’re doing
with it, and the right to be forgotten. The EU has stated that any
organisations that are not in compliance with the GDPR will face heavy
fines – including for any SA firms that have EU customers’ personal
information, as well as our government. If a business offers goods or
services to citizens in the EU, then it will be subject to GDPR, no
matter where it’s based.
Yet SA is marking time on the issue despite the fact privacy breaches
are relatively common. Say the writers: 'Our own recent data protection
law, the Protection of Personal Information Act, is not yet operational.
The data protection watchdog created through that law is the Information
Regulator – the watchdog body is essentially non-functioning, with most
of its funding tied up in government bureaucracy. The failure of our
government to adequately protect our privacy – having produced a
world-class data protection law and then failed, thus far, to get it off
the ground – could well have economic consequences in light of the GDPR.
And certainly, this failure will have consequences for the millions who
need their privacy protected.'
Click here to access the
Full Daily Maverick report. |
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Technologically Speaking
Moonstone Information Refinery
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Technology is here to stay |
How we embrace technology and use technology together with traditional
tools will make us more efficient and build stronger client
relationships in future. Technology is changing the way our clients
behave, it’s changing the way we communicate with them and even
changing the way they will interact with our products. Eventually
also changing the way we design our products in future.
According to a post on the IRESS blog “Financial services must adapt
to this reality if it's going to keep the next generation of
investors engaged.”
Click here to read more …
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Regulatory Examinations
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RE Deadline 30 June 2018 |
The hour glass is almost empty for those
who are compelled to pass the level 1 RE 5 for representatives by
30 June 2018.
Today is the last day for candidates to register in order to write
before the DOFA deadline of 30 June 2018 as the last exam in June is on
the 29th!
(Note: bookings close about two weeks before the actual exam, for
logistical reasons)
IMPORTANT: It is the responsibility of the candidate to make sure
that he/she is registered for the correct examination, date, time and
venue. |
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How to prepare for the REs |
Inseta has confirmed that they received the updated materials from their
developers last week and have placed them on their website.
The updated versions can be access via:
http://www.inseta.org.za/inner.aspx?section=4&page=57
The FSCA strongly recommends the use of its
Preparation Guide to prepare for the exams.
The FSCA Preparation Guide suggests the following approach
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STEP |
ACTIVITY |
DESCRIPTION |
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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 |
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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. |
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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. |
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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. |
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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. |
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6 |
Then go back to the
legislation itself, and read it again.
Where there are discrepancies, ALWAYS regard the
legislation as being correct. |
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. |
An alternative that you may want to consider is the
LexisNexis Legislation Handbook for RE 1 (key individual)
and RE 5 (representative) exams.
The 5th edition of the Handbook has just been
released and provides the latest legislation specified as
relevant to the regulatory exams RE 1 and 5.
The Handbook has been divided into 5 sections with shaded
tabs on the side for easy access:
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TAB A: FAIS Act and Regulations
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TAB B: Code of Conduct
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TAB C: Fit and Proper
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TAB D: General Acts, Board Notices and Guidance Notes
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TAB E: FIC Act, Regulations and Guidance Notes
The Handbook together with its Preparation Guides provides a
good source to study for the exams. Click here to download
the LexisNexis Preparation Guide for
RE 1 and
RE 5.
The LexisNexis Legislation Handbook has now been updated with all
the new legislation effective from 1 April 2018.
Click here to order your copy from our Advisor Store. |
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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
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Are you hiring? Advertise your position on Moonstone’s Career Platform
|
| • |
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. |
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Featured Positions |
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2 x Marketing
Assistants:
HIC Underwriting Managers Pty Ltd, Bedfordview - We are looking for
two assistants to manage the relationship between the Portfolio Manager
and Broker. Must be able to work under pressure and be deadline driven.
Read More
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Claims Administrator:
Cooke Fuller Garrun, Kloof, KZN - The ideal candidate should have at
least 5 years experience in Commercial and Personal claims and must be
FAIS qualified.
Read More
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Para-Planner:
Carrick Wealth, Johannesburg, Durban and Cape Town - The
Para-planner will be responsible for researching and analysing products
to present recommendations to clients based on a thorough financial
planning process.
Read More
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In Lighter Wyn |
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Irish ghost story |
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This story happened a while ago in Dublin, and even though it
sounds like an Alfred Hitchcock tale, it's true. ~~~~~~~~~~~~
John Bradford, a Dublin University student, was on the side of the
road hitch-hiking on a very dark night and in the midst of a big
storm.
The night was rolling on and no car went by. The storm was so strong
he could hardly see a few feet ahead of him.
Suddenly, he saw a car slowly coming towards him and stopped. John,
desperate for shelter and without thinking about it, got into the
car and closed the door ... only to realise there was nobody behind
the wheel and the engine wasn't running.
The car started moving slowly. John looked at the road ahead and saw
a curve approaching. Scared, he started to pray, begging for his
life. Then, just before the car hit the curve, a hand appeared out
of nowhere through the window, and turned the wheel. John, paralysed
with terror, watched as the hand came through the window, but never
touched or harmed him.
Shortly thereafter, John saw the lights of a pub appear down the
road, so, gathering strength, he jumped out of the car and ran to
it... Wet and out of breath, he rushed inside and started telling
everybody about the horrible experience he had just had.
A silence enveloped the pub when everybody realised he was crying
... and wasn't drunk.
Suddenly, the door opened, and two other people walked in from the
dark and stormy night. They, like John, were also soaked and out of
breath. Looking around, and seeing John Bradford sobbing at the bar,
one said to the other..
'Look Paddy ... there's that idiot that got in the car while we were
pushing it!' |
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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. |
