Experience:

Hands-on working experience.  The duration varies from 2 months to 1 year.  Most F&I’s would need 1 year experience as a representative to cover all their product categories.

Product specific training

Product specific training refers to training and assessment on the products under which the representative has been appointed.  This would include the product structure, purpose, terms and conditions, costs involved.  The F&I must complete product specific training before they could be allowed to render financial services.

Class of business training

Class of business training refers to training and assessment on the relevant industry sub-sectors, for example training on long-term insurance., or training on short-term insurance. Depending on the products that the FSP sells, F&I’s would need to complete Class of Business Training in Short-Term Insurance Personal Lines, Short-term Insurance commercial lines and Long-term insurance, and this must be completed within 12 months from date of first appointment.

Regulatory Examination

As a representative, F&I’s must successfully complete the Regulatory Examination for Representatives, or RE5.  Regulatory examination refers to an assessment on the legal framework in which representatives work, specifically on the FAIS Act and the FAIS General Code of Conduct. F&I’s must successfully complete RE5 within 2 years of date of first appointment.

Relevant qualification

F&I’s must complete a qualification that is recognised by the FSCA, in the product categories in which they operate.  The qualification could be for example a Retail Insurance Qualification or Short-Term or Long-term insurance qualification on NQF 4, or a Wealth Management Qualification on NQF 5, but many other qualifications for example a BCom is also recognised by the FSCA.  The qualification must be completed within 6 years of first appointment.

The FSP must register the new representative on the representative register. The date of their first appointment on the representative register is called the DOFA date. This date is important as a representative is only allowed to work under supervision for a period of six years from date of registration on the register. During this period, the representative must comply with the FAIS Fit and Proper Competency Requirements.

A representative has 12 months from the date of his registration on the Financial Service Provider Rrepresentative Register to be found competent on the Classes of Business, 24 months to pass his Regulatory Examination for Representatives and 6 years to complete his FSCA Recognised Qualification.

Why must an F&I who is not yet competence work under supervision?

When a person is first appointed in a position as F&I, the person must start working under supervision to support the representative’s development, and to ensure that clients receive the best advice and service while the representative becomes competent.

The representative therefore acts under supervision until meeting all Fit and Proper competency requirements.

In addition to obtaining formal qualifications, representatives therefore need to gain certain knowledge and skills under the guidance of an experienced and qualified person in order to do the best job possible.

If the representative fails to meet one or more requirement within the time limits listed in the above table, he or she must be removed or debarred from the position until the requirement has been met, this could also lead to dismissal.

Non compliance with the Good standing, Honesty and Integrity Requirements :

• Acting fraudulently
• Misconduct or dishonesty

Non compliance with the Competence Requirement :

Not completing the following by the deadline:

• Product training
• Class of business training
• RE5
• FSCA recognised qualification
• CPD points

The purpose of debarment is to protect customers from unethical financial services rendered by representatives who are no longer fit and proper. When a representative is debarred, he/she can no longer render any new financial services to clients. However, a representative who has been debarred, may apply for re-appointment, but there are certain conditions that must be met before the Authority will re-appoint him/her: The Representative must submit certified copies of proof of compliance to the appointing provider.

Representatives who were debarred for non-compliance with the Honesty and Integrity Requirements, must wait 12 months after the debarment before they can apply for re-appointment. Representatives who were debarred for non-compliance with the competence requirements, could apply immediately for re-appointment after compliance was achieved (e.g. passed RE).