DOFA and New Product Lines

The answer to a question received from a subscriber may be of interest to many others:

“If a rep has only worked on life products and has a Date of First Appointment of 2011, and now wants to work in the short-term space, does his fit and proper requirements reset to the new appointment date for short term?”

The short answer is yes, but for the short-term component only. You need to take some provisos into account.

  1. It appears that he will continue to work on the life side, so in this respect, the obligations regarding fit and proper in terms of competency, experience, qualifications and regulatory exams remain in place.
  2. Until such time as he satisfies all the criteria regarding the above under short-term, he will be obliged to work under supervision as far as short-term is concerned.
  3. In this example, a full qualification is required in view of the fact that he was appointed after 2010. Those appointed before this date, and who qualified in terms of having obtained the required 30 or 60 credits, will now be obliged to obtain a full qualification.
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