The competency requirements under FAIS are often misunderstood, leading to many people stressing unnecessarily.
Prior to 2010, transitional arrangements were in place which allowed for “FAIS Credits” to be obtained which would exempt representatives from having to obtain a full qualification.
It is important to note that this only applies to those licence categories which applied at the time. If one applied for a new licence category from 2010 onwards, the relevant approved qualification is required.
New entrants to the industry from 1 January 2010 onwards are required to obtain a full qualification within six years of date of first appointment, while working under supervision, until such time as they have completed the qualification and passed the required regulatory exams.
FAIS Credits are not an option for those appointed after 1 January 2010, nor does the successful completion of a recognised qualification lead to FAIS Credits being awarded. It only applies to first time appointees before 1 January 2010.
The most important thing for those appointed after this date is to make sure that they study towards a recognised qualification. Normally, a full qualification consists of a number of clusters, each providing a certain number of credits, the total of which should at least be 120.
Please note that successful completion of the full range of prescribed clusters is required in order to obtain the qualification. Credits obtained towards the acquisition of the qualification do not count for anything until all the clusters have been successfully completed.
NB: Regulatory Examinations, often referred to as “FAIS” exams, is a totally separate competency requirement and does not qualify successful candidates with any credits towards a full qualification.
If you have any questions in this regard, you are welcome to contact Moonstone Business School of Excellence:
Stellenbosch: 021 883 8000
Pretoria: 087 702 6429.