– Ensure appropriate qualification for the applicable financial product
One of the frequent questions we receive around the new Fit and proper Determination (Board Notice 194 of 2017) is whether or not a qualification is needed, and which qualifications are ‘acceptable’ qualifications to meet fit and proper requirements.
To briefly recap the main requirements in terms of Board Notice 194 of 2017:
| If … | Then |
| you are an FSP, a key individual or a representative | in general, you must have a qualification recognised by the Registrar as providing the relevant knowledge and skills to fulfil your responsibilities under the Act.
The Registrar recognises different types of qualifications as appropriate for different categories of FSPs, representatives and key individuals, and for different types of financial services and financial products. Details of the relevant aspects considered by the Registrar in considering appropriateness of a qualification can be found in section 24(2) of Board Notice 194. Click here to access this Board Notice. |
| you are a representative or a supervised representative of a Category II, IIA or III FSP | you must have a qualification recognised in terms of section 24 of the Fit and Proper Requirements for a representative of a Category II, IIA or III FSP respectively, which must be, at a minimum, at degree level. |
| you are an FSP, a key individual or representative rendering financial services only in respect of Long-term Insurance sub-category A and/ or Friendly Society Benefits | there are no qualification requirements. |
| you are a representative appointed to perform “execution of sales” only | you must have a minimum qualification of Grade 12 National Certificate or equivalent. |
| you are a supervised representative of a Category I or IV FSP | you must have an entry level qualification of: (i) a Grade 12 National Certificate; or (ii) a qualification equivalent to a Grade 12 National Certificate; and you must work under supervision until you gain the full qualification as recognised by the Registrar. See note below. |
| you are a supervised representative of a Category I FSP that is appointed only to perform the execution of sales | you must have an entry level qualification of: (i) a Grade 10; or (ii) an academic achievement equivalent to Grade 10; and you must work under supervision until you gain the required Grade 12 National Certificate or a qualification equivalent to a Grade 12 National Certificate |
As set out above, and depending on the financial product/s which you are authorised for, new entrants to the industry may need to obtain an appropriate qualification for the applicable financial product within six years from their date of appointment for that financial product. If you are a new entrant and are considering your study options, Moonstone Business School of Excellence has just the qualification for you – the Higher Certificate in Wealth Management (NQF5), SAQA ID NR. 83346/66611.
Some quick facts on this qualification:
- It provides access to the Financial Services Industry,
- It is recognised as meeting fit and proper requirements for qualification by the Financial Services Conduct Authority for all product sub-categories of Category I FSPs and can be used to fulfil fit and proper requirements for FAIS roles in Category I FSPs.
Click here to read more about the Higher Certificate in Wealth Management.
Good day
Is there an exam that I need to write to be compliance with FAIS Fit and Proper requirements?
If so please assist on how to go about it.
Good day
You need to write the RE1 exam.
Information about how to register to write the RE exams can be found here: https://www.moonstone.co.za/services/regulatory-exam-body/
Note: Moonstone does not provide RE study material or workshops. In terms of our mandate from the FSCA, we cannot recommend training providers.
We do publish guides and other resources to help you prepare for the exams: https://www.moonstone.co.za/library/regulatory-examination-library/#RE1
We also have four exam preparation videos: https://vimeo.com/showcase/regulatory-exam-preparation
The exam fees are set by the Financial Sector Conduct Authority. The current fee to write the exam is R1 226 (VAT inclusive) per examination per candidate.
Moonstone has venues around South Africa where students write the exams. To find a venue, go to https://www.faisexam.co.za/nav/public and click on the Venues tab. To check the exam schedule, click on the Exam Schedule tab.