At the end of last year’s Insurance update from the FSB, Jonathan Dixon said: “We had better fasten our safety belts – this is going to be rough year”, or words to that effect.
Having read all eleven presentations for this year’s road show this weekend, it might be advisable to strap on a parachute as well.
I found the points on RDR of particular interest, and will be reporting back after tomorrow’s session in Cape Town.
The following are just some of the thoughts for discussion:
Adviser categorization: A consultation paper is to be published soon to confirm the previously communicated two-tier model and requesting input on several interesting aspects, including:
- The feasibility of allowing a product supplier agent (PSA) to act as the PSA of more than one product supplier in different, non-competing lines of business, and related controls.
- Standards for allowing PSAs to refer customers to another product supplier in light of removal of “gap filling”
- Whether “gap filling” should be permitted for fixed interest annuities. The current thinking is that this is not necessary as it can also be managed through referrals.
- Conditions for being able to describe advice as being “independent” and
- Product supplier responsibility for different forms of advice.
Non-advice sales execution
- New FAIS fit & proper competency requirements define the activity of “execution of sales” and set competency requirements for scripted sales models
A change to the FAIS definition of “intermediary services” which will close the previous gap whereby direct sales execution by product suppliers potentially fell outside the scope of FAIS.
I fail to understand why are we failing RE5 so badly are you not concern bout poor people who are losing their jobs of more than 10 years just because of RE5 and they are breadwinner of their families you know you don’t have mercy can’t you at least do something about this maybe reduce the marks to 50% I was asking myself why 66% even at the big institutions their passing mark is 40 to 50% I am pleading with you to consider this.
Hi Jennifer. Thank you for your comments. We only conduct the exams, and do not make the rules. I will relay your concerns to the FSB for their consideration.