INSETA FIT & PROPER PROJECT

Glen Edwards : Co-ordinator

Ponie de Wet : Glen’s Manager

Cheryl Greenslade : Administrator

Plus

Steering Committee

Industry Advisory Workgroup

PROJECT TEAM

Requirements:

1. Honesty & Integrity

2. (a) Competency, and (b) Operational Ability

3. Financial Soundness

WHAT IS FIT & PROPER ?

… TO GUIDE AND ASSIST FINANCIAL ADVISORS IN

RESPECT OF THE COMPETENCY

REQUIREMENTS

INSETA PROJECT

Long-term Insurance (A, B & C) Short-term Insurance - (Personal

Lines & Commercial Lines) Retail Pension Benefits Pension Fund Benefits Collective Investments Health Service Benefits Friendly Society

INSURANCE SUBCATEGORIES

Not included in the INSETA project

Securities

Foreign Currency

Deposits

OTHER SUBCATEGORIES

Measured by EXPERIENCE and ACADEMIC STANDARDS

- Depends on Subcategory

- Specified in Columns 2 and 3 of the FIT & PROPER Tables

WHAT IS COMPETENCY ?

Go to the Fit & Proper Determination on INSETA’s website, and page down to Table A

For example :

Short-term Insurance

EXAMPLES OF TABLES

Plus

PROJECT TEAM

Column 1 Column 2 Column 3 Column 4

CategoryMin. experience

Minimum qualification Further Requirements

Short term Insurance:Personal lines

1 yearor;relevant SETA learnership

Grade 11 (std 9) or;NQF 4 skills programme, minimum of 12 credits

Within 2 years after licensing, completion of of 30 credits at NQF 4

Short term insurance:Commercial lines

1 year Grade 12 (Matric)or;Further Education and Training Certificate (FETC)or;NQF 4 skills programme, minimum of 30 credits

Within 3 years after licensing, completion of 60 credits at NQF 4or;Any appropriate degree/diploma at minimum NQF 5

New qualifications are registered on the National Qualifications Framework (NQF)

Insurance Qualifications at Levels 2 to 6

Qualifications made up of Unit Standards

Each Unit Standard has a Credit Value

INSURANCE QUALIFICATIONS

INSETA WEBSITE

www.inseta.org.za

INVESTIGATING QUALIFICATIONS AND UNIT STANDARDS

Plus

Plus

PROJECT TEAM

Plus

PROJECT TEAM

Plus

PROJECT TEAM

Learning Materials for Levels 2 & 3 available on INSETA website -“Site Updates”

Level 4 : November 2003

Level 5 : Under Development

EARNING CREDITS

Accredited Learning Providers on INSETA Website

“INSQA – Quality Assurance”

LEARNING PROVIDERS

Existing and historic Insurance qualifications are being investigated for comparison with the new NQF qualifications

NQF Credits will be granted where applicable

Equivalence Matrix available end-November 2003

EQUIVALENCE MAPPING

In-house courses are not registered with an Official Educational Body

THEREFORE …...

Automatic NQF Credits CANNOT be granted

IN-HOUSE TRAINING RECEIVED

BUT!!!

Demonstrate your experience and knowledge at INSETA’s Assessment Exercise in February/March 2004

Credits will be granted through Recognition of Prior Learning (RPL) to successful candidates

MAJOR OPPORTUNITY !!!

Multiple-choice Countrywide Conducted by a recognised

Institution Credits granted to candidates found

“Competent” List of Unit Standards for RPL

Assessment available on INSETA website “FAIS – latest news”

RPL ASSESSMENT 2004

Short Term InsurancePersonal Lines

Definition: Short-term insurance contracts or policies referred to in the Short-term Insurance Act, 1998 (Act 53 of 1998), purchased by natural persons otherwise than in a business capacity.

COLUMN 3MINIMUM ACADEMIC STANDARDS (12 CREDITS AT NQF 4)

Compulsory

•US No. •US Title Level Credit

•10194 Demonstrate knowledge and insight into the Short-term Insurance Act (No53 of 1998) and the accompanying regulations

4 2

•10368 Demonstrate knowledge and understanding of domestic motor insurance 4 3

•10373 Demonstrate knowledge and understanding of insurance of personal domestic household contents and household buildings

4 3

•10375 Demonstrate knowledge and understanding of all risks insurance 4 2

•12164 Demonstrate knowledge and insight of the Financial Advisory and Intermediary Services Act (FAIS) (Act 37 of 2002)

4 2

TOTAL 12

OK for now………………….HOWEVER !!!!!! Column 4 = Continuing Professional

Development (CPD)

TAKE OUR ADVICE :DO THE RPL ASSESSMENT IN 2004 AND OBTAIN YOUR NQF CREDITS

NOWYou’ll be so glad you did !!!

THE SCHOOLING GRADES ALTERNATIVE….

Will there be Columns 5,6,7, etc ? Further academic requirements ?

YES Continuing Professional Development The FSB will raise the bar from time to time

THE FUTURE…..

GOOD LUCK !www.inseta.org.za