The importance of qualifications… with employer support
The Financial Advisory and Intermediary Services (FAIS) Fit and Proper requirements have been in existence for 14 years and one of the key competence requirements thereof, was to professionalise the industry to ensure that the public were obtaining sound qualified advice from the industry, to make informed financial decisions. Therefore, industry relevant qualifications became a requirement for regulated people who entered the industry from 2010 onwards.
Many companies have embraced this as an entry requirement for employment or initiated programmes for new entrants through internships, bursaries, learnerships and workplace experience projects.
Employers are also tasked by the FAIS legislation to monitor the relevant staff’s completion of qualifications whilst working under supervision in their employ.
The right qualification
It is important to consider that there are various qualifications which deal with different aspects in varying disciplines of financial services, such as long term, short term, medical, banking and investments.
It is therefore critical to ensure that the qualification chosen will provide sufficient information and study of the breadth and depth of the industry and can be applied in a wider context.
Providers are also crucial in this process and offer a wide service offering from entry level to specialised qualifications and it is important to consider how these qualifications fit together to choose the right study path.
Selecting a training provider
Skills Education Training Authorities (SETAs) and Professional Bodies are key in assisting to finding accredited and reputable training providers for varying needs.
Providers can carry different types of accreditation with either SETA’s or Higher Education or a combination of the two. Prudent providers will certainly consider previous study and ensure that study is not repeated unnecessarily. It is, however, important to remember that there are rules about subject exemptions, such as the ten-year rule. This rule stipulates that the subject for which exemption is sought must have been completed in the last ten years. The reason for this rule is based on currency as laws and practices have become updated and affect qualification curriculum.
Role of Professional Bodies
Professional Bodies are recognised by the South African Qualifications Authority (SAQA) under the NQF Act as those bodies who set and maintain competence, experience and professional standards for an industry, and as such, would recommend qualifications and providers who meet the professional standard. Qualifications approved by Professional Bodies, also ensure a study path from entry to professional levels of study.
Recognised Professional Bodies working with the Financial Services Board (FSB) in this regard include the Compliance Institute of Southern Africa (CISA), Financial Planning Institute (FPI), Insurance Institute of South Africa (IISA), Institute of Bankers of South Africa (IoB) and the South African Institute of Financial Markets (SAIFM).
Continuing Professional Development (CPD)
Learning never ends when a person is certified with a qualification, and with today’s changing pace and environment, it is critical to keep abreast of developments. For this reason, whether done informally or formally, there is always an element of continued learning that takes place.
The Fit and Proper requirements however, have enforced a minimum rule of between six and 18 hours of formal Continuing Professional Development (CPD) specifically focussed on:
- Regulatory and legislative updates;
- Market trends; and
- Risk updates.
The minimum number of hours is based on the number of classes and sub-classes of insurance, for which you are licensed.
This is another area that falls squarely with Professional Bodies under the NQF Act and hence the FSB has stated that CPD activities must be approved, verified and rated by Professional Bodies.
Principally then, the fundamental matter to consider is which Professional Body to partner with that will help grow and develop your career into the most effective and satisfying journey for yourself and your clients. It is not too late to take charge of your career with all your experience and learning to date and partner with a principal Professional Body that is right for you.
