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Train to get fit and Proper with Inseta

22 January 2004 INSETA

The Insurance Sector Education and Training Authority (INSETA) has set aside R6 million to assist financial services providers with meeting the Fit & Proper requirements under FAIS with regards to qualifications.

“Financial services providers will have to meet certain requirements with regards to qualifications in order to be licensed under FAIS,” says Glen Edwards, INSETA’s FAIS Fit and Proper Project Coordinator. The requirements will include academic qualifications as
well as experience.

The insurance industry is fortunate that INSETA has decided to assist in this regard, thus making it easier for approximately 100 000 intermediaries to qualify themselves in order to register. “Thousands of people will have to undergo furtheracademic training in order to qualify, and thousands will have to be assessed on prior learning. Part of the problem tobe addressed is that there is not enough training material to meet the need - product providers are not yet geared in thisregard. On the other hand only a few assessors have been trained and are available to assess prior learning. Intermediaries will have to find someone to assess their existing qualifications and experience which might be easier said than done,” adds Edwards. This is also an area in which INSETA plans to assist.

Soften the impact
“The purpose of the INSETA project is,” says Edwards, “to guide and assist financial services providers to achieve the academic requirements they need to register under FAIS. The aim is to prevent a possible crippling of the insurance industry as had happened overseas where similar legislation was introduced. Although it is not the duty of INSETA to renderthese services, it will be to the benefit of the whole industry if the impact of this legislation could be softened in this
way.” It is important to emphasise, however, that meeting the fit and proper standards is the responsibility of each and every intermediary who wishes to register as a financial services provider, and not the responsibility of INSETA, the Financial Services Board, or any other roleplayer in the industry.

Three year project
The INSETA project is envisaged to be a three year project with the first phase ending at the end of July 2003. The first phase will include the following aspects:
·Existing qualifications will have to be mapped and assessed and matched with the equivalent National Qualifications
Framework (NQF) unit standards. In this way intermediaries will be able to earn credits for existing qualifications.
·Recognition of prior learning will have to form part of the process. Intermediaries will have to find an assessor
to assess prior learning and experience.
·Learning material will have to be developed and accredited in order to enable intermediaries who do not have enough
credits to learn and be assessed in the normal way.
·INSETA will provide the opportunity for a once-off assessment, probably consisting of a case study in which they will have to be found competent in order to receive the credits they need.

Not only fsps
According to FAIS, not only the financial services provider (fsp) who registers as such will have to meet these academic standards, adds Edwards. The Act quite clearly states that representatives of a financial services provider will have to meet these standards in a ‘similar’ way. “It is quite important that fsps should take note of this issue. The possibility exists that should the representatives or agents of an fsp not meet these requirements, it could be penalised by having to pay penalties. This could also ultimately lead to losing its licence,” says Edwards.

Fsps should follow these steps
Fsps should start by investigating which qualifications they need to register in the category they want to apply for. The next step is to determine whether their existing qualifications meet these requirements, and if not what steps they could take to remedy the situation. Intermediaries wishing to register as fsps should take note of the fact that it might not be as straight forward to meet these requirements as they would have wished. In order to obtain the credits needed, either through having existing qualifications assessed or by acquiring the appropriate qualifications by doing a course in order to obtain the credits, might also mean some financial outlay in certain cases.

Many fsps will qualify
“Many fsps will probably have enough credits for registration when existing qualifications and experience are taken into account, but INSETA wishes take the hassle out of the whole process of acquiring those credits. On the other hand we will assist those who do not have enough credits to qualify to obtain them in order to register,” says Edwards.

FAIS presenting opportunities
According to Edwards, FAIS, and especially the fit and proper academic requirements, present huge opportunities for enteprising people out there. Learning material product providers have the opportunity to compile training material for which accreditation will be arranged as quickly as possible, and individuals who would like to be qualified as assessorsto meet the future need for assessing prior learning have the opportunity to do so. “People who are interested in becoming
assessors should contact INSETA’s Quality Assurance Division. They can talk to Shirley, Neesha or Nathan,” he adds.

Added benefit
“The added benefit of this project is that the insurance sector will, after FAIS, be the sector in the South African economy with the most NQF qualified people!” says Nelius Volschenk, who is the Chief Executive Officer of INSETA. This will go some way toward increasing the professional image of the industry.

“Financial services providers will have to meet certain requirements with regards to qualifications in order to be licensed under FAIS,” says Glen Edwards, INSETA’s FAIS Fit and Proper Project Coordinator. The requirements will include academic qualifications as
well as experience.

The insurance industry is fortunate that INSETA has decided to assist in this regard, thus making it easier for approximately 100 000 intermediaries to qualify themselves in order to register. “Thousands of people will have to undergo furtheracademic training in order to qualify, and thousands will have to be assessed on prior learning. Part of the problem tobe addressed is that there is not enough training material to meet the need - product providers are not yet geared in thisregard. On the other hand only a few assessors have been trained and are available to assess prior learning. Intermediaries will have to find someone to assess their existing qualifications and experience which might be easier said than done,” adds Edwards. This is also an area in which INSETA plans to assist.

Soften the impact
“The purpose of the INSETA project is,” says Edwards, “to guide and assist financial services providers to achieve the academic requirements they need to register under FAIS. The aim is to prevent a possible crippling of the insurance industry as had happened overseas where similar legislation was introduced. Although it is not the duty of INSETA to renderthese services, it will be to the benefit of the whole industry if the impact of this legislation could be softened in this
way.” It is important to emphasise, however, that meeting the fit and proper standards is the responsibility of each and every intermediary who wishes to register as a financial services provider, and not the responsibility of INSETA, the Financial Services Board, or any other roleplayer in the industry.

Three year project
The INSETA project is envisaged to be a three year project with the first phase ending at the end of July 2003. The first phase will include the following aspects:
·Existing qualifications will have to be mapped and assessed and matched with the equivalent National Qualifications
Framework (NQF) unit standards. In this way intermediaries will be able to earn credits for existing qualifications.
·Recognition of prior learning will have to form part of the process. Intermediaries will have to find an assessor
to assess prior learning and experience.
·Learning material will have to be developed and accredited in order to enable intermediaries who do not have enough
credits to learn and be assessed in the normal way.
·INSETA will provide the opportunity for a once-off assessment, probably consisting of a case study in which they will have to be found competent in order to receive the credits they need.

Not only fsps
According to FAIS, not only the financial services provider (fsp) who registers as such will have to meet these academic standards, adds Edwards. The Act quite clearly states that representatives of a financial services provider will have to meet these standards in a ‘similar’ way. “It is quite important that fsps should take note of this issue. The possibility exists that should the representatives or agents of an fsp not meet these requirements, it could be penalised by having to pay penalties. This could also ultimately lead to losing its licence,” says Edwards.

Fsps should follow these steps
Fsps should start by investigating which qualifications they need to register in the category they want to apply for. The next step is to determine whether their existing qualifications meet these requirements, and if not what steps they could take to remedy the situation. Intermediaries wishing to register as fsps should take note of the fact that it might not be as straight forward to meet these requirements as they would have wished. In order to obtain the credits needed, either through having existing qualifications assessed or by acquiring the appropriate qualifications by doing a course in order to obtain the credits, might also mean some financial outlay in certain cases.

Many fsps will qualify
“Many fsps will probably have enough credits for registration when existing qualifications and experience are taken into account, but INSETA wishes take the hassle out of the whole process of acquiring those credits. On the other hand we will assist those who do not have enough credits to qualify to obtain them in order to register,” says Edwards.

FAIS presenting opportunities
According to Edwards, FAIS, and especially the fit and proper academic requirements, present huge opportunities for enteprising people out there. Learning material product providers have the opportunity to compile training material for which accreditation will be arranged as quickly as possible, and individuals who would like to be qualified as assessorsto meet the future need for assessing prior learning have the opportunity to do so. “People who are interested in becoming
assessors should contact INSETA’s Quality Assurance Division. They can talk to Shirley, Neesha or Nathan,” he adds.

Added benefit
“The added benefit of this project is that the insurance sector will, after FAIS, be the sector in the South African economy with the most NQF qualified people!” says Nelius Volschenk, who is the Chief Executive Officer of INSETA. This will go some way toward increasing the professional image of the industry.

Quick Polls

QUESTION

Financial behaviour experts suggest that today’s risk modelling methodologies ignore your client’s emotional ability / behavioural capacity. What are your thoughts on spicing up risk profiling tools to make allowance for your client’s financial behaviours

ANSWER

[a] Bring it on; my client’s make too many irrational financial decisions
[b] Existing risk profiling tools are adequate
[c] Risk profiling tools should be based on the model / rational client
[d] The perfect risk profiling tool is science fiction
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