Moonstone: Fit and proper in 2010

Those FSPs and representatives appointed before 1 January 2010 must by now be aware of the transitional arrangements applicable to them over the next two years in terms of qualifications and other fit and proper requirements to stay in the business. If not, please read the "Plain Language Fit and Proper Guides" for key individuals and representatives, both of which are posted on our website - see links above.

Board notice 95 of 2009 provides guidelines on the way forward for those wishing to appoint new staff after 31 December 2009. At one stage it appeared that one would only be able to appoint suitably qualified and experienced people, which would obviously have bled the industry to death, given the high staff turnover.

This problem was circumvented by the introduction of an option for new appointees to work under the supervision of a suitably qualified supervisor. This of course creates another opportunity for those people currently in the business who wants to get out of the rat race but still employ their experience and skills gainfully. (See article below)

The following is a direct quote from BN 95:

The following will apply to the period a representative acts under supervision:

(a) The supervision period is linked to the Category or subcategory;

(b) the maximum period any representative can act under supervision in any Category or subcategory, is six years from date of appointment;

(c) representatives who give advice and/or render intermediary services in respect of multiple Categories or subcategories can gain the experience at the same time, and will remain under supervision until the experience requirements for the most onerous Category or subcategory is met;

(d) the relevant minimum and maximum periods commence on the date the representative is appointed to render services in relation to the specific Category or subcategory;

(e) a representative rendering services under supervision must obtain the first level regulatory examination as it applies to the Category and/or subcategory appointed for, within two years of appointment as a representative, and complete the qualification and second level regulatory examination(s) in relation to the specific Category or subcategories appointed for, within the six year period specified in subparagraph 4(4) of BN 95 of 2009. The respective periods ends on 31 December of the year in which the second and/or sixth year falls; and

(f) any significant interruption during six consecutive weeks (or longer) while gaining experience must be compensated for by arranging for an additional period under supervision, equal to the period interrupted.

A supervisor who does not meet the qualification requirements or has not completed the relevant first or second level Regulatory Examination(s), in relation to a specific Category or subcategory that he or she was appointed for before 31 December 2010, may continue to function as a supervisor provided that he or she meets the requirements as set out in the Determination of Fit and Proper Requirements, 2008, as they apply, within the specified time periods.

The Plain Language Guides provide very clear pointers on the different responsibilities of representatives and supervisors during in the supervision process. Please make sure you spend some time reading this – it only consists of 41 and 38 pages respectively, much less than than your normal magazine.