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What Class of Business actually is
Under the FAIS Fit and Proper requirements, Representatives and Key Individuals must complete Class of Business training before they can give advice or render intermediary services on a financial product. The training is grouped by classes that line up with the way products work, rather than just by FAIS sub category.
Class of Business training sits alongside, but is separate from, your full qualification, your Regulatory Exam and your product specific training. The Regulatory Exam tests your knowledge of the rules. Class of Business tests your knowledge of how a class of products actually works in the market.
You only need the classes that match the products you advise on. If you only deal with short term commercial Insurance, you do not need Class of Business training for retirement annuities.
The classes you can do
The current FSCA framework recognises a structured set of classes covering short term Insurance for personal lines and commercial lines, long term Insurance, pension funds benefits including retirement annuities, structured deposits, investments, forex investments, healthcare benefits and short term and long term deposits.
For most senior people in our market, the relevant classes will sit in short term Insurance, long term Insurance, healthcare benefits, investments and pension fund benefits. The exact combination depends on what your FSP is licensed for and what you are appointed to advise on.
Your compliance officer should confirm exactly which classes you must complete based on your appointment. It is worth getting that confirmation in writing, so there is no doubt about what training applies to you.
Where you can complete Class of Business training
Class of Business training has to be provided by an accredited training provider, often working with or through a Professional Body. The Insurance Institute of South Africa, Moonstone, Milpark Education and INSETA accredited providers are some of the most widely used in the market.
Most providers offer the training online, with assessments at the end of each class. The format suits people working full time, since you can complete the training in modules and at your own pace within the deadlines set by your FSP.
If you are moving FSPs or changing the type of advice you give, you may need to add a new class to your existing record. It is much easier to plan that training in advance than to scramble after you have already started in the new role.
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