Class of Business Training: FSPs, Key Individuals and Representatives

In terms of Board Notice 194 of 2017, class of business (COB) training forms a compulsory part of the competence requirements for FSPs, Key Individuals and Representatives. This training requirement applies to all new FSPs, Key Individuals and Representatives appointed as from 1 April 2018 excluding new Representatives working under supervision), and to FSPs, Key Individuals and Representatives who seek authorisation or appointment for additional financial product categories as from 1 April 2018, who will need to, prior to the rendering of any financial services in respect of a particular financial product, complete the class of business training relevant to that financial product. 

Representatives already working under supervision as at 1 April 2018 will need to complete class of business training in respect of the relevant classes of business within the twelve-month period from 1 August 2018 to 31 July 2019. 

As things currently stand, appointees from 1 August 2018 onward are not included in this transitional arrangement, and will not be allowed to conduct business prior to the successful completion of the COB training. A ‘grandfather clause’ applies to FSPs, Key Individuals and Representatives authorised, approved or appointed prior to 1 April 2018, to the effect that they are deemed to have completed the class of business training in respect of the financial products for which they were so authorised, approved or appointed.

Note that there are certain exceptions when class of business training is not required to be completed. Please see details under the heading ‘Who should attend?’. 

What will the Class of Business Training enable you to do?

After successful completion of the online modular training and assessment in a specific class of business, learners will be able to: 

  1. Identify the main role-players and market participants in respect of products in that class of business, including their legal structure.
  2. Identify inter-relationships within and between particular classes of business.
  3. Demonstrate understanding of financial services legislation, industry standards and codes of conduct applicable to the products within the class of business.
  4. Identify the general (risk and investment) financial needs of clients or groups of clients, in respect of products within the class of business.
  5. Describe the general characteristics, terms and features of the products within the class of business.
  6. Describe the typical fee structures, charges and other costs associated with products within the class of business.
  7. Describe the general investment and risk principles, options and strategies associated with investing, purchasing or transacting in products within the class of business.
  8. Describe (if relevant), the impact of applicable economic and environmental factors, such as economic business cycles, inflation, monetary and fiscal policies, interest rates and exchange rates on the products within the class of business.
  9. Explain the legislative and tax implications applicable to the products within the class of business.
  10. Assess the appropriateness of products within the class of business for specific client needs.

Who should attend?

  • All FSPs, Key Individuals and Representatives appointed after 1 April 2018.
  • FSPs, Key Individuals and Representatives who seek authorisation, approval or appointment for new financial product categories after 1 April 2018.
  • Representatives working under supervision as at 1 April 2018.

Exemptions from Class of Business Training:

  • FSPs, KIs and Reps, authorised prior to 1 April 2018 are considered to have completed the COB training in view of their past experience, and are exempt from COB training, unless they add new products to their license.
  • Certain other exemptions also apply, depending on the type of business one does, and how it is conducted.

MBSE advises you to seek proper advice from your Compliance Officer, in order to establish whether or not you are required to attend class of business training.

This training is ideal for:

  • Learners who need to comply with the fit and proper requirements for financial services providers relating to class of business training.
  • Learners who wish to remain up to date with class of business product information, in order to maintain their on-going competence in terms of the fit-and-proper requirements for financial services providers.
  • Learners who wish to obtain CPD points in terms of the fit-and-proper requirements for financial services providers, and who do not intend to use class of business training towards the completion of a full qualification.
  • Learners who wish to use class of business training as part of their requirements towards the completion of a full qualification, in order to comply with the fit-and-proper requirements for financial services providers relating to both class of business training, and to minimum qualifications.

Learning Content

Note: You will register for training only for the specific classes of business modules (as per the list below) that you wish to complete.

1. Short-term Insurance: Personal Lines Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products for individual (non-commercial) clients in the shortterm insurance personal lines class of business, including typical fee structures, charges and other costs and risks associated with investing, purchasing or transacting in these products. In addition to this, the module provides knowledge of legislation impacting on short-term insurance personal lines products. Lastly, the module will provide learners with the skill to assess the appropriateness of products within the short-term insurance class of business for specific individual client needs.

Sub-classes covered in the training include:

1.1 Personal lines: Accident and health policies;
1.2 Personal lines: Liability policies;
1.3 Personal lines: Miscellaneous policies;
1.4 Personal lines: Motor policies;
1.5 Personal lines: Property policies;
1.6 Personal lines: Transportation policies;
1.7 Personal lines: Short-term reinsurance policies.

2. Short-term Insurance: Commercial Lines Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products for commercial (business) clients in the short-term insurance commercial lines class of business, including typical fee structures, charges and other costs and risks associated with investing, purchasing or transacting in these products. In addition to this, the module provides knowledge of legislation impacting on short-term insurance commercial lines products. Lastly, the module will provide learners with the skill to assess the appropriateness of products within the short-term insurance class of business for specific commercial client needs.

Sub-classes covered in the training include:

2.1 Commercial lines: Accident and health policies;
2.2 Commercial lines: Engineering policies;
2.3 Commercial lines: Guarantee policies;
2.4 Commercial lines: Liability policies;
2.5 Commercial lines: Miscellaneous policies;
2.6 Commercial lines: Motor policies;
2.7 Commercial lines: Property policies;
2.8 Commercial lines: Transportation policies;
2.9 Commercial lines: Short-term reinsurance policies.

3. Long-term Insurance Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products in the long-term insurance class of business, including typical fee structures, charges and other costs and risks associated with investing, purchasing or transacting in these products. In addition to this, the module provides knowledge of legislation impacting on long-term insurance products and tax implications of these products. Lastly, the module will provide learners with the skill to assess the appropriateness of products within the long-term insurance class of business for specific client needs.

Sub-classes covered in the training include:

3.1 Assistance policies;
3.2 Life risk policies;
3.3 Life investment policies;
3.4 Fund policies;
3.5 Sinking fund policies;
3.6 Long-term reinsurance policies.

4. Pension Funds Benefits Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products in the pension funds class of business, including typical fee structures, charges and other costs and risks associated with investing, purchasing or transacting in these products. In addition to this, the module provides knowledge of legislation impacting on all types of retirement fund products and the tax implications of these products. Lastly, the module will provide learners with the skill to assess the appropriateness of products within the pension fund benefits class of business for specific client needs.

Products covered in the training include pension and provident funds, retirement annuities and preservation funds, annuity products and risk benefits most commonly associated with retirement fund products. 

5. Short-term and Long-term Deposits Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products in the short and long-term deposits class of business, including typical fee structures, charges and other risks associated with investing, purchasing or
transacting in these products. In addition to this, the module provides knowledge of legislation impacting on short and long-term deposit products and tax implications of these products. Lastly, the module will provide learners with the skill to assess the appropriateness of short and long-term
deposit products for specific client needs.

Products covered in the training include short versus long-term deposits, fixed deposits, savings accounts, and money-market accounts.

6. Structured Deposits Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products in the deposits classes of business, including typical fee structures, charges and other risks associated with investing, purchasing or transacting in these
products. In addition to this, the module provides knowledge of legislation impacting on deposit products and tax implications of these products. Lastly, the module will provide learners with the skill to assess the appropriateness of structured deposit products for specific client needs.

Products covered in the training include short- versus long-term deposits, fixed deposits, savings accounts, money-market accounts and structured deposits.

7. Investments Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products in the investments class of business, including typical fee structures, charges and other risks associated with investing, purchasing or transacting in these
products. In addition to this, the module provides knowledge of legislation impacting on investment products and tax implications of these products. Lastly, the module will provide learners with the skill to assess the appropriateness of products within the investment class of business for specific client
needs.

Sub-classes covered in the training include:

7.1 Shares;
7.2 Money-market instruments;
7.3 Debentures and securitised debt;
7.4 Bonds;
7.5 Derivative instruments, warrants, certificates or other instruments;
7.6 Securities and instruments;
7.7 Participatory interests in a collective investment scheme;
7.8 Participatory interests in a hedge fund;
7.9 Retail pension benefits.

8. Forex Investments Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products in the Forex investments class of business, including typical fee structures, charges and other risks associated with investing, purchasing or transacting
in these products. In addition to this, the module provides knowledge of legislation impacting on Forex investment products and tax implications of these products. Lastly, the module will provide learners with the skill to assess the appropriateness of products within the Forex investment class
of business for specific client needs. 

Products covered in the training include foreign currency denominated investment instruments, including foreign currency deposits.

9. Health Services Benefits Class of Business

The purpose of this module is to provide learners with core knowledge and understanding of characteristics, terms and features of products in the health services benefits class of business, including typical fee structures, charges and other costs and risks associated with purchasing or
transacting in these products. This module will also provide knowledge of legislation impacting on the health services benefits class of business. 

Products covered in the training include medical schemes and health insurance products, including medical expense shortfall policies (gap cover) and non-medical expense cover as a result of hospitalisation policies (hospital cash plans).

Fees:

Online, per Class of Business Module (2018): R500 (exclusive of VAT).

Accreditation and Certification

Learners are awarded a certificate of completion upon the successful completion of the course activities and summative assessment per Class of Business Module.

Method of Training

  • Online Distance Learning: At MBSE we make use of an online platform for our Distance mode of Learning.
  • Facilitated learning: Classroom contact sessions for corporate clients can be arranged for sufficient student numbers, on request.

Assessments

An online summative assessment must be completed.

How to register?

Click here to register:

For more information about class of business training offered through MBSE, or to register for the training, you can visit our website: www.mbse.ac.za

Contact us

Veronica Grobler (Project Administrator)
Tel: 087 702 6429
E-mail: veronica@mbse.ac.za

Last modified: Friday, 18 May 2018, 1:09 PM