Are representatives under supervision required to comply with the CPD requirements?
Financial Advisory and Intermediary Services Act
The CPD requirements contained in the FAIS Fit and proper determination (Board Notice 194 of 2017) are applicable to all representatives with the exception of:
Representatives of a Category I FSP that are only appointed to render financial services in respect of Long-term Insurance subcategory A and/or Friendly Society benefits;
A representative of a Category I FSP that is appointed to only render a financial service in respect of a Tier 2 financial product; and/or
A representative of a Category I FSP that is appointed to only render intermediary services in respect of a Tier 1 Financial product.
Thus representatives that render services under supervision AND falls within one or more of the aforementioned categories are not required to comply with CPD requirements.
All other representatives rendering services under supervision are required to comply with CPD requirements from the following dates, whichever date occurs first:
The date on which the supervised representative meet the class of business training requirements, regulatory exam requirements AND qualification requirements; or
After six years from the date of first appointment.**
In other words, if a supervised representative has only completed the regulatory exams he or she has not met all three of the aforementioned requirements and will not be required to comply with the CPD requirement during the current CPD Cycle. Only once all three requirements have been met, or after 6 years of the first date of appointment will a supervised representative be required to comply with the CPD requirement.
If the aforementioned dates do not coincide with the start of a CPD cycle the supervised representative shall only be required to do pro rata CPD hours.
The Exemption regarding the supervision of services however further provides that a supervised representative that only has a date of first appointment to render services for Tier 2 financial products or perform execution of sales and is afterwards appointed to render financial services other than the execution of sales in respect of a Tier 1 product must comply with the CPD requirements from the following dates:
The date on which the supervised representative meets the class of business training requirements, regulatory examination requirements and qualification requirements applicable to the Tier 1 financial product.
After six years from the date of appointment to render financial services other than the execution of sales in respect of a Tier 1 product.
Read the requirements in the Fit and proper determination Board Notice 194 of 2017 together with the Exemption on services under supervision FAIS Notice 86 of 2018 to ensure that you understand and comply with the fit and proper requirements.