In South Africa, financial advisers who provide advice on financial products must be registered with the Financial Sector Conduct Authority (FSCA) and must meet certain education and training requirements. This includes completing a class of business training program.
The class of business training program is a type of training that financial advisers must complete in order to be registered to provide advice on specific financial products. The FSCA recognizes several classes of business, including the following:
Long-term insurance: This class of business training program covers the principles of long-term insurance, including life insurance, disability insurance, and funeral cover. Financial advisers who complete this training program are qualified to provide advice on long-term insurance products.
Short-term insurance: This class of business training program covers the principles of short-term insurance, including motor insurance, household insurance, and liability insurance. Financial advisers who complete this training program are qualified to provide advice on short-term insurance products.
Collective investment schemes: This class of business training program covers the principles of collective investment schemes, including unit trusts and exchange-traded funds (ETFs). Financial advisers who complete this training program are qualified to provide advice on collective investment schemes.
Retirement funds: This class of business training program covers the principles of retirement funds, including pension funds and retirement annuities. Financial advisers who complete this training program are qualified to provide advice on retirement fund products.
Financial planning: This class of business training program covers the principles of financial planning, including asset allocation, risk management, and retirement planning. Financial advisers who complete this training program are qualified to provide comprehensive financial planning advice.
It’s important to note that financial advisers must complete class of business training programs that are relevant to the financial products they wish to advise on. For example, an adviser who wants to provide advice on life insurance products must complete the long-term insurance class of business training program.