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Why is an outsourced Key Individual function a growth opportunity for your Short Term Insurance Business or Motor Dealer?

The Regulatory Examination implemented by the Financial Services Board as part of the Fit and Proper requirements of individuals in the Financial Services industry, is intended to form a foundation for increased levels of competence of these enterprises and their representatives.  It aims to professionalize the sector and, most importantly to protect the consumer.

Whilst the nature of this imposed governance stems from a sound commitment of the Financial Services industry to its consumer, the implementation of this process has proven to be challenging. There has been a resistant and slow response from the financial services industry and low pass rate of intended Key Individuals. This meant that if the Fit and Proper requirements could not be met, it resulted in high costs when employing a qualified Key Individual with sufficient experience and industry knowledge. Many experienced representatives and Financial Services enterprises simply found the process expensive and time consuming, opting out and closing their practices – resulting in the loss of invaluable business growth and industry development in South Africa.

Would your business benefit from outsourcing a Key Individual?

With an industry as diverse as the financial services industry, one proverbial shoe does not fit all.  Even further industry specific regulatory training and examination form part of the implementation plan of this important process of regulating the services provided to the consumer – something that might prevent even further industry development and growth.

Many investors in the financial services industry have been deterred by the, although necessary, increasingly complex regulations and qualifying factors that the FSB has implemented to improve this industry.

Countless synergies exist between the Financial Services industry and other industries such as Engineering, Construction, Medical and Retail to mention a few. Many of these potentially lucrative synergies are not developed due the regulatory restraints and time delays caused by the process to get representatives and key persons accredited with the required qualifications set out by the FSB. It is however important to know that your still company needs to comply to all King Code Industry Governance if your KI in outsourced.

Novatec Wealth Solutions (Pty) Ltd – Compliance Consult may be able provide your Short Term Insurance business with a solution by providing an outsourced Key Individual Function.

What are the minimal required services that an outsourced Key Individual could offer your business?

Management and oversight function of the FSP including:

‣  Auditing of record keeping practices

‣  Auditing and revision of new and existing Service Level Agreements with third-party providers

‣  Auditing of existing qualifications and equivalence established

‣  Implementation and communication of the latest developments in the regulatory environment

‣  Management of the reporting function against the FSB’s requirements

Fit and Proper management of Representatives:

‣  Involved, invested and supervised implementation of procedures aligned to the requirements of product categories

‣  Supervision and support prescriptions to the FSP as detailed in the various board notices

‣  Qualification Management – tracking the progress of representatives in acquiring their minimum qualifications

‣  Qualification recognition applications to the FSP

‣  Training plans for representatives including CPD (Continuous Professional Management)

‣  Management of the representatives register against the requirements of the registrar

‣  Possible sourcing of existing qualified fit and proper representatives

‣  Committed and regular contact (No less than 8 consultation hours per month)

Meet our Key Individual Consultants:

Chantalle Wilson

‣  8 Years Short Term Insurance Experience

‣  Key Individual (RE1)

‣  12 Years Group Management experience in luxury motor dealer industry

‣  NCA accredited with all credit providers

‣  NQFL 5 Wealth Management (Moonstone)

‣  BA Business Communication (NWU)

‣  FAIS accredited (225 Credits)

Amanda Lenders

‣  15 Years Short Term Insurance Experience

‣  Key Individual (RE1)

‣  16 Years combined experience in various Vehicle & Leisure Finance and Insurance Industry

‣  NCA accredited with all credit providers

‣  Fully FAIS accredited

‣  Advanced knowledge of motor industry specific short term insurance products

Book a consultation with a KI consultant:

Our Existing Clients: