Higher Certificate in Financial Products

Purpose

The purpose of this industry oriented qualification is to provide learners with the basic introductory knowledge, cognitive and conceptual tools and practical techniques for their current roles in industry and for further higher education studies. The knowledge emphasises general principles applicable to long-term insurance and the application of these principles in the financial services industry. This qualification signifies that the learner has attained a basic level of higher educational knowledge and competence in the field of long-term insurance and is capable of applying such knowledge and competence in the workplace.

The purpose of this Higher Certificate is twofold

• To enable a large section of "representatives" who advise clients on basic risk and savings products, as defined by the FAIS Act, to gain the necessary knowledge and skills to provide sound advice relating to financial products to clients.
• To widen access to higher education through an industry oriented qualification.

Upon completion of the qualification learners will be able to demonstrate the following

• Operate in a compliant manner as a representative in the financial services industry.
• Demonstrate an informed understanding of the structure and nature of long - term insurance and the role-players involved in the industry.
• Recommend suitable financial products based on the outcome of a needs analysis.
• Demonstrate personal selling skills in the financial services context.

Rationale

The financial services industry has undergone significant changes in the past 10 years, since the introduction of the Financial Advisory and Intermediary Services Act (FAIS Act). This Act has introduced the minimum qualification requirements for learners who operate as representatives and financial services providers in the industry.

The institution has been offering a range of qualifications tailored for the needs of the different categories of role-players in the industry. The target group for the qualification is the so-called "Category B1 and B2" learners who are only allowed to market a basic range of products. Even though these learners can only market basic products, they need to adhere to the legislative requirements set by the FAIS Act in terms of the way in which these products may be marketed to the public. In addition, they need to have a basic understanding of the wider financial services industry about the more advanced products available, should their clients already own some of these products. These learners are, mostly employed by Financial Services Providers as agents/brokers and hence the provisions applicable to the establishment and running of a financial services provider business are not covered in this qualification.

It is important to distinguish between the responsible and compliant sale of a financial product with comprehensive financial planning as a field of study. The compliant sale of a financial product is done through an analysis of the client's need, where after a suitable product is recommended for that particular need and the rationale for the recommendation is explained to the client, as prescribed by the FAIS General Code of Conduct. The Higher Certificate in Financial Products focuses on this process only and while the regulatory environment is similar, comprehensive financial planning is not covered in this qualification.

Recognition of Prior Learning

RPL access: mature age applicants may be considered. Recognition of prior learning assessment will be considered in terms of the competencies required by the qualification.

Information is available in the following documents: Programme fact sheets, Website and Prospectus for admission through a RPL process.

Entry Requirements

Admission requirement for the qualification

• Senior Certificate (SC).
• National Senior Certificate (NSC) passed with Higher Certificate studies.
• National Certificate Vocational (NCV).

This qualification consists of compulsory modules at NQF Level 5, totalling 120 Credits.

• Regulatory Environment, 20 Credits.
• Long-term Insurance: Environment and Concepts, 20 Credits.
• Risk Products, 30 Credits.
• Investment and Savings Products, 30 Credits.
• Personal Selling Skills, 20 Credits.

1. Operate in a compliant manner as a representative in the financial services industry.
2. Demonstrate an informed understanding of the structure and nature of long-term insurance and the role-players involved in the industry.
3. Recommend suitable financial products based on the outcome of a needs analysis.
4. Demonstrate personal selling skills in the financial services context.

Associated Assessment Criteria for Exit Level Outcome 1

• Knowledge of relevant legislation to scenarios is applied in the sales process in order to ensure compliance.
• Relevant sections of legislation applicable to financial products are identified and knowledge of these provisions are applied to select suitable products for clients.
• The impact of marital regimes on the ownership of financial products is explained.
• An understanding of the typical ethical dilemmas in the industry is displayed with reference to the possible reactions in such scenarios.

Associated Assessment Criteria for Exit Level Outcome 2

• Role-players in the industry are identified and their roles and responsibilities are explained.
• The structure of long-term insurance products is explained and the different roles involved in policy ownership are identified with reference to their rights and responsibilities.
• Key terms and concepts used in the long-term insurance and investment industries are explained.

Associated Assessment Criteria for Exit Level Outcome 3

• A budget for a client is drafted.
• A basic capital needs analysis is conducted for death, disability and retirement, with their associated time value of money calculations.
• Financial products are compared on the basis of suitability in a particular client scenario.
• The features and benefits of insurance products are explained to clients in a way that will enable them to make informed decisions.
• Compliance requirements are identified and met in the sales process.

Associated Assessment Criteria for Exit Level Outcome 4

• The basic sales process in insurance is outlined with reference to roles, responsibilities and compliance requirements for each step.
• Effective communication skills are displayed in client interaction.
• The principles of 'Treating Customers Fairly' are explained.
• The sales process is managed from prospecting to review phases.

Integrated Assessment

The quality of the assessment is vital in order to provide credible certification and recognition of achievement. The institution makes every effort to ensure credibility in assessment through the application of clear and rigorous procedures and practices. These procedures and practices are controlled by the principles of fairness, validity, reliability and practicability. By implementing these principles, all parties concerned (including learners, employers and learning institutions) may be assured of the credibility of the assessment process. It is in this way that accurate information about the learner's performance against the associated assessment criteria may be provided.

Integrated assessment will be used extensively across the qualification, particularly in the case studies. Formative assessment will take place through case studies, assignments, including the writing of proposals and financial plans. Summative assessments will be integrated into the learning in that such assessments will take place at the end of each of the constituent modules of the qualification.