Class of Business Training focuses on general financial product knowledge in relation to a specific line of business. The product categories that a Financial Services Provider can be licensed for, have been divided into nine broad classes, each with its own subclasses. For example, Short-term Insurance Personal Lines is a class of business with subclasses such as ‘Personal Lines: Motor policy, Personal Lines: Accident and health policy’, etc. Investments is another class with shares, retirement annuities and derivatives being some of the subclasses.
This training is conducted for 4 days (one day a week) through facilitation, and over one month through self-study.
The broad classes are:
- Short-term Insurance (Personal Lines)
- Short-term Insurance (Commercial Lines)
- Long-term Insurance
- Pension Fund Benefits
- Short-term and Long-term Deposits
- Structured Deposits
- Investments
- Forex Investments
- Health Services Benefits
COB training – broad categories
The Short-term Insurance (Personal Lines) course includes subclasses such as Accident and health; Liability policy; Miscellaneous policy; Motor policy; Property policy; Transportation policy and Reinsurance policy
The Short-Term Insurance (Commercial Lines) online course includes subclasses such as, Accident and Health; Engineering policy; Guarantee policy; Liability policy; Miscellaneous policy; Motor policy; Property policy; Transportation policy; Reinsurance policy.
The Long-term Insurance online course includes subclasses such as Assistance policy; Life risk policy; Life investment policy; Fund policy; Sinking fund policy; and Long-term reinsurance policy.
Learners will gain sufficient knowledge and understanding of pension fund benefits to render financial services to employers and employees. The following topics will be covered in this course: The Pension Funds Act, Other relevant legislation, Role Players in the Employee Benefit Industry, Products and Service Providers, Retirement Fund Structures, Investment Strategies
The purpose of this course is to provide you with core knowledge and understanding of the characteristics, terms and features of Short- and Long-Terms Deposits products, including typical fee structures, charges, and other risks associated with investing, purchasing or transacting in these products.
The following investment instruments will be covered in this course: Shares; Money market instruments; Debentures and securitised debt; Bonds; Derivative instruments, warrants, certificates or other instruments; Securities and Instruments; Participatory interests in a collective investment scheme; Participatory interest in a CIS hedge fund; Retail Pension Benefits
At the end of this course, the learner will have core knowledge of the following: the range of products within the forex market; the general characteristics, terms and features of forex related products; the fee structures, charges and other costs associated with forex investments; general risks associated with investing in forex; the appropriateness of each forex product for different clients; the typical role players in the forex market
Learners will gain sufficient knowledge and understanding of the medical scheme industry to render financial services in respect of Health Service Benefits adequately. The course will provide learners with enough knowledge to have an understanding of the construction of medical schemes and the complex environment in which the various role players in the medical scheme market, operates.
Class of Business (COB) training – FREQUENTLY ASKED QUESTIONS (FAQs)
When do I need to do Class of Business training?
You must complete Class of Business training within 12 months of the date on which you were first appointed as a representative. The Class of business training will be determined by the products you give advice on.
What is Class of Business (COB)?
Class of business is the generic training that focuses on general product category knowledge in relation to a specific Line of Business. All product sub-categories have been divided into nine Classes of Business. Within each class, there are relevant subclasses.
Does everyone have to complete Class of Business training?
No. The following people do not have to complete Class of Business training to meet the fit and proper requirements:
Representatives in a Category 1 FSP who only give advice on basic funeral products and stokvel-type products.
Those who sell a product strictly according to a script.
Those who only advice on Tier 2 products.
What training is covered under COB?
There are nine classes of business:
1. Short-term Insurance: Personal Lines
2. Short-term Insurance: Commercial Lines
3. Long-term Insurance
4. Pension Fund Benefits
5. Short-term & Long-term Deposits
6. Structured Deposits
7. Investments
8.Forex Investments
9.Healthcare Benefits
Can I be exempted from Class of Business training?
Certain exemptions do apply but it will depend on the FSP’s license category, i.e., the type of business being conducted or financial product you are working with. Refer to question 2 in the FAQ.
We recommend that your consult your Compliance Officer for more guidance.
Why should I as a key individual (KI) complete Class of Business training?
It is a legislative requirement that if you are registered as a key individual (KI) you must complete the class of business training that relates to the specific classes of business you manage or oversee.
How long do I have to complete my COB training?
All supervised representatives must complete their COB training within 12 months of the date upon which they were first appointed as a Representative in respect of a financial product falling within that COB, and where COB training was a requirement.
If you are unsure about your date of appointment, we advise that you consult with your Compliance Officer who will be able to assist you.
Can I do more than one Class of Business at the same time?
Yes, you can work on multiple Class of Business courses.
How long will it take me to complete each module?
The duration of the training is completely up to you as an individual. We encourage you to refer to our Class of Business brochure where we show the estimated times based on our pilot sessions.
Is there anything I can read through in preparation before I attempt the COB training?
All necessary material is covered in our on-line content. You can go over the content as many times as you like before attempting the final assessment.
Which is best option, On-line or Facilitated Learning?
Our on-line training was designed with the end-user in mind, and we pride ourselves on it being very user-friendly and one of the best on offer. It allows learners to do the training in their own time and at their own pace. We also offer a 2/3-day facilitated training to companies who prefer their candidates to be trained at their own premises and at the same time.
How long will it take to complete the assessment?
Depending on the COB course, you will get between two and two and a half hours to complete the summative (final) assessment.
What happens if I fail the assessment?
You will have 3 attempts to pass the summative (final) assessment at the end of each COB course for which you have registered.
How long do I have to complete product specific training?
Product specific training is not covered by the supervision exemption – it has to be completed before any financial services are rendered in the products.
How can I become Fit and Proper?
By meeting all the competency requirements which consists of the following:
1. Obtain a qualification recognised by the FSCA
2. Pass the applicable regulatory exam
3. Complete the class of business training applicable to you and
4. Gain the required experience while working under supervision in each product category.
