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Short term Insurance
Tuesday, February 1, 2005
The effective date

FAIS legislation was enacted in 2002 and requires the licensing of those who offer advice on financial products and services. A critical aspect is the accreditation of representatives of financial service providers who need to meet the capability criteria (Fit and Proper).
The effective date of FAIS fell on 30th September 2004, by which time intermediaries had to have been licensed and comply with FAIS ‘Fit and Proper’ standards. Those missing the deadline are not legally permitted provide advice to the public. Insurance companies no longer do business with unlicensed intermediaries.
“FAIS not only separates the professional and the unprofessional,” says Ben Tonkin, First Link training manager; “it also separates the strategic thinkers who invest in the future of our industry and those who lack long-term vision.”
Those who have invested insufficiently in training will have to invest massively in head-hunting. This is a testing time for well qualified people. They will have to decide whether it is worth leaving a professional employer with a progressive strategy (that has trained them up to professional level) to join a new employer with no track-record for people development and a doubtful long-term vision.

Copyright © Insurance Times and Investments® Vol:18.1 1st February, 2005
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