Financial institutions urged to vet CPD providers amid credential concerns
The Financial Sector Conduct Authority (FSCA) has issued a nationwide warning to financial institutions
Image: File
The Financial Sector Conduct Authority (FSCA) has issued a nationwide warning to financial institutions, urging them to carefully verify the credentials of Continuous Professional Development (CPD) providers before engaging their services.
This warning comes after the financial sector watchdog "became aware that an entity known as LearnOn (Pty) Ltd (Learn On) has been offering continuous professional development (CPD) services to Financial Services Providers (FSP) without the necessary authorisation".
"The services offered include the provision of assistance to FSPs in meeting their CPD competency requirements as set out in the Determination of Fit and Proper Requirements for Financial Services Providers, 2017 (Board Notice 194 of 2017) issued under the Financial Advisory and Intermediary Services Act, No. 37 of 2002," FSCA said.
CPD is a required rule for financial services providers (FSPs). It helps make sure that key staff and representatives keep their knowledge and skills up to date so they can do their jobs well.
Meeting the minimum CPD requirements is essential to stay compliant with the law.
"It appears that LearnOn has issued CPD certificates bearing the logo of the Financial Planning Institute of South Africa (FPI) without authorisation and has used FPI reference numbers that are either invalid or linked to other approved CPD providers. Attempts to reach out to Learn On regarding these concerns via email and telephone have been unsuccessful," the financial sector watchdog said.
Video Player is loading.
Play Video
Play
Unmute
Current Time
0:00
/
Duration
-:-
Loaded :
0%
Stream Type LIVE
Seek to live, currently behind live
LIVE
Remaining Time
-
0:00
This is a modal window.
Beginning of dialog window. Escape will cancel and close the window.
Text Color White Black Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan
Transparency Transparent Semi-Transparent Opaque
Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps
Reset
restore all settings to the default values Done
Close Modal Dialog
End of dialog window.
Advertisement
Next
Stay
Close ✕
Ad loading
The financial watchdog added that it was not commenting on LearnOn's business practices or the quality of its training programmes.
"However, the FSCA deemed it important to bring this matter to the attention of financial institutions and urge them to verify the accreditation of CPD providers purporting to assist with the fulfilment of competency requirements under the FAIS Act with the relevant professional bodies before entering into any agreements in this regard".
Failure to verify CPD providers and programmes may result in financial institutions not meeting their CPD.
mthobisi.nozulela@iol.co.za
IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
TimesLIVE
13 hours ago
- TimesLIVE
FAIS ombud upholds complaint against Luvuyo Burial and Consulting
The office of the ombud for financial services providers has issued a determination in favour of Pumelele Mantingani after financial services provider Luvuyo Burial and Consulting failed to honour a funeral policy claim. Luvuyo Burial's failure to honour the claim has also resulted in its licence as a financial services provider being suspended by the Financial Sector Conduct Authority (FSCA). Mantingani, who took out a funeral policy with the company in September 2020, lodged a complaint with the ombud's office on October 28 last year after Luvuyo Burial and Consulting failed to honour a valid claim after the death of her uncle, Mbuyeni Katshi, on July 17 2024. Mantingani submitted her claim on July 27 2024. Luvuyo Burial and Consulting, based in Khayelitsha, Cape Town, acknowledged the claim and committed to payment, but only partially honoured the obligation, paying R5,000 of the R10,000 due. Despite further assurances, the balance remains unpaid. Numerous attempts were made by the ombud to resolve the matter amicably. Though Luvuto Burial undertook on more than one occasion to settle the outstanding balance, it failed to do so. During the investigation, it also came to light that Luvuyo Burial was operating without an underwriter, raising serious concerns regarding its compliance with regulatory requirements. In assessing the evidence, the office found that the policy was valid and that the deceased was listed as an insured life. However, Luvuyo failed to act in accordance with the policyholder protection rules, which require that: 'An insurer must, within two business days after all required documents in respect of a claim under a microinsurance policy or a funeral policy have been received, assess and make a decision whether the claim submitted is valid, and authorise payment of the claim, repudiate the claim or dispute the claim and notify the claimant of the dispute.' The ombud said the company's failure to process the claim appropriately reflected noncompliance with treating customers fairly outcome 6, which states that 'customers do not face unreasonable post-sale barriers when they want to change a product, switch providers, submit a claim or make a complaint'. As a result, the ombud upheld the complaint and ordered that Luvuyo Burial and Consulting pay the complainant the outstanding balance of R5,000 with interest at a rate of 11.25% per annum from the date of the determination until the date of final payment. 'Given the respondent's failure to comply with regulatory requirements, a copy of this determination was referred to the FSCA for its attention and possible enforcement action. 'As a result, the respondent's licence as a financial services provider was suspended by the FSCA on April 14,' the ombud said.
IOL News
19 hours ago
- IOL News
Financial institutions urged to vet CPD providers amid credential concerns
The Financial Sector Conduct Authority (FSCA) has issued a nationwide warning to financial institutions Image: File The Financial Sector Conduct Authority (FSCA) has issued a nationwide warning to financial institutions, urging them to carefully verify the credentials of Continuous Professional Development (CPD) providers before engaging their services. This warning comes after the financial sector watchdog "became aware that an entity known as LearnOn (Pty) Ltd (Learn On) has been offering continuous professional development (CPD) services to Financial Services Providers (FSP) without the necessary authorisation". "The services offered include the provision of assistance to FSPs in meeting their CPD competency requirements as set out in the Determination of Fit and Proper Requirements for Financial Services Providers, 2017 (Board Notice 194 of 2017) issued under the Financial Advisory and Intermediary Services Act, No. 37 of 2002," FSCA said. CPD is a required rule for financial services providers (FSPs). It helps make sure that key staff and representatives keep their knowledge and skills up to date so they can do their jobs well. Meeting the minimum CPD requirements is essential to stay compliant with the law. "It appears that LearnOn has issued CPD certificates bearing the logo of the Financial Planning Institute of South Africa (FPI) without authorisation and has used FPI reference numbers that are either invalid or linked to other approved CPD providers. Attempts to reach out to Learn On regarding these concerns via email and telephone have been unsuccessful," the financial sector watchdog said. Video Player is loading. Play Video Play Unmute Current Time 0:00 / Duration -:- Loaded : 0% Stream Type LIVE Seek to live, currently behind live LIVE Remaining Time - 0:00 This is a modal window. Beginning of dialog window. Escape will cancel and close the window. Text Color White Black Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Background Color Black White Red Green Blue Yellow Magenta Cyan Transparency Opaque Semi-Transparent Transparent Window Color Black White Red Green Blue Yellow Magenta Cyan Transparency Transparent Semi-Transparent Opaque Font Size 50% 75% 100% 125% 150% 175% 200% 300% 400% Text Edge Style None Raised Depressed Uniform Dropshadow Font Family Proportional Sans-Serif Monospace Sans-Serif Proportional Serif Monospace Serif Casual Script Small Caps Reset restore all settings to the default values Done Close Modal Dialog End of dialog window. Advertisement Next Stay Close ✕ Ad loading The financial watchdog added that it was not commenting on LearnOn's business practices or the quality of its training programmes. "However, the FSCA deemed it important to bring this matter to the attention of financial institutions and urge them to verify the accreditation of CPD providers purporting to assist with the fulfilment of competency requirements under the FAIS Act with the relevant professional bodies before entering into any agreements in this regard". Failure to verify CPD providers and programmes may result in financial institutions not meeting their CPD. IOL Business Get your news on the go, click here to join the IOL News WhatsApp channel
IOL News
a day ago
- IOL News
Crypto traders, pay attention: legal changes are coming
South Africa's exchange control rules are laws that decide how money can move in and out of the country. They affect how much forex you can buy, how you invest overseas, and how businesses move funds across borders, says Davron Chanderdeo. A RECENT High Court ruling just confirmed something many of us in the crypto world have known for a while. South Africa's laws around money, especially when it comes to crypto, are completely outdated. Judge Mandlenkosi Motha ruled that the country's exchange control regulations, which were written way back in 1961, don't apply to cryptocurrencies like Bitcoin. That's a big deal, because up until now, traders and investors have been operating in a confusing space, unsure what the rules really are. So, what does this mean if you're trading crypto on Luno, VALR, or Binance? Whether you're an investor, casual buyer or someone who trades daily, here's how this decision affects you and what you should do next. Why this ruling matters South Africa's exchange control rules are laws that decide how money can move in and out of the country. They affect how much forex you can buy, how you invest overseas, and how businesses move funds across borders. Until now, there's been no clear rule about where crypto fits. Is it like rand? Is it a foreign investment? Or is it something totally new? Someone can transfer Bitcoin from Cape Town to a family member in Hong Kong in a matter of minutes and that transaction, under current law, isn't clearly defined as foreign or local. The court said: crypto is not covered by the old rules. It's time for new laws made just for digital currencies. So what changes for traders or the everyday South African? Let's break it down with a few real-life examples. You're trading from your couch: You buy Bitcoin on Luno, then move it to Binance for better trading options. Under the old rules, it was unclear whether that was considered 'sending money offshore'. Now? The court says crypto isn't covered, so you're technically not breaking exchange control laws. But this may change once new rules come in. You work for a financial firm or are an avid investor: Let's say your firm wants to launch a crypto ETF or offer Bitcoin as one of the assets in a pension fund. Right now, that's risky, because crypto isn't clearly identified as an onshore or offshore asset. Furthermore, Regulation 28 of the Pension Funds Act allows limited exposure to crypto assets (up to 10%), but asset managers remain cautious due to FSCA guidance and ongoing market volatility. This ruling could pave the way for investment houses to get involved which means more opportunities and better products for everyday investors. The bigger picture: why regulation is good for you Let's face it, most South Africans don't like the idea of more rules. But in the crypto world, the right regulation doesn't mean more red tape, it means more protection, less risk, and real growth. According to the Financial Sector Conduct Authority (FSCA), crypto-related scams are on the rise in South Africa, particularly across social media platforms like WhatsApp, Facebook, and Instagram. Fraudsters often impersonate legitimate traders or companies, promising unrealistic returns and then vanishing once funds are transferred via Bitcoin or other crypto. These scams exploit crypto's semi-anonymous nature, making it harder to trace transactions and recover funds. A 2023 FSCA report warned that South Africans lost over R500 million to crypto scams in just one year, with most scams originating via social media or messaging platforms. So why would these scammers ever stop? While there's currently no formal government-mandated transaction declaration process between crypto wallets, increased regulation may soon require verified identification through Know-Your-Customer (KYC) processes at local and international exchanges. This would make it harder for criminals to use crypto anonymously and easier for authorities to trace illicit activity. Implementing regulation will: - Help prevent scams by setting minimum standards for exchanges and wallet providers. - Make tax reporting easier, so you know what you owe and can plan properly. - Encourage large institutional investors (like pension funds and asset managers) to enter the market, bringing stability and liquidity. - Create a legal path for innovation, like launching crypto linked debit cards, savings products, or smart investment platforms. My final thoughts are that this ruling is a win for the crypto community, but it's also a wake-up call: the wild west era of trading is ending. That's not a bad thing, it means South Africa is taking crypto seriously. And when the law takes something seriously, so does the market. Traders who stay informed, track their gains, and keep things clean will benefit the most. Crypto is here to stay. With the right legal framework, it can shift from the margins to the mainstream, unlocking innovation, securing investor trust, and contributing meaningfully to South Africa's financial ecosystem.
