FAIS Compliance Checklist for Medical Scheme Intermediaries

Qualifications

• Regulatory Examination (RE) passed by all representatives
• Relevant NQF Level 5 qualification or equivalent
• Continuous Professional Development (CPD) hours completed annually (minimum required hours)
• CPD certificates filed and readily available for audit

Integrity Requirements

• No criminal convictions that would disqualify representatives
• Financial soundness verified (no insolvency or administration orders)
• Operational ability demonstrated
• Honesty and integrity maintained

Documentation Requirements

• ROA completed for every client interaction where advice is provided
• Client's financial needs and objectives documented
• All medical scheme options considered and documented
• Reasoning for recommendation clearly explained
• Client's risk profile assessed
• Affordability analysis completed
• Product comparison showing at least 3 suitable options (where available)

ROA Contents Checklist

• Client personal information and dependents
• Current medical scheme coverage (if applicable)
• Healthcare needs analysis
• Budget and affordability assessment
• Medical scheme options compared
• Benefit comparison across schemes
• Recommendation with detailed motivation
• Disclosure of fees and commissions
• Client signature and date
• Representative signature and FSP number

Record Retention

• All ROAs stored securely for minimum 5 years
• Digital backup system in place
• Easy retrieval system for audits

• Comprehensive needs analysis conducted before any recommendation
• Client's current health status and medical history considered
• Family composition and dependent needs assessed
• Chronic conditions and ongoing treatments documented
• Preferred healthcare providers and hospitals identified
• Budget constraints and affordability verified
• Future healthcare needs anticipated

Upfront Disclosures

• FSP details provided to client (name, license number, contact details)
• Nature of advice being provided disclosed
• Representative's authority and limitations explained
• Conflict of interest policy shared
• Complaints procedure provided
• FAIS Ombud contact details shared

Financial Disclosures

• Commission structures disclosed
• Fees clearly explained
• Any financial interests in recommended products declared
• Third-party incentives disclosed
• Total cost of advice broken down

• Written complaints procedure in place
• Complaints register maintained
• Complaints acknowledged within 24-48 hours
• Target resolution timeframes established
• Escalation procedures documented
• FAIS Ombud details provided to complainants
• Complaint trends analyzed quarterly
• Corrective actions implemented where necessary

Compliance Function

• Compliance Officer appointed (internal or external)
• Compliance monitoring program in place
• Regular compliance audits conducted (at least annually)
• Non-compliance issues identified and remediated
• Compliance training provided to all staff

Risk Management

• Risk management framework documented
• Operational risks identified and assessed
• Compliance risks monitored
• Reputational risk management procedures
• Professional indemnity insurance in place and adequate
• Fidelity insurance coverage maintained

• Ongoing training program for all representatives
• Product knowledge training conducted regularly
• Regulatory updates communicated to team
• CPD hours tracked for each representative
• Training records maintained
• Supervision of junior representatives documented

Annual Reviews

• Year-end medical scheme reviews conducted for all clients
• Benefit utilization analyzed
• Scheme changes communicated proactively
• Alternative options presented where appropriate
• Review meetings documented

Ongoing Communication

• Regular client touchpoints scheduled
• Industry updates shared with clients
• New product launches communicated
• Queries responded to promptly
• Communication records maintained

• POPIA compliance measures implemented
• Client consent obtained for data processing
• Secure storage of client information
• Access controls and password protection
• Data breach response plan in place
• Regular data security audits
• Staff trained on data protection requirements

• All marketing materials include FSP details
• No misleading or false claims made
• Disclaimers included where necessary
• Comparative advertising substantiated
• Social media policy in place
• Testimonials properly authorized and authentic

• Compliant quoting and comparison software used
• CRM system maintains proper client records
• Automated reminders for compliance deadlines
• Document management system in place
• Regular system backups performed
• Cybersecurity measures implemented
• Record keeping for specified period of 5 years

• Due diligence conducted on all service providers
• Service level agreements in place
• Outsourcing arrangements documented
• Oversight of third-party compliance
• Regular performance reviews conducted

January - March

• CPD compliance review
• License renewal preparation
• Annual compliance audit planning

April - June

• Mid-year representative assessments
• Product knowledge updates
• Complaints analysis (Q1)

July - September

• Year-end preparation for clients
• Marketing material review
• System security audit

October - December

• Year-end client reviews
• Annual compliance report
• CPD year-end push
• Planning for next year

1. Incomplete Records of Advice - Always document every recommendation fully
2. Late License Renewals - Set reminders well in advance
3. Inadequate Disclosure - Over-communicate rather than under-communicate
4. Poor Complaint Handling - Address complaints promptly and professionally
5. Insufficient CPD - Track hours throughout the year, don't leave it to the last minute
6. Weak Supervision - Key individuals must actively supervise representatives
7. Outdated Policies - Review and update compliance policies annually

At Brokertools, we understand the compliance burden on medical scheme intermediaries. Our platform is designed to help you meet FAIS requirements efficiently:

• Automated Record of Advice generation with all required fields
• Statutory Notice generated with all fields completed
• Comprehensive benefit comparison across 55 benefit criteria
• Compare as many options as required
• All open and several closed medical schemes compared
• Bulk communications via email or sms
• Document repository for easy access to brochures and forms
• CRM functionality that tracks client interactions and servicing
• Year-end review tools to ensure timely client contact
• Audit trail for all activities and recommendations
• Secure storage of client records for the required 5-year period

FAIS compliance doesn't have to be overwhelming. By systematically working through this checklist and implementing proper systems and processes, you can ensure your practice remains compliant while delivering excellent service to your clients.

Remember: compliance is not a once-off exercise but an ongoing commitment. Regular reviews, training, and updates to your processes will help you stay ahead of regulatory changes and maintain the highest professional standards.

Need Help? If you're looking for tools to streamline your FAIS compliance, contact Brokertools today to see how our Quote and CRM solutions can support your practice.