Module 1 Chapter 1 2 of 6

Essential Skills

Brief module description

This module is intended to give basic knowledge of topics in the financial planning field.
This information will be applicable in most settings and should be absorbed by the learner
and incorporated into their studies.

Specific Outcomes:

By the end of this chapter, you should be able to:

 understand what the Registered Financial Planner course is comprised of and more
about the South African qualifications processes
 have skills in studying for examinations and use tips on how to write examinations
 explain basic financial planning concepts such as the Marital Regime and Wills
 do any type of financial calculation required in the examination

Chapter 1 Course information and how unit standards work

Introduction The course you are embarking on is the National Certificate: Wealth
Management (ID number 57608). With the introduction of a new system of
measuring skills and learning, all business in South Africa is grouped in
sectors and qualifications for those sectors are registered with the South
African Qualifications Authority (SAQA).

Purpose of The purpose of the National Certificate: Wealth Management Level 5 is to

course build the knowledge and skills required by employees in Wealth
Management who have achieved a qualification equivalent to NQF Level 4,
preferably in a Financial Services related field, and are ready to study at
Level 5. It is intended to empower learners to acquire knowledge, skills,
attitudes and values required to operate ethically and responsibly in the
highly regulated Financial Services environment and to respond to the
challenges posed by the changing nature of the Financial Services Industry.
It should add value to the qualifying learner in terms of enrichment of the
person, status, licensing and recognition.

As a qualification in Wealth Management, it provides a framework for

learners to develop competencies related to the Long Term Insurance Sub-
Sector, which includes Life Benefits, Retirement Funds and Medical
Scheme Administration, as well as the Collective Investment Sub-Sector,
Wealth Creation and Wealth Management. It provides a balanced learning
experience and an opportunity for learners to apply academic skills in
Financial Planning Institute  RFP1 March 2010
Information relevant for all unit standards Course information
 Module 1 Chapter 1 3 of 6

relation to the workplace. The Qualification is structured in such a way that it

exposes learners to generic competencies required in the Financial
Services Sector at Level 5 and allows for specialisation to meet the needs
of different work roles.

The National Certificate: Wealth Management: Level 5 is a building block for

learners who wish to follow a career path in Financial Services within Long-
Term Insurance and Investment. The skills, knowledge, values and attitudes
reflected in the Qualification are building blocks that can be developed
further at Level 6.

The National Qualifications Framework (NQF) sets the standards or level of

NQF learning and has 8 levels. The certificate: Wealth management is a level 5
qualification. Level 6 National diploma: Financial services/ Wealth
management is currently under development and NQF 7 are degrees,
higher certificates and diplomas offered at higher education institutions such
as the University Of The Free State (UFS). With the introduction of the FAIS
legislation, all financial planners are obligated to get a minimum of 60
credits NQF level 5. At the end of this course, you will have completed the
full qualification and have attained 127 credits in total.

The qualification is comprised of a number of unit standards. Not all credits

are derived from NQF 5 levels. Some are from NQF 4 and some from NQF
6. The number of credits represents the number of notional hours required
to get the knowledge or skill. Thus a module on Ethics (NQF 6 Credits:10)
requires 100 hours of notional learning. (ten hours of notional learning per
credit).

A certain percentage of the units must be made up of core (C) and

fundamental (F) unit standards. The remainder are comprised of elective (E)
unit standards. However with RFP you do not choose which electives to
study, you will be examined on all unit standards contained in the course.

Financial Planning Institute  RFP1 March 2010

Information relevant for all unit standards Course information
 Module 1 Chapter 1 4 of 6

RFP1
Course
breakdown NQF Level/ Module /
UNIT STD UNIT STANDARD TITLE
Credits Chapter

Essential skills required but not

General related to a specific unit standard such None
1/1
info as wills, trusts and using a financial allocated
calculator
Determine the needs and wants of an
242573 entity in order to propose an 5/4 5 / all
appropriate financial solution
Apply the principles of ethics to a
230078 6 / 10 2 / all
business environment
Describe the financial life cycle of an
230077 individual and how this influences 5/8 4 / all
financial decisions
Demonstrate knowledge and
understanding of the Financial
Advisory and Intermediary Services
242584 4/2 3 / all
Act 2002 (FAIS) (Act 37 of 2002) as it
impacts on a specific financial
services sub-sector
Demonstrate insight into current
120075 5 / 10 6 / all
affairs in the Financial Services Sector
Present an informed argument on a
230070 5/5 7 / all
current issue in a business sector
Demonstrate knowledge and insight
into the changing nature of the
230075 5/6 8 / all
financial services industry and its
consumers
TOTAL Credits 45

Financial Planning Institute  RFP1 March 2010

Information relevant for all unit standards Course information
Module 1 Chapter 1 5 of 6

RFP 2

NQF
UNIT Module /
UNIT STANDARD TITLE Level/
STD Chapter
Credits
Apply basic economic principles to
230071 5/5 3/1
the financial services sector
Apply Knowledge of the different
242594 asset classes in order to give 5/4 4/1
financial advice
Present a proposal to optimise the
242574 tax aspects of the wealth 5/4 5 / all
management of an entity
Apply scenario Planning to explain
242580 potential risk in a specified 5/6 1 / all
financial services context
Demonstrate knowledge &
119997 understanding of risk in a financial 5/5 6/1
services environment
Research information in order to
242554 assist in conducting a financial risk 5/7 6/2
assessment
Apply a researched trend to
242601 5/5 3/2
individual financial risk
Explain South African money
laundering legislation and the
242593 implications for accountable 4/3 2 / all
institutions in transacting with
clients
Apply technical knowledge and
242612 skill to explain how collective 5/2 4/2
investment schemes are classified

Total Credits 41

Financial Planning Institute  RFP1 March 2010

Information relevant for all unit standards Course information
Module 1 Chapter 1 6 of 6

RFP 3

NQF
UNIT Module /
UNIT STANDARD TITLE Level/
STD Chapter
Credits
Apply knowledge of business
insurance to propose a Long Term
242589 6 / 10 5 / all
financial solution for a business
entity
Apply knowledge of estate
242592 planning to propose a financial 6/8 4/2
solution for a high net worth client
Apply the regulations for disclosure
117129 that are required as part of the 4/2 1 / all
financial sales process
Apply technical knowledge and
242613 skill to advise an individual on 5/5 2 / all
planning for retirement
Develop a potential wealth
242555 5/8 3 / all
preservation solution for an entity
Apply knowledge of estate
242603 planning to propose a financial 5/8 4/1
solution

Total Credits 41

Examination questions are also based on the unit standards. It is not

possible to include every possible bit of information in the material, so wider
reading is recommended.

For more information on SAQA and the unit standards, visit the following
website for further information http://www.saqa.org.za/ click on
qualifications and unit standards and navigate from there.

Financial Planning Institute  RFP1 March 2010

Information relevant for all unit standards Course information
 Module 1 Chapter 1 7 of 6

Examination The format for course 57608 has changed from the previous course offered
format by the FPI. There are multiple choice, short answer and case study questions
included in each examination. There will also be the mandatory submission of
an assignment. Failure to submit this assignment on time will result in your
not being allowed to write the examination.

Mark and Mark

weighting for Allocation
assignment
and
examination

Assignment Assignment Weighting 100 marks

30%
Must have
minimum of
50%
Examination Multiple Choice 10% Weighting 100 marks
4 hour open Short questions 40% 70%
book Short case studies Must have
50% minimum of
50%

Education is the best provision for old age

Aristotle (384 BC - 322 BC)

* * *

Education has for it’s object the formation of character

Herbert Spencer (1820 – 1903)

Financial Planning Institute  RFP1 March 2010

Information relevant for all unit standards Course information