Supervised service must happen within a controlled framework, which includes an agreement, a procedure and monitoring to ensure that the procedure is followed at all times. For every representative under supervision, there is a requirement for a documented and comprehensive supervision contract and both the supervisor and supervisee must sign it. The supervision agreement must contain the following:

  1. Identify the supervisee and supervisor
  2. Set out the tasks and functions the supervisee performs on behalf of the FSP
  3. Set out knowledge, skills and expertise required to complete the tasks and functions in point 2 above
  4. Set out the training needs and a training plan in order for the supervisee to obtain the skills and expertise
  5. Set out the supervision function, including:
  • Duties and responsibilities of supervisee and supervisor
  • Supervision methodology, tools, processes, including oversight, monitoring and assessment. This includes the frequency and intensity of monitoring, which must be aligned to the complexity of the products and services, the level of competence of the rep under supervision and the risk to clients and the FSP
  • Criteria and procedures to establish whether a supervisee is able to work under a lessor intensity of supervision
  • Criteria against which the supervisee will be assessed and the intervals of assessment
  • Sign off criteria for the supervisor
  • Specify how clients will not be prejudiced due to the appointment of the supervisee.

The supervision procedure must ensure that any unfair client treatment is immediately reported to the FSP. Proper controls and management must ensure that the procedure is being followed and the correct records are being kept. In addition, supervision must provide for the following:

  1. The supervisor must have coaching and supervisory skills. Identify these and ensure the appointed person has these. The supervisor must have a working relationship with the supervisee that enables the supervisor to have oversight of the functions performed by the supervisee
  2. Draft and complete the supervision plan. This must address all the areas in the agreement and plan how and when supervision will take place
  3. The supervisor must do an initial assessment of the level of skill and knowledge and expertise of the supervisee, in respect of the tasks, duties and functions of the Supervisee. This can be an initial onboarding assessment or “baseline” assessment. This assessment must be documented and provide details on how the requirements have been assessed.
  4. The supervisor must establish the level, intensity and periods of supervision required based on the level of competence of the Supervisee. This must align to the supervision programme.
  5. The supervisor must coach and mentor the supervisee in order to assist with skills transfer
  6. The supervisor must monitor the normal working activities of the supervisee and have a working relationship which allows this monitoring and oversight
  7. The supervisor must ensure that no client is prejudiced, and report any instance immediately to the FSP where a client has been treated unfairly
  8. The supervisor must keep all supervision records including training records, supervision activities and assessments up to date
  9. The supervisor must do periodic evaluations of the supervisee’s training and skills and abilities
  10. The supervisor must document the method, level and intensity of supervision activities and ensure regular competence assessments are done and recorded
  11. Where a lessor intensity of supervision is required, the supervisor must document how this was assessed and motivate why a lessor intensity is appropriate
  12. The supervisor must ensure that the supervisee remains under supervision until assessed as being competent.
  13. The supervisor must confirm the competence of the supervisee and sign off the supervision agreement and period, once the supervisee is competent. The supervisee must stay under supervision for at least the minimum legislated periods, and until the supervisee deems them competent to no longer be under supervision

Regulatory exams must be passed within 2 years of date of first appointment. If the person does not have their RE5 at appointment, it is important to check to see when their first date of appointment is.

The RE requirements which were in place at this time apply, so if the representative needed to get their RE by a due date and did not, you cannot appoint them until they pass the exam. Where there is still time for the representative to pass their RE5,  note the due date in the agreement and ensure this is properly monitored. If the representative was under supervision when one of the other Board notices applies, which dictated when the RE was due, this first due date continues to apply.

Class of business training must be completed within 12 months of the appointment for that particular class of business if the person is appointed for the first time after 1 February 2019. If the person was under supervision before 1 February 2019, then class of business needs to be completed by end January 2020.

Qualifications must be completed within 6 years of the representative first being appointed for the product category or class of business. If the representative has an appropriate qualification, this requirement would only apply where a product category is added which needs a more onerous qualification.

CPD starts on the earlier of:

  1. when the supervisee completes his class of business, qualification and regulatory exam
  2. after 6 years of date of first appointment


The supervision contract and plan must be 100% up to date by 1 June if the representative was appointed under supervision before 1 December 2018 and by 1 March 2019 if the representative was appointed under supervision after 1 December 2018.