To offer your clients information, services or advice on medical schemes, you and your brokerage must be accredited with the Council of Medical Schemes (CMS) – and retain accreditation by reapplying biannually.
According to the Financial Advisory and Intermediary Services (FAIS) Act, advisors who want to provide a service in the Health Service Benefits product subcategory must have CMS accreditation. Brokerages that contract with medical schemes to provide services must be accredited as an organisation and the advisors, who are representatives, must be accredited as individuals.
The CMS, which governs the medical schemes industry, prescribes the fees and accreditation requirements for advisors and brokerages. Here is how you (and your brokerage) can gain accreditation, as prescribed in terms of the Medical Schemes Act (MSA):
Individual broker application
If you have healthcare consulting and marketing experience and can provide written references from medical scheme(s) confirming two years’ relevant experience, you may apply for accreditation as a Health Care advisor. If you have less than two years of experience, the CMS will list you as an apprentice advisor until you can apply for regular accreditation after two years of practice.
You also need:
- A certified copy of your ID or passport.
- A certified copy of your highest academic qualification (with a minimum of matric).
- A copy of contract(s)/agreement(s) you have entered with the medical scheme concerned.
- Original certificate of good standing from the South African Revenue Service.
- References from medical schemes as an employer substantiating the period during which you conducted broker services.
- Documentary evidence signifying the accredited supervising broker’s consent.
- Proof of payment of the prescribed non-refundable application fee.
Accredited advisors receive a certificate and ‘BR’ number. The certificate is valid for two years. It is important to remain accredited, as you otherwise cannot be paid for your services.
Brokerage application
The CMS must accredit a brokerage before it can apply to the Financial Services Board to be authorised for the product subcategory ‘Health Service Benefits’.
Application requirements for accreditation:
- CV of the person who heads the brokerage.
- Copies of broker agreements between the applicant and medical schemes OR letters of intent from medical schemes indicating their business offers to contract with the applicant to provide broker services.
- Audited financial statements, with notes, for the financial year preceding the application. If the entity is a new company, a letter from the auditor must be submitted to confirm no trading was conducted.
- Tax clearance certificate.
- Original SARS certificate of good standing, confirming the entity has not contravened any provisions of the Income Tax Act.
- Proof of payment of the prescribed non-refundable application fee, which is currently R1 400.
- A copy of the organisation’s B-BBEE certificate, if available (for statistical purposes).
An approved brokerage receives a certificate from the CMS with an “Org” number. Certificates must be renewed every two years. If accreditation lapses, payment of commission will cease. Renewal applications must be submitted at least three months prior to the accreditation expiry date.
To renew accreditation, a brokerage must provide:
- A copy of the audited financial statements with notes for the financial year preceding the application.
- A B-BBEE certificate, if available (for statistical purposes only).
- Proof of payment of the prescribed non-refundable application fee.
- Any additional information that may impact the evaluation of the application.
Moving to another FSP
If you move to another FSP, the CMS needs to be informed. Send an email to the CMS with your current FSP name and licence number, and instruct the CMS to update the details with the new FSP name and licence number. Keep a record of all correspondence as proof of submission.
Turnaround time
The CMS takes 21 working days to process applications. If you have not received your certificate by then, send an email to accredit@medicalschemes.com to escalate your request.
If you are applying for a new FSP licence, first submit all documentation to the CMS, as the FSB will not issue your licence without the relevant CMS accreditation (i.e. BR and/or Org number).
CMS contact details
Customer Care Centre: 0861 123 267 / 0861 123
Reception: 012 431 0500
Enquiries: information@medicalschemes.com
Application links
Click to download an application form for:
- Accreditation of Individual and Apprentice Brokers.
- Accreditation of an Organisation as a Broker.
- Renewal of Accreditation of an Individual as a Health Care Broker.
- Renewal of Accreditation of an Organisation as Broker.
When you meet the conditions set out for accreditation by the Medical Schemes Act, your clients can have peace of mind knowing that you are fit and proper, have the necessary infrastructure and are financially sound.