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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD: 

Demonstrate knowledge and understanding of the role and responsibilities of Trustees of Medical Schemes 
SAQA US ID UNIT STANDARD TITLE
123421  Demonstrate knowledge and understanding of the role and responsibilities of Trustees of Medical Schemes 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 3  NQF Level 03 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Reregistered  2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2024-06-30   2027-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
12550  Demonstrate knowledge and understanding of the role functions and responsibilities of Trustees of Medical Schemes  Level 3  NQF Level 03   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended to empower learners who are Trustees of medical schemes or learners who intend standing for election as Trustees of medical schemes to understand their responsibilities as Trustees. It should enable new and prospective Trustees to act responsibly in standing for election or performing their duties as Trustees of their own medical scheme.

The qualifying learner is capable of:
  • Explaining the role of a Board of Trustees of a medical scheme.
  • Explaining the duties of Trustees in managing a scheme.
  • Explaining the responsibilities of Trustees in terms of corporate governance.
  • Explaining why it is important for Trustees to be independent of other bodies. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication at NQF level 2 and the Unit Standard Demonstrate knowledge and understanding of the individual's basic rights and responsibilities under a medical scheme. 

    UNIT STANDARD RANGE 
    The typical scope of this Unit Standard is the current Medical Schemes Act.
  • Scheme Officials and Service Providers include Functionaries, Auditors, Investment Managers, Actuaries, Consultants, Administrators, Asset Managers, Principal Officers, Intermediaries and the functions to be outsourced.
  • A specific or selected medical scheme means the learner's own medical scheme.
  • The communication function includes, but is not limited to, changes of rates, utilisation, fraud and benefit options.
  • Legislation includes the current Medical Schemes Act, the Financial Advisory and Intermediaries Act (FAIS) and the Financial Intelligence Centre Act (FICA).
  • Managed Care includes, but is not limited to programmes to provide the best possible service at the lowest possible cost. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the role of a Board of Trustees of a medical scheme. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The role of a Board of Trustees is explained and an indication is given of the ideal composition of a Board. 

    ASSESSMENT CRITERION 2 
    Reasons why it is essential to have a properly constituted Board of Trustees are explained with reference to current legislation. 

    ASSESSMENT CRITERION 3 
    The role of the Board in drafting the rules of a scheme is explained and an indication is given of the requirements for approval of the rules. 

    ASSESSMENT CRITERION 4 
    The role of the Board in appointing scheme officials, administrators, third party contractors and intermediaries is explained with reference to the rules of a selected scheme. 

    ASSESSMENT CRITERION 5 
    The need for an investment policy statement is explained in terms of setting investment objectives and the selection of investment and risk managers. 

    SPECIFIC OUTCOME 2 
    Explain the duties of Trustees in managing a medical scheme. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The responsibilities of Trustees in the design and costing of option benefits is explained with reference to members and the sustainability of the scheme. 

    ASSESSMENT CRITERION 2 
    The duties of Trustees in overseeing the administrative and accounting functions of a medical scheme are explained with reference to the current Medical Schemes Act and the rules of the scheme. 

    ASSESSMENT CRITERION 3 
    The duties of Trustees in relation to a scheme's investments are explained with reference to the current legislation and the rules of the scheme. 

    ASSESSMENT CRITERION 4 
    The duties of Trustees in relation to administration, communication and reporting are explained with examples. 

    SPECIFIC OUTCOME 3 
    Explain the responsibilities of Trustees in terms of corporate governance. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    The concepts of transparency and access to information are explained with reference to the constitutional rights of members, conflict of interests and regulatory communication requirements. 

    ASSESSMENT CRITERION 2 
    The discretionary powers of Trustees are named with reference to the rules of the scheme and the consequences of abusing discretionary powers. 

    ASSESSMENT CRITERION 3 
    The importance of compliance and the consequences of non-compliance with legislation in the management of a medical scheme are explained with examples. 

    ASSESSMENT CRITERION 4 
    The fiduciary duties of Trustees towards members and a scheme are explained and an indication is given of the consequences of bad decision-making, negligence or not acting in good faith. 

    ASSESSMENT CRITERION 5 
    The importance of a risk policy is explained with reference to good governance and sustainability of a scheme. 

    SPECIFIC OUTCOME 4 
    Explain why it is important for Trustees to be independent of other bodies. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    Restrictions on people who are eligible to be Trustees are explained and an indication is given of why these restrictions are necessary. 

    ASSESSMENT CRITERION 2 
    The relationship between Trustees and the Administrator is explained with reference to the service level agreement. 

    ASSESSMENT CRITERION 3 
    The performance of the Administrator and selected Managed Care Programmes are measured against existing service level agreements. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 

  • UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is able to communicate effectively in explaining his his/her role, functions and duties as a Trustee. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is able to see the world as a set of related systems in understanding the consequences of abusing discretionary powers and non-compliance. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 12550," Demonstrate knowledge and understanding of the role functions and responsibilities of Trustees of Medical Schemes, Level 3, 4 credits.

    Search words:
  • Medical Scheme; Trustees; fiduciary duty. 

  • QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2012-06-30  INSETA 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered" 
    2021-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. African Resources & Financial Training (Pty) Ltd 
    2. CKP Development Agency (Pty) Ltd. 
    3. De Vries Management & Training Services cc 
    4. Faisit (Pty) Ltd 
    5. Masifunde Training Centre (Pty) Ltd 
    6. Ray Strodl Consulting (Pty) Ltd 
    7. RJM Educational Consulting (Pty) Ltd 
    8. Sanlam Life Insurance Ltd 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.