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Learn • Class of Business (COB)

Class of Business (COB) Explained

Class of Business (COB) refers to the specific product or business areas a FAIS Representative is authorised and competent to work in. In plain terms: COB helps define your scope. It protects clients and stops “I’ll just try my luck” behaviour from becoming a compliance disaster.

Note: COB requirements depend on your role, product categories and the FSP’s controls. Always confirm your exact scope with your FSP/compliance.

What is Class of Business?

Class of Business is the structured way the industry defines what type of business/products you may advise on, sell, or service. It links directly to competence: if you’re working in a specific area, you must be trained and competent in that area.

COB defines scope
It helps determine what you may do under your FSP’s licence and internal controls.
COB links to training
Different COB areas typically require different training and competence evidence.
COB protects clients
It reduces mis-selling by ensuring reps operate within what they understand and can prove.

Why COB matters (in real life)

COB is not a technicality. It affects what you can offer, how you are supervised, and what you need to maintain. It also affects your employability.

Scope and authority
Your COB helps define what products/areas you can legitimately work with under the FSP’s licence model.
Training and competence
You need the right training evidence for the area you operate in. “I’ve been doing it for years” is not evidence.
Client outcomes
The right COB reduces unsuitable product placement and poor disclosures that harm clients.
Hiring and roles
Employers often want people competent in specific COB areas. It can affect the roles you qualify for.

Common Class of Business areas (high-level)

COB categories can be detailed, but most people recognise the major groupings below. Your specific scope depends on your FSP’s licensing and your role.

Short-term insurance
Personal and commercial risk cover and related products, depending on licence scope.
Typical roles: call centre sales, brokers, servicing consultants.
Long-term insurance
Life, risk, and related long-term products, depending on licence scope.
Typical roles: financial advisers, tied agents, risk specialists.
Investments
Investment-related products and advice areas, depending on authorisation.
Typical roles: investment advisers, wealth support, portfolio-facing roles.
Medical / health-related
Medical scheme or related products where applicable to licensing scope.
Typical roles: medical scheme consultants, servicing support.
Pension / retirement
Retirement-related categories and services depending on authorisation.
Typical roles: retirement benefits consultants, adviser support.
Other specialised areas
Some products/roles have additional or specialised COB requirements.
Confirm with your FSP’s licence scope and compliance team.

How to confirm your COB (practical steps)

If you’re unsure, don’t guess. Use this simple sequence:

Step 1
Confirm your role
Are you giving advice, intermediary services, onboarding, or servicing? Role matters.
Step 2
Confirm product scope
Which product categories will you touch? This drives COB requirements.
Step 3
Check the FSP’s controls
Your FSP/compliance team will confirm what applies under their licence and policies.
Step 4
Collect evidence
Keep training certificates, CPD records, and proof of competence organised.
COB is part of Fit & Proper
COB links directly to competence and ongoing requirements. It is one of the reasons Fit & Proper is not “just RE5”.

Common COB mistakes

Assuming COB is “someone else’s problem”
If you touch the product or client journey, COB can apply. Confirm scope early.
Doing training but keeping no proof
You need evidence. Save certificates and keep a neat file (digital is fine).
Working outside scope “just this once”
That’s usually when complaints happen. Stay inside scope and refer when needed.
Confusing COB with job title
COB is about the business/product area, not what your email signature says.

Next steps

If you need COB training options or want to understand how COB affects your role, use the links below.

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