FAIS Fit & ProperRegulatory Examinations Levels I & II

Advocate Jane Appasamy

Road Map…

Background and Context

Where does RE fit into the bigger F&P picture?

Types of Regulatory Examinations

The Regulatory Examinations?

Who must write?

Unpacking terminology

INSETA’s role

INSETA Strategy – RE I & II

Learning material development

Roll-out of material

Way forward…

Background & Context

Determination of Fit & Proper 2004

No mention of Regulatory Exams

Regulatory Examinations – introduced in 2008

Forms part of the “Competence” component of Fit & Proper

Competence requirement1. RECOGNISED

QUALIFICATIONS

3. CONTINUOUS

PROFESSIONAL

DEVELOPMENT

2. REGULATORY EXAMS

LEVELS I & II

Where does RE fit into the

bigger “Fit & Proper” picture?

HONESTY & INTEGRITY

CPD

REPRESENTATIVE

COMPETENCE

EXPERIENCE

QUALIFICATONS

REGULATORY EXAMS

NEWNEW

Types of Regulatory Exams

REGULATORY EXAMINATION

LEVEL I

REGULATORY EXAMINATION

LEVEL II

Generic

•FAIS

•FICA

•GENERAL CODE

Product Specific

•Per product category

•Tests applied knowledge irt specific products

•Can be exempted (“S”) or Table C

Who must write Regulatory Examinations?

Key Individuals

-Person responsible for managing or overseeing any function relating to the rendering of a financial service

“Managing”

Means having executive

control/ or authority

e.g. head of distribution

channels, or

distribution head

in a brokerage

“Overseeing”

means officially

supervising

workers or

the work itself

(operational/

implementation)

RE: Role dependant and

product category dependant

KEY INDIVIDUALS regulatory roles:

MANAGEMENT ROLE ONLY

(more strategicexecutive)

RE I

OVERSIGHT ROLE (E.g. Branch ManagerRegional Manager)

RE I & II

Date of first appointment

important….

“DOFA” is critical to determine deadline for completion of RE I and II

2004-2009 – by 31 Dec 2011

2008 & 2009 – by 31 Dec 2011

2010 onwards – within 2 years

RE DEADLINES

Appointed

2004-2007 Appointed

2008Appointed

2009

Appointed

2010 onwards…

31

DECEMBER

2011

2

YEARS

A closer look at qualifying

criteria …

The purpose of Qualifying criteria is to

provide the criteria:

Against which the Regulatory Examinations will be set; and

Against which any proposed qualifications will be considered and evaluated for recognition

A closer look at qualifications

What is a “qualification”?

Entry Level qualification

“means a qualification obtained on or by the date of first appointment (DOFA)

Normally at a lower level than the full qualification

Full qualification

Means a qualification that is appropriate to a category or sub-category of financial products

Qualifications unpacked…

1. GENERIC – “G”

- Content generic

- Need to complete product specific Regulatory Exams (RE II)

2. SPECIFIC “S”

- 80% of contents specific

- If completed end 2009 exempted from RE II

- Falls away from Jan 2010

Qualifications unpacked…

3. SPECIFIC “SP”

- Matches qualifying criteria 100% in terms of contents

- Exempted from RE II

- Applies only from 2010 onwards

Abbreviations S, G & SP in list of

qualifications

Abbreviation Definition

S Not required to do relevant regulatory exam II.

Qualification is specific.

G Required to do relevant regulatory exam II. Qualification is generic.

SP Not required to do relevant regulatory exam II (post transitional requirements)

Recognised as a specific qualification for a specific subcategory.

Product Categories – no RE II

Table C – BN 106

Long Term Insurance Category A

Long-Term Deposits

Short-Term Deposits

Friendly Society Benefits

Assistance Business FSP (Cat IV)

INSETA STRATEGY

Pre-examinations Provider appointed Milpark Business

School & IISA

Timeframes – to be advised

Material developed : FSP I

Other FSP’s – to be advised

Public domain

Post-examinations NLRD

INSETA STRATEGY

Distribution

Available on INSETA website

Other methods (hard copies, cd)

Thank you…