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FAIS Fit & Proper Regulatory 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
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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 HONESTY & INTEGRITY EXPERIENCE REPRESENTATIVE QUALIFICATONS CPD REGULATORY EXAMS Where does RE fit into the bigger “Fit & Proper” picture? NEW NEW
Types of Regulatory Exams REGULATORY EXAMINATION LEVEL II REGULATORY EXAMINATION LEVEL I • 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 “Overseeing” means officially supervising workers or the work itself (operational/ implementation) “Managing” Means having executive control/ or authority e.g. head of distribution channels, or distribution head in a brokerage
RE: Role dependant and product category dependant KEY INDIVIDUALS regulatory roles: MANAGEMENT ROLE ONLY (more strategic executive) RE I OVERSIGHT ROLE (E.g. Branch Manager Regional 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 31 DECEMBER 2011 Appointed 2004-2007 Appointed 2008 Appointed 2009 2 YEARS Appointed 2010 onwards…
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
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)