regulatory examinations AND Continuous professional development

1. regulatory examinations AND Continuous professional development Stefanie Mackenzie

2. REGULATORY EXAMINATIONS Long Term Cat A Long Term Cat B Long Term Cat C Short Term Personal Short Term Commercial Retail Pension Benefits Pension Fund Benefits Collective Investment Scheme Securities & Instruments (x6) Forex Investment Business Health Services Benefits Long & Short Term Deposits Assistance Business FSP Friendly Society Benefits 2 Representatives (50 Questions) FSP 1.1 & 1.19 Level 2 (30) 1 FSP II & IIA Exam (30) FSP III Exam (30) FSP 1.1 & 1.19 General Exam (50) FSP I & IV, II, IIA & III General Exam (80)

3. Question Levels Level 4 Level 3 Level 2 Level 1 REGULATORY EXAMINATIONS

4. REGULATORY EXAMINATIONS • Predefined Layout • Level one and two more in the beginning and end of questionnaire • Level three and four in middle of questionnaire

5. REGULATORY EXAMINATIONS

6. REGULATORY EXAMINATIONS

7. REGULATORY EXAMINATIONS Closed Book examination; Pass mark 65%

8. REGULATORY EXAMINATIONS Individual Examinations Question Data Bank Examination Bodies

9. PREPARATION MATERIALS

10. QUALIFYING CRITERIA: KI Task Task Name 1 Describe the role of the key individual in terms of the FAIS Act. 2 Describe the role of the representative in terms of the FAIS Act. 3 Manage and oversee the appointment of representatives. 4 Manage the rendering of services under supervision. 5 Manage and oversee the ongoing development/employment of representatives. 6 Debar representatives that have been found to act fraudulently, or committed any other act that gives rise to debarment. 7 Awareness of the regulatory environment in which the FSP functions 8 Awareness of the specific obligations in terms of the relevant Code of Conduct and other subordinate legislation.

11. QUALIFYING CRITERIA: KI Task Task Name 9 Oversee and manage the compliance functions as required by the FAIS Act. 10 Maintain the license of the FSP including the management of the licensing conditions 11 Take the necessary action if the FSP voluntarily lapses its license. 12 Verify that the proper record keeping activities are carried out. 13 Manage and oversee / participate in the setting up and/or managing of the infrastructure of the FSP. 14 Manage and oversee the requirements that auditors/accounting officers must adhere to. 15 Manage and oversee the FSP's adherence to the requirements of FICA and other relevant anti-money laundering legislation, as it applies to the FSP. 16 Manage any processes required in the event of an investigation by the FAIS Ombud.

12. Regulatory Examination - Key Individuals Qualifying Criteria per Task (184) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 QUALIFYING CRITERIA: KI

13. QUALIFYING CRITERIA: REPRESENTATIVE Task Task Name 1 Execute the required actions as a Representative, in terms of the FAIS Act. 2 Contribute towards maintaining a FSP licence. 3 Adhere to the specific obligations in terms of the relevant Code of Conduct and other subordinate legislation. 4 Apply knowledge of financial products. Awareness of consequences for Representatives that have been found to act fraudulently, or committed any other act that gives rise to debarment. 6 Align execution of duties and actions with the compliance requirements. 7 Carry out the proper record keeping activities. Adhere to the requirements of FICA and other relevant anti- money laundering legislation, as it applies to the FSP.

14. QUALIFYING CRITERIA:REPRESENTATIVE

15. REGULATORY EXAMINATIONS • Follow invigilator instructions carefully • Answers marked on the question papers will NOT be marked – i.e. 0% • Ensure that you fill in the circles clearly • Colour in • Do not Tick or mark with a Cross • Clearly enter you name, FSP number and ID number • Sign the form • Complete the date of the examination

16. REGULATORY EXAMINATIONS

17. REGULATORY EXAMINATIONS • Examination Terms and Conditions • What is a re-mark? • What is an appeal? • Fees for the above • Process for the above • Refunds

18. FREQUENTLY ASKED QUESTIONS • “Exam questions are designed to trip us up”! • FSB endorsed training provider? • 64% - now what? • “Questions in the exam do not match my training material” • Deadlines?

19. STATISTICS Total number of authorised FSPs in SA: 10 768 Total number of approved Key Individuals: 12 694 Total number of Registered Representatives: 121 518 As at 26 October 2011

20. Statistics • Percentage of KIs that have written: 43.74% of KI population • Percentage of Reps that have written: 35.27% of Rep • population • Majority of KIs and Reps that pass the exam obtain a result • between 71 – 80% • Majority of KIs and Reps that fail the exam obtain a result • between 51 – 60% • As at 26 October 2011

21. STatistics • Increase in the pass rate since roll-out = average of >3% • per month for both exams • Preparation is critical – systematic structured approach is • proving to be the most effective • Serious increase in cancellations from small FSPs / • individuals since July 2011 and poor registration figures. • Corporate are doing bulk enrolments – will have impact on • availability of seats at examination venues. • As at 26 October 2011

22. STATISTICS: KEY INDIVIDUALS

23. Statistics: representatives

24. Success stories Letter received from a financial planner dated 20 September 2011

25. REGULATORY EXAMINATIONS We wish you success!

26. Continuous professionaldevelopment • Board Notice 103 of 2008 – provided broad guidelines re • application process and requirements • Lessons learned from the qualification application process – • must differentiate between different types of applications to • ensure the correct information is obtained • New Board Notice to be published to provide more clarity • in terms of application process and requirements • NOTE: No changes to the CPD requirements. Only clarification regarding the application process.

27. Continuous professionaldevelopment

28. Type of cpd applications • Employers / Professional Bodies / Industry Associations • Can apply for recognition as a CPD provider • Yearly submission of programmes scheduled for the next • 12 months • All individuals participating in this programme(s) must • meet the requirements of the CPD provider • CPD provider to supply monthly updates to Registrar – • update the CPD records of learners • Customised application form supplied

29. Type of cpd applications • Organisation to apply for recognition of individual CPD activities • Customised application form supplied • Individuals to apply to have own CPD activities recognised • Customised application form supplied

30. New board Notice • List of definitions to provide clarity re different types of CPD • applications, etc. • Purpose of CPD • Specific conditions • Recognised CPD programmes / activities • Keeping of records and reporting • Format of approval of CPD programmes • Application forms

31. Application forms • CPD 1 – CPD Providers of CPD Programmes • CPD 2 – CPD Providers of CPD activities • CPD 3 – CPD programme and CPD activity recognition: • Employers and/or Product suppliers • CPD 4: Application Form: Individuals • CPD 5: Application Form: Removal of CPD Programme or • CPD Activity

32. TIMELINE • Submission of Board Notice to FAIS Advisory Committee: • 23 November 2011 • Publication of Board Notice: December 2011

33. CPD BOARD NOTICE