Regulatory
Examinations
By Anna Bouhail
Manager: Education
SAIFM
  he
amended fit and proper requirements announced in 2008 have
introduced the financial services industry to a new concept
– “REGULATORY EXAMINATIONS”. Although received
with mixed reaction there is no doubt that these exams will
have an important impact on the industry. The regulatory exams
are being developed and delivered under the direction and
management of the FSB.
SAIFM AS EXAMINATION
BODY
SAIFM has been appointed as an approved examination
body to assist with the development of the regulatory exam
questions and the delivery on a national basis.
SAIFM will offer these exams electronically and will afford
you the opportunity to write almost “anywhere”
- as long as you have an internet connection.
THE DEVELOPMENT
PROCESS
A remarkable amount of planning has taken
place in respect of the regulatory exams including workshops
and task teams working on the preparation and content of the
regulatory exams.
While we are hard at work developing the exams; all questions
still have to go through a quality assurance process with
the help of the industry.
The diagram below illustrates this process:
Regulatory
Examination Levels
There will be two levels of the regulatory
examinations.
*Consult Board Notice 64 of 2009 for a
list of specific “s” and specific “sp”
qualifications
List of examinations
Level
1 Regulatory Examinations
Key Individual – Level 1, Cat I to IV
Key Individual – Level 1, Cat II and IIA
Key Individual - Level 1, Cat III
Key Individual – Level 1, Cat 1.1 and 1.19
Representative – Level 1, Cat I to IV
Level 2 Regulatory Examinations
Long-Term Insurance Cat B
Long-Term Insurance Cat C & Retail Pension Funds
Participatory Interests in Collective Investment Schemes
Health Care Benefits
Short-Term: Personal Lines
Short-Term: Commercial Lines
Pension Fund Benefits
Deposits (Long/Short Term)
Securities & Investments: Shares (cat I, II &
IIA)
Securities & Investments: Money Market (cat I,
II & IIA)
Securities & Investments: Debentures (cat I, II
& IIA)
Securities & Investments: Warrants (cat I, II
& IIA)
Securities & Investments: Bonds (cat I, II &
IIA)
Securities & Investments: Derivatives (cat I,
II & IIA)
Forex Investment Business (cat I, II & IIA) |
Financial service providers licensed for
multiple products from different lines of business will need
to prove their competence in all of them unless exempted.
Format of the
exam
The regulatory examination will be multiple
choice questions mostly based on practical principles relevant
to the industry.
There will be no limit on the number of attempts
made in order to achieve competence.
There will be one national version of any
regulatory examination for any category or subcategory.
Focus of the
exam
The regulatory examinations aim on testing
the application of factual knowledge in relation to-
- the relevant legal provision as contained in the legislation,
subordinate legislation and codes of conduct
- the rendering of financial services applicable to specific
categories and subcategories of clients
Preparation
for the exam
The qualifying criteria as published in Board
Notice 105 of 2008 determine the scope and content of the
regulatory exams. Only questions based on these criteria will
be included in the exams.
Examination bodies may not provide training and/or study material
for the regulatory exams. Examination bodies will make FSB
approved study guides with reference to suggested material
available; however the sourcing of appropriate study material
and/or training providers is the responsibility of the candidates.
Time limits
The table below gives the dates by which
the exams have to be completed:
In closing
Examination bodies are not equipped and authorised
to handle queries with regard to the FAIS fit and proper requirements;
please contact the FSB at fitandproper@fsb.co.za in this regard.
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