May 2012

AIFM is a non-profit voluntary association established to promote integrity and professionalism in the markets. Although SAIFM was established by SAFEX and senior financial market practitioners in the derivatives arena approximately 22 years ago, SAIFM soon became an association that served all the areas of the financial markets. The JSE and the Bond Exchange of South Africa also became stakeholders with seats on the Board of Governors of SAIFM. As the financial markets landscape changed and evolved, SAIFM’s stakeholders also changed. SAFEX was first taken over by the JSE while the Bond Exchange followed a few years later. STRATE, the only central securities depository in the South African financial markets, also became a stakeholder in November 2008. The S.A. Reserve Bank College also participates as a stakeholder of SAIFM and enjoys a seat on the Board, as does the Financial Services Board.

As SAIFM’s objective is to further the financial markets as a whole, its examinations include knowledge of over the counter instruments as well as a limited amount of international financial market practices. The main focus however remains South African. SAIFM also administers the JSE examinations and Strate examinations. For a full catalogue of examinations on offer, please consult SAIFM’s website where an easily downloadable PDF document will provide full details of the examinations, including the delivery methodology which differs between various categories of exams.

SAIFM has three categories of membership. Associate membership can be applied for by any person who registers for a registered person’s examination (RPE). Membership can be applied for by any person who completed the two compulsory modules of the RPE and one additional one. This application involves supplying certain information to SAIFM on a prescribed form so as to ensure that a potential member or associate member is a fit and proper financial markets practitioner who undertakes to abide by SAIFM’s Code of Conduct. SAIFM has a small application fee but no on-going annual membership fees.

A misconception exists that SAIFM’s membership is granted automatically when passing the requisite number of RPE examinations. This is not the case, as SAIFM will not be adhering to its objective of promoting integrity in the markets if just anybody who passed some examinations, including discredited financial markets practitioners, could be allowed as members. Although the process is slightly cumbersome and approval must be formally granted by the Board of Governors, every effort is made by SAIFM staff to minimise the administrative burden for the applicant. A certificate of associate membership or membership will be issued upon approval while the acronyms AIFM and MIFM may be used by successful applicants respectively.

SAIFM’s third category of membership namely a fellow of SAIFM is prestigious and presents more of a challenge to obtain. The acronym FIFM may be used by practitioners who have achieved this. The requirements are quite strenuous and the approval process by the Board of Governors thorough. Only senior financial market practitioners whose eminence in the markets has been clearly established qualify to apply. Apart from this requirement, there are various other requirements that must be satisfied, including a selfless contribution to enhance the function, knowledge or professionalism in the financial markets. For a complete list of requirements, please consult SAIFM’s website at www.saifm.co.za. A certificate evidencing a person’s fellowship status will be issued upon Board approval being granted.

Only fellows of SAIFM are eligible to be elected Governors at the SAIFM annual general meeting in November who will govern SAIFM together with stakeholders who serve in ex officio capacity by way of nomination by the stakeholder institution.

SAIFM has currently 86 associate members, 701 members and 40 fellows. Any of our RPE students or graduates as well as other readers with equivalent qualifications who wish to become members, please do not hesitate to contact Ms Hayley Pfeifer at 011 802 4768.

The next edition of this magazine will be published in September/October 2012. Contributions are welcome. If you are interested, please forward your topic with a brief outline by 30 August 2012 for consideration by our editorial committee. 

By Karin van Wyk
CEO - SAIFM