REGULATORY EXAMINATIONS AND

CONTINUOUS PROFESSIONAL DEVELOPMENT

Stefanie Mackenzie

2

REGULATORY EXAMINATIONS

2

Representatives(50 Questions)

FSP II & IIAExam (30) FSP 1.1 & 1.19

General Exam (50)

FSP IIIExam (30)

FSP I & IV, II, IIA & IIIGeneral Exam (80)

1

Long Term Cat A

Long Term Cat B

Long Term Cat C

Short Term Personal

Short Term Com

mercial

Retail Pension BenefitsPension Fund BenefitsCollective Investm

ent Scheme

Securities & Instruments (x6)

Friendly Society Benefits

FSP 1.1 & 1.19Level 2 (30)

Assistance Business FSP

Forex Investment Business

Health Services BenefitsLong & Short Term

Deposits

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REGULATORY EXAMINATIONS

Level 4

Level 3

Level 2

Level 1

Question Levels

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REGULATORY EXAMINATIONS

• Predefined Layout• Level one and two more in the

beginning and end of questionnaire• Level three and four in middle of

questionnaire

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REGULATORY EXAMINATIONS

Question Level Question Level Question Level Question Level Question Level

1 1 11 1 21 4 31 3 41 2

2 1 12 1 22 3 32 3 42 2

3 1 13 2 23 3 33 2 43 1

4 2 14 2 24 4 34 3 44 1

5 1 15 2 25 3 35 2 45 1

6 2 16 2 26 4 36 2 46 2

7 2 17 2 27 3 37 2 47 1

8 1 18 2 28 4 38 2 48 2

9 2 19 3 29 4 39 2 49 1

10 1 20 3 30 3 40 1 50 1

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REGULATORY EXAMINATIONS

28%

10% 10%

30%

40%

30% 30%

40%

20%

35% 35%

20%

12%

25% 25%

10%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

KI General KI (II,IIA) KI (III) Representatives

Level 1 Level 2 Level 3 Level 4

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REGULATORY EXAMINATIONS

Closed Book examination; Pass mark 65%

Examination Questions

Time allowed

Key Individual 80 2½ hours

Representative 50 2 hours

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REGULATORY EXAMINATIONS

QuestionData Bank

ExaminationBodies

IndividualExaminations

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PREPARATION MATERIALS

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QUALIFYING CRITERIA: KI

Task Task Name1 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.

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QUALIFYING CRITERIA: KITask Task Name9 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 conditions11 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.

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QUALIFYING CRITERIA: KIRegulatory Examination - Key Individuals

Qualifying Criteria per Task (184)

0%

2%

4%

6%

8%

10%

12%

14%

16%

18%

20%

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

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QUALIFYING CRITERIA: REPRESENTATIVE

Task Task Name1 Execute the required actions as a Representative,

in terms ofthe 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.5 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.8 Adhere to the requirements of FICA and other

relevant anti- money laundering legislation, as it applies to the FSP.

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QUALIFYING CRITERIA:REPRESENTATIVE

Regulatory Examination - RepresentativesQualifying Criteria per Task (69)

0%

5%

10%

15%

20%

25%

30%

01 02 03 04 05 06 07 08

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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

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REGULATORY EXAMINATIONS

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

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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?

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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

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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

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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

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STATISTICS: KEY INDIVIDUALS

Mar-11

Apr-1

1

May-11

Jun-11 Jul

-11Au

g-11Se

p-11Oct-

110

500100015002000250030003500400045005000

WRITTENPASSED

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STATISTICS: REPRESENTATIVES

Mar-11

Apr-1

1

May-11

Jun-11 Jul

-11Au

g-11Se

p-11Oct-

11500

2500450065008500

1050012500145001650018500

WRITTENPASSED

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SUCCESS STORIES

Letter received from a financial planner

dated 20 September 2011

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REGULATORY EXAMINATIONS

We wish you success!

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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.

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CONTINUOUS PROFESSIONALDEVELOPMENT

CPD Application

Training Providers / Conference Organisers

EmployersProfessional

bodies / industry

Associations

Individuals

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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

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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

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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 reportingFormat of approval of CPD programmes Application forms

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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

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TIMELINE

Submission of Board Notice to FAIS Advisory Committee:

23 November 2011 Publication of Board Notice: December 2011

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CPD BOARD

NOTICE