FAIS Fit & Proper Regulatory Examinations Levels I & II Advocate Jane Appasamy

Road Map… Background and Context Where does INSETA fit into the bigger Fit & Proper environment Where does the RE fit into the bigger F&P picture? The Regulatory Examinations? Who must write? Unpacking terminology INSETA’s role in the RE roll out INSETA Strategy – RE I & II Learning material development Roll-out of material Way forward…

Where does INSETA fit into the F&P process?  INSETA Sector Education and Training Authority for the Insurance Sector.  Fit & Proper Competence – Qualifications Regulatory Exam learning material

Which components of “Competence requirement” is INSETA involved… 1. RECOGNISED QUALIFICATIONS 3. CONTINUOUS PROFESSIONAL DEVELOPMENT 2. REGULATORY EXAMS LEVELS I & II

Where does RE fit into the bigger “Fit & Proper” picture? HONESTY & INTEGRITY CPD REPRESENTATIVE COMPETENCE EXPERIENCE QUALIFICATONS REGULATORY EXAMS NEW

Regulatory Exam material Key Individuals -Person responsible for managing or overseeing any function relating to the rendering of a financial service “KI only” Manages and supervises business Usually has executive control/ or authority e.g. head of distribution channels “KI/Rep” Supervise representatives (involved in operational/ implementation) Own commission code

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

Abbreviations S, G & SP in list of qualifications AbbreviationDefinition S Not required to do relevant regulatory exam II. Qualification is specific. G Required to do relevant regulatory exam II. Qualification is generic. SP Not required to do relevant regulatory exam II (post transitional requirements) Recognised as a specific qualification for a specific subcategory.

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 Delivery date – approx May 2010 End August 2010 – all material Will be aligned to the qualifying criteria 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) Note on INSETA website with dates on which dates will be available

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