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

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

3. Background & Context Determination of Fit & Proper 2004
No mention of Regulatory Exams
Regulatory Examinations – introduced in 2008
Forms part of the “Competence” component of Fit & Proper

4. Competence requirement

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

6. Types of Regulatory Exams
REGULATORY EXAMINATION
LEVEL II
REGULATORY EXAMINATION
LEVEL I
Generic
FAIS
FICA
GENERAL CODE
Product Specific
Per product category
Tests applied knowledge irt specific products
Can be exempted (“S”) or Table C

7. Who must write Regulatory Examinations?
Key Individuals
-Person responsible for managing or overseeing any function relating to the rendering of a financial service
“Overseeing”
means officially
supervising
workers or
the work itself
(operational/
implementation)
“Managing”
Means having executive
control/ or authority
e.g. head of distribution
channels, or
distribution head
in a brokerage

8. RE: Role dependant and product category dependant
KEY INDIVIDUALS regulatory roles:
MANAGEMENT ROLE
ONLY
(more strategic
executive)
RE I
OVERSIGHT ROLE
(E.g. Branch Manager
Regional Manager)
RE I & II

9. Date of first appointment important….
“DOFA” is critical to determine deadline for completion of RE I and II
– by 31 Dec 2011
2008 & 2009 – by 31 Dec 2011
2010 onwards – within 2 years

10. RE DEADLINES Appointed 2004-2007 Appointed 2008 Appointed 200931
DECEMBER 2011
Appointed
Appointed
2008
Appointed
2009 2
YEARS
Appointed
2010 onwards…

11. 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

12. 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

13. 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

14. Qualifications unpacked…
3. SPECIFIC “SP”
- Matches qualifying criteria 100% in terms of contents
- Exempted from RE II
- Applies only from 2010 onwards

15. Abbreviations S, G & SP in list of qualifications
Definition 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.

16. 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)

17. INSETA STRATEGY Pre-examinations Post-examinations
Provider appointed Milpark Business School & IISA
Timeframes – to be advised
Material developed : FSP I
Other FSP’s – to be advised
Public domain
Post-examinations
NLRD

18. INSETA STRATEGY Distribution Available on INSETA website
Other methods (hard copies, cd)

19. Thank you…