FAIS Fit & ProperRegulatory 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 EXAMSLEVELS I & II

Where does RE fit into the bigger “Fit & Proper” picture?

HONESTY & INTEGRITY

CPD

REPRESENTATIVE

COMPETENCE

EXPERIENCE

QUALIFICATONS

REGULATORY EXAMS

NEW 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

businessUsually 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 toprovide 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

Abbreviation

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.

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 www.inseta.org.za Other methods (hard copies, cd) Note on INSETA website with dates on which

dates will be available

“The secret of success is to remain in a constant state of discomfort”