FAIS Fit & Proper Regulatory Examinations Levels I & II
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Transcript of FAIS Fit & Proper Regulatory Examinations Levels I & II
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”