Docstoc

Regulatory Examinations The new Fit and Proper Requirements have

Document Sample
Regulatory Examinations The new Fit and Proper Requirements have Powered By Docstoc
					Regulatory Examinations
   The new Fit and Proper Requirements have introduced regulatory examinations as part of the
   competence requirements.

   Background on the regulatory examinations

   In October 2008 the new FAIS Fit and Proper requirements were published in Gazette No. 21514.
   Specific reference should be made to Board Notice 103, 104, 105, 106 and 151. The new
   requirements have a significant impact on the financial services industry in that it requires all
   key individuals and representatives to successfully complete regulatory examinations based on
   their roles and the product sub-categories they are responsible for.

   These regulatory examinations form part of the competence requirements, and consist of two
   levels:

   Regulatory examinations Level 1: These regulatory examinations must be completed within 2
   years of appointment or approval. People currently in the industry appointed or approved
   between 2004 and 2009 must complete these regulatory examinations successfully by 31
   December 2011. People entering the industry from 2010 must complete these regulatory
   examinations successfully within two years of appointment / approval.

   The content of these regulatory examinations are based on the regulatory framework and the
   regulatory role of the individual, for example the FAIS Act, Code of Conduct, FICA etc. Please
   refer to BN 105 Annexure 1 for more detailed information regarding the content. These
   regulatory examinations are compulsory and all representatives and key individuals are required
   to complete these regulatory examinations.

   Regulatory examinations Level 2: These regulatory examinations are product specific
   regulatory examinations, and will focus on testing the applied knowledge of individuals in relation
   to the specific products that they provide financial services for. Please refer to BN 105 Annexure
   1 for more detailed information regarding the content of each of these regulatory examinations.

   The regulatory examinations will be made available during 2010 and the first regulatory
   examinations that will roll out will be the level 1 regulatory examinations, after which a phased
   approach will be followed to roll out all the level 2 regulatory examinations up to the end of
   2010.

   People can be exempted from writing the regulatory examination level 2 provided that they have
   completed a recognised qualification that have been recognised as “specific” for that particular
   product subcategory on the list of recognised qualifications – see Board Notice 64 of 2009.

   Examination bodies
   Examination Bodies have been delegated the function to develop deliver the regulatory
   examinations on behalf of the Financial Services Board (FSB) are:

   The South African Institute of Financial Markets (SAIFM)
   Leselo
   The Financial Planning Institute (FPI)
   Moonstone Information Refinery

   The regulatory examinations that they will make available to the financial services industry are
as follows:

                                           Moonstone         FPI    Leselo / IOB      SAIFM
KI Level 1: Cat III                            x              x           x             x
KI Level 1: Cat II & IIA                         x            x            x             x
KI Level 1: Cat I & IV                           x            x            x             x
KI Level 1: Cat 1.1 & 1.19                       x            x            x             x
Representatives Level I                          x            x            x             x
LONG-TERM INSURANCE CAT B                        x            x
LONG-TERM INSURANCE CAT C                        x            x
COLLECTIVE INVESTMENT SCHEMES                    x            x
RETAIL PENSION BENEFITS                          x            x
HEALTH CARE BENEFITS                             x            x

SHORT-TERM: PERSONAL LINES                       x                         x

SHORT-TERM : COMMERCIAL LINES                    x                         x

PENSION FUND BENEFITS                            x                         x
DEPOSITS                                         x                         x
S & I: SHARES                                    x                                       x
S & I: MONEY MARKET                              x                                       x
S & I: DEBENTURES                                x                                       x
S & I: WARRANTS                                  x                                       x
S & I: BONDS                                     x                                       x
S & I: DERIVATIVES                               x                                       x
FOREX INVESTMENT BUSINESS                                                                x


Note: The matrix above can change where examination bodies apply for the delivery of
additional examinations, subject to the approval by the Registrar.

Availability of the regulatory examinations

It is anticipated that the regulatory examinations will be made available to the industry during
2010. Specific dates and details cannot be provided at this stage, but we urge you to please
monitor the FSB website for new developments in this regard. All information regarding these
regulatory examinations will be available on the FSB website as soon as the information becomes
available and can be communicated.

These are exciting developments within the financial services industry! We therefore will make
every attempt to keep the industry informed as much as possible, and that you, as an active
member of the industry, will participate in the process of keeping abreast of all new
developments as they happen, by monitoring the FSB website and the relevant Examination
Body websites on a regular basis.
basis.

				
DOCUMENT INFO
Shared By:
Categories:
Stats:
views:85
posted:12/26/2010
language:English
pages:2