stefanie mackenzie. 2 2 representatives (50 questions) fsp ii & iia exam (30) fsp 1.1 & 1.19...
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REGULATORY EXAMINATIONS AND
CONTINUOUS PROFESSIONAL DEVELOPMENT
Stefanie Mackenzie
2
REGULATORY EXAMINATIONS
2
Representatives(50 Questions)
FSP II & IIAExam (30)
FSP 1.1 & 1.19General Exam (50)
FSP IIIExam (30)
FSP I & IV, II, IIA & IIIGeneral Exam (80)
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Pensio
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Colle
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Secu
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Instru
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Friend
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ocie
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FSP 1.1 & 1.19Level 2 (30)
Assista
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Busin
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usin
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Health
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eposits
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REGULATORY EXAMINATIONS
Level 4
Level 3
Level 2
Level 1
Question Levels
4
REGULATORY EXAMINATIONS
• Predefined Layout
• Level one and two more in the
beginning and end of questionnaire
• Level three and four in middle of
questionnaire
5
REGULATORY EXAMINATIONS
Question Level Question Level Question Level Question Level Question Level
1 1 11 1 21 4 31 3 41 2
2 1 12 1 22 3 32 3 42 2
3 1 13 2 23 3 33 2 43 1
4 2 14 2 24 4 34 3 44 1
5 1 15 2 25 3 35 2 45 1
6 2 16 2 26 4 36 2 46 2
7 2 17 2 27 3 37 2 47 1
8 1 18 2 28 4 38 2 48 2
9 2 19 3 29 4 39 2 49 1
10 1 20 3 30 3 40 1 50 1
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REGULATORY EXAMINATIONS
28%
10% 10%
30%
40%
30% 30%
40%
20%
35% 35%
20%
12%
25% 25%
10%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
KI General KI (II,IIA) KI (III) Representatives
Level 1 Level 2 Level 3 Level 4
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REGULATORY EXAMINATIONS
Closed Book examination; Pass mark 65%
Examination Questions
Time allowed
Key Individual 80 2½ hours
Representative 50 2 hours
8
REGULATORY EXAMINATIONS
QuestionData Bank
ExaminationBodies
IndividualExaminations
9
PREPARATION MATERIALS
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QUALIFYING CRITERIA: KI
Task Task Name1 Describe the role of the key individual in terms of
the FAIS Act.2 Describe the role of the representative in terms of
the FAIS Act.3 Manage and oversee the appointment of
representatives.4 Manage the rendering of services under
supervision.5 Manage and oversee the ongoing
development/employment of representatives.6 Debar representatives that have been found to act
fraudulently, or committed any other act that gives rise to debarment.
7 Awareness of the regulatory environment in which the FSP functions
8 Awareness of the specific obligations in terms of the relevant Code of Conduct and other subordinate legislation.
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QUALIFYING CRITERIA: KI
Task Task Name9 Oversee and manage the compliance functions as
required by the FAIS Act.10 Maintain the license of the FSP including the
management of the licensing conditions11 Take the necessary action if the FSP voluntarily
lapses its license.12 Verify that the proper record keeping activities are
carried out.13 Manage and oversee / participate in the setting up
and/or managing of the infrastructure of the FSP.14 Manage and oversee the requirements that
auditors/accounting officers must adhere to.15 Manage and oversee the FSP's adherence to the
requirements of FICA and other relevant anti-money laundering legislation, as it applies to the FSP.
16 Manage any processes required in the event of an investigation by the FAIS Ombud.
12
QUALIFYING CRITERIA: KI
Regulatory Examination - Key IndividualsQualifying Criteria per Task (184)
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16
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QUALIFYING CRITERIA: REPRESENTATIVE
Task Task Name1 Execute the required actions as a Representative,
in terms ofthe FAIS Act.
2 Contribute towards maintaining a FSP licence.3 Adhere to the specific obligations in terms of the
relevant Code of Conduct and other subordinate legislation.
4 Apply knowledge of financial products.5 Awareness of consequences for Representatives that
have been found to act fraudulently, or committed any other
act that gives rise to debarment.6 Align execution of duties and actions with the
compliance requirements.7 Carry out the proper record keeping activities.8 Adhere to the requirements of FICA and other
relevant anti- money laundering legislation, as it applies to the FSP.
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QUALIFYING CRITERIA:REPRESENTATIVE
Regulatory Examination - RepresentativesQualifying Criteria per Task (69)
0%
5%
10%
15%
20%
25%
30%
01 02 03 04 05 06 07 08
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REGULATORY EXAMINATIONS
• Follow invigilator instructions carefully
• Answers marked on the question papers will NOT be marked – i.e. 0%
• Ensure that you fill in the circles clearly– Colour in– Do not Tick or mark with a Cross
• Clearly enter you name, FSP number and ID number
• Sign the form• Complete the date of the
examination
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REGULATORY EXAMINATIONS
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REGULATORY EXAMINATIONS
• Examination Terms and Conditions
• What is a re-mark?
• What is an appeal?
• Fees for the above
• Process for the above
• Refunds
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FREQUENTLY ASKED QUESTIONS
• “Exam questions are designed to trip us
up”!
• FSB endorsed training provider?
• 64% - now what?
• “Questions in the exam do not match my
training material”
• Deadlines?
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STATISTICS
Total number of authorised FSPs in SA: 10 768
Total number of approved Key Individuals: 12 694
Total number of Registered Representatives: 121 518
As at 26 October 2011
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STATISTICS
• Percentage of KIs that have written: 43.74% of KI population
• Percentage of Reps that have written: 35.27% of Rep population
• Majority of KIs and Reps that pass the exam obtain a result between 71 – 80%
• Majority of KIs and Reps that fail the exam obtain a result between 51 – 60%
As at 26 October 2011
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STATISTICS
• Increase in the pass rate since roll-out = average of >3% per month for both exams • Preparation is critical – systematic structured approach is proving to be the most effective
• Serious increase in cancellations from small FSPs / individuals since July 2011 and poor registration figures.
• Corporate are doing bulk enrolments – will have impact on availability of seats at examination venues.
As at 26 October 2011
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STATISTICS: KEY INDIVIDUALS
Mar
-11
Apr-1
1
May
-11
Jun-
11
Jul-1
1
Aug-
11
Sep-
11
Oct-1
10
500
1000
1500
2000
2500
3000
3500
4000
4500
5000
WRITTENPASSED
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STATISTICS: REPRESENTATIVES
Mar
-11
Apr-1
1
May
-11
Jun-
11
Jul-1
1
Aug-
11
Sep-
11
Oct-1
1500
2500
4500
6500
8500
10500
12500
14500
16500
18500
WRITTENPASSED
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SUCCESS STORIES
Letter received from a financial planner
dated 20 September 2011
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REGULATORY EXAMINATIONS
We wish you success!
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CONTINUOUS PROFESSIONALDEVELOPMENT
• Board Notice 103 of 2008 – provided broad guidelines re application process and requirements
• Lessons learned from the qualification application process – must differentiate between different types of applications to ensure the correct information is obtained
• New Board Notice to be published to provide more clarity in terms of application process and requirements
NOTE: No changes to the CPD requirements. Only clarification regarding the application process.
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CONTINUOUS PROFESSIONALDEVELOPMENT
CPD Applicatio
n
Training Providers / Conference Organisers
Employers
Professional bodies / industry
Associations
Individuals
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TYPE OF CPD APPLICATIONS
Employers / Professional Bodies / Industry Associations
• Can apply for recognition as a CPD provider
• Yearly submission of programmes scheduled for the next
12 months
• All individuals participating in this programme(s) must
meet the requirements of the CPD provider
• CPD provider to supply monthly updates to Registrar –
update the CPD records of learners
• Customised application form supplied
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TYPE OF CPD APPLICATIONS
Organisation to apply for recognition of individual CPD activities
• Customised application form supplied
Individuals to apply to have own CPD activities recognised
• Customised application form supplied
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NEW BOARD NOTICE
List of definitions to provide clarity re different
types of CPD
applications, etc.
Purpose of CPD
Specific conditions
Recognised CPD programmes / activities
Keeping of records and reporting
Format of approval of CPD programmes
Application forms
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APPLICATION FORMS
CPD 1 – CPD Providers of CPD Programmes
CPD 2 – CPD Providers of CPD activities
CPD 3 – CPD programme and CPD activity
recognition:
Employers and/or Product suppliers
CPD 4: Application Form: Individuals
CPD 5: Application Form: Removal of CPD
Programme or
CPD Activity
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TIMELINE
Submission of Board Notice to FAIS Advisory
Committee:
23 November 2011
Publication of Board Notice: December 2011
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CPD BOARD
NOTICE