Advocate Jane Appasamy (INSETA) unravels FAIS requirements regarding regulatory exams for for the insurance and finance industries. Includes the types of regulatory exams, important terminology, INSETA strategy and development of learning material.

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

2. Road Map… Background and Context 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. COMPETENCE HONESTY & INTEGRITY EXPERIENCE REPRESENTATIVE QUALIFICATONS CPD REGULATORY EXAMS Where does RE fit into the bigger “Fit & Proper” picture? NEW NEW

7. FICA

9. Tests applied knowledge irt specific products

11. 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

12. Date of first appointment important…. “DOFA” is critical to determine deadline for completion of RE I and II 2004-2009 – by 31 Dec 2011 2008 & 2009 – by 31 Dec 2011 2010 onwards – within 2 years

13. RE DEADLINES 31 DECEMBER 2011 Appointed 2004-2007 Appointed 2008 Appointed 2009 2 YEARS Appointed 2010 onwards…

14. 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

15. 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

16. 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

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

18. Abbreviations S, G & SP in list of qualifications

19. 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)

20. INSETA STRATEGY Pre-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

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

22. Thank you…