Financial Services Board Regulatory Examinations

Transcription

1 Financial Services Board Regulatory Examinations October/ November

2 Regulatory Examinations 2

3 Regulatory Examinations Competency Operational Operational Ability Ability Financial Soundness Honesty and Integrity Determination of Fit and Proper Continuous Professional Development (CPD) 3

4 Regulatory Examinations Qualifications and credits haphazard No consistency in level provided Many people have been looking for the easy way out Grandfather clause RPL assessments Cheapest options Meaningless credits 4

5 Qualification vs. Competency Qualification based on unit standards or modules and governed under SAQA Qualification more knowledge and application focused Competency is more job-focused Competency assesses skill and knowledge relating to a particular function Qualification does not necessarily imply competence. 5

6 How are the REs constructed? 6

7 Regulatory Examinations Regulatory Examination Level Legislative Examination FAIS Act Counter- Money laundering The regulatory role as a sole proprietor / key individual / representative Requirements of the Act Codes of Conduct Disclosure requirements Record keeping Counter-money laundering requirements Roles and responsibilities 7

8 Regulatory Examinations Product specific Product features Needs analysis processes Regulatory Examination Level Product Specific Examination Application of relevant legislation Identify what other relevant legislation should be considered Application of the legislative requirements when giving advice / rendering intermediary services 8

9 RE Structure 2 Long Term Cat A Long Term Cat B Long Term Cat C Short Term Personal Short Term Commercial Retail Pension Benefits Pension Fund Benefits Collective Investment Scheme Securities & Instruments (x6) Forex Investment Business Health Services Benefits Long & Short Term Deposits Assistance Business FSP Friendly Society Benefits 1 FSP II & IIA Exam (30) [3] FSP I & IV, II, IIA & III General Exam (80) [1] FSP III Exam (30) [3] Representatives (50 Questions) [Weighting 4 ] FSP 1.1 & 1.19 Level 2 (30) [2] FSP 1.1 & 1.19 General Exam (50) [2] 9

10 Bloom s Taxonomy Question Levels Level 4 Level 3 Level 2 Level 1 10

11 Question paper layout Predetermined layout Level one and two questions more at the beginning and end of question paper Level three and four questions in middle of question paper 11

12 Question paper format Question Level Question Level Question Level Question Level Question Level

13 Question weightings 100% 90% 80% 12% 20% 5% 25% 25% 25% 10% 20% 70% 60% 50% 40% 40% 50% 35% 35% 40% Lev el 4 Lev el 3 30% 20% 10% 0% 30% 30% 28% 30% 20% 10% 10% KI General KI (1.1,1.19) KI (II,IIA) KI (III) Representatives 13

14 Regulatory Examinations Examination Questions Time allowed Key Individual 80 2½ hours Representative 50 2 hours Closed book examination; Pass mark 65% or 66% 14

15 Consistency Question Data Bank Individual Examinations Examination Bodies 15

16 Preparing for the examination 16

17 What will be assessed? Qualifying Criteria published in Board Notice 105 of 2008 (15 October 2008) 17

18 Training Material INSETA SECTION 4 10h 18

19 Training material 19

20 Preparation for the Level 1 REs Preparation Guideline available from the FSB s website Use the mapping of relevant legislation against the qualifying criteria Beware the trainer who does not make use of the above Bite size chunks 20

21 Task No Task 1 Execute the required actions as a representative, in terms of the FAIS Act. Mapping the RE Knowledge Criteria Describe the roles, responsibilities and requirements regarding representatives as defined in the FAIS Act. Motivation BN 104 of Sec 1 Definition of Supervisee. FAIS Act -Sec 1 Definition of Representative. Guidance Note on Intermediary Services and Representatives. FAIS Act -Sec 13(1). FAIS Act -Sec 13(2). 21

22 RE 1: Key individual Task Task Name 1 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. 22

23 RE 1: Key individual Task Task Name 9 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 conditions 11 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. 23

24 RE 1: Key individual Regulatory Examination - Key Individuals Qualifying Criteria per Task (184) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 0%

25 RE 5: Representative Task Task Name 1 Execute the required actions as a Representative, in terms of the 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 antimoney laundering legislation, as it applies to the FSP. 25

26 Regulatory examinations Regulatory Examination - Representatives Qualifying Criteria per Task (69) 30% 25% 20% 15% 10% 5% 0%

27 Regulatory examination format the examination will be a closed book set of multiple choice questions. The papers will have up to 80 different questions selected from a data bank of questions. Each examination will test competence across all tasks and qualifying criteria 27

28 Question paper format Question Level Question Level Question Level Question Level Question Level

29 Completing answer sheets 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 29

30 Completing answer sheets 30

31 Appeals and Re-marks Examination Terms and Conditions What is a re-mark? What is an appeal? Fees for the above Process for the above Refunds 31

32 FAQ 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? 32

33 Regulatory Examinations WE WISH YOU SUCCESS! 33