FSB: FAIS Exam

In recent media reports there has been some miscommunication with relation to the RE exams. The financial Services Board would like to clear up these miscommunications in the following manner:

1) All the examination bodies have a combined capacity of 56000 examinations per month. This is 14000 examinations per week. Should it be necessary, the capacity may be increased further. Therefore, the “6850 spots” that were mentioned in the media reports are completely incorrect and create the impression that the FSB did not make provision for, and does not have the capacity to deliver the required number of examinations for individuals to meet the deadline.

2) The reference to a 30% pass rate late last year is pure speculation. In November last year the pass rates hovered around 60%.

3) The questions used in the examinations are tested first before they are considered for inclusion in the examination questions bank. This means that they are moderated by the examination body that developed the questions, and are then tested by real financial advisers from the industry. The questions are then analysed by an external moderator (the Independent Examination Board) which compiles a feedback report on the basis of which questions may be scrapped, amended, or approved and included in the examinations. Only approved questions are included in the examination questions bank. The questions are tracked over a period of time, and a second set of statistics are drawn every quarter to ensure that the questions remain within the set parameters for the examinations. It is important to note that the performance of questions may change over time. A question that was regarded as a “difficult” question initially may become an “easy” question over a period of time, simply because people are becoming more aware of what is asked in the examination questions, and they prepare accordingly. Questions that are retired are replaced with new questions that have been tested.

Questions that have been “over-exposed” or used too often are also retired. This is an on-going quality assurance cycle, and the same process is repeated over and over again to monitor and maintain the quality of the questions and the regulatory examinations. This process is the same as with any other multiple choice examination offered through a professional or high education institution and it is regarded as best practice.

Therefore, media reports that claim that the questions were restated in a “less complicated” way as a result of appeals, and that the examination was somehow simplified, is completely incorrect. The FSB strives to set a professional standard for the financial services industry, and reports such as these detract from the high standard and quality of our examinations. The FSB urges those in the media to verify their facts before publishing information that may mislead financial service providers and the general public.