Moonstone: Regulatory exam Q & A

In the run-up to the regulatory exams scheduled to become available from April 2010, trials and pilots are offered to those who wish to make use of the opportunity to experience the conditions and questions of the exams prior to the real thing.

This week we share some of the questions received from readers:

Q: Please distinguish between trial and pilot exams?

A: Trials focus on checking the validity and consistency of the questions being developed - it is not a complete exam as the full body of knowledge may not be tested, and no results are made known.

Pilots follow after the trials and test the systems and logistics of the exams prior to the real exams. Those who attended the trials will receive preference when applying to write the pilot exams. The results of the pilots will be made known, and those who pass will be receive due credit for that particular exam.

There will be no fee charged for either trial or pilot exams.

Q: Will the key individuals/participants have to study for it or can they just walk in and write on their current knowledge?

A: Unfortunately there is no study material as yet, so in all trials conducted thus far, attendees wrote on what they know. No results are given to people who wrote as the aim of the trial is to test the validity and clarity of the questions, in other words, are the questions fair and understandable. When the pilot exams (which follow on from the trials) are written, results are provided, and a pass qualifies for the required credit.

Q: Will the questions be about the principles or very detailed about the specifics of requirements?

A: There are four “levels” which are tested: Knowledge, comprehension, application and evaluation. Various methods are employed e.g. case studies, scenarios etc.

Q: Will it be written or multiple choice?

A: The questions are set in multiple choice format. When the exams proper are offered, you will have a choice between an electronic or paper response, but multiple choice will be the format of the questions.

Q: How long is the exam?

A: The trial is normally set for two hours, although most respondents in the past took just over an hour to complete it.

At Moonstone we are responsible for drawing up the questions for the level 1 regulatory exams which focus on legislation regulating the provision of financial advice and intermediary services. We will be running the final trials shortly, with pilots to follow.

The other three examination bodies are responsible for developing the questions for the level 2 regulatory exams where the focus will fall on product related legislation, and their trials and pilots are also currently running. They are responsible for sending invitations to interested FSPs.

All four bodies will offer a variety of examinations, not only those that they developed the questions for.