Moonstone: Study material update

The announcement of the Regulatory Exams led to the normal reactions of anger, denial and rejection before evolving to what currently appears to be the acceptance mode, judging by the enquiries we receive. Most FSPs appear to realise that the exams are not going to be a walk in the park, and want to prepare properly by utilising approved study material.

Inseta was tasked with the sourcing and appointment of experts to develop the required study material for the Level 1 and 2 exams.

We have noted with concern that no announcement has thus far been made regarding the appointment of one or more service providers to “…design and develop the curriculum and learning material needed for RE 1 and 2, and make provision for the updating and maintaining of this material.” This was the scope contained in the tender documents.

Looking at the enormity of the project as set out above one wonders how many applications were received. For one developer to design, develop, update and maintain training material for the entire product range covered in Level 2 is an enormous task, even for a provider who sub-contracts the various programs.

In drawing up the questions for the Level 1 exams, we at Moonstone engaged a substantial number of specialists in the compliance field to assist us to conform to the criteria set by the regulator.

One has to bear in mind that, in addition to the 5 exams offered at Level 1, there are a further 17 exams offered at Level 2, necessitating a serious amount of expertise on the different product-based exams.

While it would appear that the initial focus will fall on the Level 1 regulatory environment, one cannot disregard the urgency or need for getting the rest of the material in place timeously.

The results of the Level 1 trials we conducted last year have shown that without thorough preparation, very few people will pass the exams. With deadlines set for the end of 2011 and 2013 respectively for completion of the Level 1 and 2 exams, there is an urgent need to get things underway, given the massive scope of this project.

The latest news concerning study material that we could ascertain is as follows:

Level 1 REs

Enquiries to the FSB have revealed that there is a document available which complies with their criteria to a large degree. It was developed by the Bankseta and is currently under re-construction by the FSB and Inseta to make it a more generic document suitable to all FSPs. It conforms with the FSB's requirements and is suitable for preparation for the Level 1 REs.

The good news is that is should be available in the near future, and the better news is that it will be free, as its development was funded by the state. We will keep you posted on this critical issue as it develops.

Level 2 REs

The FSB is working very closely with Inseta to address the matter of developing suitable study material as outlined above.

Conclusion

We are projecting that the total number of regulatory exams will be in excess of a million, all of which has to be concluded in about three and a half years.

The wise will prepare timeously, and write the exams when they become available, while the procrastinators will wait in the vain hope that it will disappear. You have a choice about where you want to fit in.