Regulatory Exams - the realities

The financial services industry has always been a vibrant and dynamic environment where resilience amongst its members is often tested to the limit. The Financial Services Board’s (FSB) Regulatory Exams were approached with a large degree of fear and susp

Currently, about 60% of representatives and 68% of key individuals have been successful in the exams and numbers are rising by the day according to feedback received from the FSB and examination bodies. The recipe for success seems to be simply decent preparation and a positive mind-set, revealed only recently by those who have passed these exams.

The FIA believes in professionalism as a solid foundation for the financial services industry and therefore made sure that its members were fully equipped to successfully complete these exams. To this end, initial roadshows were arranged in 2010 to inform members countywide about the scope of the exams. These roadshows were presented by the FSB, Moonstone and INSETA.

In assisting members to prepare for the exams, the FIA arranged workshops presented by Anton Swanepoel and the Insurance Institute of South Africa. Workshops were attended to capacity and set the basis for the correct preparation for the exams. Apart from the above, members were kept up to date on developments through a regular flow of newsletters, addresses at members’ meetings and a 24 hour helpdesk at the FIA’s secretariat. FIA members also took initiative at branch level to arrange their own study sessions and utilised accredited experts to help in preparing for the exams.

It was comforting to learn how members of the FIA embraced the basis of a professional industry through educational development that included completion of the exams. Young and old, English and Afrikaans – most intermediaries are now smiling and carrying on with their core business of rendering financial services to consumers expecting to engage with knowledgeable intermediaries.

The FSB has in the meantime announced the dates and places where the Afrikaans exams will be offered. The FIA consulted with the FSB on this matter in a constructive and transparent manner as early as June 2011. The roll out of the Afrikaans exams is therefore a typical example of the FIA’s success in collaborative engagement to the benefit of its members and ultimately the industry.

It is with a degree of concern, however, that the FIA takes note about intermediaries who have so far done little to prepare for and take these exams, despite the fact that the first deadline was the end of 2011. Time is running out and seats at exam venues are being booked rapidly.

The deadline for the bulk of intermediaries is June 2012 to write the exam and September 2012 for any rewrites. Intermediaries who have not yet registered for these exams now do so at their own peril because the FSB will not extend the deadline again. There is an abundance of assistance for those who must still write the exams:

• The FSB website contains valuable information in the form of preparation guides;
• The INSETA website contains free study material and presentations with exam tips;
• The FIA website contains translated Afrikaans legislation relevant to the exams;
• INSETA is offering free preparation seminars countrywide;
• Providers are offering workshops and mock exams to sharpen one’s knowledge;
• Examination bodies are offering examination information and feedback;
• Helplines offered by organizations such as the FIA.

When preparing for these exams candidates can take comfort in the fact that it should not be necessary to read oneself into a stupor. Structured preparation is the answer. The easy to follow steps below form the basis of success, as revealed by those who have passed the exams:

1. Study the regulatory exam preparation guidelines provided by the FSB;

2. From page 15 onwards in these guidelines are all the qualifying criteria from which the exam questions are compiled;

3. Next to each qualifying criterion there is a reference to the sections in the legislation that are relevant to that specific criterion;

4. Now study the text of these sections. In the exam questions and answers the text of the legislation often appears as is and it then becomes easy to identify the correct answers.

5. The relevant legislation really is not that many pages to study. Read through it a few times and note words such as “must” and “may”. Focus on time periods in which action must be taken on certain compliance obligations. Learn the definitions of advice, intermediary services, what is not regarded as advice or intermediary services, financial services and financial products;

6. Focus specifically on the following tasks in the qualifying criteria from which the most questions are formulated:

a. Representatives – tasks 1, 2, 3 and 7

b. Key Individuals – tasks 1, 6, 8, 9, 10, 12 and 13.

7. Use other study material to refresh the memory and for practical examples of regulation;

8. Do some mock exams offered by providers and/or attend a workshop to round of the preparation.

Candidates can buy updated legislation (R100-00 plus VAT) by visiting http://www.releg.co.za/. All amendments and updates have been done on these documents so that one will not have the burden of working through several board notices.

If anyone needs additional assistance they are welcome to contact Joe Kotzé at the FIA – telephone 012 665 0085 or e-mail joe@fia.org.za.

We urge everyone who must still complete these exams to get into the act and become part of the positive vibe that is now prevailing. Register now and put your study plan into action.