South African financial advisers are now able to write the Level 1 Regulatory Examination, which is compulsory for all financial services providers, in Afrikaans following legal opinion canvassed by the Financial Intermediaries Association of Southern Africa (FIA).
According to Seamus Casserly, President of the FIA, the decision to offer the exam in a language other than English was taken on Friday morning following a meeting between the Financial Services Board (FSB) and the FIA after the latter obtained legal opinion from its law firm, Webber Wentzel, that failing to make the exam available in Afrikaans amounted to unfair discrimination.
“The FIA has been negotiating with the regulator for many months on this particular issue and had already advised that it was seeking legal opinion to clarify its position. As soon as this was obtained, an urgent meeting was held with the FSB with the result that those who wish to take this exam in Afrikaans will now be able to do so.”
“This decision was the direct result of lengthy negotiations with the regulator and follows similar successes by the FIA in relation to these exams, such as the additional 30 minutes obtained for writing the exam, the rationalisation of certain exam questions as well as the negotiated reduction in the pass mark.”
Casserly says that while the FIA welcomes the move by the FSB, it is still awaiting further legal opinion on other issues relating to the exams, including the implications for any sole proprietor advisers who do not pass the Level 1 exam by the deadline, currently 31 December 2011.
“We are still waiting for legal opinion on what will happen if, for example, a one-man intermediary business does not pass the exam by the stated date. As soon as we have clarity on this issue we will relay this back to our members and to the FSB.”
Casserly says that while the regulator has expressed its decision to stick to its current proposed deadline, advisers who do elect to take the exam in Afrikaans are likely to be given an extended deadline as a result of the need to make new study material available and to give those people a fair chance to write the exam in their chosen language.
However, the FSB has previously stated that while the exams could potentially be offered in additional languages, this would be likely to result in significant cost implications. “The Level 1 exam currently costs R900 per exam so the FSB and its contracted examination bodies will need to recalculate the additional cost of providing this exam in Afrikaans and if there is an increase, this will be communicated at a later stage.
“Our members are professionals who make their living primarily from the provision of financial advice to clients. Over the years many other industries such as car rental companies, retail stores, motor dealerships, attorneys and auditors have ventured into financial intermediation and one can understand why these parties are aggrieved. Financial advice and intermediation is a serious business and is now becoming a recognised profession. These exams present a tough choice for part-time industry players.”
“The FIA continues to support the introduction of the regulatory exams as a means of further professionalising the financial services advice industry. That is not to say that people operating in our industry are not professional but rather that we want our industry to gain the recognition it deserves of being a respected profession,” says Casserly.
“We are pleased that our continued engagement with the FSB has resulted in, amongst others, a positive outcome for Afrikaans financial advisers. However, we continue to urge all advisers not to delay in taking this exam as the regulator has made it clear that it has no intention of deviating from the current regime, which we all believe is in the interests of the consumer, our ultimate client.
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