1. REGULATORY DEVELOPMENTS Advisory Council 2013

2. RE LEVEL 1  Approximately 94% passed  FSB busy with applications for exemption  Enforcement process to start within next 6 weeks  DOFA – RE’s completed by end of calendar year

3. RE LEVEL 2 ► Problems:  Examination bodies withdrawing  Revisiting of qualifying criteria  Development of examination questions ► Must be definite sources for referral  Development of training material hampered by the above  No new submissions for SP rating ► FSB considering three options:  FSB takes ownership (not likely)  Examination body (one?)  Product suppliers take accountability

4. QUALIFICATIONS ► New list to be published soon ► Qualifications –  G = generic and no exemption  S = specific pre 2010 (85% alignment with criteria)  SP = specific post 2010 (100% alignment with criteria) ► QCTO  New format for qualifications from 2019 – outcomes based ► Training providers - discount for FIA members

6. CPD ► New Board Notice on CPD  One year cycles  Points  Implementation date ► IISA and FPI platforms  Systems already developed ► CPD providers and CPD activities  No systems in place at FSB ► Role of FIA

7. COMPLIANCE OFFICERS ► CO exams:  SAIFM withdrew as compiler of exams  No substitute appointed  On tender end May  Qualifying criteria – objection by FIA noted ► Compliance assistance  Several practices approached and offers received  Influence of exams

8. COMPLIANCE ► Representatives registration:  Advice and intermediary services definitions  FAIS Circular – procedures for updating and debarment ► Services under supervision:  Supervision agreement ► Financial statements:  Four months after financial yearend ► Compliance reports:  Provide correct information ► Treating Customers Fairly  Implementation and monitoring – FSB self-assessment tool ► Financial Intelligence Centre:  Registration and training ► FSB visits

9. Joe Kotzé 012 665 0085 joe@fia.org.za

10. QUESTIONS