1. FAIS Fit & Proper Regulatory Examinations Levels I & II Advocate Jane Appasamy

2. Road Map… Background and Context Where does INSETA fit into the bigger Fit & Proper environment Where does the RE fit into the bigger F&P picture? The Regulatory Examinations? Who must write? Unpacking terminology INSETA’s role in the RE roll out INSETA Strategy – RE I & II Learning material development Roll-out of material Way forward…

3. Where does INSETA fit into the F&P process?  INSETA Sector Education and Training Authority for the Insurance Sector.  Fit & Proper Competence – Qualifications Regulatory Exam learning material

4. Which components of “Competence requirement” is INSETA involved… 1. RECOGNISED QUALIFICATIONS 3. CONTINUOUS PROFESSIONAL DEVELOPMENT 2. REGULATORY EXAMS LEVELS I & II

5. Where does RE fit into the bigger “Fit & Proper” picture? HONESTY & INTEGRITY CPD REPRESENTATIVE COMPETENCE EXPERIENCE QUALIFICATONS REGULATORY EXAMS NEW

6. Regulatory Exam material Key Individuals -Person responsible for managing or overseeing any function relating to the rendering of a financial service “KI only” Manages and supervises business Usually has executive control/ or authority e.g. head of distribution channels “KI/Rep” Supervise representatives (involved in operational/ implementation) Own commission code

7. A closer look at Qualifying Criteria … The purpose of Qualifying criteria is to provide the criteria: Against which the Regulatory Examinations will be set; and Against which any proposed qualifications will be considered and evaluated for recognition

8. A closer look at Qualifications What is a “qualification”? Entry Level qualification  “means a qualification obtained on or by the date of first appointment (DOFA)  Normally at a lower level than the full qualification Full qualification  Means a qualification that is appropriate to a category or sub-category of financial products

9. Qualifications unpacked… 1. GENERIC – “G” - Content generic - Need to complete product specific Regulatory Exams (RE II) 2. SPECIFIC “S” - 80% of contents specific - If completed end 2009 exempted from RE II - Falls away from Jan 2010

10. Qualifications unpacked… 3. SPECIFIC “SP” - Matches qualifying criteria 100% in terms of contents - Exempted from RE II - Applies only from 2010 onwards

11. Abbreviations S, G & SP in list of qualifications AbbreviationDefinition S Not required to do relevant regulatory exam II. Qualification is specific. G Required to do relevant regulatory exam II. Qualification is generic. SP Not required to do relevant regulatory exam II (post transitional requirements) Recognised as a specific qualification for a specific subcategory.

12. Product Categories – no RE II  Table C – BN 106 Long Term Insurance Category A Long-Term Deposits Short-Term Deposits Friendly Society Benefits Assistance Business FSP (Cat IV)

13. INSETA STRATEGY  Pre-examinations Provider appointed Milpark Business School & IISA Delivery date – approx May 2010 End August 2010 – all material Will be aligned to the qualifying criteria Material developed : FSP I Other FSP’s – to be advised Public domain  Post-examinations NLRD

14. INSETA STRATEGY  Distribution Available on INSETA website www.inseta.org.zawww.inseta.org.za Other methods (hard copies, cd) Note on INSETA website with dates on which dates will be available

15. “The secret of success is to remain in a constant state of discomfort”