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WHAT IS THE PURPOSE OF FAIS?WHAT IS THE PURPOSE OF FAIS?
FAIS Fit & Proper developed in 2003, published in 2004
Alignment with the NQF therefore the levels and credits
Intention was to move towards a full qualification:
Determination of fit and proper requirements for financial services
providers, 2006 part I, paragraph 1 (e): “any skills programme (i.e. less
than 120 credits), and not whole qualifications (i.e.120 credits and higher), must, subject to any future amendment of this Determination by
the Registrar in connection with a stated number of required credits, not
be construed as eliminating such whole qualification which all relevant applicants are in any case encouraged to complete.”
WHAT WAS THE PROCESS?WHAT WAS THE PROCESS?
In 2006 the need to review the fit and proper
requirements was identified
Consultation process commenced in November 2006
– Fit and proper forum was created
– Start with a “clean slate” approach
– Research and workshops conducted
– Consultation included Assistance Business to Category III FSPs
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:SOLE PROPRIETORSSOLE PROPRIETORS
1. Qualification1. Qualification
2. Experience Requirements2. Experience Requirements
3. Regulatory Examination Level 13. Regulatory Examination Level 1
4. 4. Regulatory Examination Level 2Regulatory Examination Level 2
5. Continuous Professional Development (CPD)5. Continuous Professional Development (CPD)
As per Fit and Proper Determination
2 Years after appointment
Within 5 years of appointment
15 – 60 hours on a 3 year cycle
At date of appointment
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:KEY INDIVIDUALSKEY INDIVIDUALS
1. Qualification1. Qualification
2. Experience Requirements2. Experience Requirements
3. Regulatory Examination Level 13. Regulatory Examination Level 1
4. 4. Regulatory Examination Level 2Regulatory Examination Level 2
5. Continuous Professional Development (CPD)5. Continuous Professional Development (CPD)
As per Fit and Proper Determination
At date of approval. There are transitional arrangements for KI’s approved between 2004 and 2009.
Within 5 years of approval
15 – 60 hours on a 3 year cycle
At date of approval
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:REPRESENTATIVESREPRESENTATIVES
1. Entry Level 1. Entry Level QualificationQualification
2. Experience Requirements2. Experience Requirements
3. Regulatory Examination Level 13. Regulatory Examination Level 1
4. 4. Regulatory Examination Level 2Regulatory Examination Level 2
5. Continuous Professional Development (CPD)5. Continuous Professional Development (CPD)
As per Fit and Proper Determination
Within 2 years of appointment
1 Year after obtaining a recognised qualification.
15 – 60 hours on a 3 year cycle
At date of appointment
Gained / obtained while working under supervision
FIT AND PROPER REQUIREMENTSFIT AND PROPER REQUIREMENTSREGULATORY EXAMINATIONSREGULATORY EXAMINATIONS
Regulatory Regulatory Regulatory Regulatory
Examination Examination Examination Examination
Level 1 =Level 1 =Level 1 =Level 1 =
Legislative Legislative Legislative Legislative
ExaminationExaminationExaminationExamination
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:REGULATORY EXAMINATIONSREGULATORY EXAMINATIONS
Regulatory Regulatory Regulatory Regulatory
Examination Examination Examination Examination
Level 1 =Level 1 =Level 1 =Level 1 =
Legislative Legislative Legislative Legislative
ExaminationExaminationExaminationExamination
Regulatory Regulatory
Examination Examination
Level 2 =Level 2 =
Product Product
Specific Specific
ExaminationExamination
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:QUALIFICATIONSQUALIFICATIONS
Regulatory Regulatory Regulatory Regulatory
Examination Examination Examination Examination
Level 1 =Level 1 =Level 1 =Level 1 =
Legislative Legislative Legislative Legislative
ExaminationExaminationExaminationExamination
Long-term Cat A & Friendly Society Benefits• ABET Level 1• Read , write and calculate
Category I Category II & IIA Category III Category IV
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:QUALIFICATION LISTQUALIFICATION LIST
Regulatory Regulatory Regulatory Regulatory
Examination Examination Examination Examination
Level 1 =Level 1 =Level 1 =Level 1 =
Legislative Legislative Legislative Legislative
ExaminationExaminationExaminationExamination
List will be updated quarterlyList will be updated quarterly
Formal applications to be submitted to add Formal applications to be submitted to add
qualifications to the listqualifications to the list
Any person, learning institution or FSP (employer) Any person, learning institution or FSP (employer)
may submit applicationsmay submit applications
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:EXPERIENCE EXPERIENCE –– CATEGORY I & IVCATEGORY I & IV
Range between 6 months to 2 years depending on the product category
Sole proprietors Sole proprietors must meet the experience requirements on application
Key individuals Key individuals must have at least 1 year experience in managing or
overseeing the financial services of an organisation, and the experience
period must relate to the period required for the category or subcategory
(s)he is approved for. If you also act as a representative, you must have the
relevant product related experience.
RepresentativesRepresentatives must have experience as required for the category or
subcategory appointed for, but experience can gained under supervision.
The experience period differs according to the type of category or
subcategory, and can be gained in multiple subcategories at the same time.
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:EXPERIENCE EXPERIENCE –– CATEGORY II, IIA & IIICATEGORY II, IIA & III
Experience requirements are 2 – 3 years depending on the category or
subcategory (s)he is approved for.
Can be gained under supervision.
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:CONTINUOUS PROFESSIONALCONTINUOUS PROFESSIONAL
DEVELOPMENT (CPD)DEVELOPMENT (CPD)
Depending on the category or subcategory between 15 and 60 hours of CPD
activities must be completed over a 3 year cycle.
CPD activities and/or programmes must be verifiable, i.e.
− Courses, conferences, seminars
− Studies leading to formal assessment
− Workshops
− Structured self-study programmes
CPD activities offered through industry associations, professional bodies,
employers, institutes of higher education and accredited training providers
may apply for their offerings to be recognised.
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:OPERATIONAL ABILITYOPERATIONAL ABILITY
Meet business requirements
Confirm competence requirements of people working for the
business
KI must meet requirements
FIT AND PROPER REQUIREMENTS:FIT AND PROPER REQUIREMENTS:FINANCIAL SOUNDNESSFINANCIAL SOUNDNESS
Specific requirements regarding the financial soundness of the business:− Must not be unrehabilitated insolvent / under liquidation / provisional
liquidation;
− Assets must exceed liabilities
− Cat I: Maintain liquid assets equal to or greater than 4/52 weeks if annual
expenditure;
− Cat II: Maintain liquid assets equal to or greater than 8/52 weeks if
annual expenditure;
− Cat IIA and III: Maintain liquid assets equal to or greater than 13/52
weeks if annual expenditure.
TRANSITIONAL ARRANGEMENTS:TRANSITIONAL ARRANGEMENTS:SOLE PROPRIETORSSOLE PROPRIETORS
Authorised in 2010 Authorised in 2010 Qualification achieved by 31/12/2015First level regulatory examination 31/12/2012Second level regulatory examination by 31/12/2016