In answer to Shakespeare’s question “What’s in a name?” I have to say: “A heck of a lot” when talking about the regulatory exams. I sometimes wonder whether re-naming the different regulatory exams would not be a good idea. Using military ranks like troepie and korporaal, rather than Rep and KI, would make a lot more sense to most of us.
We pointed out on Monday that many candidates struggle to differentiate between the Level 1 regulatory exams and RE 1, which is the Level 1 Key Individual exam. They arrive at the exam centres, registered to write RE1, but intending to write the representative exam, which is of course RE 5, which in turn is also part of the Level 1 REs.
To add to the fun and games, RE 3 and RE 4 have now also joined the party. RE 3 is meant for Category II and IIA KIs and RE 4 for Category III KIs.
Get my drift?
To ensure that we do not add to the confusion, let me again outline what the current situation is:
Level 1 Regulatory Examinations
These exams focus on the regulatory requirements, mainly contained in the FAIS and FIC Acts, and other related and relevant legislation.
To all those who bemoan the fact that they have to write exams after 30 and 40 years in the industry: the FAIS Act only became a reality in your lives late in 2004, and has little to do with your product knowledge, how satisfied your clients are, or how you never get complaints from them.
RE 1: A basic 80-question RE for all Key Individuals, including sole proprietors, in licence categories I, II, IIA, III and IV, but excluding KIs in licence categories 1.1 and 1.19.
RE 2: KI Level 1: A comprehensive 80-question RE, consisting of 50 KI questions and 30 product questions, and compulsory for all KIs in licence category 1.1 & 1.19. Reps registered for only these categories are exempt from writing the REs.
RE 3 is an additional 30-question regulatory exam for Category II and IIA Key Individuals and focuses on obligations specific to their licence categories.
RE 4 is an additional 30-question RE applicable only to Key Individuals in licence category III.
RE 5 is the RE for all representatives.
Level 2 and Continuous Professional Development
Level 2 has to follow on chronologically from Level 1, and we await further clarification from the FSB.
CPD, in turn, will proceed after Level 2. We placed a white paper, calling for industry input, on our website. Click here to download a copy. I had an enquiry recently about whether one needs to belong to a specific organisation in order to qualify for CPD points.
The answer is no, but not as simple as “only” no. Please study the proposed steps in the document linked above. Nearer the time, we will cover this in more detail.