Moonstone Information Refinery has launched a video series to help students prepare for the regulatory exams for key individuals and representatives.
The videos are not training material but are designed to help students get the most out of the FSCA’s Preparation Guide.
Each video is between six and 17 minutes long, and students can watch them in any order, depending on the area on which they want to focus.
The videos are freely available at this link.
Moonstone is the only institution approved by the FSCA to provide the regulatory exams in South Africa. Moonstone adheres to the FSCA’s strict policies and protocols governing the setting of questions, the invigilation of exams, and the marking of papers.
Here is an overview of the content of each video:
1. Introduction and definitions
This video explains the different regulatory exams. The focus is on preparing for the RE 1 (for the key individuals of all financial services providers) and the RE 5 (for representatives) exams.
It looks at the importance of the definitions of the key terms in legislation, using examples from the Financial Advisory and Intermediary Services (FAIS) Act.
2. Background to and development of the regulatory exams
This video discusses the FAIS Act, which became effective in September 2004. In terms of the Act, no one is allowed to provide a financial service unless they are an authorised financial services provider (FSP) or an appointed or a mandated representative of an FSP. People who provide financial services need to meet certain Fit and Proper Requirements. One of these requirements is competency, of which the regulatory exams are a component.
The video looks at the 16 tasks that are tested in the RE 1 exam and the eight tasks that are tested in the RE 5 exam. It explains how the exam questions are designed to test four different levels of thinking skills (knowledge; comprehension; application; analysis, synthesis and evaluation), as well as the weighting given to these questions in the exam papers.
3. Finding and understanding the legislation
This video emphasises that the exams are designed to test students’ knowledge and understanding of the most recent version of the legislation. It explains how students can find the current legislation. It discusses how legislation is structured and referenced, and students are shown how to read legislation.
4. The financial services environment
This is an optional module, but it will provide students with crucial insights into the regulatory environment that governs the financial services sector. It looks at the FAIS Act and its subordinate legislation, the Determination of Fit and Proper Requirements and the General Code of Conduct.
However, the focus of the video is National Treasury’s “Twin Peaks” approach to regulation. The module discusses the reasons for the development of Twin Peaks and explains what the two “peaks” of this approach are.
Students are introduced to some of the key legislation that gives expression to Twin Peaks: the Insurance Act, the Policyholder Protection Rules and, importantly, the Financial Sector Regulation Act.
5. Learning for the exam
This video provides students with tools and techniques for effective learning.
It emphasises the importance of paying attention to and understanding the tasks and the qualifying criteria for each task, which are set out in the Preparation Guide. Students are shown how to map the qualifying criteria to the applicable legislation.
Students are reminded that the exams test their understanding of the legislation, not the training material they might have used.
6. Writing the examination
The final video discusses what students should expect when they arrive at the exam venue, and pre-exam administration, including providing proof of identity.
It explains the format of the question paper, how students should complete the answer sheet, and the number of questions students need to answer correctly on the RE 1 paper and the RE 5 paper in order to pass.
Students are provided with a strategy for tackling the questions so that they will complete the paper in the allocated time.
The video also explains that students can lodge an appeal against an exam question or questions, and what students should consider before appealing.
Moonstone Information Refinery hopes these videos will equip students to tackle their studies with confidence and ensure they achieve a passing grade.