The Draft Market Conduct Framework, published late last year, provides the following information on what was earlier called the Level 2 RE, and how it will align with CPD.
A revised competency framework for intermediaries
The FAIS Act introduced a level of professionalism into the financial intermediation industry which can be enhanced to ensure that financial customers get the best financial advice, taking into account their individual needs and circumstances. The way to achieve this is to ensure that, in addition to adequate knowledge of their regulatory obligations (through the existing regulatory exam), intermediaries should also demonstrate that they have adequate knowledge of their line of business and the specific products they distribute.
Project action plan to enhance FAIS requirements relating to professionalisation
The FSB initially intended to implement a “product knowledge” exam, to be set and administered in a similar way to the Level 1 regulatory exam. This thinking has shifted and, in line with the TCF objective of ensuring that responsibility for fair customer outcomes is appropriately shared between product suppliers and other parts of the value chain, it is now proposed that product suppliers should take the responsibility of ensuring that anyone they authorise to sell or give advice on their products should be competent to do so. This product knowledge will be tied in with a requirement of continuous professional development. In consultation with the financial services sector, the FSB will propose frameworks for ensuring that this product knowledge requirement is implemented and assessed at the appropriate levels to ensure good customer outcomes.
Fully updated resources are available for those requiring access to the legislation applicable to the regulatory examinations:
- Click on the following highlighted sections to download the relevant updated Inseta learning material for key individuals, RE 1, and representatives, RE 5.
- LexisNexis provides a “Legislation Handbook” together with a “Preparation Guide” containing the qualifying criteria, with a link to the relevant legislation.
- The Juta FAIS Pocket Statutes also contains a CD with a comprehensive list of updated supplementary legislative material for reference purposes.
- The DVD of the FSB’s telematics broadcast on the RE 1 and RE 5 provides a good introduction and overview, and can also be ordered online.
- Please make sure that you first read the FSB’s Preparation Guide to make sure you follow the right process in preparing. Page seven includes a recent amendment to guide candidates in studying in the correct manner.
RE Schedules, Venues and Registration