IISA - The Insurance Institute of South Africa

REGULATORY EXAMS
Key Individuals & Representatives

Important Information to Assist Understanding of the RE Level 1 and RE Level 2 Examinations

 The IISA is very concerned about the impact and concerns that the requirement to undertake the regulatory examinations are having on the industry.

It appears from many comments and reactions in the market that there is still a widespread misunderstanding of what the FSB introduced exams are all about.

The IISA wants to help dispel the common view or myth that:

“I have worked in the industry for the last 10/20/30 or even 40 years and have a vast level of experience and knowledge and therefore don’t need to now go and study for and write these exams”. 

In terms of the FAIS Act and the modified regulations that have developed from the Act, called Board Notices, including the Fit & Proper requirements and the FAIS General Code of Conduct, it is now required that all parties who are governed by the Act, are required to write the RE 1 and RE 5 exams and are required to successfully complete this by the 31^st December 2011.

The RE Level 1 exams are a test of your knowledge of the FAIS Act, Board Notices and the FAIS General Code of Conduct.  They have nothing to do with your knowledge of insurance per se.  They are about testing your knowledge of the procedures relating to the conduct of business in terms of the FAIS Act.

In order to be successful in the exam, you will need an understanding of the FAIS Act and related Board Notices and the Code of Conduct.  Some knowledge of the impact of the FICA Act is also required.

INSETA has down loadable study material which also makes reference to the other documents that need to be studied and reviewed before attempting the exams. Visit the INSETA website and follow the prompts below: 

1. From the INSETA website – www.inseta.org.za, point your mouse to FAIS Assessments on the left hand menu bar
2. Click on FAIS Learning Material
3. Complete your details – it is just for INSETA to record who downloads it, and it is FREE
4. Click on “Click Here” to open the document

Many training bodies are launching courses at various levels to assist students to prepare for the exams.

The FIA and IISA are also going to be offering sessions to assist students with their studies and you should visit their websites for this information, courses, dates and venues (www.iisa.co.za and www.fia.org.za )

Please note that the fact that you hold a professional designation such as an ACII, FCII, AIISA or FIISA as an annually paid up member of the IISA or the CII does not in any way remove your obligation to write the regulatory exams.

In reviewing the competency requirements as per the FAIS Act, you need four (4) competencies which are as follows:

A.  A Representative needs 4 ticks in order to remain compliant:

1. Qualification                                                                            ACII or FCII  / AIISA or FIISA                       Yes
2. RE Level 1 Exam                                                                       by 31 December 2011                               No
3. RE Level 2 Exam                                                                       by 31 December 2013                               No
4. CPD                             ongoing 3 year cycle after completing your relevant  RE2 exams                        No

B. A Key Individual, who also services clients, needs 4 ticks in order to remain compliant:

1. Qualification                                                                         ACII or FCII  / AIISA or FIISA                           Yes
2. RE Level 1 Exam (both Rep and Key Individual)             by 31 December 2011                                     No
3. RE Level 2 Exam                                                                   by 31 December 2013                                   No
4. CPD                              ongoing 3 year cycle  after completing your relevant RE2 exams                       No

The ACII / FCII / AIISA /FIISA curriculum does NOT satisfy 100% of the FSB’s qualifying criteria for the Short Term Categories as disclosures to the client, quality assurance on the policy issued and recovery and mitigation of losses were not covered in the ACII, FCII ,AIISA  or FIISA curriculum.  However these were covered in the HCII. 

The ACII / FCII / AIISA /FIISA do give the qualification requirement a tick and therefore are of value.

The RE Level  2 exams themselves are not there to teach anyone insurance but to confirm that the individual has the knowledge of the process and products  required to operate in the product category in which they operate and offer advice to customers. You should be aware that there are 20 possible categories of RE Level 2 exams and you will need to enter and pass a separate exam in all of the categories in which you have been licensed to trade.

On completion of the required RE Level  2 product category exams you will trigger the need to complete a recurring three year CPD programme, the scope and contents of which are still to be finally decided by the FSB. We as a professional body in the industry will ensure that the CPD programme we are developing with industry input, embraces all the FSB requirements.

We hope that this note assist individuals understanding of the regulatory requirements and encourages them to undertake the necessary study and review before attempting the RE Level 1 exam.

The IISA wishes you good luck and success.