By Karin van Wyk
Trying to decipher which examinations are required for specific functions can be quite confusing to the prospective financial market practitioner.
To this end SAIFM has summarised the various rules and directives of the exchanges and regulators in order to shed some light on the requirements and assist in making the correct decision when choosing examinations.
PLEASE NOTE THAT ALTHOUGH THIS EXPOSITION IS MEANT TO ASSIST YOU, SAIFM CANNOT ACCEPT RESPONSIBILITY FOR ADVISING YOU ON WHICH EXAMS YOU MUST DO. YOUR COMPLIANCE OFFICER OR THE RELEVANT EXCHANGE/FSB MUST BE CONSULTED.
Managing investments, providing investment advice and executing transactions
Equity securities traded on the JSE equity trading system.
An employee of a member who exercises discretion in the management of equity securities traded on the JSE equity trading system or provides investment advice on any transaction in such securities must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Equity Market
An employee of a trading member who executes transactions in equity securities traded on the JSE equity trading must pass the JSE Registered Securities Trader Exam
Derivative securities traded on the JSE derivatives trading system
An employee of a member who exercises discretion in the management of derivative securities traded on the JSE derivatives trading system, provides investment advice on or executes any transaction in such securities must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Equity Market
- The Derivatives Market
Agricultural derivatives traded on the JSE commodities trading system
An employee of a member who exercises discretion in the management of agricultural derivatives traded on the JSE commodities trading system or provides investment advice on any transaction in such securities must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Derivatives Market
- Agricultural Products Market Dealers Exam
An employee of a trading member who executes transactions in agricultural derivatives traded on the JSE commodities trading system must pass the Agricultural Products Market Dealers Exam
Foreign commodity derivatives traded on the JSE commodities trading system
An employee of a member who exercises discretion in the management of foreign commodity derivatives traded on the JSE commodities trading system, provides investment advice on or executes any transaction in such securities must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Derivatives Market
Bonds traded on the JSE interest rate and currency trading system
An employee of a member who exercises discretion in the management of bonds traded on the JSE Interest rate and currency trading system or provides investment advice on any transaction in such securities must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Bond Market
- The South African Money Market
An employee of a trading member who executes transactions in bonds traded on the JSE interest rate and currency trading system must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Bond Market
Interest rate derivatives traded on the JSE interest rate and currency trading system
An employee of a member who exercises discretion in the management of interest rate derivatives traded on the JSE interest rate and currency trading system or provides investment advice on any transaction in such securities must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Bond Market
- The Derivatives Market
- The South African Money Market
An employee of a trading member who executes transactions in interest rate derivatives traded on the JSE interest rate and currency trading system must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Bond Market
- The Derivatives Market
Currency derivatives traded on the JSE interest rate and currency trading system
An employee of a member who exercises discretion in the management of currency derivatives traded on the JSE interest rate and currency trading system or provides investment advice on any transaction in such securities must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Derivatives Market
- The South African Forex Market
An employee of a trading member who executes transactions in currency derivatives traded on the JSE interest rate and currency trading system must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Derivatives Market
JSE authorised investments not traded on a JSE market
An employee of a member who exercises discretion in the management of JSE authorised investments not traded on a JSE market or provides investment advice on any transaction in such securities must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Equity Market
Financial Services Providers (FSPs) as defined in the FAIS Act
Recognised qualification
The various RPE specialisations have been granted either G or S status or both under Board Notice 64 of 2009, published in the Government Gazette No 32268 on Friday, 29 May 2009. This board notice should be read in conjunction with Board Notices 105 and 106 of 2008, published in the Government Gazette No 31514 on 15 October 2008 as amended. All qualifications recognised as G, S or SP status are accepted as recognised qualifications for representatives of FSPs.
FSPs appointed between 1 January 2008 and 31 December 2009 must have –
- the relevant registered skills programme of 30/60 credits by 31 December 2011 or
- a full qualification from the list of recognised qualifications by 31 December 2013.
FSPs appointed from 1 January 2010 must-
- meet the minimum qualification requirement on date of appointment and
- complete a recognised qualification whilst working under supervision within 5 years of date of appointment.
Exemption from Level 2 regulatory Exams (Transitional period)
Board Notice 64 of 2009, published in the Government Gazette No 32268 on Friday, 29 May 2009, has included the RPE exams with “S” status in the list of recognised qualifications for the different categories of FSPs as defined in the FAIS Act for the transitional period for FSPs who were appointed before 31 December 2009. This means that candidates who have passed certain modules of the RPE and were appointed in the period mentioned, may apply for exemption from the Regulatory Exams Level 2.
This board notice should be read in conjunction with Board Notices 105 and 106 of 2008, published in the Government Gazette No 31514 on 15 October 2008 as amended.
Exemption from Level 2 regulatory Exams (Appointments from 1 January 2010)
The RPE has been granted SP-status by the FSCA (FSB) which means that the RPE will be accepted as a qualification that provides exemption from the RE level 2 examinations of the FSCA (FSB). SP-status is awarded when 100% coverage of the criteria determined by the FSCA (FSB) is achieved in a qualification.
For more information, please refer to the FAIS Department of the Financial Sector Conduct Authority: Tel (012) 367 7122.
The FSCA (FSB) refers to specific specialisations, each of which is made up of various combinations of the Registered Persons Examinations. The required modules for the different specialisations are as follows:
RPE: Specialisation in the Equity Market
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Equity Market
RPE: Specialisation in the Bond Market (compliance)
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Bond Market
RPE: Specialisation in the Bond Market (Trader)
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Bond Market
- The South African Money market
RPE: Specialisation in the Futures Market
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Equity Market
- The Bond Market
- The Derivatives Market
RPE: Specialisation in the Yield-X Market
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Bond Market
- The Derivatives Market
- The South African Money Market
RPE: Specialisation in the Currency Derivatives Market (Advice)
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Derivatives Market
- The South African Money Market
RPE: Specialisation in the Currency Derivatives Market (Trader)
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Derivatives Market
RPE: Specialisation in the Foreign Exchange Market
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The South African Foreign Exchange Market
RPE: Specialisation in the Money Market
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The South African Money Market
RPE: Agricultural Products
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- Agricultural Product Market Dealers
For more information on taking the Financial Sector Conduct Authority (FSB) Regulatory Examinations, please visit www.fsca.co.za.
Compliance and Settlement Officers
A compliance officer is an employee of a member who ensures compliance with legislation and the rules.
To register as a compliance officer for an equities member of the JSE, one must pass the JSE Equity Compliance Officer Exam
To register as a Compliance Officer for the derivative securities, agricultural derivatives, and foreign commodity derivatives markets, one must pass the JSE Derivatives Compliance Officer Exam
To register as a compliance officer of a member of the JSE interest rate and currency market, one must pass the following Registered Persons Examinations modules:
- Regulation and Ethics of the SA Financial Market
- Introduction to Financial Markets
- The Bond Market
In addition to the above, if the member is authorised to trade in interest rate or currency derivatives, a compliance officer is also required to pass the following module of the Registered Persons Examinations:
- The Derivatives Market
A settlement officer is an employee of a member who is responsible for ensuring the settlement of trades.
To register as a settlement officer for an equities member of the JSE, one must pass the JSE Equity Settlement Officer Exam
To register as a settlement officer for an member who trades bonds on the interest rate and currency market of the JSE, one must pass the JSE Bonds Settlement Officer Exam
Strate
Strate Compliance Officers
Strate Compliance Officer Equity and Alternate Strate Compliance Officer Equity
In order to be accredited as a Strate Compliance Officer in the equities environment, a candidate must pass the Strate Compliance Officer Equity Exam consisting of the following modules:
- Strate Module 1
- Strate Module 2 Equities I
- Strate Module 3 Equities II
Strate Compliance Officer Bonds and Alternate Strate Compliance Officer Bonds
In order to be accredited as a Strate Compliance Officer in the bonds environment, a candidate must pass the Strate Compliance Officer Bonds Exam consisting of the following modules:
- Strate Module 1
- Strate Module 4 Bonds I
- Strate Module 5 Bonds II
Strate Compliance Officer Bonds and Alternate Strate Compliance Officer Money Market
In order to be accredited as a Strate Compliance Officer in the money market environment, a candidate must pass the Strate Compliance Officer Bonds Exam consisting of the following modules:
- Strate Module 6 Money Market I
- Strate Module 7 Money Market II
- Strate Module 8 Money Market III
Strate Settlement Officers
Strate Equities Settlement Officers
In order to qualify as a Strate Equities Settlement Officer, a candidate must pass the exam for the Strate Equities Settlement Officer Programme.
Strate Bonds Settlement Officers
In order to qualify as a Strate Bonds Settlement Officer, a candidate must pass the exam for the Strate Bonds Settlement Officer Programme.
Strate Money Market Settlement Officers
In order to qualify as a Strate Money Market Settlement Officer, a candidate must pass the exam for the Strate Money Market Settlement Officer Programme.