Representatives of financial services providers (FSPs) who are required to pass the 'Fit and Proper' level I regulatory examination by the end of this year may be in for a nasty surprise. Testing centres are reporting a high failure rate among the thousands of candidates sitting the level I exams in order to meet the rigorous requirements of the Financial Advisory and Intermediary Services Act (FAIS).
Inadequate preparation is the main reason that many candidates do not succeed in the level I exam, placing many FSPs in jeopardy of losing their licence.
Craig Reid, founder of online training company EquityOnline, believes comprehensive training and continual assessment are critical for financial advisors preparing for the FAIS regulatory exams. “Many companies are investing enormous resources on in-house trainers to ensure their representatives get through the exams, but there is a shortage of qualified financial trainers to meet the pressing demand of the estimated 140 000 individuals who need to undergo training before 31 December.”
Reid points out that in reality, the retention of information relayed in live training sessions is often disappointing. This renders the expense and time invested by the company a waste, unless they supplement in-house training with tools for individual learning and self-evaluation, for example through the support of an online training system.
“For live training sessions to be most effective, students need adequate preparation beforehand on the content to be covered, and the information taught during the live training intervention needs to be re-enforced and re-tested later on.”
Reid believes online training can work in conjunction with live financial advisory training to complement and bolster the effectiveness of an in-house training programme. EquityOnline is an online compliance training portal, which delivers regularly updated, comprehensive content for both the FAIS level I and II regulatory exams. EquityOnline also provides continuous professional development (CPD) content and records training hours, to meet the more stringent requirements FAIS now places on all financial advisors.
“The beauty of the portal is the way it structures each module by pre-testing the content to engage the learner, before presenting the information in detail,” Reid continues. The user is free to go through the content at their own pace, and is then tested for understanding and areas of difficulty, to help ensure retention and subsequent exam success.
“The EquityOnline system can therefore be used as a cost-effective stand-alone training tool, to which the user has access 24 hours a day at their convenience. Or, it can be used to enhance a live training programme. Either way, it can really help users prepare for their exams with confidence.”
EquityOnline's platform also addresses a host of FSP compliance officers' reporting requirements in a neat online solution. The platform's real time reporting functionality allows the FSP to set up customised intervention alerts to assist with the proactive management of a large number of representatives.
“The idea is to improve the level of FAIS compliance and competence within the FSP's representative base before it is too late,” Reid adds.
EquityOnline's core online training solution has a proven 10-year track record and is currently being used successfully by a number of multinational and listed companies operating in South Africa. The portal supports candidates through its call centre, which operates six days a week.
For more information about Equity Online, visit www.equityonline.co.za.
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