The South African Actuarial Qualification

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The South African Actuarial Qualification
FASSA
2010

• 11 March 2009 Johannesburg
• 12 March 2009 Cape Town
• Dr Lis Goodwin (Education Consultant IAA)
• Andrew Gladwin (Education CPD Board)
• Jikku Joseph (Student Liaison Committee)
  
  

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Agenda

• International Actuarial Association (IAA)
• IAA Subjects
• Equivalent UK Subjects
• Levels of Recognition

Presented by Dr Lis Goodwin lisgoodwin_at_btinternet.
com
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IAA

• Types of education systems
• Derivative of other associations
• University based
• Profession based
• Part university part association
• Some are controlled by the government and some by
  the association

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IAA

• 62 Full member associations
• 23 Associate member associations

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IAA

• As one of the requirements to be a full member
  association of the IAA an association can only
  admit as full members those who have followed an
  actuarial education which follows the IAA
  Education Guidelines and Syllabus

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IAA Subjects

• Financial Mathematics
• Probability and Mathematical Statistics
• Economics
• Accounting
• Modelling
• Statistical methods
• Actuarial mathematics
• Investment and asset management
• Principles of actuarial management
• Professionalism

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Equivalent UK Subjects

• Financial Mathematics CT1, CT8
• Probability and Mathematical Statistics CT3
• Economics CT7
• Accounting CT2
• Modelling CA2, CT3
• Statistical methods CT6
• Actuarial mathematics CT4, CT5
• Investment and asset management CA1
• Principles of actuarial management CA1
• Professionalism

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Levels of Recognition

• IAA recognition at Associate level
• Groupe Consultatif Europe wide recognition at UK
  Fellowship level
• Mutual recognition agreements between pairs of
  countries/associations at Fellowship level

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Agenda

• Central Tenets of South African Qualification
• Why FASSA 2010?
• Broad Implementation Plan
• Key Milestones Achieved
• Mutual Recognition

Presented by Andrew Gladwin ecpd_at_actuarialsociety.
org.za
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Central Tenets

• International Recognition
• World-Class Professional Standards
• Local Relevance

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Why FASSA 2010?

• Local Relevance
• Learning Profession
• Resources to the UK

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Broad Implementation Plan
Phase 1Establish Project
Phase 2 Set Up Framework
Phase 4 Full Implementation
Phase 3 Transition
1st Q 2007
2Q-4Q 2007
2008-9
2010
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Key Milestones Achieved

• Governance structures set up and functioning
• Education Office in Johannesburg established and
  staffed
• Curriculum framework finalised
• University accreditation process agreed and
  interim accreditations
• Exam team have successfully completed full cycle
  of exams
• UK support and funding attained

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Key Milestones Achieved

• Good progress in mutual recognition discussion
• Good progress in establishing admin system and
  processes
• Tuition support established for Specialist
  Applications subjects
• Extensive research into provision of
  professional skills
• Practice Modules established
• Extensive communication with students and
  companies

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Key Work Remaining

• Finalise mutual recognitions with UK and other
  associations
• Finalise university accreditations (including
  rest of Africa)
• Complete admin processes and migrate UK student
  data
• Finalise all exam and tuition processes for
  fellowship subjects to allow full operation of
  South African qualification
• Ongoing communication to key stakeholders
• Ongoing curriculum development (especially in
  ERM area)

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Mutual Recognition

• Non-negotiable!
• UK Australia mutual recognition have been
  established as a minimum requirement to move to
  local qualification
• Canada and Ireland also expected in short term
• Will pursue others including USA, India

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UK Mutual Recognition

• Allows FASSA to get FIA/FFA on working in the UK
  and passing practice module
• ..and the other way around
• Subject-by-subject recognition to Associate
  level
• Qualification recognition for Fellowship
• Aim is to sign in Estonia in end May

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Agenda

• Structure of the Qualification
• Subject Provision
• Transitional Arrangements
• FAQ
• Other Questions?

Presented by Jikku Joseph slc_at_actuarialsociety.org
.za
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Structure of the Qualification

• Easy mapping to UK subjects
• Comfortably in line with IAA requirements
• Steps to qualification re-categorised
• A1 Series Foundation Technical
• A2 Series Intermediate Technical
• A3 Series Core Principles
• F1 Series Fellowship Principles
• F2 Series Fellowship Applications
• A4 F3 Series Professionalism Skills
• Fellowship qualification still first prize

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Subjects

• A101 (CT3) Probability Mathematical Statistics
• A102 (CT7) Economics
• A103 (CT2) Finance Financial Reporting

• A301 (CA1) Actuarial Risk Management
• A302 (CA3) Communications

• A201 (CT1) Financial Mathematics
• A202 (CT4) Models
• A203 (CT5) Contingencies
• A204 (CT6) Statistical Methods
• A205 (CT8) Financial Economics

• A401 (CT9) Business Awareness Module
• A402 (CA2) Model Documentation Analysis
• Reporting
• A403 Associateship Work-Based Skills
• A404 Associateship Professionalism Course

• F200 (SA0) Research Option
• F201 (SA1) Health Care Applications
• F202 (SA2) Life Insurance Applications
• F203 (SA3) General Insurance Applications
• F204 (SA4) Pension Other Benefits Applications
• F205 (SA6) Investment Applications

• F100 (ST0) Alternative Fellowship Principles
• F101 (ST1) Health Care Principles
• F102 (ST2) Life Insurance Principles
• F103 (ST3) General Insurance Principles
• F104 (ST4) Pension Other Benefits Principles
• F105 (ST5) Investment Principles

• F303 Fellowship Work-Based Skills
• F304 Fellowship Professionalism Course

• F210 (P0) Generic Practice Module
• F211-F215 (P1-P6) South African Practice
• Modules

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Subject Provision

• A1-A3 Series
• Accredited University Programmes
• Distance Learning Option UK (from Sep 2009)
• A302 Actuarial Society Approved Exam from 2010
• F1 Series
• Accredited University Postgraduate Short Courses
• Distance Learning Option Actuarial Society
  Approved University Exam
• F2 Series
• Actuarial Society BoE Exam
• Tuition Course Leader System
• A4 F3 Series
• WBS and Professionalism Courses different
• Existing Actuarial Society 1-day/2-day courses

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Transitional Arrangements

• When should you join?
• Passes of UK ST Exams
• Retakers of the UK SA Exam
• Alternative Fellowship Principles (F100/ST0)

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When should you join?

• New graduates should join from start of 2009
• Includes students who joined the UK during
  university and have pass credits (should still
  retain UK for 2009)
• 2009 membership fees waived for new graduates
  who apply for exemptions through the AS
• If writing UK CT/CA exams from Apr 2009 join UK
  and AS
• If writing UK CT/CA exams from Sep 2009 only
  join AS

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When should you join?

• Example
• Ben graduates with 7 exemptions (CT1-CT7) at end
  2008
• He missed CT8 and wants to write it in Apr 2009
• So he joins the UK and AS
• He has his 7 exemptions processed by the AS (as
  A101-A204) and has his 2009 membership fees
  waived as a result.
• He writes in April and passes the UK exam
• CT8 pass is recorded in the UK only
• After the UK data is migrated in 2nd half of
  2009 credit for pass in CT8 will also be on the
  South African system (as A205)
• There is no impact to Ben his employer
  recognises both the AS recognition of his
  exemptions and his pass from the UK.
• If Ben had only wished to write from Sep 2009 he
  would have only joined the AS.

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When should you join?

• Existing members of the UK and AS
• UK data migration 2nd half 2009
• Option to terminate UK membership after Sep 2009
• Members of UK only
• Join AS after Sep 2009 need proof of credits
  from UK
• Option to terminate UK membership after Sep 2009
• Retakers of UK SA exams after 2009
• Remain with UK

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UK ST Exams

• MRA with UK is not subject-by-subject at
  fellowship level
• Passes from UK ST exams until end of 2009 will
  be recognised as a credit from F1 Series.
• UK ST passes after 2009 will only be recognised
  when qualify through the FI

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Retakers of UK SA Exams

• If you attempted a UK SA exam prior to Sep 2008
  a pass in a UK SA exam will still contribute to a
  credit from the F200s up until the end of 2010.
• Example
• Refilwe sat UK SA6 in Sep 2008 and was
  unsuccessful.
• At the end of Sep 2009 she has completed all her
  exams except her SA exam and an ST.
• Given that she attempted UK SA6 once before she
  would like to retake the same subject.
• She will need to retain her UK membership to
  write the UK SA exam.
• She can still join the AS prior to completing
  her ST exam because her pass in UK SA6 will still
  be eligible for FASSA purposes.
• Note Refilwe will still need to complete a RSA
  practice module (F210 and any of F211-F215) to
  qualify as a FASSA.
• There is no deadline for the PM.

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Alternative Fellowship Principles

• ST0/F100
• This is a temporary subject to facilitate
  transition between the two systems.
• Students who have completed exams before end of
  2008 and work experience before 2010 eligible.
• UK-member students who are in a position to
  qualify with the UK during 2009 may apply for
  their exemption from the UK.

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Alternative Fellowship Principles

• Example 1
• Anne successfully sits the Nov 2008 FRM exam.
• She only completes the required work experience
  at the end of 2010 and receives the FRM
  designation in 2011.
• Anne will not qualify as an FIA/FFA in 2009 and
  so has her F100 pass credited with the AS.
• If Anne had failed the Nov 2008 FRM exam she
  would not be eligible for a F100 credit if she
  passed the exam in 2009.
• Example 2
• Dumisani passes the Nov 2008 FRM exam and
  completes his work based skills requirement at
  the end of 2008.
• He is eligible for his F100/ST0 exemption in
  April when he receives the FRM certificate.
• He is a member of both the FI and AS.
• Dumisani is eligible to qualify as an FIA/FFA in
  2009 and should apply for his ST0 exemption
  through the UK.
• This record will be transferred to South Africa
  along with his other academic records in Sep 2009.

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Frequently Asked Questions

• How much more cost effective is our local
  education system relative to the UK?
• Target 80 of UK
• Need to maintain quality of education including
  support to South African Universities.
• Prudence
• Free of exchange rate volatility
• Cost saving gap will increase over time

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Frequently Asked Questions

• I am worried about where I will be recognised as
  an actuary internationally. Isnt a local FASSA
  qualification inferior to a UK one?

Old Paradigm
New Paradigm
RoW
UK
IAA
RoW
UK
SA
SA
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Frequently Asked Questions

• How can we be assured that standards of the
  local education system will be maintained going
  forward?
• Protection of MRAs and oversight
• Internal Quality Management

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Other Questions?

• International Actuarial Education
• Dr Lis Goodwin
• lisgoodwin_at_btinternet.com
• Education CPD Board
• Andrew Gladwin
• ecpd_at_actuarialsociety.org.za
• Student Liaison Committee
• Jikku Joseph
• slc_at_actuarialsociety.org.za

FASSA
2010
INTERNATIONAL RECOGNITION. LOCAL RELEVANCE.