We refer to our letter dated 1 Oct 1999 informing you of the requirement for Investment Representatives ("IRs") to pass the IRE with effect from Jan 2000.
2 We have received various feedback from industry participants. Following a review, we have decided to modify the examination requirements for IRs as follows:-
- IRs who solely provide corporate finance advisory or venture capital fund management services will be exempted from both Paper 1 and Paper 2 of the IRE. However, where these IRs subsequently change their functions to providing regular fund management and other investment advisory services, they would be required to sit and pass the IRE;
- Persons, with at least 5 years' direct and continuous working experience in the fund management industry, will be exempted from Paper 2 of the IRE, unless there is a break in service of more than 2 years between their last working experience in the industry and the date(s) of their IR licence applications. There will be no exemption from Paper 1 of the IRE; and
- Persons who possess basic degrees or post-graduate degrees in Accountancy, Business Administration, Financial Services or other finance-related disciplines conferred by recognised universities, may be exempted from Paper 2. Applicants for exemption from Paper 2 on the basis of academic qualification will be assessed by the Authority on a case by case basis.
3 We are also pleased to inform you that the Institute of Banking and Finance ("IBF") has implemented the following measures to enhance the flexibility of the administration of the IRE:-
- Modify the scheduling of IBF's examination sessions such that different types of examinations can be held in the same session. This would allow candidates to take the IR examination at the next available session, and reduce the "waiting period" for taking the examination; and
- Allow candidates to enrol and sit the two papers of the IRE separately, to accommodate individual needs.
4 We look forward to your continued support of the IRE and other measures to develop and enhance professionalism in the conduct of investment advisory services in the industry.
Yours faithfully
YEO LIAN SIM
