Guardians of Integrity: Combating FAIS Exam Fraud in Financial Services

Maintaining integrity in the financial services industry is crucial. As Financial Services Providers (FSPs), it’s our duty to combat fraud related to FAIS regulatory examinations (REs). The FSCA recently raised concerns about increasing exam fraud, urging FSPs to verify the authenticity of RE certificates.

Common fraud tactics include fake certificates, impersonators writing exams, and bribing individuals to alter results. The FSCA emphasized that FSPs must take proactive steps to verify certificates and thoroughly vet their representatives. With social media enabling fraudsters to lure candidates into illegal schemes, FSPs need to be aware of red flags, like sudden changes in exam enrollment or unexpected high pass rates.

Verification is straightforward: FSPs must confirm certificate authenticity with Moonstone or the FSCA, document the process, and act if fraud is uncovered. Simply terminating a representative with a fake certificate isn't enough—FSPs must initiate the debarment process to prevent further fraudulent behavior.

FSPs should also ensure their representatives understand the serious consequences of RE fraud and always book exams directly through Moonstone. Providing high-quality, up-to-date training is key to preparing representatives for the RE and maintaining industry integrity.

By staying vigilant, we protect the reputation and ethical standards of the financial services sector.

For any assistance regarding the matters discussed above, please click HERE.