Electronic Individual Pension Intermediaries Examination System (e-BEAS) is an examination system designed to implement the exams for intermediaries in individual pension system and keep track of the electronic registries which is one the assignment given by Turkish Treasury to Pension Monitoring Center (in Turkish Emeklilik Gözetim Merkezi or in short EGM). e-BEAS is the first application of electronic examination system at the level of government in Turkey. EGM has been making exams in an electronic environment since July, 2004. e-BEAS is a cost-effective and appropriate way for licensing the intermediaries. The need on the side of pension companies for exams on an irregular, frequent interval determined by the applications due to the regulation that prohibits the sales of private pension products by individual pension intermediaries without having licenses underlies the necessity of an electronic exam. The classic examination system would not have met the needs of the sector.

Policy Context

After the the law no. 4632 on Individual Pension Savings and Investment System came into force on October 07, 2001, Turkish Individual Pension System commenced on October 27, 2003 with the contribution of 6 pension companies. At present, there are 10 pension companies operating in the system. With the amendments made by another law, on June 14, 2007, the redefined functions and tasks of EGM were added to the law no. 4632 and on January 12, 2008 the regulation concerning operating principles of EGM came into force. As an e-governance application, EGM is established to produce accurate information on behalf of Turkish Treasury for daily electronic monitoring of the companies operating in the system. The establishment was completed by the shareholders with ca. 1.7 million USD paid-up capitals on July 10, 2003. One of the shareholder is Prime Ministry Undersecretariat of Treasury with a privileged share in capital, other shareholders are 10 pension companies called Anadolu Hayat Emeklilik, Ankara Emeklilik, Avivasa Emeklilik & Hayat, Ba?ak Groupama Emeklilik, Fortis Emeklilik & Hayat, Garanti Emeklilik & Hayat, Koç Allianz Hayat & Emeklilik, Oyak Emeklilik, Vak?f Emeklilik, Yap? Kredi Emeklilik) which have licenses to operate in the pension branch with equal share in capital. Legal Framework •EGM is assigned by Prime Ministry Undersecretariat of Treasury with the task of “implementing the exam of Intermediaries & keeping track of the electronic registries” as well as its other tasks. •The Regulation on Individual Pension Intermediaries requires that all marketing and sales personnel who perform promotion, marketing and sale activities of the pension company (intermediaries) should have the qualifications specified in the Regulation. To be successful in the exam made by EGM is one of the qualifications to become an intermediary.

Description of the way to implement the initiative

e-BEAS is on electronic environment at all stages from the application to the publication of the results. •The candidates register via the Internet after having gone through the verification process. The information entered by the candidates are verified with the data in the electronic registries of EGM and birth records through the database supplied by the Turkish government Ministry of Interior. •The pension companies follow up the applications of their candidates and give their approval online by the help of the WEB page provided by EGM. •Candidates get the information about the locations and dates of their exam via the Internet. •The exam itself is made on electronic environment (Internet-based). For each candidate, a different set of questions are selected dynamic and random from the question pool. The questions asked to each candidate, their answers are kept in a central database, and statistics are produced on question and candidate basis. •Candidates and the pension companies can access EGM web page to learn the result of the exam by tracking with their identity numbers. Pension companies can easily access to the various statistics related to success of their candidates.

Technology solution

Technology choice: Proprietary technology, Standards-based technology

Main results, benefits and impacts

By July 23, 2008 25.495 participants, (32,594 times) took the exam. 21,047 participants have been successful and gained the right to have license. Since the first e-BEAS which took place on July 5, 2004, 1,483 sessions were hold on 487 different days. With these exams, the professional knowledge and abilities (knowledge on relevant regulations, financial, tax relevant issues etc.) of the intermediaries have been tested. The participants and the ones who want to participate in the system have the chance to get the best assistance from the well-informed intermediaries, which had also an enormous effect on reducing the wrong sales in the system. The statistics based on candidates and questions prepared by EGM provides the pension companies with the chance of reevaluating their training system and making appropriate changes on time.

Return on investment

Return on investment: Not applicable / Not available

Lessons learnt

The aim of e-BEAS is to evaluate the professional knowledge and skills of private pension intermediaries being aware of the importance of the right and full expression of the system to the public. The well-informed intermediaries sell the proper pension products to people who are aware of their rights and obligations in the system. The licensing process decreases the possibility of fraud. This fact then leads to increase in the public confidence to the system and has an affect in its fast growth. The system and know-how used in e-BEAS, licensing and keeping the records of intermediaries can be easily applied to the life insurance sector. The people who sell, promote and market the life insurance products are expected to be evaluated by an electronic exam just like the e-BEAS and have been planned to be subject to the process of licensing. e-BEAS is only one part of monitoring of intermediaries’ activities. EGM also keeps the records of intermediaries after e-BEAS organizes e-learning programs online and to ensure them to have update information. It also provides a tool on its WEB site for the participant to find out if the intermediary is authorized to make pension contracts or not. Scope: National