How to Pass the FIFA Agent Exam: Key Points to Note in The FIFA Clearing house Regulations

Introduction

The FIFA Clearing House Regulations encompass a structured three-step process for the automatic calculation and distribution of training rewards. Firstly, it involves identifying the entitlement of clubs to these rewards based on established criteria. Secondly, the regulations mandate the creation of an electronic player passport (EPP), serving as a digital repository containing crucial information about the player and their training history. Finally, the Clearing House entity facilitates the seamless transfer of payments between clubs, ensuring accurate calculation and distribution of training rewards in compliance with the regulations. Overall, these regulations provide a comprehensive framework for the transparent and efficient management of training rewards in football transfers, encompassing entitlement identification, EPP creation, and facilitated payment transfers through the FIFA Clearing House.

In this blog we will delve into the FIFA Clearing House regulations. The Clearing House is fundamental to FIFA’s new initiatives and approach to enhancing transparency and proper financial behaviour of relevant parties. Questions around the Clearing House will likely arise during the FIFA Agent Exam and so it is vital to understand the most important sections of the document.

The Contents

The document provides an overview of the FIFA Clearing House, outlining various sections and articles. It begins with definitions, followed by introductory provisions such as objectives and scope. The FIFA Clearing House, a central element of the regulations, is explained in detail. The document then delves into the procedure governing the calculation and payment of training rewards, covering aspects like player registration, triggers for training rewards, and the Electronic Player Passport (EPP) system. Next, it explains the FIFA Clearing House payment process, including allocation statements and payment procedures. Compliance assessment procedures and consequences for non-compliance are outlined in a subsequent section. The document also addresses sanctions, disputes, and final provisions such as applicability in time, transitory provisions, and operational management. Additionally, matters not provided for, official languages, inconsistency, and enforcement mechanisms are discussed to comprehensively cover the regulations.

Top 5 Points to Note

Please note that the page numbers in brackets are relevant to the Study Materials PDF rather than the Procedural Rules Governing the Football Tribunal’s corresponding page. 

1. Definitions (pp343): The definitions section provides clarification on key terms and concepts used within the FIFA Clearing House Regulations. It explains various terms such as Allocation Statement, Compliance Assessment, Dispute Resolution Chamber, Distribution Statement, Electronic Player Passport (EPP), First Compliance Assessment, FIFA Clearing House, FCH Terms & Conditions, Non-Compliant Party, Payment Notification, Procedural Rules, Regulations, RSTP, and Second Compliance Assessment. These definitions aim to ensure a clear understanding of the terminology and procedures involved in the operation of the FIFA Clearing House and its related processes, including compliance assessments, payment notifications, and dispute resolution mechanisms. 
2. Training Rewards (pp350-351): Article 5 of the FIFA Clearing House Regulations is vital for agents to understand as it details the circumstances surrounding the triggering event for training rewards, specifically focusing on a player’s first registration as a professional. If a player is registered as a professional at the same member association where they were previously an amateur, the process involves updating their status in the electronic player registration system. If this registration occurs with a different club within the same member association or with a club in a different member association, specific procedures governed by each member association come into play. The electronic player registration system communicates this first registration as a professional to FIFA within 30 days. In cases where the member association’s electronic system isn’t fully integrated, manual declaration in the Transfer Matching System (TMS) is allowed, subject to FIFA’s approval and certain conditions. Compulsory data and supporting documentation, such as the player’s employment contract, are required for manual declarations. If a player’s first registration as a professional occurs at a different member association, it is treated as an international transfer, with TMS identifying this registration event for potential training reward entitlement.
3. Electronic Player Passport (p354): Article 8 of the FIFA Clearing House Regulations outlines the process for generating and reviewing Electronic Player Passports (EPPs) when a trigger for training rewards is identified. Upon identification of the trigger, a provisional EPP for the relevant player is generated by the Transfer Matching System (TMS). This provisional EPP is made available for inspection in TMS for a period of ten days. During this inspection period, member associations or clubs not listed in the provisional EPP can request inclusion in the EPP review process. Member associations must act in good faith when responding to such requests. After the inspection period, the FIFA general secretariat assesses the provisional EPP for accuracy and relevance. It may discard a provisional EPP if there is no indication that the player was registered with a different member association. However, upon substantiated request, the FIFA general secretariat may reopen a discarded provisional EPP at its discretion, even after completion of the inspection period.
4. Allocation Statement (p359): Article 12 of the FIFA Clearing House Regulations discusses the Allocation Statement, which is crucial for the collection and distribution of payments to training clubs. The statement is sent from the Transfer Matching System (TMS) to the FIFA Clearing House immediately after generation, containing all necessary information for payment processing. If any relevant information is missing or incomplete, the FIFA Clearing House will obtain it, including banking details, and may request further contact information from member associations if needed. The Allocation Statement is generated after the finalisation of the Electronic Player Passport (EPP) for both training compensation and solidarity mechanisms.
5. Compliance Assessment (p364): Article 15 of the FIFA Clearing House Regulations outlines the Compliance Assessment process, which mandates the FIFA Clearing House to monitor its business relationships and transactions for compliance with national and international laws. This assessment covers areas such as international payment sanctions, anti-money laundering, anti-bribery and corruption, and countering the financing of terrorism. To conduct the assessment, the FIFA Clearing House may request information from individuals, clubs, and member associations regarding corporate structure, beneficial ownership, funding sources, and wealth sources. Cooperation with these requests is mandatory, and lack of cooperation may lead to failure in the Compliance Assessment. Upon receiving requested information, the FIFA Clearing House makes an initial assessment (First Compliance Assessment), with its determination being final and binding. Additionally, each determination is specific to the transaction under assessment and does not affect assessments for other transactions.

Practice Question

Answer at the bottom of the blog.

For how many days will the provisional EPP be available for inspection in TMS by all member associations and clubs?

1. 60 days
2. 10 days
3. 14 days
4. 30 days

Conclusion

In conclusion, mastering the intricacies of the FIFA Clearing House Regulations is paramount for any aspiring FIFA agent. Through this blog, we’ve navigated the fundamental aspects of these regulations, from understanding key definitions and triggers for training rewards to delving into the critical processes such as the creation of Electronic Player Passports (EPPs), generation of Allocation Statements, and the Compliance Assessment procedures. These regulations not only serve as a framework for transparent and efficient management of training rewards but also signify FIFA’s commitment to promoting fairness and accountability in football transfers. As agents prepare for the FIFA Agent Exam, a thorough comprehension of these regulations will undoubtedly be important in navigating the complexities of player transfers within the football industry.

Don’t forget, as well as our free resources available below and new additions weekly until the exam, if you want to take your preparation one step further, our next 8-hour comprehensive online How to Pass the FIFA Agent Exam Course with Dr Erkut Sogut and top sports lawyer, Daniel Geey, is taking place on 20th April 2024 and is open for registration through the link! 

The Sports Agent Academy FREE Resources List

• How to Pass the FIFA Agent Exam Youtube Playlist
• The Ultimate Guide to the FIFA Study Materials
• A-Z Key Definitions Guide
• The Top 5 Essential Topics
• Top 10 Best Tips (English)
• Mock Exam 1
• Mock Exam 2
• Mock Exam 3
• Mock Exam 4
• Mock Exam 5
• Top 10 Best Tips (Spanish Translation)
• Top 10 Best Tips (French Translation)
• Top 10 Best Tips (Italian Translation)
• Top 10 Best Tips (Turkish Translation)
• Understanding Training Compensation and the Solidarity Mechanism
• Understanding the Football Tribunal
• FIFA Study Materials

Practice Question Answer

The correct option is answer B. Please refer to page 354.