RE5

Overview

The RE5 is South Africa's Regulatory Examination for Representatives in all Categories of Financial Services Providers (FSPs). It is set by the Financial Sector Conduct Authority (FSCA) and tests a representative's knowledge of the law they must follow when giving advice or rendering intermediary services, mainly the Financial Advisory and Intermediary Services (FAIS) Act, 2002 and the Financial Intelligence Centre Act, 2001.

The FSCA introduced the regulatory examinations in 2008, after industry consultation from 2006 to 2008 found that many FSPs, key individuals and representatives did not know the legislation well enough. There are four regulatory examinations:

The exam is delivered by examination bodies working under a mandate from the FSCA, such as Moonstone.

Who can apply

The RE5 is for people appointed as representatives of an FSP. To register you need the FSP number of the provider you work for, along with professional details such as whether you work in insurance, banking or investments.

The FSCA lists these representatives as not required to write the RE5:

• representatives who render financial services only for funeral and friendly society benefits (subcategories 1.1 and 1.19 only);

• representatives who render financial services only for Tier 2 financial products;

• representatives appointed only to execute sales of Tier 1 financial products.

Tier 1 and Tier 2 products are defined in Board Notice 194 of 2017 (the Fit and Proper Requirements), Annexure Three.

Exam pattern

You do not need to learn the legislation word for word. Where a question refers to a specific section of an Act, that section is printed in the question.

Syllabus

The FSCA's preparation material for the RE5 is the legislation itself:

• the FAIS Act, 2002 (Act 37 of 2002);

• the Financial Intelligence Centre Act, 2001 (Act 38 of 2001);

• the Long-term Insurance Act, 1998, for the definition of a long-term policy only;

• subordinate legislation under the FAIS Act, including the General Code of Conduct for Authorised FSPs and Representatives (2003), the Rules on Proceedings of the Office of the FAIS Ombud (2003), the requirements for reappointing debarred representatives (2003), the FAIS Regulations (2003), the professional indemnity and fidelity insurance cover requirements (2009), the Fit and Proper Requirements (BN 194 of 2017) and the form of licence (BN 89 of 2018);

• the FSCA Guidance Note on intermediary services and representatives, FAIS Notice 17 of 2018 (section 14 notifications) and FSCA FAIS Notice 86 of 2018 (services under supervision).

All of these are linked from the FSCA's RE5 preparation page and its legislation page.

Marking and results

Papers go through a marking process set by the FSCA. Results are checked, sent to the FSCA for approval, and then released to candidates. Moonstone allows up to 20 working days from the exam to the release of results. Instructions on appeals and remarks are given by the invigilator on exam day.

Fees

The regulatory examination fee is set in legislation. The FSCA links its current fee schedule from the Regulatory Examinations FAQ, under item 6 on page 4 of that document.

How to apply

1. Make sure you have your South African ID number (or a passport number if you have no South African ID), your FSP number, and your personal, contact and professional details.

2. Register with an FSCA-mandated examination body. With Moonstone you can book online, by telephone during weekday business hours, or by sending its registration form; employers can make bulk bookings.

3. You receive an email confirming the date, time and venue of your exam.

4. To rewrite after a failed attempt, you do not register again; you log in to the booking system and book a new sitting.

Candidates with special needs can contact the examination body to arrange support.

Preparation tips

• Read the Acts and notices themselves. The FSCA says you cannot expect to pass an exam on legislation without having read the legislation.

• Pay close attention to the definitions, since misunderstanding a defined term is an easy way to misread a question.

• Be careful with commercial courses. The FSCA does not accredit training providers, warns that very short workshops and unofficial mock questions are poor preparation, and points candidates to its own preparation material. Examination bodies are not allowed to endorse any training provider.

FAQs