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RE5: the Representatives' exam
RE5 is the Regulatory Examination for Representatives. If you give advice or render an intermediary service to a client under the FAIS Act, you are a Representative and you must pass RE5. This is the exam most people in the industry will write, whether they sell short term Insurance, life cover, investment products or medical aid.
RE5 tests your understanding of the FAIS Act, the General Code of Conduct, the role of the FSCA and how complaints are managed. It does not test product knowledge. It is about the rules that govern how you deal with clients and how the regulator polices the industry.
You usually need to write and pass RE5 within two years of your DOFA date. Miss that deadline and your FSP has to debar you from acting as a Representative until you complete it.
RE1: the Key Individuals' exam
RE1 is the Regulatory Examination for Key Individuals. A Key Individual is the person inside an FSP who is responsible for managing and overseeing the financial services rendered by the business. This is a senior position and it carries personal regulatory accountability.
RE1 covers everything in RE5 and goes further. It tests your understanding of how an FSP is governed, how compliance frameworks are designed, how risk is managed and how the Key Individual is held accountable by the FSCA. It is a deeper, more management focused exam.
If you want to become a Key Individual at an FSP, or if you are stepping into a Compliance, Branch Manager or Head of Department role with FAIS oversight, you will need to complete RE1. Many senior leaders hold both RE5 and RE1.
Other exams you may hear about
For most of the market, RE1 and RE5 are the exams that matter day to day. There are other Regulatory Exams in the FSCA framework that have applied to specialised categories of business in the past, such as Category II, IIA, III and IV FSPs. Most professionals in mainstream Insurance, Banking and Wealth roles will only ever need RE5, and senior managers will add RE1.
Alongside the Regulatory Exams, you will also need a recognised full qualification at the right NQF level for your sub category, class of business training and product specific training. The Regulatory Exam is one piece of the FAIS competency framework, not the whole picture.
If you are unsure which exams apply to your role, your compliance officer can confirm based on your appointed categories and sub categories. It is always worth checking, because the cost of getting it wrong is being debarred from your job.
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