What is RE5 and Is the RE5 exam difficult?
If you're considering a career in the financial services industry in South Africa, you may have heard of the RE5 Regulatory Exam. But what exactly is RE5, and how difficult is it to pass? In this blog post, we'll provide an overview of RE5 and explore the difficulty of passing the exam so you can make an informed decision about taking it.
Who needs to write RE5?
RE5 is the Regulatory Examination for Representatives. The FAIS Act defines a Representative as "any person, including a person employed or mandated by such first-mentioned person, who renders a financial service to a client for or on behalf of a financial services." Examples of Representatives include, but is not limited to:
- Bankers
- Financial Advisors/ Financial Planners
- Claims Consultants
- Sales Consultants/Agents in the financial sector.
Representatives are required to meet the Fit and Proper requirements. One of those requirements is to pass the Regulatory Exam, RE5 within 2 years of being appointed as a Representative.
What the exam covers
The exam will assess your knowledge and skills across the following 8 tasks:
Task 1: Demonstrate understanding of the FAIS Act as a regulatory framework
Task 2: Contribute Towards Maintaining a FSP Licence
Task 3: Define the role of the key individual in terms of the FAIS Act
Task 4: Adhere to the Specific Codes of Conduct
Task 5: Comply with regulated record-keeping requirements
Task 6: Comply with the requirements of the FIC Act and Money Laundering and Terrorist Financing control regulations, as it applies to the FSP
Task 7: Dealing with Complaints that have been submitted to the Ombud for FSPs
Task 8: Operate as a representative in terms of the FAIS Act
How to prepare for the exam
- Study all 8 tasks of a Representative.
- Attend classes or enlist the services of a tutor to gain clarity.
- Ask questions in class. This is the best place to gain understanding.
- Do practice questions.
- Do not wait until the last minute to study. Prepare on time.
The exam is easy if you're well prepared, and difficult and somewhat confusing if you are ill-prepared, so it's best you get help.
Why the exam is important
Here are some benefits of writing and passing the Regulatory Exam:
- It gives you better career prospects. It may open doors to roles that require RE5.
- Its required by law if you're going to be in a FAIS representative role
- You get to understand law and how it applies to you, your clients, and your Financial Services Provider, thus reducing the likelihood of making career-limiting, or career-ending mistakes.
Tips for passing the exam
- Study extensively
- Arrive early on exam day
- Drink water to clear a foggy brain
- Read for understanding
- Attend classes for more exam-question specific tips.
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