Regulatory Exam for Representatives (RE5)

Level 1 Regulatory Examination for Representatives

Overview

Why do you need to take the RE5 Exam?:

The exams are compulsory for everyone rendering financial services to clients.

The Financial Advisory and Intermediary Services Act, 37 of 2002, (“the FAIS Act”), came into effect on 30 September 2004. The objective of the FAIS Act is to:

  1. Protect consumers, and
  2. Professionalise the financial services industry.

The Act requires all financial advisors and intermediaries (providers) to meet specific Fit and Proper requirements. These Fit and Proper requirements have changed since the Act was promulgated , with the most recent changes being introduced with Board Notice 194 of 2017. The requirements of this Board Notice became effective on 1 April 2018 and the need for the regulatory exams remains unchanged.

It is accepted international practice and standard to set professional examinations for professions. The FAIS regulatory examinations are, therefore, not unique.

The purpose of the regulatory examination is to set a minimum standard in terms of the following:

  1. Knowledge and understanding regarding the role and responsibilities of a representative under the FAIS Act. Although the FAIS Act has been in operation since 2004, it is generally accepted that the level of knowledge, awareness and understanding of the responsibilities imposed by the FAIS Act on providers is lacking. This led to non-compliance with the provisions of the FAIS Act for example; providers did not furnish clients with the necessary information as required by the FAIS Act.
  2. Providers are further under the misconception that ensuring compliance with the legislation is the responsibility of the compliance officer. This is not the case – the key individual is responsible to ensure compliance with the FAIS Act and representatives also have specific responsibilities in respect thereof. The compliance officer is responsible for the monitoring of compliance.
  3. It was agreed that a once-off regulatory examination should address the problems referred to above, and would ensure that all providers have a proper understanding of their specific regulatory roles. The exams are compulsory for everyone rendering financial services to clients. This is also seen as part of the objective to professionalise stakeholders in the industry and to have confidence that providers and their representatives know and understand the legislation that governs their industry.

The GTIB blended learning course will prepare you to pass these examinations. Learn at your own pace with telephonic and electronic support from a dedicated facilitator. The online activities as well as the 15 mock exams provide you with an extensive question bank to prepare you for the exams. The materials are designed taking into account the qualifying criteria that a representative needs to be proficient in.

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