FAIS RE Exams

Introduction

We offer a wide range of services to help representatives and key individuals to successfully complete the FAIS regulatory exam. All information is up to date including changes brought about Board Notice 194 of 2017 in relation to Fit and Proper requirements and Board Notice 86 of 2018 in relation to supervision.

Services include:

Workshops

Face-to-face training solutions for groups and individuals

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Exam Support Pack

Highly Recommended
Comprehensive, user friendly manual, exam tips and two practice exams with answer explanations

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Mock exams

Two practice exams with
answer explanations

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Manuals/learner guides

A user friendly comprehensive manual for either the representative or key individual regulatory exam containing everything needed

Order Online

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Workshops

Face to face workshops are recommended as some of the legal provisions are difficult to understand and digest and the style of multiple questions used in the exams are new to most delegates. Applied Learning’s approach has been fine tuned over the last 10 years to address the different challenges experienced by delegates writing the regulatory exams.

Representative regulatory exam workshop (RE5) - 2 days

Workshops can be arranged on site at your offices or a selected venue.

On-site representative regulatory exam workshops are held over a two-day period. This is a comprehensive workshop where the entire content of the material is covered as well as practice questions, exam tips and techniques. Emphasis is placed on the FAIS requirements that apply to representatives in fulfilling their day to day duties. A three day option is available which includes an industry orientation session as well as a practice question session under the guidance of a facilitator. The three day option is suited where representatives are new to the industry or have limited financial services experience.

Workshop participants receive the Regulatory exam support pack FREE.

The support pack includes:

  • Comprehensive, user friendly, plain language manual including diagrams, summaries and tables and grouping common topics for ease of study
  • Two mock exams with separate detailed answer explanations
  • Summaries of time periods that arise in the legislation and effective dates for Fit and Proper requirements
  • Important exam preparation and strategy information and tips
  • Preparation checklist to guide study activities

  • Detailed agenda read more.

    Detailed agenda

    • Overview of financial services and the structure of the financial services industry
    • FAIS background
    • Advice and intermediary services including execution of sales
    • Overview of industry and FAIS role players
    • Role players and duties in detail:
    • Financial Sector Conduct Authority
    • The Enforcement Committee
    • Prudential Authority
    • FAIS Commissioner
    • Financial Services Provider and Product Provider
    • The Key individual
    • Compliance Officer
    • Representative
    • Ombud for Financial Services Providers (FAIS Ombud)
    • Clients
    • Fit and Proper requirements:
    • Honesty and Integrity
    • Good Standing
    • Competence:
    • Experience
    • Product Specific Training
    • Class of Business Training
    • Regulatory exams
    • Qualification
    • Continuous Professional Development (CPD)
    • The representative:
    • Definition
    • Appointment and minimum requirements
    • Duties of representatives
    • Duties of the FSP towards representatives
    • The representative register and competence register
    • Supervision
    • Debarment
    • Licensing:
    • The licensing process
    • Licence display
    • Compliance required to remain licensed
    • Withdrawal, suspension and lapsing of licences
    • Offences, penalties, directives and undesirable practices
    • General Code of Conduct:
    • General duties
    • Specific duties
    • Custody of client funds and documents
    • Disclosures
    • Conflicts of interest
    • Complaints
    • Furnishing of advice/suitability of advice
    • Record of advice
    • Dealing with complaints and FSP records
    • Risk management
    • Insurance
    • Advertising
    • Direct marketing
    • Termination of business
    • Waiver of rights
    • Record keeping and record keeping provisions:
    • Records as per FAIS
    • Records as per the General Code of Conduct
    • Outsourcing of records as per Board Notice 194 of 2017
    • Confidentiality of records
    • The competence register
    • Anti money laundering legislation and FICA:
    • Background information in relation to money laundering
    • (Anti) Money laundering legislation and role players
    • Accountable institutions
    • The Financial Intelligence Centre (FIC)
    • (Counter) Money laundering Advisory Council
    • Duties if the FSP is also an accountable institution
    • Penalties for non compliance (offences)
    • FICA: know your client identification and verification documents
    • The exam:
    • General information
    • How and what to study and prepare
    • Questions to expect and techniques to use
    • Exam strategy
    • Exam tips
    • Delegate rights
    • How to make the most of the support pack and access to the Regulatory tutor
  • Representative workshop (RE5)
  • On site workshops:
    Minimum of 5 people
  • Includes:
    Support pack valued at R490
  • R1 800 /per person

  • Representative (RE5) E-Learning Programme
  • Includes:
    E-learning guide on topics
    Self assessments
    Downloadable voice notes
    Complimentary manual
    Online facilitator access
    Exam information and tips
    Exam strategy
    Mock exams
  • COMING SOON!!

 
 
 
 
 
 

Key individual regulatory exam workshop (RE1): 2 days

Workshops can be arranged on site at your offices or a selected venue.

The key individual regulatory exam workshop is held over a two-day period. This is an intensive workshop where the entire content of the material is covered as well as practice questions, exam tips and techniques. Assistance is given in identifying the areas where key individuals are responsible for implementing the required compliance processes.

Workshop participants receive the Regulatory exam support pack FREE.

The support pack includes:

  • Comprehensive, user friendly, plain language manual including diagrams, summaries and tables and grouping common topics for ease of study
  • Two mock exams with separate detailed answer explanations
  • Summaries of time periods that arise in the legislation and effective dates for Fit and Proper requirements
  • Important exam preparation and strategy information and tips

  • Detailed agenda read more.

    Detailed agenda

    • Overview of financial services and the structure of the financial services industry
    • FAIS background
    • Advice and intermediary services including execution of sales
    • Overview of industry and FAIS role players
    • Role players and duties in detail:
    • Financial Sector Conduct Authority
    • The Enforcement Committee
    • Prudential Authority
    • FAIS Commissioner
    • Financial Services Provider and Product Provider
    • The Key individual
    • Compliance Officer
    • Representative
    • Ombud for Financial Services Providers (FAIS Ombud)
    • Clients
    • Auditor (key individuals only)
    • Fit and Proper requirements:
    • Honesty and Integrity
    • Good Standing
    • Competence:
    • Experience
    • Product Specific Training
    • Class of Business Training
    • Regulatory exams
    • Qualification
    • Continuous Professional Development (CPD)
    • Operational ability
    • Financial soundness, financial reporting and audits
    • The representative:
    • Definition
    • Appointment and minimum requirements
    • Duties of representatives
    • Duties of the FSP towards representatives
    • The representative register and competence register
    • Supervision
    • Debarment
    • Licensing:
    • The licensing process
    • Licence conditions
    • Licence display
    • Compliance required to remain licensed
    • Withdrawal, suspension and lapsing of licences and business rescue
    • Levies
    • Offences, penalties, directives and undesirable practices
    • General Code of Conduct:
    • General duties
    • Specific duties
    • Custody of client funds and documents
    • Disclosures
    • Conflicts of interest
    • Complaints
    • Furnishing of advice/suitability of advice
    • Record of advice
    • Dealing with complaints and FSP records
    • Risk management
    • Insurance
    • Advertising
    • Direct marketing
    • Termination of business
    • Waiver of rights
    • Record keeping and record keeping provisions:
    • Records as per FAIS
    • Records as per the General Code of Conduct
    • Outsourcing of records as per Board Notice 194 of 2017
    • Confidentiality of records
    • The competence register
    • Anti money laundering legislation and FICA:
    • Background information in relation to money laundering
    • (Anti) Money laundering legislation and role players
    • Accountable institutions
    • The Financial Intelligence Centre (FIC)
    • (Counter) Money laundering Advisory Council
    • Duties if the FSP is also an accountable institution
    • Penalties for non compliance (offences)
    • FICA: know your client identification and verification documents
    • The exam:
    • General information
    • How and what to study and prepare
    • Questions to expect and techniques to use
    • Exam strategy
    • Exam tips
    • Delegate rights
    • How to make the most of the support pack and access to the Regulatory tutor
  • KEY INDIVIDUAL workshop (RE1)
  • On site workshops:
    Minimum of 5 people
  • Includes:
    Support pack valued at R490
  • R1 950 /per person
     
  • KEY INDIVIDUAL (RE 1) E-LEARNING PROGRAMME
  • Includes:
    E-learning guide on topics
    Self assessments
    Downloadable voice notes
    Complimentary manual
    Online facilitator access
    Exam information and tips
    Exam strategy
    Mock exams
  • COMING SOON!!

 
 
 
 
 

Exam support pack - Online Sales

Struggling to study, digest and remember all the details?
Attempted the exam and not been successful?
Have your own in-house training programme and want to provide additional support to representatives and/or key individuals?
We can help!

In summary, there are three core skills needed to be successful in the first level regulatory exams:

  • Detailed, specific knowledge and understanding;
  • Knowledge and understanding of the exam and exam technique and skill;
  • Practice.

Applied Learning Academy has developed a support pack for both the Key Individual (RE 1) Regulatory exam and the Representative (RE 5) Regulatory exam. The support packs are a good supplement to a workshop or for the purposes of self study and have been created to address all three core skills needed. Support packs include the following documents and information:

  • User friendly, plain language manual:
    • For ease of study, legal provisions have been interpreted and explanations provided to help with understanding
    • Tables, diagrams and summaries are included for ease of study
    • Common topics have been grouped
    • All important and relevant information has been included – if it is in the manual, it must be learnt
    • Information is cross referenced with the law for further reading or reference
  • Summary of time periods: this document summarises the multiple time lines found in the legislation and notices. These are important to learn as questions on these arise in the exam;
  • Exam information, tips and techniques: this provides detailed information on the exam, study preparation and in relation exam techniques and skill.
    This document includes:
    • The type of study required to be successful
    • How to study
    • Techniques to analyse and tackle the different types of multiple choice questions, using examples
    • The different levels of questions and how many to expect at each level
    • Other key information on exam technique
    • Rights as a delegate
  • Mock exams: two mock exams are provided on the same basis as the actual exam in terms of content, number of questions and style of questions. This part of the support pack is aimed at providing practice as well as development opportunities.
    • An answer sheet and explanations of the answers is provided to enable you to use the results as a development tool to strengthen knowledge and/or exam technique.

Representatives also receive a preparation checklist to guide study activities.

  • Exam support pack: Representatives
  • Includes:

    User friendly comprehensive manual
    Summary of important time periods
    Exam tips, techniques and information
    Two mock exams
  • R 490
  • Exam support pack: Key Individuals
  • Includes:

    User friendly comprehensive manual
    Summary of important time periods
    Exam tips, techniques and information
    Two mock exams
  • R 490
 
 

Mock exams

The best help that you can get yourself to tackle the exam successfully is practice!

Past papers are not available from the examining bodies but we have sufficient experience as qualified facilitators and assessors who have completed both regulatory exams to compile realistic mock exams. Our mock exams are a good reflection of the actual exams in terms of content of questions and coverage of knowledge areas. The mock exams are based on the same framework as the actual exams in terms of number of questions and duration.

An added bonus is a description of the correct answer which can be used for study development purposes. It's no use knowing that you have an incorrect answer – you need to know what the correct answer is, and why.

  • Representatives
  • Two mock exams with answer explanations
    R 200
  • Key Individuals
  • Two mock exams with answer explanations
    R 300
 
 

Manuals/Learner Guides

Applied Learning Academy developed their own manuals (learner guides). All information is up to date and aligns with the skills, knowledge and outcomes that apply to each regulatory exam, as per the Preparation guides released by the Financial Sector Conduct Authority (FSCA).

The manuals are user friendly and written in plain language:

  • For ease of study, legal provisions have been interpreted and explanations provided to help with understanding
  • Tables, diagrams and summaries are included for ease of study
  • Common topics have been grouped
  • All important and relevant information has been included – if it is in the manual, it must be learnt
  • Information is cross referenced with the law for further reading or reference

Note: if you purchase a support pack, you will not only receive mock exams and exam tips and information but also the manual as part of the package.

 
 

Exam Analysis

Attempted the regulatory exam and been unsuccessful?

To be able to offer better assistance, Applied Learning Academy has developed a regulatory exam analysis service. This is especially useful for anyone who has attempted the exam a number of times and been unsuccessful.  Very often, the same mistakes are made and similar disappointing results obtained even after further study. The purpose of the analysis is to identify an individual’s specific weak or problem areas, and to provide tailored guidance and recommendations on further preparation for the regulatory exam. Although most requests are from people who have been unsuccessful in passing the regulatory exam after multiple attempts, the analysis tool is also useful to assess exam readiness.

You will be required to complete a special assessment exam comprising 30 multiple choice questions. Although the questions in the assessment exam cover regulatory exam topics, they have been designed to enable us to assess and analyse specific areas, e.g. level of specific detailed knowledge in different topics, different types of exam technique. Your results are then analysed and a personal development plan is provided to help iron out problem areas so that you can tackle the exam again with confidence. 




 

Examination body

Moonstone is the approved examination body through which representatives or key individuals can complete the regulatory exam. A standard examination fee of R1 126 per person per exam is payable. Arranging and paying for the exam is separate to any training arrangements.

Click here for more information

Moonstone 2019 Exam Schedule

 
 

Frequently asked questions

  • FAQ Read more...

    What are 'Regulatory exams'?

    The Regulatory exams are part of the ‘fit and proper’ requirements for people who are representatives or key individuals in the financial services industry. ‘Fit and proper’ means the minimum professional standards that must be met by people in a particular work role. The regulatory exam requirements are outlined in notices issued by the Financial Sector Conduct Authority (previously the Financial Services Board) under the Financial Advisory and Intermediary Services Act 2002 (FAIS). Meeting the regulatory exam requirements are a legal requirement.

    The regulatory exams cover the regulatory (legal) environment with a particular focus on the application of the Financial Advisory and Intermediary Act, and with a lesser focus on anti money laundering legislation such as the Financial Intelligence Centre Act. In addition, various subordinate legislation aspects are covered, such as parts of regulations to the Acts, Board Notices issued by the Financial Sector Conduct Authority and the General Code of Conduct.

    What is a representative?

    As defined in the FAIS legislation, a representative is a person who renders a financial service on behalf of a financial services provider...a representative also exercises judgement. Therefore a representative is a person who deals with clients and helps them to make financial decisions on products. Representatives include call centre agents, brokers, financial planners, investment advisors, insurance agents etc.

    A representative must complete the regulatory exam for representatives (RE 5) by 30 June following 24 months since first being appointed in the role. This time limit applies even if you change jobs.

    While FAIS allows a representative a time period in which to complete the regulatory exam, many employers are listing completion of the RE 5 exam as a job requirement. Therefore you will improve your chances of an appointment in a role where you will advise clients if you have successfully completed the exam.

    What is a key individual?

    As defined in the FAIS legislation, a key individual is responsible for overseeing or managing the activities of a financial services provider when rendering financial services. ‘Financial services’ means either advice or intermediary services, which are both activities under FAIS and so the key individual is responsible for ensuring that the business implements and maintains compliance with FAIS legal requirements.  The key individual needs to be officially appointed in the role by a financial services provider, and approved by the Registrar for Financial Services Providers/the FAIS Commissioner.

    A key individual must have already completed the regulatory exam for key individuals (RE 1) before applying to fulfil the position.   

    What is a financial services provider?

    A financial services provider is a person or business where advice or services are provided to clients on insurance, investments, savings accounts and medical scheme products. An individual or business involved in advice or services as defined in the FAIS Act must be licensed and authorised to conduct business under the FAIS legislation. They also have to comply with all the provisions of the law and associated regulations.

    What exam must I write?

    If you are going to or are already giving advice to clients on products such as insurance, investments, savings accounts or medical schemes, you will need to write the Regulatory Exam for Representatives (RE 5).
    However, there are some exceptions, i.e. representatives involved with one or more of the following products and not dealing with any other products do not have to write the regulatory exam:

    • People involved only with Tier 2 products including:
      • Assistance business, i.e. funeral policies
      • Friendly society benefits
      • Banking savings accounts (excluding structured deposits)
      • Long term insurance B 1-A (risk policy with limited health questions and medical evidence asked of the client)
      • Long term insurance B 2-A (a guaranteed policy where investments cannot be changed) and
      • Short term insurance A-1 (a simplified insurance policy that meets specific rules)
    • People who execute sales only on a call centre using as script approved by a key individual, and where no advice is given to clients

    If you are intending to become a key individual you will need to complete the Regulatory Exam for Key Individuals (RE 1).  If you are appointed as both a key individual and a representative, you will need to write both the RE 1 and the RE 5 regulatory exam.

    If you are a key individual under a category II financial services provider, you will also be required to complete the RE 3 regulatory exam.

    If you are a key individual under a category IIA or III financial services provider, you will also be required to complete the RE 4 regulatory exam.

    By when must I write the exam?

    • Representatives appointed in the role after 1 January 2010 must complete the exam within two years since first appointed in the role
    • Key individuals must complete the exam before applying to the Financial Sector Conduct Authority as a key individual.

    How much do exams and rewrites cost?

    The current standard fee as per the Financial Sector Conduct Authority/the Financial Services Board is R1 126 for either a first attempt or rewriting of a regulatory exam.

    Where do I book and write my exam?

    You book and write the exam separately from any training through Moonstone, the examination body: www.moonstone.co.za

    The examination body issues a list of venues, dates and times of exams. Booking can be done online or via email. When you are ready to write, you book an exam at a venue, date and time that is suited for you. Moonstone will advise you on the process and payment requirements.

    What does the exam consist of?

    The exams are close book exams consisting of only multiple choice style questions.

    RE 5 Representatives RE 1 Key individuals and sole proprietors
    Number of questions 50 80
    Duration 2 hours 2 ½ hours
    Pass mark 66% 65%

    Where do I get study material?

    The Financial Sector Conduct Authority in conjunction with Bankseta and Inseta (sector education training associations) has released study (training) material for the RE 1 key individual and RE 5 representative regulatory exams that is freely available. However, the material is not easy to use as topics are written in accordance with a list of legal requirements rather than grouping common topics together. We recommend that you purchase a support pack through us where you will receive a user-friendly manual, among other helpful resources.

    I have failed my exam and need extra help – what can I do?

    If you have studied and attempted the exam and been unsuccessful, you may want to consider the exam analysis options.

    I already have a qualification. Why do I have to also complete a regulatory exam?

    The competence requirements for representatives and key individuals in terms of law are called Fit and Proper requirements. They include experience, a relevant industry qualification and completion of the regulatory exam. 

    Industry qualifications such as the Wealth Management Certificate, Certificate in Short term Insurance and the Certificate in Financial planning provide knowledge and skill in specific areas relating to the type of work that you do. The regulatory exam covers the FAIS legislation and some anti money laundering legislation that impacts on your work in a different way. These laws are designed to protect clients and the industry as far as possible and therefore they impact on how you deal with a client. The knowledge gained and applied supplements your technical skill so that the client is treated fairly, receives the best possible advice and service and is making informed financial decisions.