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RE5 Regulatory Examination Representatives Cheat Sheet

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FAIS Framework and Licensing

  • Not published of exam
  • FAIS Act Financial Services FSP Licence Key Individuals Undesirable Practices

Conduct, Disclosure and Records

  • Not published of exam
  • General Code Disclosure Advice Process Complaints FIC Act

Representative Duties and Accountability

  • Not published of exam
  • Fit and Proper Representative Register Supervision Debarment FAIS Ombud

Quick Facts

  • Examination RE5 Representatives
  • Questions 50
  • Time 2 hours
  • Pass 33 correct answers
  • Pass mark 66%
  • Options Four per question
  • Marking No negative marking
  • Attempts No published limit
  • Blueprint Eight tasks; 47 criteria
  • Complexity 30 / 40 / 20 / 10

FAIS Study Loop FR

  • Read acts, code, criteria, apply
  • FAIS Act General Code Qualifying criteria Application

Advice vs Intermediary Service FR

Advice

  • Recommendation or guidance
  • Defined under FAIS

Intermediary service

  • Transaction-related activity
  • Defined under FAIS
  • Apply statutory definitions

FAIS Framework FR

  • FAIS Act Financial services regulatory framework
  • Subordinate legislation Rules supporting FAIS Act
  • Financial product Defined FAIS product category
  • Financial service Advice or intermediary service
  • Advice Recommendation or guidance activity
  • Intermediary service Transaction-related service activity

FSP Licence Duties FR

  • Licence conditions Conditions governing FSP authority
  • Maintenance Keep licence requirements met
  • Display Meet licence display rules
  • Accreditation lapse May affect representative activity
  • Undesirable practice Prohibited business practice
  • Offence Contravention under FAIS Act

Key Individual Role FR

  • Key individual Management and oversight role
  • Oversight Monitor financial service rendering
  • Management Regulated responsibility function
  • Honesty Fit and proper element
  • Integrity Fit and proper element
  • Good standing Fit and proper element

Service Flow CO

  • Disclose, advise, record, handle, follow
  • Disclosure Advice Records Complaints Follow-up

Internal Complaint vs Ombud CO

Internal complaint

  • Follow FSP procedure
  • Record and progress

FAIS Ombud

  • External complaints office
  • Qualifying complaint jurisdiction
  • Know process and jurisdiction

Financial Service Flow CO

  • Before rendering service → Give disclosures ( Follow General Code )
  • Conflict is possible → Identify conflict ( Apply disclosure rules )
  • Product is discussed → Give material details ( Include required disclosures )
  • Advice is rendered → Follow advice process ( Apply Code requirements )
  • Funds are received → Apply custody rules ( Use prescribed process )
  • Complaint is received → Follow procedure ( Record and progress complaint )
  • Agreement ends → Apply termination rules ( Keep required records )
  • Record is requested → Retrieve correctly ( Maintain record availability )

General Conduct Duties CO

  • General Code Conduct rules for FSPs
  • Specific duties Prescribed service obligations
  • Conflict of interest Interest affecting service
  • Disclosure Required client information
  • Advertising Code-regulated communication
  • Fees and commission Disclose required remuneration

Advice and Custody CO

  • Before service Give required disclosures
  • During service Continue required disclosures
  • Provider disclosure Identify provider information
  • Product disclosure Give material product information
  • Advice process Follow Code requirements
  • Custody Apply funds product requirements

Complaints and Records CO

  • Complainant Person bringing complaint
  • Reportable complaint Code-defined complaint category
  • Complaint procedure Follow prescribed process
  • Termination Apply agreement requirements
  • Record keeping Maintain required records
  • Record retrieval Retrieve records correctly

FIC Control Duties CO

  • FIC Act Financial crime control law
  • FSP requirements Apply FIC obligations
  • Client interaction Apply FIC requirements
  • Record keeping Keep prescribed FIC records
  • Suspicious transaction Apply reporting requirements
  • Tipping off Do not disclose report

Representative Check RE

  • Fit, register, supervise, escalate, document
  • Fit and proper Register Supervision Escalation Documentation

RE5 vs RE1 RE

RE5

  • Representatives all FSP categories
  • 50 questions

RE1

  • FSPs and key individuals
  • 80 questions
  • Choose your regulated role

Representative Status Flow RE

  • Representative is appointed → Check register ( Record required appointment )
  • Competence is incomplete → Check supervision ( Apply current requirements )
  • Under supervision → Make disclosures ( Disclose supervision status )
  • Fit and proper changes → Escalate promptly ( Check appointment implications )
  • Possible contravention → Document facts ( Use approved procedure )
  • Debarment is considered → Follow due process ( Apply FAIS requirements )
  • Debarment occurs → Make notification ( Use prescribed form )
  • Recourse is sought → Check available remedies ( Follow governing rules )

FAIS Ombud RE

  • FAIS Ombud Financial services complaints office
  • Jurisdiction Authority over qualifying complaints
  • Complaint FAIS-defined complaint
  • Role Resolve qualifying disputes
  • Authority Powers under governing rules
  • Redress Potential complaint remedy

Representative vs Key Individual RE

Representative

  • Renders financial services
  • RE5 regulated role

Key individual

  • Manages and oversees services
  • RE1 regulated role
  • Rendering differs from oversight

Representative Role RE

  • Representative Renders financial service
  • Fit and proper Ongoing competence requirements
  • Qualifications Competence requirement element
  • Experience Competence requirement element
  • Regulatory examination Knowledge competence requirement
  • CPD Continuous professional development

Supervision vs Debarment RE

Supervision

  • Oversight arrangement
  • Disclose required status

Debarment

  • Removal from representative role
  • Follow required process
  • Support differs from removal

Supervision and Debarment RE

  • Representative register Record appointed representatives
  • Supervision Required oversight arrangement
  • Supervision disclosure Disclose required status
  • Fit and proper gap May affect appointment
  • Debarment Remove unfit representative
  • Recourse Available debarment remedy

Common Traps

RE5 is not RE1

  • RE5 tests representatives ≠ RE1 tests oversight roles

Pass mark arithmetic

  • 33 correct answers pass ≠ 32 correct answers fail

Task weights unpublished

  • Study every published task ≠ Do not invent task weights

Code versus Act

  • Read underlying legislation ≠ Apply General Code requirements

Advice versus intermediary

  • Use statutory definitions ≠ Do not merge concepts

Supervision versus debarment

  • Supervision supports permitted activity ≠ Debarment removes representative role

Last Minute

  • 1. Confirm RE5 representative role
  • 2. Remember 50 questions
  • 3. Allow two hours
  • 4. Target 33 correct answers
  • 5. Know four answer options
  • 6. Expect no negative marking
  • 7. Review all eight tasks
  • 8. Read FAIS Act definitions
  • 9. Apply General Code disclosures
  • 10. Separate advice and intermediary service
  • 11. Review fit and proper
  • 12. Review supervision and debarment

RE5 Regulatory Examination — Representatives (South Africa)

  • Practice Questions 121 questions Study Guide 50 topics Cheat Sheet 60 facts Flashcards 50 cards Podcast