RE5 regulatory exam

Definition

The RE5 is the level 1 regulatory examination for representatives of financial services providers (FSPs) licensed under South Africa's FAIS Act. It tests knowledge of the FAIS Act, the General Code of Conduct, the FIC Act and the representative's duties towards clients, not product knowledge; class-of-business training and product-specific training are separate requirements. It is distinct from the RE1, the exam for key individuals who manage or oversee an FSP. The exam is delivered by bodies appointed by the FSCA, in multiple-choice format, and a newly appointed representative must pass it within the period set by the Fit and Proper Requirements (Board Notice 194 of 2017) or stop rendering financial services. Until then, and until other competency requirements are met, the representative works under supervision.

What you need to know

For a South African brokerage, the RE5 is an organisational obligation. Every person who advises or sells must appear on the FSP's representative register, pass the exam within the prescribed period, complete class-of-business and product-specific training, meet continuous professional development hours each cycle, and work under supervision until the competency requirements are met. The key individual is accountable to the FSCA for all of it, and the representative register must be kept current. Namibia and Botswana set their own competency requirements through NAMFISA and NBFIRA; Kenya's IRA recognises professional qualifications such as those of the Insurance Institute of Kenya. In the UK, there is no single exam; firms certify competence under the FCA's Training and Competence sourcebook and the Senior Managers and Certification Regime.

Supervision is where WhatsApp comes in. A representative under supervision must have client interactions overseen by the key individual or an experienced representative, which is impossible when those conversations live on a personal phone. ORIS's shared inbox lets the brokerage assign conversations, see what each representative sends, and review a supervised representative's exchanges before signing off supervision; AI drafts are service suggestions approved by a human and do not constitute advice. Our guide to setting up WhatsApp Business for a South African brokerage covers the number and team setup, and the running the brokerage hub covers supervision and team workflow.

Concrete example

A Cape Town brokerage hires two sales consultants in September. They are added to the representative register under supervision, book their RE5 with an appointed examination body, and every client conversation they hold runs through the brokerage's shared WhatsApp inbox, where the key individual reviews a weekly sample before lifting supervision once the exam and class-of-business training are complete.