Our industry-focused compliance programmes ensure quality, recognition, and opportunities for career and personal development. Class of Business training provides financial-services professionals with the knowledge and understanding required to work competently within a particular category of financial products. The Regulatory Examination Preperation (RE1 & RE 5) forms part of the competency requirements applicable to certain people working in South Africa’s financial-services industry.
Our Class of Business training provides financial-services professionals with the knowledge and understanding required to work competently within a particular category of financial products. It explains the broader class of financial products, including how the products work, their common features and benefits, typical costs and charges, associated risks, relevant legislation, tax considerations, industry role players and the types of clients for whom the products may be appropriate.
Why is Class of Business training required?
Financial products can be complex, and unsuitable advice or poor service can have serious financial consequences for clients. Class of Business training helps ensure that people who advise clients, sell financial products, perform intermediary services or oversee these activities understand the financial-product environment in which they operate.
Under the Fit and Proper Requirements, an FSP and its representatives must complete the relevant Class of Business training before providing financial services relating to a particular financial product. Key individuals must complete the training for the classes of business they manage or oversee. The applicable requirements, including permitted transitional arrangements and exemptions, depend on the person’s role, appointment and regulatory history. Government Gazette: Board Notice 194 of 2017
Who This Training Is For
Representatives who provide advice or intermediary services.
Key individuals who manage or oversee the provision of financial services.
Sole proprietor FSPs and other persons who personally render financial services.
Employees entering roles in insurance, investments, retirement funds, banking, healthcare benefits or foreign-exchange investments.
Financial-services professionals who are expanding into an additional product category.
Organisations that want to strengthen the product knowledge and regulatory competence of their employees.
A person should complete the Class of Business modules relevant to the financial products for which they are appointed, authorised or responsible.
Develop an understanding of how personal risks are assessed, how premiums and excesses work, what may be covered or excluded, and how claims are submitted and evaluated.
Learn about the complex risks businesses face and how factors such as the nature of the business, its assets, operations, employees, and risk controls influence underwriting and premiums.
This module covers insurance products that provide financial protection or benefits following events such as death, disability, severe illness or survival to a specified date.
Develop an understanding of client investment objectives, risk profiles and the importance of matching investment solutions to a client’s needs, financial position and investment timeframe.
Learners explore interest calculations, access to funds, inflation risk, the security of deposited money, and more. The module also explains how deposit products may be used for saving, capital preservation, income generation and cash management.
Develop an understanding of retirement-fund membership, employer and member contributions, investment of fund assets, retirement benefits, withdrawal benefits, death benefits, and disability benefits.
Examine how structured deposits are constructed, how returns are calculated, the applicable investment term, and the circumstances in which access to the funds may be restricted.
Develop an understanding of benefit structures, eligibility requirements, waiting periods, exclusions, claims processes, limitations and the relationship between different healthcare-funding arrangements.
Learners are introduced to exchange rates, currency pairs, market movements, transaction costs, volatility, liquidity, and the economic factors that influence currency values. This module also considers the risks associated with transactions, price movements, offshore exposure, and more.
The Regulatory Examinations form part of the competency requirements applicable to certain people working in South Africa’s financial-services industry. The examinations test whether candidates understand the legislation and regulatory responsibilities relevant to their roles. They are not product-knowledge examinations. Instead, they focus on how financial services must be provided, managed and supervised in accordance with the FAIS regulatory framework.
Faisit Development Agency offers structured preparation programmes for both RE1 and RE5. Our programmes help candidates understand the legislation, work through the qualifying criteria and prepare confidently for the official examination.
Why are the Regulatory Examinations important?
People working in regulated financial-services roles must understand their responsibilities towards clients, employers, product suppliers and the Financial Sector Conduct Authority.
The examinations help confirm that candidates understand matters such as:
The FAIS regulatory environment.
The duties of FSPs, key individuals and representatives.
Fit and Proper requirements.
The General Code of Conduct.
Advice and intermediary services.
Recordkeeping and disclosure requirements.
Conflicts of interest.
Complaints and compliance obligations.
Services rendered under supervision.
Debarment and reappointment.
The protection and fair treatment of clients.
What Is the Difference Between RE1 and RE5?
Examination | Intended for | Number of questions |
RE1 | FSPs, key individuals and certain compliance officers | 80 |
RE5 | Representatives in all categories of FSPs, subject to applicable exemptions | 50 |
Both are multiple-choice examinations. Each question provides four possible answers, from which the candidate must select the correct answer. The required pass mark is 65%. FSCA Regulatory Examinations FAQ
The objective is not simply to pass an examination. Candidates must be able to apply the regulatory requirements correctly in their day-to-day work.
RE1 is the first-level regulatory examination for FSPs and key individuals in all categories of financial services providers.
RE5 is the first-level regulatory examination for representatives working in the financial-services industry.
Faisit Development Agency provides preparation and examination-support services. The official RE1 and RE5 examinations are administered through an authorised examination body.
Candidates must register separately for the official examination and pay the applicable examination fee to the examination body, unless examination registration is specifically included in a quotation or employer arrangement.
Candidates will generally need to provide:
A South African identity number or passport number.
Personal and contact details.
Their FSP number, where applicable.
Relevant employment or professional information.
Their preferred examination date and venue.
The official examination body issues the examination result and certificate to successful candidates.
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