| Category : Regulatory Examinations (11)
Why are we required to write regulatory examinations?
As a result of extensive industry consultation during 2006 to 2008 it was identified that FSPs, it's key individuals and representatives do not have adequate knowledge and understanding of the legislation
they must comply with in respect of the Financial Advisory and Intermediary Services Act, 2002 and the Financial Intelligence Centre Act, 2001. This resulted in regulatory action being taken frequently
against FSPs, key individuals and representatives. In order to address this gap, the regulatory examinations were introduced in 2008.
The objective of the regulatory examination(s) is to empower persons that are authorised, approved or appointed in a particular regulatory role and to avoid regulatory action being taken against them for
non-compliance. Clients will also be better protected where FSPs, key individuals and representatives comply with their regulatory responsibilities.
How many regulatory examinations are there?
There are four regulatory examinations:
- Regulatory Examination: FSPs and Key Individuals in all Categories of FSPs – RE1
- Regulatory Examination: FSPs and Key Individuals in Categories II and IIA – RE3
- Regulatory Examination: FSPs and Key Individuals in Category III – RE4
- Regulatory Examination: Representatives in all Categories of FSPs – RE 5
Which regulatory examination must I write?
You can identify which examination to write by consulting the table below to see which examination is applicable to you:
|RE Number||Regulatory Examination||Must be written by:|
|RE1||FSPs and Key Individuals in all Categories of FSPs|
This examination applies to FSPs, Key Individuals and Compliance Officers in Categories I, II, IIA, III and IV of FSPs.
The examination consist of 80 questions in total.
|RE3||FSPs and Key Individuals in Categories II and IIA|
This examination applies only to FSPs and Key Individuals in Categories II and IIA.
This examination focus specifically on the Code of Conduct applicable to Category II and IIA, and only consist of 30 questions.
The RE 3 must written in addition to the RE1.
|RE4||FSPs and Key Individuals in Category III|
This examination applies only to FSPs and Key Individuals in Categories III.
This examination focus specifically on the Code of Conduct applicable to Category III, and only consist of 30 questions.
The RE 4 must written in addition to the RE1.
|RE5||Representatives in all Categories of FSPs|
This examination applies Representatives in all Categories of FSPs.
This examination consist of a total of 50 questions.
The following representatives are not required to write the RE5:
- Representatives appointed to render financial services in respect of funeral and friendly society benefits only (subcategory 1.1 and 1.19 only);
- Representatives appointed to render financial services in respect of Tier 2 financial products only;
- Representatives appointed for execution of sales in respect of Tier 1 financial products only.
Tier 1 financial products – please refer to Board Notice 194 of 2017, Annexure Three, Table 1 Column A to see which products are Tier 1 products.
Tier 2 financial products – please refer to Board Notice 194 of 2017, Annexure Three, Table 1 Column B to see which products are Tier 2 products.
Where do I register to write the regulatory examinations?
Please contact the Moonstone examination body to register for the regulatory examination(s).
Registrations can be done per telephone or on-line:
To register by telephone: The Moonstone registration call centre are available weekdays during business hours (08:00 – 16:30).
Call 021 888 9796
To register on-line: Complete the on-line registration: On-line registration
For more information regarding Moonstone examination body, please visit their website: Moonstone examination body
What do I need to register for the regulatory examination?
In order to register for the examination you will be required to supply the examination body with the following information:
- Your ID number / passport number (you may only use a passport number of you don't have a South African ID number)
- FSP number
- Personal and contact details
- Professional details (For example insurance, banking, investments, etc.)
What is the examination fee?
The Regulatory Examinations fee is a legislated fee. To access the latest fees, please click here... go to page 4 item 6.
What is the pass mark of the regulatory examinations?
The pass mark for the regulatory examinations is 65%
The RE5 (Regulatory Examination: Representatives in all Categories of FSPs) only consist of 50 questions.
- A result of 32 out of 50 = 64% (below the required pass mark of 65%)
- A result of 33 out of 50 = 66% (above the required pass mark of 65%)
In order to successfully complete the RE 5 you are required to achieve at least 33 correct answers out of a total of 50 questions.
What is the format of the regulatory examinations?
The regulatory examinations are multiple-choice examinations. Each question will have four options of possible answers, and you must select one of the four options as the correct answer.
Must I know the legislation verbatim?
No. there is no need to memorise the legislation. Where a question refers to a specific section in the legislation, then that particular section will be included in the question for ease of reference.
Is there anything that I must pay particular attention to when preparing for the regulatory examination?
Yes. It is critical that you read the legislation. You cannot expect to write an examination that test your knowledge and understanding of legislation, if you have never read the legislation itself.
Pay particular attention to the definitions. It is important that you understand the meaning of the terms that are used. If you don’t understand the meaning then it is easy to misinterpret the question.
The more you read the legislation, the easier it becomes to understand and interpret what you are reading.
Should I use a training provider to prepare for the regulatory examination?
There are many training providers that offer preparation training, but the quality of the training cannot be guaranteed. These training providers are not “accredited” or “approved” by the FSCA because the FSCA does not have the mandate or authority to approve training providers. Some training providers offer training where:
- The entire workshop is completed in less than a week – it is simply not possible to cover all the relevant content in a workshop of less than a week. The only way to prepare is to use the Preparation Guides supplied by the FSCA and the relevant legislation. Work systematically through the content that must be covered in your own time.
- The content covered in the workshop is not aligned with the content covered in the regulatory examination – if the correct content is not covered in the workshop then you will not have adequate knowledge to pass the regulatory examination.
- Mock questions are used as part of the preparation – the mock question are not developed in accordance to the standard and quality that is required, and these questions are also not submitted to rigorous quality assurance and moderation processes. The result is that people obtain high pass marks because the questions are sub-standard, but still fail the regulatory examinations. Avoid mock examination questions, and focus on reading the legislation.
- Facilitators conducting these workshops have never written the regulatory examinations, and don’t have the required knowledge / expertise or their knowledge / expertise is outdated.
- The content of the workshops have not been updated with the latest amendments to the legislation resulting in learners acquiring out of date information.