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Regulatory exam for representatives(RE5)


Regulatory exam for representatives(RE5)


Do you need to do the Regulatory exam for Representatives, RE5? 

Then this is the course for you!

An on-line course created by an a expert who set  exam questions for the Financial Services Board. As the head of Discovery's regulatory training program and Group Compliance Manger, Gail Gibson had one of the highest first attempt pass rates in the industry for the regulatory exams. Gail left the corporate world to do her work as a multiple seta accredited moderator and assessor, using her experience to train and develop accredited international courses. Thousands of successful students can attest to her skill in preparing them for  this exam.

In this course you will get:

  • Exam content and overview including the setup of the exam
  • Full teaching on each of the 8 specified outcomes of the exam and the 69 qualifying skills criteria
  • Exam technique and downloadable resources to increase learning retention
  • Swot sheets of the time frames
  • Over 80 interactive exam questions created to the same standard as the actual exam
  • A full 50 question exam after completing all the tasks
  • On-line support

Contact Gail at 0832003547 or email at [email protected] for any training needs

Introduction to the Regulatory exam for representatives RE5
This material is the property of Naked Mindz and may not be reproduced or distributed in any way without the prior consent of Naked Mindz.
The utmost diligence was taken to prepare this training material, it is advised that the learner should not rely solely on it to prepare for examinations.  The material should be used in conjunction with other applicable pieces of legislation.
Please note that the legislation and the study requirements are constantly changing.  It is advisable that you monitor the FSB website to stay up to date with these www.fsb.co.za.
  What we will cover in the course:
  • Why is there a Regulatory Exam requirement
  • Requirements of the exam
  • Setup of the exam
  • Exam content overview
  • Detailed explanation of critical content in each of the eight tasks
  • Tips and legislation focus point guidelines per task
  • Overall guidance
  • Exam technique guidance
  • Mock exam support process
  • Exam booking process
  • Closing
Studying instructions document
How to use this coursedocument
Exam overview

There are eight tasks and approximately 69 qualifying criteria to be covered in the exams. Areas tested will include:

The roles and responsibilities of representatives in terms of the FAIS Act

  • Understanding the role of the Key Individual
  • The Fit and Proper requirements of representatives
  • Services under supervision
  • The representatives’ contributions towards maintaining a financial services provider license
  • Obligations of the representatives in terms of the General Code of Conduct
  • Record keeping and disclosure requirements
  • Knowledge of financial products
  • Fraudulent behavior, complaints and the debarment process
  • Adherence to FICA
Exam overviewdocument
Task 1: The FAIS Register and other record keeping requirements
A Fais Register Must:document
What have you learnt? document
FAIS Act – Section 18 – Maintenance of recordsdocument
FAIS Register quizzquiz
Task 1 continued: Advice and intermediary services
Distinguish between advice and intermediary services in terms of the Actdocument
What have you learnt? document
Advice or intermediary service quizquiz
Steps to be taken by a representative when giving advice to a client:document
Can you see the difference between advice and an intermediary service in the examples below?document
Task 2: The licence

By the end of this unit you  should be able to:

  1. Explain the requirements an FSP must meet to maintain an FSP License.
  2. Explain what processes are required to remain updated with regards to other legislation, amendments, updates and requirements published that will affect the FSP.
  3. Explain what is meant by undesirable practices.
  4. Describe the implication for an FSP if the registrar publishes a notice regarding an undesirable business practice.
  5. Explain the reparation measures available to the registrar if a FSP continues with undesirable business practices.
  6. Discuss the requirements of the Act around the display of licenses.
  7. Explain the reasons why licenses can be suspended or withdrawn.
  8. Explain what recourse an FSP has in a case where its license has been suspended or withdrawn.
  9. Discuss the reasons why an FSP would lapse a license.
  10. Describe how lapsing a license differs from suspension or withdrawal.
  11. Describe the conditions under which a license can be re-instated.
  12. Describe the conditions under which reinstatements of authorization may be imposed.
  13. Describe the role and powers of the Ombud.
Contribute towards maintaining a Financial Service Providers license Knowledge Criteria: Explain the requirements a FSP must meet to maintain an FSP licensedocument
Describe the conditions under which a license can be reinstateddocument
Summary of the responsibilities of the FSP and key individual with regards to the requirements of Section 13 of the FAIS Actdocument
Explain the reasons why a license can be suspended or withdrawndocument
Difference between lapsing and suspension or withdrawal of a licensedocument
Summary of the responsibilities of the FSP and key individual with regards to the requirements of Section 13 of the FAIS Actdocument
Understanding the licensing process:document
Discuss the reasons why a FSP would lapse a licensedocument
Section 13:document
The requirements of the Act around the display of licenses.document
Explain what recourse a financial services provider has in a case where it has been suspended or withdrawndocument
Financial soundnessdocument
What have you learnt? document
Undesirable business practices:document
Withdrawal of a licensedocument
FAIS Act – Section 7 - Authorization of financial service providersdocument
The FSP Licence Quizzquiz
Explain what process is required to remain updated with regards to other legislation, amendments, updates and requirements published that will affect the FSP. document
Steps before the registrar may suspend or withdraw a FAIS license:document
Task 2: The role and power of the Ombud for Financial Services; FAIS Act – Section 20 – 31

The word Ombud originated from Scandinavia and means “representative of the people”

What does an Ombud do?document
What have I learned?document
Assessment for Task 2: Ombudquiz
The power of the Ombud for Financial Servicesdocument
FAIS Section 21: Appointment of Ombud and Deputy Ombudsdocument
Task 3: Disclosure

When you give financial advice the first step is always to get to know your client, and this works both ways. The client must get to know you.

It is the general duty of a provider to give financial services honestly, fairly, with due skill, care and diligence keeping the interests of the clients in mind as well as the integrity of the financial services industry. In order to achieve this we have minimum requirements in the FAIS Act which are detailed in the codes of conduct.

In this section we will look at the disclosures you have to make to any client or group of clients.

Board Notice 80 of 2003: Introduction to codesdocument
Final words on Disclosuresdocument
Information About Financial Service document
Information On Providersdocument
Information about product suppliers: document
Disclosure quizzquiz
Any of the disclosures Jonas will make must be governed by the following legislation.document
Create your own Swot sheet for disclosuresdocument
Task 3: Conflict of interest

Conflict of interest means a situation where a provider or a representative has an actual or potential interest that may influence the objective exercising of obligations to the client or prevent the rendering of financial services in an unbiased and fair manner. It will therefore occur when two or more interests conflict with one another and can render the financial service biased or inadequate.

This typically presents itself where product sales are linked to incentives, monetary or other lavish rewards (such as overseas trips). The danger is that the representative or provider may be influenced by these considerations without due care to the client and his/her needs.

Non-cash incentives offered and/or other indirect consideration payable by another provider, a product supplier or any other person to the provider could be viewed as a potential conflict of interest.

What have you learnt? document
FAIS Act Section 1(1) – Advice Definition-remember our definitions:document
Task 3: Complaints handling
Complaints handling document
What have you learnt? document
Task 3: Risk management
Risk managementdocument
Termination Part XII of the General Code Board Notice 80 of 2003document
When a provider advertises a financial service by telephone?document
Advertising document
Contingency planningdocument
General Code of Conduct BN 80 - paragraph 11 – Risk Managementdocument
Your own fact sheetdocument
Task 6 Align execution of duties and actions with the compliance requirements

By the end of this unit the learner should be able to:

  • Describe the role and function of a compliance officer 
The role and functions of a compliance officerdocument
Task 6 Compliance quizzquiz
What have you learnt? document
Establishment of compliance functiondocument
Regulations 4 and 5 - Compliance Arrangements - (Section 35(1) (c) of Act)document
FAIS Act Section 17 - Compliance officers and compliance arrangementsdocument
Time periods to remember