RE5 Qualification: What the RE5 Is Worth on its Own

Ask what qualification the RE5 is and the honest answer is that it is not one. The RE5 is a regulatory examination: it sits on no NQF level, carries no credits, and appears on no SAQA record. Under the FSCA's fit and proper requirements, competence stands on two legs, and the RE5 is only one of them. The other is a recognised qualification, and it has its own deadline.

Is the RE5 a qualification?

No. Moonstone, the body that administers the exam on behalf of the FSCA, puts it plainly: the regulatory examinations are competency assessments, not qualifications, and because they do not test everything a qualification must, they have no equivalence to any level of the National Qualifications Framework. Passing the RE5 earns you a result document and nothing on your SAQA record.

So when a job advert asks for "RE5 qualified", it is using the word loosely. What the advertiser wants is proof that you passed the RE5 regulatory examination, which is the Moonstone result document. What that document proves, and how an employer verifies it, is covered in the RE5 certificate guide.

The exam itself is 50 multiple choice questions in 2 hours, passed at 66%, which is 33 of 50 correct: the FSCA's 65% rule applied to a 50 question paper, as the RE5 pass mark explains. Serious, but it is a two hour test, not a course of study.

The two legs of FAIS competence

The rule that creates the confusion is the FSCA's Determination of Fit and Proper Requirements, Board Notice 194 of 2017. Its competence chapter requires a representative to have both:

• The regulatory examination. Section 26 and its Table A assign the RE5 to representatives of a Category I FSP, and the RE1 to key individuals.
• A recognised qualification. Section 23 requires an FSP, a key individual and a representative to hold a qualification recognised by the regulator, chosen from a published list.

Neither leg substitutes for the other. A degree does not exempt you from the RE5, and an RE5 pass does not stand in for the qualification. Competence also asks for experience and class of business and product specific training; the full six fit and proper requirements are set out in RE5 requirements.

The qualification leg: what counts

A recognised qualification is one the FSCA has assessed and published on its list of recognised qualifications. The scale of the difference from the RE5 is worth seeing in numbers. The typical entry level qualification on that list for a Category I representative is a Higher Certificate, which the higher education framework registers at NQF level 5 with a minimum of 120 credits. One credit represents about ten hours of learning, so that is roughly 1 200 hours of study delivered by an accredited institution. The RE5 is a 2 hour exam with no credits at all.

Board Notice 194 also sets the bar higher for some categories: for a Category II, IIA or III FSP, its key individuals and representatives, the qualification must be at degree level. Many general qualifications count for Category I, which is why representatives study through institutions like Unisa: not for the exam, which Unisa cannot offer, but for the qualification leg.

How to check your qualification against the FSCA list

1. Open the FSCA's fit and proper page and download the current Lists of Recognised Qualifications under the Qualifications section. The lists are published by FAIS notice and refreshed from time to time, so use the FSCA's own download rather than a copy on a training provider's site.
2. Search for your qualification by its SAQA ID first, then by its exact name. The SAQA ID is on your certificate or academic record, and it removes any doubt about similarly named programmes.
3. Check the columns, not just the row. A qualification is recognised for specific FSP categories, and in some cases specific products, so confirm it covers the category and products you are appointed for.
4. If it is not on the list, do not assume the worst. Your compliance officer can confirm your position, and providers can apply to the FSCA to have a qualification recognised. If a provider markets a course as "FAIS recognised", ask for the SAQA ID and where it appears on the list before you pay.

The DOFA timing trap

Both legs run on clocks that start on the same day: your DOFA, the date you were first appointed as a representative. Under the supervision exemption, FSCA FAIS Notice 86 of 2018, a supervised representative must pass the applicable regulatory examination within 2 years of DOFA and meet the qualification requirement within 6 years of first appointment for that financial product. Neither clock resets when you change employers.

The trap is the second clock. The exam deadline arrives first and gets all the attention, so people pass the RE5 in year one or two and file competence under done. But a 120 credit qualification takes a year or more part time, and enrolment dates do not bend around your deadline. A representative who only remembers the qualification leg in year five may already be unable to finish in time, and missing a fit and proper requirement means you cannot remain on the representative register. If your exam clock is the one running, work backwards from your DOFA.

The RE1 and the key individual qualification

The same two leg structure applies one level up. A key individual writes the RE1, the regulatory examination for key individuals, and the RE1 is no more a qualification than the RE5: no NQF level, no credits. There is likewise no single "key individual qualification": approval as a key individual requires a recognised qualification for the category, the RE1, and at least a year of experience in the management or oversight of financial services.

The full standard is in key individual requirements, and if you are not sure which exam applies to you, RE1 vs RE5 settles it in a page.

The qualification leg is a matter of paperwork and patience. The exam leg is the one you can act on this week. PassPath's free readiness check takes about 15 minutes, needs no card, and scores you against every FSCA qualifying criterion the RE5 tests, so you know where you stand before the R1 300 booking.

PassPath is an independent study platform. The RE1 and RE5 are written through Moonstone; PassPath is not affiliated with Moonstone or the FSCA.