RE5 case studies
RE5 · Put your knowledge to work in context.
The RE5 is the regulatory examination that South Africa's financial services industry uses to test whether a person is competent to act as a representative of a licensed financial services provider (FSP) under the FAIS Act. It is aimed at anyone who will render advice or intermediary services to clients on an FSP's behalf - across categories such as long-term and short-term insurance, health service benefits, retirement and pension products, collective investments, securities and deposits. The RE5 case studies are 5 cases and about 2,680 words.
1Adding a commission-only representative who will work from home
Thabo holds a Category I FSP licence for short-term personal lines and employs two representatives. He wants to appoint Sipho, his brother-in-law, as a representative.
610 words, about 3 min2Assessing a candidate with a prior debarment and a judgement
Lerato applies to join Khanya FSP as a representative. Her CV shows a BCom in Risk Management, RE5 passed, and three years' experience at another insurer.
536 words, about 3 min3Replacing a retirement fixed deposit with an equity unit trust
Nomsa is a representative at a Category I FSP. A 63-year-old client, Mr Dlamini, receives a R600,000 retirement payout.
521 words, about 3 min4A complaint that the FSP says is too old and covered by an indemnity
Mrs Naidoo complains in writing to Ayanda FSP about advice she received 14 months ago to invest her savings in a five-year endowment. She says she was told she could withdraw at any time without penalty.
502 words, about 3 min5Top producer copying signatures and sharing his login
Peter is the top-producing representative at a Category I FSP. A file review shows that on 14 application forms he copied clients' signatures from earlier documents, and that he gave his system login to his unlicensed friend, who called clients to 'confirm details' and once advised a client to switch a policy.
511 words, about 3 min