The RE5 exam: what it is, who writes it and how it works
The RE5 is the regulatory examination for representatives under the FAIS Act. If you advise on or sell financial products for a financial services provider (FSP), it is almost certainly an exam you need.
What the RE5 covers
It tests the legislation behind financial advice and intermediary services: the FAIS Act, the General Code of Conduct, the fit-and-proper requirements and your duties under the Financial Intelligence Centre Act. It does not test product knowledge or sales skills. It tests the rules.
The format
- 50 multiple-choice questions, each with four options.
- You need 33 right to pass: that is 65%.
- You write it in person at an approved venue, booked through Moonstone, the FSCA's examination body.
Who must pass it
Almost every representative of an FSP: advisers, agents and call-centre sales staff, in every category. A few narrow roles are exempt, such as funeral-only sales. If your job involves advising on or selling financial products, plan on writing it.
When to write it
The law says before you are appointed, and most employers want it done before they hire. If you start under supervision, you cannot work on your own until you have met every requirement, and the RE5 is one of them. The sooner you pass, the sooner you can work independently and earn on your own book.
How to prepare
Learn each area in plain language, test yourself after every section, then sit timed mock exams until 65% feels easy. Most people need about six weeks at a few hours a week.
Why the RE5 exists
The RE5 is part of the fit-and-proper requirements under the FAIS Act. The idea is simple: anyone who advises clients or sells them financial products must understand the rules that protect those clients. The exam checks that knowledge before you work on your own.
What a question looks like
Questions describe a situation and ask what the rule requires. For example, a scenario might describe a representative explaining a product to a client and ask which disclosure must be made, or describe an unusual cash deposit and ask what the representative must do. Reading carefully matters: words like "not", "must" and "except" change the answer.
On the day
- Arrive early at your venue with the ID you registered with.
- Read every question twice before looking at the options.
- Answer the ones you are sure of first, then come back to the harder ones.
- Do not leave any question blank: there is one correct option and four to choose from.
After the exam
Your result comes from the exam body. If you pass, that certificate is what employers ask for. If you do not, you can register again and rewrite. Look at where you lost marks, go back to those areas and book again once your mock scores recover.
RE5 and your career
Passing the RE5 is often the step that turns a supervised trainee into a representative who can work independently and earn on their own book. Many job adverts for insurance sales and service roles ask for it up front, so having it before you apply sets you apart from other candidates.
How long it takes
Most people prepare over about six weeks, studying a few hours a week. Some do it faster with more time each day. What matters is reaching steady scores of 75% or more on timed mock exams before you book.
The exam areas in more detail
Knowing what each area is really about makes the questions far easier to read on the day.
- The FAIS Act: what financial advice and intermediary services are, who needs to be authorised as an FSP, and the role of representatives and key individuals.
- The General Code of Conduct: what you must disclose to a client, how to make sure a product is suitable, how to deal with conflicts of interest and what records to keep.
- Fit and proper: the honesty, integrity and competence requirements, including the regulatory exams and continuing professional development.
- The Financial Intelligence Centre Act: identifying and verifying clients, keeping records, and reporting suspicious and unusual transactions.
Exemptions
A few narrow roles do not need the RE5, such as representatives who only sell funeral products. Exemptions are specific, so do not assume you qualify. If your role involves advising on or selling financial products, plan on writing it and confirm with your employer or compliance officer.
RE5 compared with other regulatory exams
The RE5 is one of several FSCA regulatory exams. The RE1 is for key individuals and compliance officers, with 80 questions. If you are a representative dealing with clients, the RE5 is almost always the one you need, and it is usually the first one people write.
Getting ready to book
Book once your timed mock scores are steadily 75% or more. That margin covers the nerves and unfamiliar wording that cost most people a few marks on the day. Exams run throughout the year, so you will not wait long for a seat once you are ready.
Questions people ask
How many questions are in the RE5?
50 multiple-choice questions, each with four options.
What is the RE5 pass mark?
65%, which means 33 of the 50 questions right. Check the exam body's current rules when you book.
Who sets the RE5 exam?
The FSCA sets the requirements, and you register and write through Moonstone, its examination body.
Do I need a job to write the RE5?
No. You can register without working for an FSP, and having it already sets you apart when you apply.
Keep reading
How to book the RE5 exam, step by step →RE5 pass mark: 33 out of 50, and how to clear it → All RE5 guides →Danley is exam preparation only. You register for and write the RE5 through the FSCA's examination body. Check current exam rules and fees when you book.