The Regulatory Examination for Key Individuals (RE1) is about far more than meeting another regulatory requirement. It is designed to test whether those responsible for leading financial services providers understand the legislative and governance framework that underpins South Africa’s financial services industry.
For aspiring Key Individuals, passing the RE1 examination is one of the requirements for appointment under the Financial Advisory and Intermediary Services Act. Unlike representatives, who may be appointed under supervision while working towards meeting the Fit and Proper requirements, Key Individuals must meet those requirements before they can be appointed.
Following the launch of its RE5 training programme in 2024, Moonstone Business School of Excellence (MBSE) has expanded its regulatory examination offering with the introduction of a dedicated online RE1 training programme designed to help candidates prepare for the official examination.
Importantly, the programme prepares students for the RE1 examination – it is not the examination itself. Candidates must still register for, write, and pass the official RE1 examination through an accredited Regulatory Examination Body before meeting the regulatory requirements for appointment as a Key Individual.
Meeting industry demand
According to Willem van der Westhuizen, manager: business development at MBSE, the decision to introduce RE1 training was driven by sustained demand from the industry, particularly from students who had completed MBSE’s RE5 training.
“We have received constant requests from clients, especially those who have completed our own RE5 training since September 2024,” he says.
“We have had pre-registrations open on the website for a few weeks, and the early enrolment numbers have already confirmed that launching the programme was the right next step.”
The new programme builds on the success of MBSE’s RE5 training offering, which has continued to evolve in response to student feedback.
Van der Westhuizen says the programme has been strengthened over time through the addition of role-playing videos to explain core concepts, mock examinations, exam technique guides, question analysis tools, and daily practice questions to keep students engaged.
“Student feedback has also been really positive, with many telling us our training made the difference after they had struggled through multiple previous examination attempts.”
From execution to oversight
Although both RE5 and RE1 assess knowledge of South Africa’s regulatory framework, the two examinations serve very different purposes.
“The difference is representative of the difference in responsibility of a Key Individual compared to a representative,” says Van der Westhuizen. “More legislation, more exam questions, focused on overseeing responsibilities.”
That shift in responsibility is also one of the biggest challenges candidates face.
“Preparing for RE1 can be challenging because candidates need to pass the examination before stepping into the role of a Key Individual. The shift from an execution-focused role to one centred on oversight requires a different way of thinking.”
The RE1 examination extends beyond understanding the FAIS Act. It assesses whether candidates understand how to maintain an FSP’s licence, oversee representatives, manage compliance functions, comply with record-keeping and governance requirements, oversee accounting and auditing obligations, and ensure compliance with the Financial Intelligence Centre Act (FICA) and anti-money laundering legislation.
Building understanding, not just exam technique
Rather than approaching RE1 as an examination to be crammed for, MBSE says its focus is on helping students to understand the regulatory environment they will eventually be responsible for managing.
“Our training follows a six-week study plan, as our RE5 training does, and that allows students enough time to master a focus area at a time,” says Van der Westhuizen.
“Each week covers a focus area with a study guide, an audio file of that study guide, and then practice questions to test their understanding.”
He says the philosophy behind the programme is deliberately different from short, intensive examination preparation courses. The focus is on mastering the material rather than simply preparing students to pass an examination. When students understand the content thoroughly, the examination becomes less of a hurdle.
“As with our other training programmes, the examination isn’t the end goal – mastering the content is. We’ve already seen that philosophy deliver positive results through our RE5 offering.”
He believes this approach helps students avoid the confusion that often comes with trying to absorb large volumes of legislation over a short period, while the practical examples included throughout the programme provide the context needed to understand the oversight responsibilities of a Key Individual.
Who should enrol?
The programme is aimed primarily at aspiring Key Individuals preparing to write the RE1 examination. It will also benefit professionals moving into management or oversight roles within financial services, particularly those who may qualify as Key Persons under the Financial Sector Regulation Act and the forthcoming Conduct of Financial Institutions (COFI) framework.
“There is no technical requirement yet, but it is beneficial for anyone in a management or oversight role within financial services who could be considered as a key person,” says Van der Westhuizen.
He adds that understanding the regulatory framework is valuable well beyond the examination itself.
“Not only does it define the scope of their roles and responsibilities, but it also gives them the confidence to operate in the environment they are appointed in with all the necessary contexts. It offers them the big picture and empowers them in their roles.”
Closing the regulatory training gap
Van der Westhuizen says the launch of RE1 forms part of MBSE’s broader strategy to provide comprehensive training across the FAIS Fit and Proper landscape.
He explains MBSE identified Regulatory Examination preparation as a gap in its broader FAIS Fit and Proper training offering.
“It was an obvious area for development, and we’re introducing training for the various regulatory examinations one at a time, based on industry demand.”
The RE1 programme is offered entirely online, with students able to enrol throughout the year. Learners receive 12 months’ access to the study material, including study guides, audio resources, assessments, and relevant legislation. Students who successfully complete the assessments receive an MBSE Certificate of Completion.
However, the Certificate of Completion confirms only that the student has completed the training programme. Candidates must still register for, write, and pass the official RE1 examination through an accredited Regulatory Examination Body before meeting the FAIS Fit and Proper requirements for appointment as a Key Individual.
To mark the launch, MBSE is offering its RE1 training programme at an introductory price of R1 550 until the end of August, a saving of R1 300 on the standard course fee of R2 850.
For more information about the RE1 training programme, including enrolment details, visit the MBSE website.
