For professionals considering a move into a Key Individual role, passing the regulatory examination for Key Individuals (RE1) is an important milestone – but it is only one part of the Fit and Proper requirements that may apply.
Following the launch of its dedicated RE1 training course earlier this year, Moonstone Business School of Excellence (MBSE) can assist prospective Key Individuals with most of the training and development requirements they may need to meet along the way.
Willem van der Westhuizen, manager: business development at MBSE, says the requirements depend on the financial products the individual will render, manage or oversee, as well as the category of financial services provider for which they will be appointed.
“The requirements vary according to the category of financial products and the category of FSP,” he says.
This means there is no single pathway that applies to every Key Individual, and certain exemptions may also apply. Prospective KIs should therefore establish the requirements for their intended role with their compliance officer.
More than RE1
The Fit and Proper framework includes requirements relating to honesty, integrity and good standing, competence, continuous professional development, operational ability, and financial soundness.
Within the competence requirements, a prospective Key Individual may need to complete:
- Product-specific training, provided by the relevant product supplier;
- Class-of-Business training for the classes of business they will render, manage, or oversee;
- Regulatory examinations, including RE1 and, depending on the FSP category, potentially RE3 or RE4;
- an appropriate FSCA-recognised qualification; and
- Continuous Professional Development (CPD) once they are required to maintain their Fit and Proper status.
MBSE can assist with all these areas except product-specific training and RE3 and RE4 training.
Starting the journey
Many Key Individuals start out as representatives and move into management and oversight roles. In these cases, they may already have completed several Fit and Proper requirements.
Representatives appointed under supervision are given time from their Date of First Appointment (DoFA) to complete certain requirements. They generally have 12 months to complete Class-of-Business Training, two years to pass RE5, and six years to obtain the required qualification.
Product-specific training is different and must be completed before the representative renders financial services on the relevant product. Once the applicable requirements have been met, annual CPD becomes part of maintaining Fit and Proper status.
MBSE’s RE5 Regulatory Examination Training can assist representatives preparing for the RE5 examination.
For those who subsequently move into a Key Individual role, RE1 – and potentially RE3 or RE4, depending on the FSP category – may be among the additional requirements.
“If you went the representative route, you might now only need to do additional regulatory exams in the form of RE1 and possibly RE3 and RE4 depending on FSP category,” says Van der Westhuizen.
For someone entering the Key Individual pathway without coming through the representative route, he recommends working through the requirements in much the same order.
An existing qualification should also be checked against the FSCA’s recognised qualification list to establish whether it meets the requirements for the intended role. MBSE offers FSCA-recognised qualifications across a range of NQF levels and product categories, including:
- Postgraduate Diploma in Financial Planning (NQF 8)
- BCom Financial Management Degree (NQF 7)
- Advanced Certificate in Financial Planning (NQF 6)
- Occupational Certificate: Compliance Officer (NQF 6)
- Higher Certificate in Wealth Management (NQF 5)
- Higher Certificate in Short-Term Insurance (NQF 5)
- FETC: Short-Term Insurance (NQF 4)
- FETC: Wealth Management (NQF 4)
Preparing for RE1
RE1 reflects the different responsibilities of a Key Individual compared with a representative.
“More legislation, more exam questions, focused on overseeing responsibilities,” says Van der Westhuizen.
MBSE’s RE1 Training for FAIS Key Individuals follows a six-week study plan, combining study guides, audio resources, and practice questions.
Importantly, the training is preparation for the RE1 examination and is not the official examination itself. Candidates must still register for, write, and pass the RE1 examination through an accredited Regulatory Examination Body before meeting the regulatory requirement.
The first cohort of MBSE’s RE1 Training recently started completing the six-week programme, with early feedback describing the content as comprehensive and understandable. The course includes 12 months’ access to the material, so not all students who enrolled during the launch period are expected to have completed it yet.
Building competence beyond the exam
RE1 is only one part of becoming and remaining Fit and Proper. MBSE’s broader offering can support professionals through the different stages of the journey, including Class of Business Training, FSCA-recognised qualifications and CPD courses for Key Individuals.
Its regulatory short courses provide further opportunities to develop knowledge beyond the core Fit and Proper requirements.
For someone starting out in financial services, the key is to understand which requirements apply to the role they ultimately want to perform, identify what they already have in place, and then work through the remaining training, examination, and qualification requirements in the appropriate sequence.
MBSE’s range of programmes is designed to support that journey, from the RE5 stage through to RE1 and ongoing professional development as a Key Individual.
For more information about the RE1 training programme, including enrolment details, visit the MBSE website.
