Is the RE5 Exam Really That Hard?

The RE5, or Regulatory Examination for Representatives, is a crucial qualification for anyone working in the financial services industry in South Africa. A Representative is someone who provides financial advice or intermediary services, and passing the RE5 exam is a mandatory step to be considered fit and proper under the FAIS Act legislation.

The RE5 exam consists of multiple-choice questions and must be completed within 2 hours. Additionally, there is a strict 24-month timeframe from the date of your first appointment as a representative to pass this exam. Failure to do so within this period could result in being barred from offering financial services until the exam is successfully completed.

Given the importance and strict requirements surrounding the RE5 exam, it’s no surprise that many find it challenging. The following article delves into the reasons why this exam is considered difficult and offers insights into how to prepare effectively.

1. The Challenge of Multiple-Choice Questions

The RE5 exam consists entirely of multiple-choice questions. These questions can be tricky because:

• No Partial Credit: You must choose the correct answer with no room for partial marks.
• Certainty Required: You need to be absolutely sure of your answers, as there’s no opportunity to argue for additional points afterward.

This format effectively distinguishes between students who have thoroughly prepared and those who may have underestimated the exam’s difficulty. The exam is closed book that consists of 50 multiple-choice questions, with each question having four options, where you must select the correct option.

2. A High Pass Mark

The pass mark for the RE5 exam is set at 66%. This high threshold means:

• Majority Correct: You must get the majority of your answers right.
• Historical Difficulty: Many students either pass on their first attempt or after multiple tries, highlighting the challenge.

3. Specific and Detailed Questions

The exam questions in the RE5 are highly specific, requiring:

• Detailed Understanding: A deep grasp of every topic covered in the study material.
• Attention to Detail: Every line of the study material must be carefully read, analysed, understood, and retained.

Some questions may present multiple correct answers, and you’ll need to select the most accurate combination. For example, you might choose between options like:

• A only
• A and B
• A and C
• A, B, and C

4. Insufficient Preparation Time

A common pitfall for students is not allocating enough time to prepare thoroughly. To succeed, you need:

• At Least a Month: Dedicated study time is crucial.
• Patience and Discipline: Large volumes of content must be consumed and, more importantly, retained.

Final Thoughts

While the RE5 exam is undoubtedly challenging, those who dedicate sufficient time and effort to their preparation will ultimately find success. Luckily there is also is no limit on the number of exam attempts you are allowed. We wish all exam participants the best of luck, and if you would like some exam prep help, get in touch with our team!