The FSCA says it is alarmed by the extent of fraud related to the regulatory examinations.
Exam fraud includes candidates buying forged or fake examination certificates, unlawfully altering exam certificates (certificate fraud), paying other people to impersonate them when writing an exam (identity fraud), and paying people who supposedly have some form of control over the examination process to guarantee a successful pass.
The FSCA is investigating 121 cases of suspected RE fraud. Of that number, 75 cases relate to certificate fraud and 46 cases to identify fraud, the Authority said in its 2022/23 Regulatory Actions Report.
“The FSCA considers this conduct in a very serious light. It is of utmost importance that the public must be able to trust their advisers. Not only are these people not qualified but they have displayed that they fall short of the required character qualities of honesty and integrity. The FSCA will take every necessary step to ensure that these persons are kept out of the industry,” the report said.
The FSCA said it is investigating ways to curb certificate fraud and will communicate with the industry in due course.
Employers should check that certificates are genuine
Moonstone, the only institution approved by the FSCA to provide the REs in South Africa, has repeatedly warned candidates about exam fraud.
There are individuals who pose as Moonstone employees and claim they can “guarantee” passes or RE certificates in return for a fee. Another typical scam is for an individual pretending to be Moonstone employee to claim they can “facilitate” exam bookings for a fee.
The persistence of certificate fraud highlights the need for employers to conduct a thorough check on a prospective employee’s educational qualifications and not simply to accept what could pass for an authentic certificate.
Moonstone will check the authenticity of a certificate if an employer provides us with the candidate’s written consent.
Authentication requests must include a copy of the candidate’s identity document or passport and the certificate/s, together with a signed authorisation by the candidate and an indemnity form to make the information available to the prospective employer. The request, with the documents, must be emailed to faisexam@moonstoneinfo.co.za.
In terms of our mandate from the FSCA, Moonstone is allowed only to confirm or deny that the certificate is valid.
A standard confirmation email will be forwarded after the certificate has been authenticated if it is found to be legitimate. If the certificate is found to be fraudulent, it will be reported to the FSCA.
Please note that FSPs are required to have certificates verified before they enter a candidate’s information on their representative register. FSPs must obtain confirmation from the FSCA to ensure that the RE certificate is valid.
Coming from the old school [enter the industry in 1977] we thought in those days the insurer training was onerous – but it was practical and focused on serving the client
what a change to nowadays where the exams are effectively second year university legal level with extremely dense nuanced technical and legal information To be both understood and applied.
For anyone where English is not their first language or who do not know how to reverse engineer multichoice questions the exams can be regarded as impossible.
There’s even the famous story of the top performing very experienced investment manager who despite three tries could not pass the exams and left the industry
Why can there not be basic bricklayers but everyone is expected to be a master builder??
The consequence of this legislation which the old Indian civil service would be proud – is supposedly to protect the consumer. All that happened is that applications went from 1 1/2 pages to 27 pages. the contract process often requiring 30 different signatures.
Effectively all common law rights are waived because the client specifically waives them in all the 27 pages and computer produced impossible to understand quotes and contracts! All risk is transferred back onto the poor client!
The legislation, had its roots in the UK/EU who love the book of Leviticus to sell a simple cabbage, was pushed by South African cartels to force independents out of business, is wholly unsuitable for the market in South Africa.
So-called protectionism just gives rise to a whole officious industry where the costs are subtracted from the benefits of financial products whilst making the documents and contracts completely opaque.
People who make one mistake or shortcut are treated like hardened criminals and prevented from exercising their livelihood meanwhile politicians who are thieving real BIG money in plain sight with all the evidence receipts bank and credit card statements shown n books on the shelves suffer zero consequences
as Tony Leon said the other day South Africa is a curious mixture of Guatemala and Switzerland
Agreed Kevin.
I wrote the RE1 I think in 2010 after studying for 20 minutes and passed cum laude , the same with the UNISA Exam early 2000’s without studying. Passed Cum laude. Did not bother to write RE1.
I analysed the material etc. Problem is trainers and Examination centres get accredited on SYSTEMS AND INFRA STRUCTURE. And not necessarily good TRAINING. I trained a few people AND HAD ABOVE AVERAGE PASS RATE. I analysed the Types of QUESTIONS THEN FIRST TAUGHT CANDIDATES HOW TO DETERMINE THE TYPE OF QUESTION- Then training and understanding the material GETS EASIER.
Ernest.I agreed with Kevin about the old teaching by the insurance industry. Their teaching was of a high standard as it focuses on the improvement of the client understanding of the reasons why he must have an insurance.This RE regularity exam frustrates the previously disadvantage individual.With that less than 500 FSP are own by blacks.Insurance and banks are focusing on the funeral policy where the majority of their clients are blacks.The insurance company must be given authority to design what must be taught in this industry.
I wrote my RE5 in 2011 and passed it on 1st attempt but i think my advantage was to understand the theory behind RE exams . I do run classes for disadvantage individuals like my self and i charge a small fee .I will be writing KI ( RE1 ) exams soon .
Hi I need your help with RE do you have classes I can attend?
Good day
Information about how to register to write the RE exams can be found here: https://www.moonstone.co.za/services/regulatory-exam-body/
Note: Moonstone does not provide RE study material or workshops. We do publish guides and other material to help you prepare for the exams: https://www.moonstone.co.za/library/regulatory-examination-library/#RE2
We also have four exam preparation videos: https://vimeo.com/showcase/regulatory-exam-preparation
Do you need any formal qualifications such as a degree in tax or a diploma in insurance or anything to go write the RE exams?
No, you do not.
Reason for asking is I have an accounting and auditing practice, many of my clients were taken to the cleaners during the covid pandemic have purchased business interruption insurance only to have their claims repudiated when trying to claim against these policies. We have spent small fortunes making lawyers rich trying to force insurance companies to pay but so far have had very little success. As a qualified accountant I am well versed in risk management but cant advise on insurance etc. as I can get sued if something goes wrong having advised in a field where I am not suitably qualified. Obviously I am not looking at a career change, just a value added service to my current service offering so not likely to invest three years of studies and R100’s of thousands of rands for a qualification
I also would like to know more information about the RE cause i also have an interest in PE fund management firm.
Information about how to register to write the RE exams can be found here: https://www.moonstone.co.za/services/regulatory-exam-body/
Note: Moonstone does not provide RE study material or workshops. We do publish guides and other material to help you prepare for the exams: https://www.moonstone.co.za/library/regulatory-examination-library/#RE2
We also have four exam preparation videos: https://vimeo.com/showcase/regulatory-exam-preparation
Please help me I need to download my RE certificate I have email but still no luck
I have forwarded your request to the relevant department.
I have been in the industry for some 35 years and is struggling to pass my RE. I have the knowledge, know principles and procedures, know where where my shortcomings are. Why do I still need to write this dreaded exam which is not going to be of any worth to me. It is not going to make me do my work better than I already do. This is a way of making money which the government spends again on silly, unnecessary things.
RE1/RE5 can be tricky but needs understanding. It is legislation and having experience doesn’t guarantee a pass, you have to understand and know what the law requires from us. I have been facilitating it from 2013 and have helped a lot to pass it, even those that have never worked in the industry.