IconAccounting & Tax
IconAppraisers & Valuers
IconArbitration Services
IconAssessors & Loss Adjusters
IconAssist and Lifestyle Benefits
IconAssociations & Institutes
IconBBBEE Consulting and Verification Agencies
IconBroker Acquisition Financing
IconBrokers for Brokers
IconBusiness Process Management
IconCall Centre Outsourcing
IconCompany Secretarial Services
IconConsumer Protection
IconCorporate Governance
IconCredit Bureaus
IconDebit Order Collection Facilities
IconDefensive Driver Training
IconEducation and Training
IconEmergency Medical Rescue
IconFire, Storm, Flood Damage Specialists
IconHuman Resources
IconIndustrial Cleaners
IconInformation Technology and Software Partners
IconInsurance Companies
IconLightning Damage & Surge Protection Specialists
IconNiche Insurance Products
IconOutsourcing Companies
IconPremium Financing
IconPublic Loss Adjustors
IconRating Agencies
IconReference Books & Material
IconRegulatory Authorities
IconRisk Finance
IconRisk Management
IconRisk Surveyors
IconSalvage Operators
IconSpecialized Claims Investigations & Assessing
IconSurveys and Research
IconTraining Courses & Workshops
IconUnderwriting Managers
IconVehicle Accident Management
IconVehicle and Household Risk Inspection Services
IconVehicle Tracking
IconWellness Programs
IconWholesale Brokers
  Subscribe To »

Using the composition of the RE to your advantage






A very important part of one’s preparation for the regulatory examinations is to gain insight into the composition of the question paper. While some may have learnt the hard way, there is an easier option: the explanatory notes issued by the FSB in March this year. We quote freely from this document in the article below with our remarks in maroon.

This document explains the four levels of questions and then discusses how it is applied in the question paper:

The layout of the RE 1: Key Individual Category I, II, IIA, III and IV

Level 1 questions


22 Questions

Level 2 questions


32 Questions

Level 3 questions


16 Questions

Level 4 questions


10 Questions

The layout for the RE 5: Representative

Level 1 questions


15 Questions

Level 2 questions


20 Questions

Level 3 questions


10 Questions

Level 4 questions


  5 Questions

As the purpose of the level 1 regulatory examination is to ensure that financial advisors and representatives understand their regulatory role and responsibilities, the emphasis was placed on the “comprehension” or understanding and application of the legislation.

The two so-called “lower order” thinking skills, knowledge and comprehension, comprise 68% and 70% of the two level 1 examinations, respectively.

It should also be noted that random selection of questions are used. In other words two people may write the same examination, but will not receive the same questions. However, the complexity of their examinations will be the same as the layout of the examinations is exactly the same.

The reason for the random selection of questions is to limit the leakage of questions. The questions bank will therefore have a longer lifespan and as a result the cost of the examinations can be contained as ongoing question development can be limited due to questions being used for a longer period of time before retiring the questions.

One should also understand that there is a limit to the number of questions that can be drawn from each of the tasks in the qualifying criteria. “Over-exhaustion” could lead to new questions becoming more and more difficult.

Standard practice in examinations is to include “easier” questions at the beginning and end of each examination, and the more difficult questions should be situated more towards the middle of the examination – commonly referred to as the “bell curve”:

The layout of the examinations is designed to obtain a bell curve effect.

The rationale for the bell curve is that a person’s concentration level peaks more or less during the middle of the examination, and therefore it's appropriate to deal with the more complex questions during the middle of the examination. Starting off with easier questions and finishing with easier questions is also more positive for the candidate writing the examination.

One must bear in mind that each question is only worth one mark. Some candidates have elected to attend to all the short questions first while their minds were still fresh, leaving the lengthier, more difficult questions for last.

As they say in golf: you drive for show, but you put for dough.

If I had to choose between a 300 meter drive and six inch put (which both count as one stroke), I know what my choice would be.

Source: Paul Kruger: Moonstone Information Refinery (Pty) Ltd
« Back to previous page Print this page » |

Breaking News »

Retailers should optimize supply chains to ensure customer satisfaction this festive season – DHL

The e-commerce shopping experience is increasingly becoming a popular option for consumers during the festive season CAPE TOWN, South Africa: The e-commerce shopping experience is increasingly becoming a popular ...
Read More »


Payroll snags to watch out for over the festive season

By Sandra Swanepoel, Managing Director for Sage HR & Payroll The festive season is nearly here. Here are a few tips that will help you to get ready for the last payroll of the year and the big holiday shutdown ...
Read More »


Associated Compliance is on the move today

Effective Monday 30th November Associated Compliance will be at: Ground Floor Lakeview House Constantia Office Park Corner 14th Avenue and Hendrik Potgieter Street Weltevreden Park Roodepoort 1709 Our ...
Read More »


Coface projections for 2016 Energy Market

By Coface, the Trade Credit Insurance Company   The energy sector has been hit by the fall in the oil price, down 59% between June 2014 and 24 September 2015 for a barrel of Brent. To overcome the fall ...
Read More »


More News »


Healthcare »


Investment »


Life »


Retirement »


From The Glossary »


Investment Channel:

An investment channel is also called a specialist asset portfolio. It is a pool of assets which exhibits common fundamental economic characteristics and which behaves in a consistent manner in terms of reactions to economic changes. A pool or grouping of commodity shares would be an example of an investment channel. An investment channel may be a product itself, which means that investors could invest in the channel directly (similar to a retail ...
More Definitions »

By using this website you agree to the Terms of Use.
Copyright © Stoker Risk & ICT (Pty) Ltd 2004 - 2015.
All Rights Reserved.





Contact IG


Media Pack


RSS Feeds