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FAIS Representative

A plain-English guide to what a FAIS Representative is, what you’re allowed to do, what you’re not allowed to do, and what you need (like RE5, Fit & Proper, COB and CPD) to operate legally in the industry.

What is a FAIS Representative?

A FAIS Representative is a person who provides financial services to clients under the FAIS framework, typically under an authorised Financial Services Provider (FSP). In simple terms: you’re the person who advises, sells, or services financial products and must meet specific competence and conduct requirements.

You act under an FSP
Representatives operate under an FSP and must follow its policies, controls and compliance processes.
You must be competent
Competence is not “I feel ready”. It’s Fit & Proper requirements, exams, qualifications and ongoing compliance.
You must treat clients fairly
Your conduct, disclosures, advice process and record-keeping must protect the client and the integrity of the industry.

What does a FAIS Representative do (in practice)?

The exact tasks depend on your role and product category, but most reps do some combination of:

Advice & recommendations
Understanding client needs, explaining products, and recommending solutions in the client’s best interest.
Intermediary / sales process
Completing applications, product onboarding, and helping clients execute decisions correctly.
Disclosures & record-keeping
Providing required disclosures, documenting advice, and keeping compliant records.
Ongoing service
Policy servicing, changes, claims support, reviews, and client communication (with proper records).

What you typically need (the essentials)

Requirements depend on the role, product category and your FSP’s internal controls. These are the common pillars:

Pillar 1
Fit & Proper
Competence, honesty & integrity, operational ability, and ongoing requirements.
Read Fit & Proper →
Pillar 2
RE5 Exam
The regulatory exam most representatives must pass (often within set timelines).
RE5 Exam guide →
Pillar 3
Class of Business
COB affects what business/products you may deal with and the training required.
Read COB →
Pillar 4
CPD
Ongoing professional development and recording requirements to stay compliant.
Read CPD →

Key responsibilities (what trips people up)

If you want a simple rule: your job is to protect the client and prove it with good process and records.

Disclose properly
Fees, commissions, conflicts, product details, and relevant relationships should never be “surprises”.
Keep records
Advice without records is like a parachute packed with optimism. It won’t save you.
Know your scope
Work only within your authority, COB, competence and the FSP’s controls.
Treat clients fairly
Suitability, clarity, transparency and no pressure tactics. “But I needed commission” is not a defence.

Quick FAQs

Do I always need RE5?
Many representatives do. Your exact requirement depends on your role, product categories and the FSP’s model. If you’re unsure, start with the RE5 guide.
What’s the difference between RE5 and RE1?
RE5 is typically for representatives. RE1 is typically for key individuals. Different responsibilities, different focus.
What if I’m doing “sales” only?
If you’re involved in advice, intermediary services, or product onboarding in regulated areas, FAIS requirements may still apply. Always confirm your role scope with the FSP and compliance.

Next steps

If your goal is to enter the industry or stay compliant, don’t stop at reading. Take the next action that matches your situation.

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