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Since there is no mention in the rule, I think the answer is "Yes," but I wanted some other opinions.

Can Fateweaver's re-roll be used when he is in Reserves?

Fateweaver is all knowing, therefore the answer is yes. Anyone who says no is obviously not as all knowing as Fatewaver.

Nope, no can do. The ability is tied to the Staff of Tomorrow, Fateweaver's artefact - like any other items, wargear or even abilities held by a model it must be "in play" (in other words, on the board) to be used, unless its rules specify it takes effect beyond this.
I couldn't find any examples in the Daemons book, but in Codex Space Marines, a good example is Vulkan's switch for Combat Tactics - it states that the changes therein take effect if he is "included in your army".

The Staff of Tomorrow has no such statement, so Fateweaver must be on the board for you to use it. As further precedent, Corbulo in Codex Blood Angels has a very similar ability tied to him as a model, and this bears this FAQ:
"Q: Can Corbulo’s re- roll from the Far Seeing Eye be used to affect
the result of roll- offs for deployment zones and first turn? (p49)
A: No."

Fateweaver is all knowing, therefore the answer is yes. Anyone who says no is obviously not as all knowing as Fatewaver.

Well, ain't that cute. BUT IT'S WRONG!!
http://www.youtube.com/watch?v=2yqUpypQwGs

 Super Ready wrote:
Nope, no can do. The ability is tied to the Staff of Tomorrow, Fateweaver's artefact - like any other items, wargear or even abilities held by a model it must be "in play" (in other words, on the board) to be used, unless its rules specify it takes effect beyond this.
I couldn't find any examples in the Daemons book, but in Codex Space Marines, a good example is Vulkan's switch for Combat Tactics - it states that the changes therein take effect if he is "included in your army".

The Staff of Tomorrow has no such statement, so Fateweaver must be on the board for you to use it. As further precedent, Corbulo in Codex Blood Angels has a very similar ability tied to him as a model, and this bears this FAQ:
"Q: Can Corbulo’s re- roll from the Far Seeing Eye be used to affect
the result of roll- offs for deployment zones and first turn? (p49)
A: No."

Fateweaver is all knowing, therefore the answer is yes. Anyone who says no is obviously not as all knowing as Fatewaver.

Well, ain't that cute. BUT IT'S WRONG!!
http://www.youtube.com/watch?v=2yqUpypQwGs

Heldrake is allowed to make IWND roll while off the board as nothing prevents this. It happens at the end of the turn with no qualifier of being on the board.

Well put, ok - perhaps not abilities or other USRs then. I still say that the Staff of Tomorrow is an extra piece of kit and as such needs specific permission, but I must confess - I'm having trouble finding the rule that prohibits you from using special rules while off the board. If it's not there, it would make sense that Corbulo's would then have to be FAQed. Anyone?

 Super Ready wrote:
Well put, ok - perhaps not abilities or other USRs then. I still say that the Staff of Tomorrow is an extra piece of kit and as such needs specific permission, but I must confess - I'm having trouble finding the rule that prohibits you from using special rules while off the board. If it's not there, it would make sense that Corbulo's would then have to be FAQed. Anyone?

Runes of Warding work in reserve too...

Iranna.