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I am building a Tau army after being away from 40k for a year or so and I was reading over the rules about formations and now I am unsure if what I want to do is legal. I play the Farsight Enclave and wanted to know if I can also take a retaliation cadre as the Tau Empire and use the commander in that formation as a sort of buffmander or does the RC have to be FSE as well?

yes you can, the farsight enclaves only have some alterations to the regular tau empire; each formation or detachment have to be one or the other. So your commander from the tau empire cannot take any signature system/warlord traits from the farsight enclaves.

EDIT: I see what your conundrum is, on pg 86 of the montka book, the farsight enclaves contingents requires a core of 1+, which is either a hunter cadre or a retaliation cadre, so long as if you have a hunter cadre or a retaliation cadre from the farsight, you can have your other retaliation cadre from the tau empire.

So, then I could use Crisis Suits as troops and also use the signature systems from the Codex: Tau Empire just as long as those systems are on the commander in the retaliation cadre?