Free Practice Questions for RE5

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Key Facts: RE5 Exam

50 questions

The RE5 consists of 50 single-best-answer multiple-choice questions

FSCA - Regulatory Examinations FAQ

33/50

Lowest attainable passing result (66%); FSCA states a 65% threshold

FSCA - Regulatory Examinations FAQ

2 hours

Time allowed to complete the RE5 examination

Moonstone - RE1 and RE5 Preparation Guideline

Closed-book

RE5 is a supervised, in-person, closed-book multiple-choice exam

FAIS Forward Academy - Regulatory Examination FAQ

R1 300

Current fee (VAT inclusive) per RE5 attempt

FSCA General Notice 1 of 2024; Moonstone - Regulatory Exam Body

FAIS Act 37 of 2002

The RE5 tests the FAIS Act and its subordinate legislation

FSCA - Regulatory Examinations FAQ

6 years

Maximum period a representative may act under supervision in a category

INSETA - First Level Regulatory Examination: Representatives

100

Free original RE5 practice questions provided here

OpenExamPrep

The RE5 is South Africa's Regulatory Examination for Representatives under the FAIS Act, a fit and proper requirement for anyone giving advice or rendering intermediary services on behalf of an FSP. It is a closed-book, in-person, supervised exam of 50 single-best-answer multiple-choice questions completed in 2 hours, with a 65% pass mark (at least 33 of 50 correct). It is administered by Moonstone Information Refinery on behalf of the FSCA, and the current fee is R1 300 (VAT inclusive). The syllabus covers the FAIS Act and subordinate legislation: key definitions, the General Code of Conduct (disclosure and suitability), Fit and Proper requirements, complaints and the FAIS Ombud, conflicts of interest, record-keeping, supervision and debarment. This 100-question bank provides original RE5-style practice with full explanations for every option.

Sample RE5 Practice Questions

Try these sample questions to review concepts for the RE5 exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 121+ question experience with AI tutoring.

1Under the FAIS Act, what is the primary distinction between 'advice' and an 'intermediary service'?

A.Advice recommends; intermediary service implements or administers

B.Advice is free, while an intermediary service is always charged for

C.Advice may only be given by key individuals, while intermediary services may be given by anyone

D.Advice relates to short-term insurance and intermediary services relate to long-term insurance

Explanation: The FAIS Act defines 'advice' as a recommendation, guidance or proposal of a financial nature in respect of a financial product. An 'intermediary service' is an act other than advice performed for or on behalf of a client or product supplier, such as dealing with a product transaction or collecting premiums. The distinction turns on the nature of the service, not its price or product class.

2Which body administers the RE5 regulatory examination on behalf of the regulator?

A.The South African Reserve Bank

B.Moonstone Information Refinery

C.The FAIS Ombud

D.The Financial Intelligence Centre

Explanation: The Financial Sector Conduct Authority (FSCA) sets the regulatory examinations, and Moonstone Information Refinery is the authorised examination body that administers the RE5 on its behalf. Candidates register, book and pay through Moonstone and write the exam in person.

3A representative may render financial services only if which condition is met?

A.They hold their own FSP licence

B.They act under an authorised FSP's employment or mandate

C.They have at least five years of industry experience

D.They are registered directly with the FAIS Ombud

Explanation: A representative is a person who renders financial services to clients on behalf of an FSP under an employment or mandate agreement, and the FSP accepts responsibility for those activities. Representatives do not need their own licence; they act under the FSP's authorisation.

4Under the General Code of Conduct, what is the general duty of a provider when rendering financial services?

A.To maximise the provider's commission income

B.Honest, fair, skilled and diligent client-centred service

C.To recommend the cheapest product available in every case

D.To act only in writing and never verbally

Explanation: Section 2 of the General Code of Conduct requires a provider to at all times render financial services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the financial services industry. This is the overarching standard from which the more specific duties flow.

5Sipho, a representative, gives a client a recommendation to replace an existing retirement annuity with a new one. Before doing so, what must he conduct under the General Code of Conduct?

A.A credit check on the client

B.A needs analysis

C.A polygraph test

D.A FICA risk rating only

Explanation: Where advice is given, the Code requires the provider to obtain appropriate information about the client and conduct an analysis (a financial needs analysis) for the purposes of the advice, taking into account the client's circumstances and the complexity of the product. Replacement advice in particular requires careful suitability analysis.

6Which requirement applies to a natural-person representative under the Fit and Proper framework?

A.Political affiliation

B.Operational ability

C.Marital status

D.Country of birth

Explanation: A natural-person representative must meet the applicable honesty, integrity and good-standing, competence, and operational-ability requirements. Chapter 6 financial-soundness requirements do not apply to a natural-person representative under section 43 of Board Notice 194 of 2017.

7A client lodges a complaint with an FSP. If the FSP does not resolve it to the client's satisfaction, to whom may the client escalate the complaint for independent resolution?

A.The FAIS Ombud

B.The South African Police Service

C.The Competition Commission

D.The National Credit Regulator

Explanation: The Ombud for Financial Services Providers (the FAIS Ombud) resolves disputes between clients and FSPs or their representatives regarding financial services. A client may approach the FAIS Ombud after the internal complaints process has been exhausted or the complaint dismissed.

8Which statement correctly describes competence timeframes for a representative rendering services under supervision?

A.All supervised services must end exactly two years after first appointment

B.Every supervised representative must remain under supervision for a full six years

C.Regulatory exam within two years, qualification within six years from first appointment, and experience until assessed

D.The supervision exemption sets no timeframes for competence requirements

Explanation: FSCA FAIS Notice 86 of 2018 does not create a blanket six-year maximum supervision period. It generally requires the applicable regulatory examination within two years and the applicable qualification within six years. For experience, the representative works under supervision for at least the applicable minimum period and remains supervised until assessed as having the required experience.

9A representative is rendering services under supervision. Under the General Code of Conduct, this fact must be:

A.Kept confidential from the client

B.Disclosed to the client

C.Disclosed only to the FSCA

D.Disclosed only if the client asks

Explanation: The Code requires a provider to disclose to the client whether a representative is rendering services under supervision as defined in the Determination of Fit and Proper Requirements. Clients are entitled to know that the representative is still gaining the required competence.

10Which person is responsible for the management and oversight of the financial services activities of an FSP?

A.The representative

B.The key individual

C.The FAIS Ombud

D.The product supplier

Explanation: A key individual is a natural person responsible for managing or overseeing the financial services activities of an FSP and must be approved by the FSCA. Representatives render the services, while key individuals manage and oversee that the services comply with the Act.

About the RE5 Exam

The RE5 is the Regulatory Examination for Representatives required under South Africa's Financial Advisory and Intermediary Services (FAIS) Act, 37 of 2002. It is a fit and proper competency requirement for any person who renders financial services (advice or intermediary services) to clients on behalf of an authorised Financial Services Provider (FSP), across all categories of FSPs with limited exceptions. The exam is set against the FAIS Act and its subordinate legislation, especially the General Code of Conduct for Authorised FSPs and Representatives and the Determination of Fit and Proper Requirements. It is a closed-book, supervised, in-person multiple-choice exam of 50 questions in 2 hours, with a 65% pass mark, administered by Moonstone on behalf of the FSCA. Candidates are tested on understanding and application of the regulatory framework rather than on memorising product facts.

Exam sponsor: Financial Sector Conduct Authority (FSCA); examination administered by Moonstone Information Refinery.. The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

50 single-best-answer multiple-choice questions, each with four options and each worth 2%. Questions are drawn from the published RE5 tasks and qualifying criteria covering the FAIS Act and its subordinate legislation.

Time Limit

2 hours (120 minutes).

Passing Score

65% pass mark, which for RE5 means at least 33 correct answers out of 50 (32/50 = 64% fails; 33/50 = 66% passes).

Exam / Certification Fees

R1 300 (VAT inclusive) per examination per candidate under the current FSCA fee notice; confirm the current amount with Moonstone before booking.

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

4 of 47 qualifying criteria

FAIS Regulatory Framework

Purpose, scope, definitions, regulators, licence categories, and regulated roles.

9 of 47 qualifying criteria

Maintaining an FSP Licence

Licence conditions, display, changes, compliance, suspension, withdrawal, and undesirable practices.

3 of 47 qualifying criteria

Key Individual Role

Oversight, management responsibility, and competence boundaries relevant to representatives.

14 of 47 qualifying criteria

Codes of Conduct

Disclosure, suitability, records of advice, conflicts, custody, complaints, advertising, and termination.

2 of 47 qualifying criteria

Record Keeping

Required records, retention, availability, and protection.

2 of 47 qualifying criteria

FIC Act Controls

Customer due diligence, suspicious-transaction reporting, and tipping-off restrictions.

1 of 47 qualifying criteria

FAIS Ombud

Ombud role, jurisdiction, complaint handling, and redress.

12 of 47 qualifying criteria

Representative Duties

Fit and proper, training, supervision, register duties, debarment, and reconsideration.

Preparing for the RE5 Exam

What You Need to Know

Passing score: 65% pass mark, which for RE5 means at least 33 correct answers out of 50 (32/50 = 64% fails; 33/50 = 66% passes).
Assessment: 50 single-best-answer multiple-choice questions, each with four options and each worth 2%. Questions are drawn from the published RE5 tasks and qualifying criteria covering the FAIS Act and its subordinate legislation.
Time limit: 2 hours (120 minutes).
Exam / certification fees: R1 300 (VAT inclusive) per examination per candidate under the current FSCA fee notice; confirm the current amount with Moonstone before booking. Official sources

Using Our Practice Resources

Work through all 121 available questions
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RE5: Suggested Study Strategy

1Study the actual legislation, not just summaries: read the FAIS Act, the General Code of Conduct and the Determination of Fit and Proper Requirements, because the exam tests application of these texts.

2Use the Moonstone RE1 and RE5 Preparation Guide to map your study to the official tasks and qualifying criteria, and use the latest version because questions are updated when legislation changes.

3Be precise about definitions: know the difference between advice and intermediary service, and between an FSP, a key individual, a representative and a compliance officer.

4Master the General Code of Conduct disclosure rules and the suitability/financial needs analysis process, since disclosure and suitability are the most heavily weighted topics.

5Learn which Fit and Proper requirements apply to representatives: honesty, integrity and good standing; competence including CPD; and operational ability. Do not apply the Chapter 6 financial-soundness requirements to a natural-person representative.

6Practise the complaints, FAIS Ombud, conflicts of interest and debarment processes, including timeframes such as the six-year maximum supervision period and notifying the FSCA of a debarment.

Frequently Asked Questions

How many questions are on the RE5 exam and what is the pass mark?

The RE5 has 50 single-best-answer multiple-choice questions and a 65% pass mark. That means you need at least 33 correct out of 50; 32 out of 50 is 64% and fails, while 33 out of 50 is 66% and passes.

How long is the RE5 exam and is it open-book?

You have 2 hours to complete the 50 questions. It is a supervised, closed-book exam written in person at an approved venue. Where a question refers to a section of legislation, that section is reproduced in the question for reference.

Who has to write the RE5?

Representatives in all categories of FSPs who render financial services to clients must pass the RE5 as a fit and proper requirement. Limited exceptions apply, such as representatives dealing only in funeral or friendly-society benefits (subcategories 1.1 and 1.19), Tier 2 products only, or execution of sales in Tier 1 products only.

Who administers the RE5 and what does it cost?

The RE5 is set by the FSCA and administered by Moonstone Information Refinery. The current fee is R1 300 (VAT inclusive) per attempt under the FSCA fee notice; confirm the latest amount on the FSCA or Moonstone website before booking.

What is the difference between the RE5 and the RE1?

The RE5 is the regulatory examination for representatives and has 50 questions. The RE1 is for key individuals, has 80 questions and 2 hours 30 minutes, and is an additional requirement for approval as a key individual. Both share the 65% pass mark.

Are these the official RE5 exam questions?

No. These are original OpenExamPrep practice questions modelled on the published RE5 tasks and qualifying criteria. The official RE5 questions are confidential and are not released by the FSCA or Moonstone.