100+ Free RE5 Practice Questions

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2026 Statistics

Key Facts: RE5 Exam

50 questions

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

FSCA - Regulatory Examinations FAQ

65% pass mark

Candidates must answer at least 33 of 50 questions correctly to pass

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

About R1 226

Legislated fee (VAT inclusive) per RE5 attempt at the Moonstone exam body

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 legislated fee is about R1 226 (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 test your RE5 exam readiness. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

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

A.Advice is a recommendation about a financial product, while an intermediary service is an act performed on behalf of a client or product supplier

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 performed by a person on behalf of a client or product supplier, such as concluding a transaction or collecting premiums. The distinction is about the nature of the act, not its cost or product type.

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

A.The South African Reserve Bank

B.Moonstone Information Refinery on behalf of the FSCA

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 are employed or mandated by an authorised FSP that accepts responsibility for their activities

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.To render services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the industry

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 financial needs analysis appropriate to the nature and complexity of the advice

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 of the following is one of the four pillars of the Fit and Proper requirements under the FAIS Act?

A.Political affiliation

B.Financial soundness

C.Marital status

D.Country of birth

Explanation: The Fit and Proper requirements consist of honesty, integrity and good standing; competence; operational ability; and financial soundness. Financial soundness means a representative must not be insolvent or under provisional or final sequestration or liquidation.

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.

8What is the maximum period for which a representative may act under supervision in a particular category or subcategory?

A.Two years

B.Four years

C.Six years from date of first appointment

D.There is no maximum period

Explanation: Under the supervision framework, the maximum period any representative may act under supervision in a category or subcategory is six years from the date of first appointment. Within that time the representative must meet the competence requirements such as the regulatory exam, qualification and 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.

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 Fee

Legislated fee of approximately R1 226 (VAT inclusive) per examination per candidate at the Moonstone regulatory examination body; confirm the current fee before booking. (Financial Sector Conduct Authority (FSCA); examination administered by Moonstone Information Refinery.)

RE5 Exam Content Outline

20%

FAIS Act framework and key definitions

The purpose of the FAIS Act and its subordinate legislation; the definitions of financial product, financial service, advice and intermediary service; and the distinct roles and responsibilities of FSPs, key individuals, representatives and compliance officers, plus authorisation and the supervisory role of the FSCA.

30%

General Code of Conduct: disclosure and suitability

The general duty to act honestly, fairly and with due skill, care and diligence; disclosures about the FSP, the product and the representative; the financial needs analysis and suitability of advice; the record of advice; advertising and direct marketing rules; and the termination of agreements.

20%

Fit and Proper requirements

Honesty, integrity and good standing; competence including experience, qualifications, regulatory examinations, class of business and product-specific training, and continuous professional development (CPD); operational ability; and financial soundness for representatives and FSPs.

15%

Complaints, the FAIS Ombud and conflicts of interest

Internal complaint resolution systems and procedures, reportable complaints, the role, jurisdiction and process of the FAIS Ombud in resolving disputes, and the identification, avoidance, mitigation and disclosure of conflicts of interest under the Code.

15%

Records, supervision and debarment

Record-keeping requirements for advice and transactions, the register of representatives, the supervision framework allowing representatives to gain experience (maximum supervision period of six years), and the grounds and process for debarment and notifying the FSCA.

How to Pass 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 fee: Legislated fee of approximately R1 226 (VAT inclusive) per examination per candidate at the Moonstone regulatory examination body; confirm the current fee before booking.

Keys to Passing

Complete 500+ practice questions
Score 80%+ consistently before scheduling
Focus on highest-weighted sections
Use our AI tutor for tough concepts

RE5 Study Tips from Top Performers

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 the Fit and Proper pillars (honesty and integrity, competence including CPD, operational ability, financial soundness) and how they apply to representatives under supervision.

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 fee is a legislated fee, currently about R1 226 (VAT inclusive) per attempt; confirm the latest fee 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.