PassPath
Free mock exam
Free, no signup, no card

Free RE5 mock exam: 20 questions, answers explained

By The PassPath TeamFirst published Updated

A free RE5 mock exam and practice test in one: 20 multiple-choice questions across all 8 tasks of the published RE5 syllabus. Sit it as an exam and get marked at the end, or practice and see the answer, the trap and the law after every question. Either way, your topic map builds as you go.

PassPath is an independent study tool. These are practice questions written to the published RE5 syllabus. They are not questions from the Moonstone examination paper, and PassPath is not affiliated with Moonstone or the FSCA.

Looking for past papers? Why there are no RE5 past papers

Questions
20
Tasks covered
8of 8
Takes about
25min
Pass line
66%
Or download all 20 as a PDF

How this page works

Sit it the way the app works

This is a working slice of PassPath, not a list to scroll past. Your answers stay in your browser. We count how many people finish, never what they answer. If you ask us to email your result, we use your address for that and the plan only.

  1. Pick an answer

    Four options, one correct, the same format as the real paper.

  2. Say how sure you are

    Sure and wrong is a blind spot. Those are the answers you will not slow down for on the day.

  3. See the why and the trap

    After each question in practice mode, or all at once when you mark the exam.

Before you start

The 6 traps RE5 questions use

The wrong options in these 20 questions fall into six patterns. Learn the patterns and the options start sorting themselves.

  • Look-alike numbers

    The right number tied to the wrong trigger. Three years from the transaction date is not three years from when the client found out.

    See question 1

  • Right rule, wrong person

    The FSP, the key individual, the representative and the compliance officer each carry their own duties. The duty is real, but it belongs to someone else.

    See question 2

  • Close but not the Act's word

    One word away from the definition. A key individual is a natural person, so "natural or juristic" is wrong.

    See question 3

  • Absolute words

    Every, each, always, never. One word can turn a true rule false. Not every cash transaction needs a cash threshold report.

    See question 14

  • True, but not the answer

    The option states something real. It just answers a different question, or belongs to a different Act.

    See question 6

  • The missing exception

    The option offers a way out the law does not give, or forgets the one it does. There is no "no harm, no duty" rule for conflicts of interest.

    See question 4
T1

Task 1: The FAIS Act as a regulatory framework

2 questions

What the FAIS Act is for, the financial services it covers and the categories an FSP is licensed in. It also covers the compliance officer's role.

  1. T1: FAIS frameworkQuestion 1 of 20

    Capital Legacy plans to provide a discretionary financial service. In which ONE of the following main categories must it be authorised?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: C. Category II

    A discretionary financial service (the provider making buying decisions on the client's behalf) requires Category II (Discretionary FSP) authorisation.

    The trap in option A

    Category I (Ordinary) acts on client instruction only, not discretionarily.

    Source

    Categories of authorisation; FAIS Act s7(3)

    The eight RE5 task areas
  2. T1: FAIS frameworkQuestion 2 of 20

    The periodic compliance report submitted to the FSCA must be signed by whom?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: B. Both the Compliance Officer (who completed it) and the Key Individual.

    Section 17(4)(a) requires the compliance officer to submit reports to the Authority 'in the manner and regarding the matters, as from time to time determined by the registrar by notice on the official web site'. That manner is set by the compliance report notices, FSCA FAIS Notices 32, 33 and 34 of 2018, whose signature pages carry two separate blocks: 'COMPLIANCE REPORT COMPLETED AND SIGNED BY FSP', naming and signed by a key individual, and 'COMPLIANCE REPORT COMPLETED AND SIGNED BY COMPLIANCE OFFICER', signed by the compliance officer, who also makes the declaration. Both signatures are required, and the notices state that 'all unsigned reports will be regarded as "Not Submitted"'.

    The trap in option A

    The form carries two signature blocks, and the notices state that unsigned reports are regarded as 'Not Submitted'.

    Source

    FAIS Act s 17(4)(a), read with the compliance report notices FSCA FAIS Notice 32 of 2018 (Cat I), 33 of 2018 (Cat II and IIA) and 34 of 2018 (Cat III)

    What a key individual actually does
T2

Task 2: Maintaining an FSP licence

4 questions

Keeping a licence once you have it: displaying it, staying fit and proper, undesirable practices and the penalties for offences under the Act.

  1. T2: FSP licenceQuestion 3 of 20

    Which FSP correctly complies with the requirements for the display of the licence under section 8(8) of the FAIS Act?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: A. FSP B displays a certified copy of the licence in a frame at every business premises.

    Section 8(8) requires a certified copy of the licence (certified by the FSCA) to be displayed prominently and durably at every business premises where financial services are rendered.

    The trap in option D

    It must be a certified copy (not the original) and displayed at every premises, not only the head office.

    Source

    FAIS Act s8(8)

    The eight RE5 task areas
  2. T2: FSP licenceQuestion 4 of 20

    Once the FSCA publishes a final notice declaring a practice undesirable, from when may the FSP and its representatives no longer carry on that practice?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: D. From the date of publication of the declaration. It must stop at once.

    Section 34(4): from the date of publication of the declaration, the FSP/representative may no longer carry on the declared practice. It must stop immediately.

    The trap in option A

    There is no 21-day grace period after publication; cessation is immediate.

    Source

    FAIS Act s34, s34(4)

    The eight RE5 task areas
  3. T2: FSP licenceQuestion 5 of 20

    What is the maximum criminal penalty for a person convicted of an offence under section 36 of the FAIS Act?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: D. A fine of up to R10 000 000, imprisonment of up to 10 years, or both.

    A person convicted of a s36 offence is liable to a fine of up to R10 000 000, imprisonment of up to 10 years, or both.

    The trap in option B

    The maximum imprisonment is 10 years, not 5.

    Source

    FAIS Act s36

    The eight RE5 task areas
  4. T2: FSP licenceQuestion 6 of 20

    A representative is considering a high-pressure sales tactic to close more deals quickly. To check whether the conduct could constitute an undesirable practice, which test reflects the section 34(2) grounds the representative should apply?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: A. Would the conduct harm FSP/client/public relations, or unreasonably prejudice, deceive or unfairly affect clients, or defeat an objective of the FAIS Act?

    Section 34(2) sets out the grounds that guide a declaration of an undesirable practice: whether the practice has or is likely to have the effect of harming the relations between providers and clients or the general public, unreasonably prejudicing any client, deceiving any client or unfairly affecting any client, and whether allowing it to continue will or is likely to defeat one or more objects of the Act. High-pressure selling is exactly the conduct that test is aimed at.

    The trap in option C

    A practice is declared undesirable by notice in the Gazette under s 34(1); a penalty against another provider is not the test.

    Source

    FAIS Act s 34(2)

    The eight RE5 task areas
T3

Task 3: The role of the key individual

1 question

Who a key individual is and what they must manage and oversee, including the FSP's duties over its representatives and its compliance officer.

  1. T3: Key individualsQuestion 7 of 20

    In terms of section 1 of the FAIS Act, a key individual of an FSP is a person who:

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: A. is a natural person responsible for managing or overseeing the rendering of financial services by the FSP.

    Section 1 of the FAIS Act defines a key individual as a natural person responsible for managing or overseeing the rendering of financial services by the FSP, alone or with others in a similar position of authority.

    The trap in option C

    The KI function can only be performed by a natural person, never a juristic person.

    Source

    FAIS Act s1 (definition of key individual), paras (a) and (b)

    Key individual requirements
T4

Task 4: The Codes of Conduct

5 questions

The General Code of Conduct in practice: conflicts of interest, disclosure, advertising, advice, client funds and complaints.

  1. T4: Codes of ConductQuestion 8 of 20

    An FSP receives R750 in cash from a client. By when must it deposit the funds into the separate client bank account?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: C. Within one business day

    Cash received without bank intermediation must be deposited into the separate client account within one business day.

    The trap in option D

    The receipt is issued immediately, but the deposit deadline is within one business day.

    Source

    GCOC s10(1)

    The eight RE5 task areas
  2. T4: Codes of ConductQuestion 9 of 20

    What should an FSP disclose to a client regarding the financial product?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: B. The nature and extent of benefits, as well as any exclusions of liability

    Section 7(1)(c) requires full and appropriate information at the earliest reasonable opportunity, including under (ii) the 'nature and extent of benefits to be provided, including details of the manner in which such benefits are derived or calculated and the manner in which they will accrue or be paid', and under (vii) 'concise details of any special terms or conditions, exclusions of liability, waiting periods, loadings, penalties, excesses, restrictions or circumstances in which benefits will not be provided'.

    The trap in option C

    Section 7(1)(c)(vi) requires disclosure of the commission or fees payable to the provider, not the FSP's profit margin on the product.

    Source

    GCOC s 7(1)(c)(ii) and s 7(1)(c)(vii)

    The eight RE5 task areas
  3. T4: Codes of ConductQuestion 10 of 20

    Under the General Code of Conduct, what must a provider do regarding conflicts of interest?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: B. Avoid them where possible and, where not possible, mitigate and disclose them to the client

    Section 3(1)(b) requires that 'a provider and a representative must avoid and where this is not possible mitigate, any conflict of interest between the provider and a client or the representative and a client'. Section 3(1)(c) then requires the provider or representative, 'in writing, at the earliest reasonable opportunity', to disclose the conflict to the client, including the measures taken to avoid or mitigate it. Avoid, mitigate, disclose - in that order.

    The trap in option A

    Section 3(1)(b) is unqualified: the conflict must be avoided, or mitigated where avoidance is not possible, whatever the provider believes the outcome will be.

    Source

    GCOC s 3(1)(b) and s 3(1)(c); s 3A(2)(b)(i) (conflict of interest management policy)

    The eight RE5 task areas
  4. T4: Codes of ConductQuestion 11 of 20

    What is the primary purpose of the Codes of Conduct established under the FAIS Act?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: C. To safeguard the interests of clients and ensure they can make well-informed decisions

    Section 16(1) requires a code of conduct to be drafted so that clients 'will be able to make informed decisions' and so that 'their reasonable financial needs regarding financial products will be appropriately and suitably satisfied'. Once published under s 15(1)(b) the code becomes binding on all authorised financial services providers and the representatives referred to in it.

    The trap in option A

    Advertising is regulated by the Code only so far as it protects clients; giving FSPs a marketing framework is not its object.

    Source

    FAIS Act s 15 and s 16(1)

    The eight RE5 task areas
  5. T4: Codes of ConductQuestion 12 of 20

    After the FSP's internal process, within what period must the FSP inform the complainant that the matter may be referred to the Ombud if it has not been resolved?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: D. If not resolved within six weeks of receipt

    If the FSP has not resolved the complaint within six weeks of receipt, it must inform the complainant that the matter may be referred to the Ombud; the complainant then has six months from the final response to refer it.

    The trap in option C

    Six months is the complainant's referral window, not the FSP's resolution period.

    Source

    FAIS Act s27(3); Ombud Council Rules 2024

    The eight RE5 task areas

Halfway checkpoint

Four tasks in. Here is where you stand.

Answer the questions above to see your pace against the pass line.

Keep going: Task 5Get your full readiness score free
T5

Task 5: Record keeping

1 question

What records an FSP and an accountable institution must keep, and what may sit in the separate client account.

  1. T5: Record keepingQuestion 13 of 20

    Dlamini Brokers holds client funds in the separate bank account the General Code of Conduct requires. To make sure the account is never short when the bank levies its monthly fees, the firm leaves R5 000 of its own money in it as a buffer. Which statement about the money in that account is correct?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: C. The account may hold clients' funds only and not the firm's own money, and the bank charges on the account are for the firm's account in any event, apart from charges on a client's own deposit or withdrawal.

    Section 10(1)(d) of the General Code requires a provider who receives or holds client funds to 'open and maintain a separate account, designated for client funds, at a bank and - ... (ii) ensure that the separate account only contains funds of clients and not those of the provider; (iii) pay all bank charges in respect of the separate account except that bank charges specifically relating to a deposit or withdrawal of the funds of the client are for the client's own account'. A buffer of the firm's own money breaches subparagraph (ii), and subparagraph (iii) shows why the buffer is not needed: the charges on the account are the provider's own cost.

    The trap in option B

    The first half is right but the second is not. Subparagraph (iii) puts 'all bank charges in respect of the separate account' on the provider, and carves out only the charges 'specifically relating to a deposit or withdrawal of the funds of the client'.

    Source

    General Code of Conduct BN 80 of 2003 s10(1)(d)(ii), (iii) and (iv), read with s10(1)(d) and s10(1)

    The eight RE5 task areas
T6

Task 6: The FIC Act and anti-money laundering controls

1 question

The FIC Act: what the Financial Intelligence Centre is for, the records an accountable institution keeps, cash threshold reports and the offences.

  1. T6: FIC / AMLQuestion 14 of 20

    Which cash transaction amount triggers a cash threshold report to the FIC?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: B. Large cash transactions exceeding R49 999.99 (i.e. R50 000 and above)

    A cash threshold report is required for cash paid to or received from a client of more than R49 999.99 (R50 000 and above), including multiple smaller transactions that cumulatively exceed the threshold.

    The trap in option A

    s28 is triggered only where the cash exceeds the prescribed amount, which reg 22B sets at R49 999,99.

    Source

    FIC Act s28 read with MLTFC Regulations reg 22B (prescribed amount R49 999,99, effective 14 November 2022)

    The eight RE5 task areas
T7

Task 7: Complaints and the FAIS Ombud

1 question

What counts as a complaint under the FAIS Act, and when the FAIS Ombud may still deal with one.

  1. T7: Ombud complaintsQuestion 15 of 20

    Thandi telephones Khanya Advisory, an authorised FSP, and says that the representative who sold her a policy pressured and belittled her throughout the sale. She puts nothing in writing, and she accepts that she has lost no money. Does what she alleges fall within the definition of a 'complaint' in section 1 of the FAIS Act?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: A. Yes. One limb of the definition is an allegation that the provider or representative treated the complainant unfairly, and that limb carries no prejudice requirement.

    The section 1 definition has three limbs. A complaint is one in which it is alleged that the provider or representative '(a) has contravened or failed to comply with a provision of this Act and that as a result thereof the complainant has suffered or is likely to suffer financial prejudice or damage; (b) has wilfully or negligently rendered a financial service to the complainant which has caused prejudice or damage to the complainant or which is likely to result in such prejudice or damage; or (c) has treated the complainant unfairly'. The prejudice element sits in limbs (a) and (b) only. Limb (c) has none, and nothing in the definition requires writing.

    The trap in option C

    The prejudice element attaches to limbs (a) and (b) of the definition, not to limb (c). Limb (c) reads simply that the provider or representative 'has treated the complainant unfairly'.

    Source

    FAIS Act s1 (definition of 'complaint', limbs (a), (b) and (c)); Ombud Council Rules for the Ombud for Financial Services Providers, 2024, Rule 5(1)

    The eight RE5 task areas
T8

Task 8: Operating as a representative

5 questions

A representative's working life: CPD, experience and qualifications, the scope of an appointment, and debarment.

  1. T8: RepresentativesQuestion 16 of 20

    Over what period does the continuous professional development (CPD) cycle for a representative run?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: A. 1 June to 31 May.

    The CPD cycle runs from 1 June to 31 May. CPD begins once a representative has met all competency requirements, or six years from DOFA, whichever is earlier.

    The trap in option C

    The cycle does not run March to February; it commences on 1 June and ends 31 May of the following year.

    Source

    BN 194 of 2017 s 1 (definition of CPD cycle)

    Does the RE5 expire? CPD explained
  2. T8: RepresentativesQuestion 17 of 20

    Lady Jane was debarred 6 months ago solely because she did not pass her RE5 within the prescribed time. BigTime Advisors now wishes to bring her on, and she has since passed the RE5. What is the position on reappointment?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: C. She may be reappointed as soon as the competency requirement is met; no 12-month wait applies to a competency-based debarment.

    Section 14(9) bars a debarred person from rendering financial services 'unless the person has complied with the requirements referred to in section 13(1)(b)(ii) for the reappointment of a debarred person'. Those requirements are in Board Notice 82 of 2003, which requires at least 12 months to have elapsed since the debarment date, 'unless the debarment was consequent upon the applicant not having qualified as contemplated in section 13(2)(a) of the Act, and the applicant has within that period qualified as so contemplated'. Lady Jane's debarment was purely for not passing the RE5 in time and she has since passed, so the 12-month bar does not apply. The Notice's other standing conditions - unconcluded business properly concluded, complaints and proceedings resolved, fit and proper met - still have to be satisfied.

    The trap in option A

    The 12-month period in Board Notice 82 of 2003 is expressly subject to the exception for a debarment that followed a failure to qualify.

    Source

    Board Notice 82 of 2003, determined under FAIS Act s 13(1)(b)(ii); FAIS Act s 14(9)

    Your RE5 deadline from DOFA
  3. T8: RepresentativesQuestion 18 of 20

    Jane Seno was appointed under supervision at Big Bank on 1 February 2012. In March 2014 she moved to City Bank, still under supervision. By when must Jane complete her recognised qualification?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: C. 31 January 2018.

    The recognised qualification must be obtained within 6 years of the date of first appointment (DOFA). Jane's DOFA is 1 February 2012, so the 6-year period runs to 31 January 2018; moving FSP does not reset DOFA.

    The trap in option B

    This wrongly resets DOFA to the March 2014 move to City Bank.

    Source

    BN 194 of 2017 (recognised qualification, 6 years from DOFA)

    Your RE5 deadline from DOFA
  4. T8: RepresentativesQuestion 19 of 20

    On which form is the appointment of a representative notified, per the current FSCA requirement?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: D. Form 5 (FSCA FAIS Notice 29 of 2023).

    The appointment of a representative is notified on Form 5 per FSCA FAIS Notice 29 of 2023.

    The trap in option B

    FSCA FAIS Notice 1 of 2018 covers an FSP's licence application, not representative appointment.

    Source

    FSCA FAIS Notice 29 of 2023 (Form 5)

    The eight RE5 task areas
  5. T8: RepresentativesQuestion 20 of 20

    On 1 March, Lucky Brokers discovers that their representative Sonja defrauded a client while authorised by them. Sonja resigned on 1 February and is now a representative of Ace Brokers. The misconduct only became known to Lucky Brokers after she left. What must Lucky Brokers do?

    Pick an answer, then tell us how sure you are.

    Show answer

    Why

    Answer: A. Refer the matter to the FSCA, because the misconduct only became known after Sonja ceased to be their representative.

    The reason for debarment must have occurred and become known to the FSP while the person was still a representative. Because the misconduct only became known after Sonja left, Lucky Brokers cannot debar and must refer the matter to the FSCA.

    The trap in option C

    Ace Brokers cannot debar for conduct that occurred at Lucky Brokers before Sonja was its representative.

    Source

    FAIS Act s 14

    The eight RE5 task areas

Your result

Answer a question to see your topic map

Not started

Pass line 66% · exam-ready line 76%

StrongNeeds workWeakUntestedProvisional (limited data)

20 questions is a sample, not a prediction. The real paper is 50.

Next best action

20 questions is a sample. In PassPath the same topic map is built from the full RE5 bank and sharpens every time you practice.

Check my readiness freeSee what is in the full RE5 course

Mixed up a deadline or a threshold? Check every RE5 number on one page.

R1 300Every sitting of the RE5, including a rewrite
R299PassPath RE5, once, for 180 days. Full refund within 7 days of purchase if you have not started the course content.

Exam fee per sitting, VAT inclusive: Moonstone, Regulatory Examination Registration, 1 October 2024.

Not ready to sign up? Take your result with you.

We will email your score, your topic map and a 7-day plan for your weakest task.

See the privacy policy.

Answer at least one question first, so there is a result to send.

Scoring

What your score out of 20 means

The real RE5 needs 33 of 50, which is 66%. On 20 questions that line sits at 14. A set of 20 is a sample, not a prediction of your result on the day.

ScoreWhat it suggestsDo this next
16 to 20Above the exam-ready line with a margin, on this sample.Confirm it under exam conditions, then book a sitting.
14 to 15On the pass line. One bad day takes you under.Check your readiness and work on the amber tasks.
13 or belowBelow the pass line today.Follow a realistic study plan before you pay R1 300 to write.

Download

RE5 questions and answers PDF

All 20 questions, answer key on the last pages

Print it, share it with your study group, work through it offline. No email needed.

Download the PDF

Going further

Where to find more RE5 practice questions

Start with the official material, because it is what the exam is written against. The FSCA publishes the RE5 qualifying criteria, the list of what each task covers, and Moonstone publishes a preparation guide for the RE1 and RE5 with the format, the length and the pass mark.

To work through the syllabus on paper, our RE5 qualifying criteria checklist (PDF) puts all 47 criteria on two pages, free and with no signup.

INSETA publishes RE support learning material on its website, set out task by task for the RE5. If you work in banking, ask BankSETA or your employer's training team what support is on offer this year before you pay for anything.

Be careful with question PDFs passed around on file-sharing sites and in study groups. Nobody checks them, and the law moves under them: older material can still describe the FAIS Ombud's 2003 rules, which the Ombud Council Rules of 2024 replaced. A question that was right in 2019 can be wrong today.

If you want a larger bank, paid options range from printed study packs to online courses with mock exams. Our comparison of RE5 study options sets them side by side, with prices and what each one includes.

PassPath is one of those options: a readiness score against the real pass line, practice aimed at your weakest tasks, and timed mocks at the real paper's length.

Questions people ask

Frequently asked questions

No. The Moonstone examination paper is confidential, and nobody selling "real questions" has them lawfully. These are practice questions written to the published RE5 syllabus, the FSCA's qualifying criteria, in the same four-option format.

Both use the same 20 questions. Exam mode holds every answer until you press Mark my exam, like the real paper, and counts anything you left blank as wrong. Practice mode shows the answer, the trap and the source straight after each question.

Not unless you ask. Exam mode has an optional timer at the real paper's pace: 120 minutes for 50 questions, scaled to 48 minutes for these 20. It shows the time used and the time left, and it never submits for you.

50 multiple-choice questions, with 2 hours to answer them, according to Moonstone's preparation guide for the regulatory examinations. It is written in person at a Moonstone venue.

33 of 50. The FSCA sets the pass mark at 65%, which on 50 questions is 32.5, and with no half marks the first score that clears it is 33, or 66%. On this 20-question mock the same line is 14.

Yes. All 20 questions on this page are in a free PDF, questions first and the answer key with its sources on the last pages. No email needed.

Know your number before you pay R1 300 to write.

A free readiness check shows where you stand against the real pass line, task by task.

Check my readiness free