Free RE5 Online Mock Exam

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RE5 Online Mock Exam 2024

Take our RE5 online mock exam to see how well prepared you are for the real exam. We've prepared 20 questions to test your knowledge. Remember 66% is the pass mark. Good luck!

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Kindly fill in your details in order to write the mock exam.

1 / 20

1. Which ONE of the following disclosures should be made regarding the product supplier?

A. Whether the FSP directly or indirectly holds more than 30% of the product supplier’s shares.

B. The registration number and FSP licence number of the product supplier.

C. Whether the FSP during the last year received more than 10% of total remuneration from the product supplier.

D. The name and contact details of the complaints or compliance department.

2 / 20

2. Which one of the following constitutes a financial product as defined by the FAIS Act? Choose the incorrect option.

A. Money Market Instrument denominated in dollars.

B. A short-term deposit combined with a credit facility.

C. A mortgage bond made available by a local bank.

D. A foreign currency deposit issued by a foreign product supplier.

3 / 20

3. Which of the following are duties of the FAIS Ombud after a determination has been made?
i. Sending a copy of the determination to the Authority.
ii. Providing each party with a copy of determination.
iii. Sending a copy of the determination to the applicable court in no party applies for leave to appeal.
iv. Publication of determination in the Government Gazette.

A. iii & iv only

B. i ; ii & iii only

C. i, ii; iii & iv

D. i & iv only

4 / 20

4. A representative has been debarred by the FSP. Which ONE of the following activities must take place as prescribed under the FAIS Act?

A. The debarred representative must conclude any un-concluded business within 30 days.

B. The clients of the debarred representatives must be transferred to another financial services provider.

C. The clients of the debarred representative must be informed by the representative of the debarment.

D. Any un-concluded business of the representative must be transferred to another representative.

5 / 20

5. A financial services provider that renders intermediary services in respect of financial products on instruction of a client or another provider through the method of bulking must be authorised for which of the following categories?

A. Category III

B. Category II

C. Category I

D. Category IIA

6 / 20

6. Jane Seno invested R1,4 million with Big Bank. She suffered a loss of R1 million on her investment due to misinformation from the representative. Big Bank did not resolve her complaint. Which of the following recourse measures does Jane have?

A. Jane can refer the matter the Banking Adjudicator if Big Bank agrees that the loss of complaint against them can exceed the prescribed loss limit.

B. Jane can refer the matter the Banking Adjudicator if she abandons at least R600 000 of the amount she requests to be compensated for.

C. Jane can refer the matter the FAIS Ombud if Big Bank agrees that the loss of complaint against them can exceed the prescribed loss limit.

D. Jane can refer the matter the FAIS Ombud if she abandons at least R600 000 of the amount she requests to be compensated for.

7 / 20

7. JJ’s Advisors uses Tony Intermediary Services to assist with administration of policies on behalf of product supplier A. Before using the services of Tony Intermediary Services what must JJ’s Advisors do in terms of the FAIS Act?

A. Obtain permission from product supplier A to use Tony Intermediary Services

B. Obtain approval from the Authority to contract Tony Intermediary Services for the services.

C. Request a copy of the FSP license of Tony Intermediary Services.

D. Register Tony Intermediary Services as a juristical representative.

8 / 20

8. How many product categories are there in Category II?

A. 16

B. 26

C. 18

D. 20

9 / 20

9. Which of the following are duties of the Authority if the Authority intents to debar a representative?
i. Ensuring that the un-concluded business of representative is concluded.
ii. Ensuring that the interest of clients is not prejudiced.
iii. Considering any representation made by the representative.
iv. Publishing the intent on the official FSCA website.

A. i & iv only

B. iii & iv only

C. i ; ii & iii only

D. i, ii; iii & iv

10 / 20

10. Which of the following are a duty of the key individual under the FAIS Act?
i. Overseeing the compliance function and reporting to the Financial Sector Conduct Authority.
ii. Debarment of representatives not meeting the fit and proper requirements.
iii. Ensuring that complaints are handled in an effective and fair manner.
iv. Maintaining the register of representatives.

A. i & iv only

B. i; ii & iii only

C. ii & iv only

D. ii; iii & iv only

11 / 20

11. A direct marketer provides financial services by way of which of the following?

A. Telephone

B. Internet

C. Media Insert

D. All of the above

12 / 20

12. Which ONE of the following statements regarding the requirements pertaining to regulated officers as stipulated in the FAIS act is correct?

A. The function of a key individual can be performed by one or more natural persons or by an entity.

B. Representative must enter into a service contract or mandate with an authorised FSP.

C. An FSP must inform the Authority of debarment of a representative within 10 days from date of debarment.

D. The compliance officer is responsible to establish the compliance function within the FSP.

13 / 20

13. Kevin Goodyear took out a funeral policy through a union group. Upon his death the funeral policy did not want to pay out as Kevin did not apply for the paid-up benefits as he was unaware of this stipulation. All his children were nominated as beneficiaries on the policy. His son, John, is not happy with this and want to take the matter further after he already approached the financial services provider. What are the rights of John?

A. John is powerless as only Kevin can pursue the matter

B. John can pursue the complaint with the Ombud for Short-term insurance.

C. John can pursue the complaint with the FAIS Ombud.

D. John must inform the Authority of the behaviour of the product supplier.

14 / 20

14. Good Guys Financial Services wants to reappoint one of their representatives that did not make the necessary disclosures which led to debarment in January 2011. What course of action should be taken?

A. Good Guys must ensure that the representative meets all the fit and proper requirements before submitting an application for re-appointment.

B. The representative should submit a re-appointment application to the FAIS Ombud for the debarment to be lifted.

C. The representative must submit prove to the Authority that he possesses qualities of honesty. Integrity and good standing.

D. ) Good Guys will have to wait until January 2014 until they can submit an application on behalf of the representative for re-appointment.

15 / 20

15. Limited underwriting means where the only requirement a prospective policyholder or life insured must comply with for a product supplier to accept risk or pay a claim include which of the following?

A. The furnishing of a health declaration structured as answers to no more than eight questions relating to specific medical conditions.

B. The requirements as imposed by the policy protection rules under the long- and short-term insurance acts.

C. The requirement that the policy of a life assured must undergo an examination by a general practitioner to declare that the holder is in good health.

D. The requirement that the main policy holder must be under the age of 65 on the date of inception of the policy.

16 / 20

16. FSP A provides advice in life policies and wants to appoint John as representative. Which of the following experience John has can be considered in terms of the FAIS Act?

A. Providing intermediary services 2 years ago at FSP B in relation to long term-insurance products.

B. Providing advice for a local FSP that sells short-term insurance products.

C. Providing advice in long-term insurance for a company situated in London while working under supervision.

D. Providing advice and intermediary services in relation to long-term insurance 6 years ago.

17 / 20

17. Fleck Brokers appointed a new representative on 1 April 2018. The key individual amended the register of representatives on 17 April 2018. What is the maximum penalty that the Authority can issue because of the late amendment of the register of representatives?

A. R2 000 plus interest

B. R400 plus interest

C. R1 000 plus interest

D. R800 plus interest

18 / 20

18. On the 1 of March 20XX Lucky Brokers came to know that one of their representatives, Sonja have defrauded a client whilst being authorised by Lucky Brokers. However, the representative already resigned on the 1 February 20XX and is now a representative of Ace Brokers. What must Lucky Brokers do in this regard?

A. Start debarment proceedings against the representative immediately as the transgression happened while Sonja was still a representative of Lucky Brokers.

B. Lucky Brokers have no obligation as Sonja is no longer a representative of Lucky Brokers.

C. Refer the matter to the FSCA as the matter was only known to Lucky Brokers after Sonja ceased to be a representative of Lucky Brokers.

D. Inform Ace Brokers of the misconduct, in order for Ace Brokers to initiate debarment as Sonja is now a representative of Ace Brokers.

19 / 20

19. Which ONE of the following is a characteristic of an insurance policy that will be deemed to be regulated under the subcategory short term insurance A?

A. Define policy benefits as a sum insured.

B. Includes risks referred to in the Conversion of the SASRIA Act.

C. Account for loss on the principal of average.

D. Contract term of less than 12 months.

20 / 20

20. On which date was the FAIS Act promulgated?

A. April 1994

B. November 2002

C. September 2004

D. August 1999

Your score is