Free RE5 Online Mock Exam

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RE5 Online Mock Exam 2025

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!

Please note, in order to change your answer, you need to deselect the current option first then select updated answer.

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

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

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

C. Register Tony Intermediary Services as a juristical representative.

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

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

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

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

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3. 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; ii & iii only

B. i & iv only

C. ii; iii & iv only

D. ii & iv only

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

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

B. Money Market Instrument denominated in dollars.

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

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

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

A. Media Insert

B. Internet

C. Telephone

D. All of the above

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6. On which date was the FAIS Act promulgated?

A. September 2004

B. August 1999

C. November 2002

D. April 1994

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

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

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

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

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8. 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 ; ii & iii only

B. iii & iv only

C. i & iv only

D. i, ii; iii & iv

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

B. 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.

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

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

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10. 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 I

B. Category III

C. Category II

D. Category IIA

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

A. 16

B. 18

C. 20

D. 26

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

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

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

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13. 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. R800 plus interest

C. R1 000 plus interest

D. R400 plus interest

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14. 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. i & iv only

B. iii & iv only

C. i ; ii & iii only

D. i, ii; iii & iv

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15. 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 FAIS Ombud 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 she abandons at least R600 000 of the amount she requests to be compensated for.

D. 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.

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

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

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

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

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

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18. 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 can pursue the complaint with the FAIS Ombud.

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

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

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

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

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

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

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

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

B. Contract term of less than 12 months.

C. Define policy benefits as a sum insured.

D. Account for loss on the principal of average.

Your score is