RE5 exam questions and answers pdf 2021

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1.The FAIS Act requires that the FSP/Key Individual must ensure that the Representatives are fit and proper at recruitment and appointment stage and secondly that the Representatives remain fit and proper throughout their employment.Consider the following statements carefully and then choose the statement that is FALSE.
2. Consider the following statements carefully and then choose the statement that is FALSE.
3. Which of the following requirements are not applicable to Custody of Client Funds and Premiums?
4. Consider the following statements carefully and then choose the statement that is FALSE.
5. Which of the following statements are TRUE regarding record keeping obligations in terms of the Act?
6. Consider the following statements carefully and then choose the statement that is FALSE.
7. The FAIS Act requires that a Key Individual needs to be appointed in certain circumstances.Choose the INCORRECT statement:
8. Once a Representative has been removed from the FSP Representative's register, who needs to be informed in writing of this?Choose one answer.
9. Which of the following statements is TRUE regarding record keeping?Choose one answer.
10.Which of the statements is TRUE regarding the lapsing of a license?Choose one answer.
11. Whose responsibility is it to ensure that client information is securely filed and protected against any misuse by any unauthorised person?Choose one answer.
12. Providers such as FSPs and their Representatives have specific duties when giving financial advice and representations to their clients. Which statement is TRUE?
13. The person appointed in the supervisory capacity has certain duties. Which statement below is INCORRECT and is NOT included in their duties?
14. All Key Individuals must meet certain criteria to be approved. Which one of the following statements is INCORRECT?
15. If a FSP who wants to register as a Sole Proprietor he/ she must have meet certain criteria before the licence is granted. Which statement is INCORRECT?
16. When a Representative is debarred from the FAIS Register, what would the purpose be?Choose the CORRECT one.
17. How often should the Representative register be updated?
18. What is the CORRECT description of a Category III FSP?Choose one answer.
19. Which of the following statements is FALSE?
20. What is the definition of Money Laundering? Choose the FALSE statement.
21. A licence lapses under certain circumstances. Choose the INCORRECT Statement.
22. When is a company technically insolvent? Choose the CORRECT description.
23. There are certain policies regarding disclosure to a client. With whom does the duty of disclosure lie? Choose the CORRECT one.
24. Certain records need to be kept in terms of the FAIS requirement. Which one of the statements is TRUE?
25. When telephonic advertising is done, what must be kept as proof of a client’s acceptance of the transaction? Choose the CORRECT statement.
26. It is important to record changes to a policy. Why is this so? Choose the CORRECT statement.
27. If a client wants to lodge a complaint, what is the procedure that can be followed? Choose the CORRECT one.
28. There are certain disclosures that a Representative needs to disclose to a client. Choose the INCORRECT statement.
29. Who is responsible for approving Representatives?
30. Several Code of Conducts have been published to date.Which of the following is NOT a Code of Conduct?
31. Competency requirements include the following:
32. What does section 14(2) of the FAIS Act allow?
33. When can a policy according to the FAIS Act be regarded as invalid? Choose the CORRECT one.
34. What is the aim of FICA? Choose the INCORRECT one.
35. Money launders try to achieve certain main objectives. Choose the one that describes their objective best.
36.GPFAdvisory Services(Pty)Ltd is looking to appoint a Category III Representative. Which of the following individuals meet the general and specific experience requirements?
37. Below is a list of some provisions a Code of Conduct might relate to. Which one is FALSE?
38. Which of the following statements is TRUE?
40. There are certain procedures to be considered with regard to debarment – choose the CORRECT statement.A FSP/key individual must:
41. Which of the following statements are TRUE:Choose one answer.
42. What are the main duties of accountable institutions in respect of FICA? Choose the CORRECT one.
43. Indicate which of the following sectors are NOT classified as financial services.
44. What is a debenture?Choose one answer.
45. Which of the following statements is FALSE?Choose one answer.
46. What does Section 14A of the FAIS Act allow for?
47.There are certain powers that a supervisory body has.Choose the INCORRECT one.
48. The experience requirements for a CATEGORY II FSP Representative are:
49. What are the client’s rights if he / she wanted to terminate an agreement? Choose the CORRECT statement.
50. In terms of the FAIS Act, records are to be kept in a certain way. Choose the CORRECT statement.
51. Where a Representative adds a product category, he/she is required:
52. In which year did the Financial Intelligence Centre Act (FICA) become effective?
53. What is the purpose of Continuous Professional Development?
54. The sole proprietor FSP has different roles. Choose the CORRECT statement.
55. Who determines if a Key Individual is Fit and Proper? Choose the CORRECT one.
56. Which of the following is TRUE?A Representative:
57. Which of the following apply to the FIC Act?
58. Which of the following statements is FALSE?
59. Which of the following requirements are not applicable when a FSP receives money from a client without a bank being involved?
60. If a Representative does not meet one or more of the competence requirements by the cut off date:
61. In which year was the FAIS Act promulgated?
62. Which actions define a breach in honesty and integrity within the FAIS Act? Choose the CORRECT description.
63. The Code of Conduct makes it clear that Representatives have to do a client profile assessment before offering advice. Choose the CORRECT statement.
64. An administrative FSP has certain obligations towards the client. Choose the CORRECT one.
65. What is the definition of the “Forex Code”? Choose the INCORRECT one.
66. What is the definition of “Financial Services” as indicated in the FAIS Act?
67. A discretionary FSP renders certain services. Choose the INCORRECT one.
68. An FSP must have certain procedures in place. Choose the CORRECT statement.
69. A sole proprietor FSP is which of the following: Choose the FALSE statement.
70. As the owner of a policy, you as the client have to meet certain obligations. Choose the CORRECT one.
71. What is the POCA? Choose the correct definition.
72. What is the definition of “unlawful activity”?
73. A Compliance Officer has certain responsibilities, choose the INCORRECT statement.
74. Choose the CORRECT statement that an individual has to register as a Representative? Choose one answer.
75. Which ONE of the following activities does NOT qualify as a Continuous Professional Development (CPD) activity?
76. Who is the FSPs licence granted by? Choose the CORRECT statement.
77. What are the key licensing requirements for a Representative? Choose the CORRECT statement below.
78. What are the two main requirements of giving advice to clients?
79. When may an urgent suspension or withdrawal of a licence happen? Choose the CORRECT statement.
80. What do Financial Services include? Choose the CORRECT statement.
81. When the FAIS Registrar informs the FSP to reinstate loss or damage, the FSP must do so within a prescribed period of time. Choose the CORRECT statement.
82. Disclosures on a financial product to a client that were supplied verbally must be confirmed in writing within a certain period of time. Choose the CORRECT one.
83. Choose the CORRECT statement which describes what type of complaints the FAIS Ombud can deal with.
84. The FAIS Registrar may consider certain information when an FSP applies for a licence. Choose the statement which is NOT considered.
85. What is the purpose of disclosures to a client within the FAIS Act? Choose the CORRECT statement.
86. Choose the CORRECT statement that would describe the purpose of debarment.
87. When can a licence of ANY FSP lapse? Choose the CORRECT statement.
89. Who is the person PRIMARILY responsible for the debarment of a Representative? Choose the CORRECT statement.
90. What is the difference between the suspension and the lapsing of a licence? Choose the CORRECT statement below.
88. Under what type of circumstances could a Representatives debarment happen?
91. When a FSP removes a Representative's name from its Register for the purpose of debarment, what must the FSP do? Choose the CORRECT statement.
92. Choose ONE of the statements below that is an example of unethical behaviour in terms of FAIS
93. Who does the accountability for being FAIS compliant fall to? Choose the CORRECT statement.
94. Why are Representatives debarred? Choose the CORRECT statement.
95. Where a FSP voluntarily cancels its license the licence will only be lapsed. Choose the CORRECT statement that describes a lapsed licence.
96. The FAIS Registrar may withdraw the FSPs licence at any time. Choose the CORRECT reasons below why this could be done.
97. Choose the description of “withdrawal” of a licence by the FAIS Registrar.
98. When can a licence that has been withdrawn by the FAIS Registrar be reinstated? Choose the CORRECT statement.
99. Choose the CORRECT explanation of a suspended licence.
100. Can a suspended licence be reinstated? Choose the CORRECT statement.
101. A FSPs licence is granted by which governing body? Choose the CORRECT statement.
102. To whom does the FAIS legislation apply? Choose the CORRECT statement.
103. When may the FAIS Registrar suspend a FSPs licence? Choose the CORRECT statement.
104. Which one of the following fit and proper requirements does not apply to Representatives?
105. Under which of the following circumstances may a licence lapse? Choose the CORRECT one.
106. In addition to a FSP who is authorized to debar a Representative or FSP? Choose the CORRECT statement
107. Which of the following is NOT part of the monitoring role of the Compliance Officer?
108. Choose the CORRECT statements which are classed as offences in FAIS.
109. How often does the FSP have to pay the licensing fee? Choose the CORRECT statement.
110. If a FSP is licenced, does the Key Individual that is employed by the FSP have to be licenced too? Choose the CORRECT statement.
111. There are certain details of their licence that a FSP needs to disclose to a client. Choose the CORRECT statement.
112. What might prompt a FSP to debar a Representative? Choose the CORRECT statement.
113. When may Representatives still act as Representatives once debarred? Choose the CORRECT statement.
114. Direct supervision means:
115. How often should the Representative register be updated?
116. The FSB has three FAIS departments. Which of the following is not one of these?
117. Which one of the products listed below is not a “Financial Product”?
118. Debarment is:
119. Ongoing level of supervision means:
120. When may a sole proprietor FSP lapse its FAIS license voluntarily? Choose one answer.
121. Which FAIS Department should be contacted with regards to Profile Changes?
122. Telephonic conversations regarding the provision of financial services must be recorded and the records kept after the termination of the service being provided for at least:
123. A financial interest can be described as many things. Which statement does not describe a financial interest? Choose the INCORRECT one.
124. Choose the CORRECT statement which describes the financial soundness requirements.
125. Which section of the FAIS Act allows the Registrar to debar both Key Individuals and Representatives?
126. What does FAIS stand for?
127. From the statements listed below, which one is FALSE? Money laundering happens throughout the financial services sector and it is important that:
128. The difference between lapsing, suspension or withdrawal of a FSP licence is:
129. Key Individuals need to ensure that there are adequate documented processes in place to:
130. When did the FAIS Act become effective?
131. Which of the following is not a control measure introduced by FICA?
132. What is the definition for an “intermediary service”?Add description here!
133. Which Regulatory Examinations for Representatives needs to be passed before the representative can assume his/her role?Choose the CORRECT one.
134. Which of the following is NOT a fit and proper requirement for Representatives?
135. When appointed by the FSP, the Key Individuals are then approved by which entity?
136. Who is the regulatory body of the FAIS Act?
139. Where would you find the prescribed steps to be taken and the action to be taken when Representatives give advice to clients?
140. From which body must the FSP get "approval" before sequestration, winding-up or closure of the business?
141. If the Registrar is convinced that these "requirements" regarding the ruling found are met, choose the CORRECT procedure that will happen after the FSP is informed.
142. One of the following statements reflects all the actions with regard to complaints that the FAIS Ombud is entitled to use his discretion with. Choose the CORRECT statement.
143. FSP’s must register for a licence with the FAIS ACT. Choose the CORRECT statement regarding licencing.
144. Choose the INCORRECT statement regarding the requirements that the FAIS Representative is not required to disclose according to the FAIS General Code.
145. Representatives have to keep their knowledge up to date by completing CPD activities over a 3-year cycle, depending on their category or sub-category. Choose the CORRECT time frame that needs to apply.
146. Which statement is INCORRECT and does NOT describe the “intermediary service” within the FAIS act?
147. The FSP must inform the Registrar in writing of the removal of a Representative's name from its Register. What is the time period in which this must be done? Choose the CORRECT statement.
148. Which of the following statements is TRUE regarding the suspension, withdrawal and lapsing of a licence?
149. Choose the CORRECT statement which is a condition for re-appointment of a FSP after debarment as a result of causes other than a lack of competence?
150. What are the reasons for debarment of a Representative by a FSP? Choose the CORRECT reason listed below.
151. The Registrar is allowed to publish information on the debarment of representatives. Choose the CORRECT reason that the Registrar may do this.
152. There are certain steps a FSP has to take once he has debarred a Representative. What are the steps to be taken? Choose the CORRECT statement.
153. When the Registrar intends to suspend or withdraw a licence, what are the licensee’s rights regarding the intention of the Registrar? Choose the CORRECT statement.
154. What are the powers that the Registrar has dealing with non-compliance by a FSP or Representative? Choose the CORRECT statement below.
155. Choose the correct example of a FSP contravening FAIS in a material matter.
156. In terms of Section 34 of the FAIS act, WHO may declare a particular business practice to be undesirable? Choose the CORRECT statement.
157. When can the licence of a financial Service Provider be suspended or withdrawn? Choose the CORRECT statement.
158. When can the licence of a FSP lapse? Choose the CORRECT statement.
159. What must the FAIS Registrar inform the FSP of when considering the suspension of their licence? Choose the CORRECT statement.
160. What are the main objectives of the FAIS Act? Choose the CORRECT statements.
161. Who may impose conditions regarding the FAIS licence applied for? Choose the CORRECT statement.
162. Once a licence has been issued by the FAIS Registrar, what are the requirements of the FSP regarding such a licence? Choose the CORRECT statement.
163. The FAIS Registrar may, by notice in the Gazette, declare a particular business practice undesirable. What would they consider to be undesirable business practices?Choose
the CORRECT statement
164. When does an individual have to register as Representative?
165. The key licencing requirements for Representatives include certain criteria. Choose the CORRECT one.
166. The Registrar issues the licence for a FSP. What may the FSP apply for regarding licensing? Choose the CORRECT statement.
167. There are certain duties and responsibilities imposed on FSPs. Choose the CORRECT statements which describe this.
168. May the FAIS Registrar use information obtained from external sources to debar a Representative or FSP? Choose the CORRECT statement.
169. For the compliance and non-adherence to the FAIS Act and related legislation, who within an FSP is overall responsible?
170. Read each statement carefully and then choose the statement that is FALSE.

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