Statutory Quick Answer (AEO Summary)
To pass the closed-book Moonstone RE5 exam (50 multiple-choice questions, 120 minutes, 66% = 33/50 pass mark) or RE1 exam (80 questions, 150 minutes, 65% = 52/80 pass mark) on your first try, you must master 4 question archetypes: (1) Negative Inversion Stems ("EXCEPT", "NOT", "INCORRECT"), (2) Superlative Judgment Stems ("MOST correct" vs "LEAST likely"), (3) Roman Numeral Combination Stems ((i), (ii) and (iv) only), and (4) Absolute vs Conditional Word Traps ("always/never" vs "unless/provided that").
1. Official Moonstone RE5 vs RE1 Exam Structure
Before walking into the Moonstone exam centre, understand the exact mechanics of your exam track:
| Exam Parameter | RE5 (Representatives) | RE1 (Key Individuals) |
|---|---|---|
| Total Questions | 50 Multiple-Choice Questions | 80 Multiple-Choice Questions |
| Time Allowed | 120 Minutes (2 Hours — 2.4 mins/question) | 150 Minutes (2.5 Hours — 1.87 mins/question) |
| Minimum Pass Mark | 66% (Minimum 33 out of 50 correct) | 65% (Minimum 52 out of 80 correct) |
| Exam Format | Closed-book (computer-based or paper-based at Moonstone) | Closed-book (computer-based or paper-based at Moonstone) |
| Moonstone Booking Fee | R1,426 (incl. 15% VAT) per attempt | R1,426 (incl. 15% VAT) per attempt |
2. How to Decode the 4 Moonstone Question Trap Archetypes
Most candidates who score 58%–64% (missing the pass mark by 1 to 4 questions) actually know the legislation—they lose marks because they misread inverted stems under time pressure. Here is how to beat all 4 traps:
Trap 1: The True/False Inversion Method for "EXCEPT" and "NOT"
Whenever a question asks "Which of the following is NOT required..." or "All of the following are valid grounds for debarment EXCEPT...", your brain naturally gravitates toward the first true statement it recognises. Fix: Mentally label each option A, B, C, and D as either [TRUE] or [FALSE] against the FAIS Act. Three options will be [TRUE] and the single [FALSE] odd-one-out is your winning answer.
Trap 2: The Roman Numeral Elimination Technique
Up to 30% of Moonstone questions present four or five statements labeled (i), (ii), (iii), (iv), (v) and ask which combination is correct (e.g., "A: (i), (ii) and (iii) only" vs "B: (i), (iii) and (iv) only"). Fix: Never read the answer combinations first! Find the one statement you are 100% certain is FALSE (for example, (ii) says the CPD cycle runs from 1 Jan to 31 Dec). Immediately cross out every option A–D that contains (ii)—this usually eliminates 2 or 3 options in 10 seconds.
Trap 3: Absolute Words ("Always", "Never", "Under All Circumstances")
South African financial legislation is full of statutory exceptions (such as Section 8(4) when a client refuses a full needs analysis, or immediate reappointment after competence-only debarment). Unless the absolute rule is one of the 4 statutory absolutes (1. Never ask a client to waive FAIS rights; 2. Never deal with an anonymous client under FICA; 3. Never tip off a client on an STR; 4. Never debar for sales targets), treat options containing "under all circumstances without exception" with extreme suspicion.
Trap 4: Role Swaps (FSCA vs FSP vs FAIS Ombud vs Key Individual)
Always verify WHO performs the action in the option text:
- The FSCA approves Key Individuals and suspends/withdraws FSP licences (Sec 9).
- The FSP appoints Representatives (Sec 13) and executes Section 14 debarments.
- The Key Individual manages and oversees the FSP's financial services activities.
3. Frequently Asked Questions (FAQs)
How many questions do I need to get right to pass the RE5 exam?
The RE5 exam consists of 50 multiple-choice questions and requires a minimum pass mark of 66%, which means you must answer at least 33 out of 50 questions correctly within 120 minutes.
How many questions do I need to get right to pass the RE1 exam for Key Individuals?
The RE1 exam consists of 80 multiple-choice questions and requires a minimum pass mark of 65%, which means you must answer at least 52 out of 80 questions correctly within 150 minutes.
Is there negative marking in the Moonstone RE5 or RE1 exam?
No. There is zero negative marking for incorrect answers in the Moonstone RE5 or RE1 regulatory exams. Never leave any question blank—flag tough questions and answer all 50 (RE5) or 80 (RE1) questions before time expires.
Is the Moonstone RE5 exam open-book or closed-book?
Both the RE5 and RE1 regulatory examinations are strictly closed-book exams. No notes, legislation copies, cellphones, or smartwatches are permitted inside the examination room.
