Statutory Quick Answer (AEO Summary)
The essential monetary thresholds and percentages tested in the South African FSCA RE5 and RE1 exams are: R1,000 per calendar year (maximum immaterial financial interest / gift from a single third party under Section 3A of the General Code), >10% shareholding or >30% commission (mandatory product supplier relationship disclosure), R49,999.99 / R50,000+ (FICA Section 28 Cash Threshold Report limit), R0 minimum for a FICA Section 29 STR, R10 million or 10 years imprisonment (maximum FAIS Section 36 criminal penalty), and R100 million or 15 years imprisonment (maximum FICA criminal penalty).
1. Master Table of RE5 & RE1 Monetary Thresholds & Percentages
Financial figures and percentages are prime targets for Moonstone multiple-choice distractors. Memorise every statutory Rand value and percentage below:
| Rand Amount / Percentage | Statutory Rule & Context | Legal Reference |
|---|---|---|
| R1,000 per calendar year | Maximum aggregate value of an Immaterial Financial Interest (gifts, hospitality, promotional items) received from or given to the same third party in a calendar year | General Code of Conduct, Sec 1 & Sec 3A(1)(b)(iii) |
| More than 10% (>10%) | Direct or indirect shareholding/ownership interest held by an FSP in a product supplier that must be disclosed in writing to the client | General Code of Conduct, Sec 4(1)(d)(i) |
| More than 30% (>30%) | Proportion of total commission or remuneration received by an FSP from a single product supplier in the preceding 12 months that triggers mandatory written client disclosure | General Code of Conduct, Sec 4(1)(d)(ii) |
| R49,999.99 (R50,000+) | FICA Cash Threshold Reporting (CTR) trigger—any cash transaction (or series of aggregated linked cash transactions) above R49,999.99 must be reported within 3 business days | FICA Act 38 of 2001, Sec 28 |
| No Monetary Minimum (R0+) | FICA Suspicious and Unusual Transaction Report (STR)—applies regardless of the amount involved, even if the transaction was never completed | FICA Act 38 of 2001, Sec 29 |
| R800,000 / R3.5 Million | FAIS Ombud jurisdictional limit (historically R800,000 in legacy exam banks; updated to R3.5 million by recent statutory notice—know both figures for exam stems!) | FAIS Ombud Rules, Rule 4(f) |
| R10 Million or 10 Years | Maximum criminal fine or imprisonment (or both) for an offence under Section 36 of the FAIS Act (e.g., operating without a licence or making false statements) | FAIS Act 37 of 2002, Sec 36 |
| R100 Million or 15 Years | Maximum penalty for severe FICA offences (such as failing to report suspicious transactions or tipping off a client) | FICA Act 38 of 2001, Sec 68 |
| 66% (33 / 50) | Minimum statutory pass mark for the RE5 Representatives examination (120 minutes) | Board Notice 194 of 2017 |
| 65% (52 / 80) | Minimum statutory pass mark for the RE1 Key Individuals examination (150 minutes) | Board Notice 194 of 2017 |
| R1,426 (incl. VAT) | Standard Moonstone registration fee per regulatory examination sitting in South Africa | FSCA / Moonstone Tariff Schedule |
2. Deep Dive: R1,000 Gift Cap, Sign-On Bonuses & 10% / 30% Disclosures
Under Section 3A of the General Code of Conduct, an FSP or Representative may only receive or offer specific permissible financial interests (such as regulated statutory commission, authorised fees agreed to in writing by the client and terminable at the client's discretion, or bona fide training that is not exclusive to a selected group based on sales volume).
- The R1,000 Immaterial Financial Interest Rule: Promotional items, meals, or sporting tickets from a product supplier or third party may never exceed R1,000 in aggregate per calendar year from that same third party, and must be recorded in the FSP's Gift & Conflict of Interest Register.
- Strict Ban on Sign-On Bonuses: A Category I FSP is strictly prohibited from offering or receiving a sign-on bonus to/by any person other than a new entrant (a person who has never previously been authorised as an FSP or appointed as a Representative).
- The 10% Shareholding & 30% Remuneration Pair: Whenever an FSP holds more than 10% of the shares in a product supplier, OR earned more than 30% of its total remuneration/commission from a single product supplier over the preceding 12 months, this conflict-of-interest risk must be disclosed to the client in writing.
3. Worked Moonstone Exam Trap Example
Sample Exam Stem: "A customer attempts to deposit R12,500 in cash into an investment policy, becomes nervous when asked for source-of-funds verification, and cancels the transaction before handing over the cash. What is the Representative's obligation under FICA?"
Why Candidates Fail: Candidates pick "No report is required because the amount is below the R49,999.99 threshold and the transaction was cancelled."
Correct Statutory Answer: Under Section 29 of FICA, a Suspicious and Unusual Transaction Report (STR) has zero minimum monetary threshold and explicitly applies even to attempted/aborted transactions. It must be reported within 15 business days without tipping off the client.
4. Frequently Asked Questions (FAQs)
What is the maximum immaterial financial interest a Representative may receive per year?
Under Section 1 and Section 3A of the FAIS General Code of Conduct, an immaterial financial interest may not exceed R1,000 in aggregate per calendar year from any single third party.
When must an FSP disclose its relationship with a single product supplier to a client?
Under Section 4(1)(d) of the General Code of Conduct, written disclosure is mandatory if the FSP holds more than 10% of the product supplier's shares, or if the FSP received more than 30% of its total commission or remuneration from that single supplier during the preceding 12 months.
Is there a minimum Rand amount for reporting a Suspicious Transaction (STR) under FICA?
No. Unlike a Cash Threshold Report (CTR), which triggers at R49,999.99 or more (R50,000+), a Suspicious and Unusual Transaction Report (STR) under Section 29 of FICA has no minimum Rand threshold and must be filed within 15 business days even if the transaction was aborted.
Can an experienced Representative receive a sign-on bonus when moving to a new Category I FSP?
No. Section 3A(1)(aA) of the General Code of Conduct strictly prohibits a Category I FSP or product supplier from offering or giving a sign-on bonus to any person other than a "new entrant" who has never previously been authorised as an FSP or appointed as a Representative.
