Free CMFAS RES 5 Mock Exam Questions & Papers (2026 Syllabus Examples)
Looking for free RES 5 mock exam questions? We break down 5 tricky "Situational" examples from the 2026 syllabus and explain the answers.
If you memorized the textbook but are still failing your mock exams, you are likely a victim of the "Application Trap."
Under the new 2026 RES 5 syllabus, the exam has shifted away from simple memory questions (e.g., "What is the penalty for X?") to complex situational questions (e.g., "In this scenario, what is the MOST appropriate action?").
Most candidates look for free CMFAS RES 5 mock exam papers online to practice, but many are outdated or not relevant to the new syllabus.
Below, we have created a free mini-mock consisting of 5 tricky sample questions that frequently trip up candidates, along with the logic you need to solve them.
✨ TL;DR: The "Situational" Trap
- The Shift: 2026 RES 5 questions test judgment, not just laws. (See our Complete Study Strategy).
- The Danger: Real-world practices (like waivers) are often wrong on the exam.
- The Score: You need 80% in this section (Part II) to pass.
- The Fix: Learn to spot the "Ethical Trap" in every question.
📝 Question 1: The "Helpful" Agent (Market Conduct)
Scenario:
Mr. Tan, a financial adviser representative, is servicing a clear-minded elderly client, Mdm Lee (70 years old). Mdm Lee insists on buying a high-risk investment product because her friend made money from it. Mr. Tan explains the risks, but she insists. To expedite the process and "help" her, Mr. Tan asks her to sign a "Waiver of Financial Needs Analysis (FNA)" form so she can buy the product immediately without going through the full advisory process.
Question: Has Mr. Tan breached the FAA Market Conduct guidelines?
- A) No, because Mdm Lee insisted on the product and is of sound mind.
- B) Yes, because representatives are strictly prohibited from arranging a waiver of FNA for "Selected Clients" (Elderly).
- C) No, provided Mr. Tan documents that the product was "Execution Only" at the client's request.
- D) Yes, unless Mdm Lee has a younger family member present as a witness.
The Trap: Many candidates choose A or C because in the real world, clients often sign waivers to skip paperwork.
The Correct Answer: B
Why: Under the FAA Guidelines on "Selected Clients" (defined as age 62+ or low formal education), you cannot process a transaction on a "Waiver of FNA" basis, even if the client begs you to. You must go through the full advisory process to protect them. Option A is wrong because her insistence doesn't override the law.
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💰 Question 2: The "Referral Fee" (Ethics)
Scenario:
John is a licensed representative. His friend, Peter (who is a property agent and NOT a licensed financial adviser), introduces a client to John. The client buys a life policy. John wants to thank Peter by sharing 20% of his commission with him.
Question: Is this sharing of commission allowed?
- A) Yes, as long as Peter discloses the commission sharing to the client.
- B) Yes, because Peter did not provide any financial advice, he only provided the lead.
- C) No, representatives are prohibited from sharing commission with any person who is not a licensed or exempt financial adviser.
- D) Yes, provided the commission comes out of John's own pocket and not the client's premium.
The Trap: Candidates often pick A because "Disclosure cures everything" is a common rule in other industries.
The Correct Answer: C
Why: You cannot share commission with unlicensed individuals. Period. It incentivizes unlicensed soliciting. Even if Peter discloses it, it is still a breach of the Financial Advisers Act.
Most students get this wrong.
The new 2026 syllabus is full of "Application" traps like Question 2. Don't risk your exam fee on guesswork.
👉 Try the RES 5 Exam Simulator (Free Demo)🎁 Question 3: The "Free Gift" (Marketing)
Scenario:
An insurance agency is running a roadshow. To attract the crowd, they put up a banner: *"Sign up for a 10-year Endowment Plan today and get a FREE iPhone 16 Pro (Worth $1,500)!"*
Question: Does this promotion comply with market conduct guidelines?
- A) Yes, provided the cost of the iPhone is not borne by the client.
- B) No, because the value of the gift is substantial and may induce the client to buy a policy they don't need.
- C) Yes, gifts are allowed as long as they are not cash.
- D) No, insurance companies are never allowed to offer gifts.
The Trap: Candidates pick A or C because they see roadshows with free luggage and gadgets all the time.
The Correct Answer: B
Why: While gifts are not strictly banned, MAS guidelines state that gifts must not be so substantial that they "improperly influence" the decision. A $1,500 iPhone is considered a substantial inducement that distracts the client from the product's suitability.
ExamPrep.sg RES 5 Exam Simulator Interface showing a situational question
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👮 Question 4: The "Fit & Proper" Criteria
Scenario:
James is applying to be a financial adviser representative. He currently has an outstanding credit card debt of $8,000, which he is servicing promptly every month. He has never been bankrupt.
Question: Does this affect his "Financial Soundness" under the Fit and Proper Guidelines?
- A) Yes, any unsecured debt over $5,000 disqualifies a candidate.
- B) No, because he is not an undischarged bankrupt and is servicing the debt promptly.
- C) Yes, he must clear all debts before obtaining his license.
- D) No, unless the debt exceeds 3 months of his salary.
The Trap: Candidates panic when they see "Debt" and assume it's a disqualifier (Option A or C).
The Correct Answer: B
Why: Having debt does not make you "Unfit." The criteria focuses on solvency and prudence. Since James is servicing the debt promptly and is not bankrupt, he meets the Financial Soundness criteria.
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📝 Question 5: Refusal to Give Information
Scenario:
A client wants to buy a specific Unit Trust but refuses to disclose his income, employment status, or financial goals to the representative.
Question: What must the representative do?
- A) Refuse to sell the product completely.
- B) Sell the product but warn the client that no advice can be given (Execution Only).
- C) Proceed with the sale but mark the "Risk Profile" as "Aggressive" by default.
- D) Report the client to the Suspicious Transaction Reporting Office (STRO).
The Trap: Candidates often choose A (Refuse) thinking they must be strict, or D (Report) thinking it's money laundering.
The Correct Answer: B
Why: If a client refuses to provide info, you can still transact for them, but you must treat it as "Execution Only" (Transaction without advice) and clearly highlight to the client that the product may not be suitable for them.
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Why You Need to Practice "Situational" Questions
Did you find those questions tricky?
The bad news: The RES 5 exam is notoriously difficult. The actual exam has 40 questions in Part II (Ethics & Skills), and you need to score 80% to pass. That means you can only get 8 questions wrong. (See our full RES 5 Passing Score Breakdown).
If you are studying with old notes that only list facts, you are not preparing for the logic puzzles you will face on exam day.
ExamPrep.sg provides instant feedback and explanations to help you understand the concepts better
How to Fix It:
You need to stop memorizing and start simulating. (Unsure which simulator to use? Read our Mock Exam Comparison Guide).
At ExamPrep.sg, we built the question bank specifically for the 2026 RES 5 Syllabus.
- 1,000+ Questions: Including hundreds of situational/ethical scenarios.
- Detailed Explanations: We don't just tell you the answer is "B"; we cite the MAS Notice so you understand the logic.
- Weakness Detection: Our algorithm tracks if you are bad at specific chapters so you can focus on them and fix it fast.
Track your progress and see your improvements over time
Don't leave your pass/fail result to chance.
Frequently Asked Questions About RES 5 Exam
By The ExamPrep.sg Team
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