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FAIS Act FAIS Act and Subordinate Legislation
After an illness, Zinhle voluntarily surrendered her FSP licence; she has now recovered and wants it back. What is the correct position under the FAIS Act?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A licence that has lapsed (including by surrender) has no automatic reinstatement mechanism, so she must apply afresh.Correct
- b) A surrendered licence is automatically reinstated the moment she notifies the Registrar she has recovered.
- c) A surrendered licence is reinstated on demand and she simply resumes trading.
- d) She must serve a mandatory six-year supervision period before any new authorisation is possible.
Why this is the answer
The FAIS Act does not provide for reinstatement of a lapsed/surrendered licence. Once a licence lapses, returning to business requires a fresh application that meets the current licensing requirements; there is no automatic reinstatement and no fixed six-year supervision rule.
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