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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
A client's claim against an FSP would prescribe in two months. She lodges a complaint with the FAIS Ombud, which officially receives it. The investigation takes eight months. What is the effect on prescription?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Prescription continues to run, so she must also issue summons within two months to protect her claim.
- b) Prescription is interrupted and a fresh three-year period begins on the day the Ombud receives the complaint.
- c) The running of prescription is suspended from the official receipt of the complaint until the matter is finalised.Correct
- d) Prescription stops running only if the FSP agrees in writing to the complaint being investigated.
Why this is the answer
Official receipt of a complaint by the Ombud suspends the running of prescription for the period from receipt until the complaint is withdrawn or determined. It is a suspension, not a fresh start, and it does not depend on the FSP's consent. Issuing summons would in fact oblige the Ombud to decline the complaint.
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