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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
A client of an FSP suffers loss and the FAIS Ombud makes a determination in the client's favour. What is the effect of that determination?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) It is binding and, once registered with the appropriate court, may be enforced like a civil judgment.Correct
- b) It is a non-binding suggestion the FSP can ignore.
- c) It results in automatic imprisonment of the FSP’s directors.
- d) It has no legal effect at all.
Why this is the answer
An Ombud determination is binding and, once registered, has the effect of a civil court judgment that can be enforced. It is neither a mere suggestion nor a criminal sanction.
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