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FAIS Act FAIS Act and Subordinate Legislation
Which combination lists events on which an FSP's licence lapses by operation of the Act? i) A sole-proprietor licensee dies. ii) The business of the licensee becomes dormant. iii) The only key individual of a company licensee resigns. iv) A company licensee is finally dissolved.
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Statements i and iv only
- b) All four statements
- c) Statements i, iii and iv
- d) Statements i, ii and ivCorrect
Why this is the answer
A licence lapses when a natural-person licensee dies, becomes permanently incapable or is finally sequestrated, when a juristic licensee is finally liquidated or dissolved, when the business becomes dormant, or on voluntary and final surrender. Losing the only key individual does not end the licence automatically, but it exposes the FSP to suspension or withdrawal.
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