All RE5 questions
FAIS Act FAIS Act and Subordinate Legislation
A company FSP has two key individuals and no representatives; the two key individuals deal with all clients themselves. Must it appoint a compliance officer under section 17?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Yes, but either key individual may fill the role without approval, because both are already approved persons.
- b) Yes. An FSP with more than one key individual must appoint a compliance officer approved by the Authority.Correct
- c) No. The duty arises only for FSPs in Categories II, IIA and III, which handle client assets with discretion.
- d) No. The duty arises only once the FSP has appointed at least one representative to its register.
Why this is the answer
The duty to appoint a compliance officer is triggered by having more than one key individual, or one or more representatives. Either trigger is enough, in any licence category. The compliance officer must be approved by the Authority; approval as a key individual is not approval as a compliance officer.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.
More FAIS Act questions
- Thuli is employed by an FSP. She never recommends products. Her work is to collect clie…
- The Authority receives evidence that an FSP is misappropriating client funds and that e…
- Two former licensees want to operate again. Zinhle voluntarily and finally surrendered…
- On 2 April an FSP discovers that a representative has been misleading clients. He resig…