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Regulatory Bodies Complaints Management FAIS Ombud
Which statement correctly describes the office of the Ombud for Financial Services Providers (the FAIS Ombud)?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) It resolves client–FSP disputes informally, fairly and expeditiously, and its determinations are binding.Correct
- b) Its main function is to issue and renew FSP licences.
- c) Its determinations are merely advisory and carry no legal force.
- d) It prosecutes FSPs criminally on behalf of the State.
Why this is the answer
The FAIS Ombud provides an informal, fair and quick alternative to litigation; once registered with a court a determination is enforceable like a civil judgment. The Ombud does not licence FSPs (that is the FSCA) and does not conduct criminal prosecutions, and its rulings are not merely advisory.
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