All RE5 questions
Regulatory Bodies Complaints Management FAIS Ombud
A client asks the FAIS Ombud to do three things: (1) order the FSP to compensate her for the loss caused by unsuitable advice; (2) withdraw the FSP's licence; (3) prosecute the adviser for fraud. Which of these can the Ombud do?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) (1), (2) and (3)
- b) Only (1)Correct
- c) (1) and (2)
- d) None of them; the Ombud may only recommend
Why this is the answer
The Ombud resolves complaints and may make a determination awarding compensation, which is binding and enforceable like a civil judgment. Licensing and withdrawal of licences belong to the FSCA, and prosecutions to the National Prosecuting Authority. The Ombud's determinations are not mere recommendations.
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.