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Fit & Proper FSP License (Fit & Proper/Operational Ability)
Which statement correctly describes who is responsible for making sure that representatives remain competent?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The product supplier is responsible, because it provides the training on the products the representative sells.
- b) The Authority is responsible, because it tests each representative when he or she is entered on its register.
- c) The FSP must at all times be satisfied that its representatives are competent, and keep records.Correct
- d) The representative alone is responsible, since competence is a personal requirement that cannot be delegated.
Why this is the answer
An FSP must at all times be satisfied that its representatives, and the key individuals of its representatives, are competent to act and comply with the fit and proper requirements, and must keep a record of their competence, including training and CPD. Representatives must cooperate, and suppliers may provide training, but the regulatory duty sits with the FSP.
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