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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
Which of the following correctly reflects an FSP's duty when it receives a complaint it cannot resolve to the client's satisfaction?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Inform the client of the reasons and of the client’s right to refer the matter to the FAIS Ombud, within the applicable time limits.Correct
- b) Stop responding to the client entirely.
- c) Tell the client that no external recourse exists.
- d) Refer the client only to the product supplier and nowhere else.
Why this is the answer
If an FSP cannot resolve a complaint satisfactorily, it must give reasons and inform the client of the right to escalate to the FAIS Ombud within the applicable time limits. Concealing external recourse would itself be a conduct failure.
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