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FAIS Act FAIS Act and Subordinate Legislation
Which statement correctly reflects the relationship between a product supplier and a financial services provider under the FAIS framework?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) An FSP renders financial services (advice and/or intermediary services) to clients, which is a distinct function from merely supplying a product.Correct
- b) A product supplier, by supplying a product, is automatically also giving FAIS advice to the client.
- c) An FSP may supply products but is prohibited from ever giving advice or an intermediary service.
- d) Only the product supplier, never the FSP, may render an intermediary service.
Why this is the answer
Supplying a product and rendering a financial service are different things. An FSP renders advice and/or intermediary services to clients; supplying a product does not by itself constitute giving advice, and an FSP is certainly not barred from advising or rendering intermediary services.
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