All RE5 questions
FAIS Act FAIS Act and Subordinate Legislation
Facing sequestration, Gugu is weighing whether to surrender her licence or let it be suspended, and asks what generally happens when a licence lapses. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The Registrar may publish notice of the lapsing (for example on its official website) so the public is informed.Correct
- b) A lapsed licence carries an automatic right of reinstatement on request.
- c) A lapse of the licence automatically results in the personal debarment of the FSP.
- d) Only a court may record that a licence has lapsed.
Why this is the answer
When a licence lapses the Registrar may publish that fact (e.g. on its website) so consumers know the entity is no longer authorised. Lapsing does not give an automatic reinstatement right, is not the same as debarment, and does not require a court order to record.
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