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FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
The FAIS Ombud makes a recommendation to resolve a complaint. Which statement correctly describes its effect?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) If all parties accept it, it has the effect of a final determination.Correct
- b) It has no legal effect in any event, since only a court order can bind the parties.
- c) It binds the FSP at once, while the complainant remains free to reject it.
- d) It becomes binding on all parties after 30 days unless a party objects in writing.
Why this is the answer
Where conciliation fails the Ombud may make a recommendation. A recommendation that all parties accept has the effect of a final determination. Where it is not accepted, the Ombud proceeds to a final determination, which has the effect of a civil judgment.
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