All RE5 questions
FAIS Ombud Dealing with complaints submitted to the Ombud for FSPs
The FAIS Ombud receives a complaint and, without sending it to the FSP or asking for its version, issues a determination against the FSP. 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 process was flawed only if the award exceeds the monetary limit of the jurisdiction of the office.
- b) The process was proper, because the informal procedure of the office allows a decision on the version of the complainant alone.
- c) The process was proper, provided the FSP had already rejected the complaint when the client first raised it.
- d) The process was flawed, because the Ombud may not proceed unless the respondent has been informed of the complaint and given an opportunity to respond.Correct
Why this is the answer
The Ombud must act in a procedurally fair manner. Before investigating, the Ombud must inform every interested party of the complaint, provide its particulars, and give them an opportunity to respond. Informality does not remove the right to be heard, and an earlier rejection by the FSP is not a response to the Ombud.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.
More FAIS Ombud questions
- A client submits a written complaint to an FSP on 1 February (not a leap year). The FSP…
- A client's claim against an FSP would prescribe in two months. She lodges a complaint w…
- A complainant's loss is greater than the monetary limit of the FAIS Ombud's jurisdictio…
- Which statement correctly describes the FAIS Ombud's power to award costs?