All RE5 questions
Fit & Proper FSP License (Fit & Proper/Operational Ability)
An FSP that is an accountable institution has no systems to identify clients or to report suspicious transactions. Apart from breaching the FIC Act itself, which Fit and Proper requirement does this failure breach?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Competence
- b) Financial soundness
- c) Operational abilityCorrect
- d) Honesty and integrity
Why this is the answer
Operational ability includes having the systems, procedures and resources needed to run the business lawfully, expressly including the systems needed to comply with the FIC Act where the FSP is an accountable institution. The failure concerns systems, not solvency, individual knowledge or character.
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