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Fit & Proper FSP License (Fit & Proper/Operational Ability)

An FSP appoints a representative who does not yet meet the full competence requirements. What arrangement makes this permissible?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) The FSP waives the competence requirements permanently.
  2. b) The product supplier takes over responsibility for the representative.
  3. c) The representative works under supervision while completing the competence requirements within the prescribed periods.Correct
  4. d) The representative simply signs a declaration that they will study one day.

Why this is the answer

A not-yet-fully-competent representative may be appointed if they work under supervision and complete the qualification, regulatory exam and product training within the prescribed timeframes. The requirements cannot be waived away by a declaration.

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