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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.
- a) The FSP waives the competence requirements permanently.
- b) The product supplier takes over responsibility for the representative.
- c) The representative works under supervision while completing the competence requirements within the prescribed periods.Correct
- 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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