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Record Keeping Comply with regulated record keeping requirements
An FSP discovers that for two months a representative advised clients on a product he was not registered for. It corrects the register and retrains him, but writes nothing down. Does this satisfy section 18 of the FAIS Act?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Yes. Section 18 requires records of client transactions, not of internal failings.
- b) No. The FSP must record cases of non-compliance and the reasons for them.Correct
- c) No. The FSP had to report the matter to the Ombud within six weeks.
- d) Yes. Once non-compliance has been corrected, no record of it is needed.
Why this is the answer
Section 18 requires an FSP to maintain, for five years, records of its continued compliance with the Act and of cases of non-compliance with the reasons for them. Fixing a problem is not the same as recording it. The Ombud deals with client complaints, not with an FSP's compliance failures.
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