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Fit & Proper FSP License (Fit & Proper/Operational Ability)
An FSP must ensure it has adequate physical and electronic systems, including IT security and data backup, to conduct business securely. This requirement falls under which Fit and Proper element?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Financial Soundness.
- b) Honesty and Integrity.
- c) Operational Ability.Correct
- d) Competence.
Why this is the answer
The FAIS Act (Sec 8(1)(c)) requires an FSP to have the 'Operational Ability' to perform its functions. This includes having adequate and secure systems, technology, business continuity plans, and internal controls.
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