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Professional Development CPD Compliance
An FSP's annual review finds four problems. Which of them are failures of the competence requirement? i) A representative did not complete his CPD for the cycle. ii) The FSP keeps no backup of its client records. iii) A representative advised on a product before completing class of business training. iv) A key individual was sequestrated during the year.
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Statements i and iiiCorrect
- b) Statement iii only
- c) Statements i, iii and iv
- d) Statements i, ii and iii
Why this is the answer
CPD and class of business training are both parts of competence. Missing backups are a failure of operational ability, which concerns the FSP's systems and resources, and sequestration is a matter of financial soundness.
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