All RE5 questions
FAIS Act FAIS Act and Subordinate Legislation
An FSP has a head office and two branches. Its licence hangs framed at head office only, and its letterheads and advertisements make no reference to the licence. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) It is in breach on the second count only, because the licence need be displayed only at the principal place of business.
- b) It is compliant, provided the licence can be produced to a client or the Authority within a reasonable time on request.
- c) It is in breach on the first count only, because a reference to the licence is required on advertisements but not on letterheads.
- d) It is in breach on both counts: every premises needs a certified copy, and documents must refer to the licence.Correct
Why this is the answer
A licensee must display a certified copy of the licence in a prominent and durable manner within every business premises, must ensure that a reference to the licence is contained in all business documentation, advertisements and other promotional material, and must be able to produce the licence at any reasonable time. Being able to produce it does not replace the other two duties.
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