RegulatoryExams
All RE5 questions
Record Keeping Comply with regulated record keeping requirements

If the FSP loses client records due to a system failure and has no backup, which core Fit and Proper requirement is fundamentally compromised?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) Financial Soundness.
  2. b) Honesty and Integrity.
  3. c) Operational Ability (Business Continuity and Control).Correct
  4. d) Competence.

Why this is the answer

The FAIS Act (Sec 18) mandates record keeping. The *ability* to keep records securely, including having data backups and disaster recovery, is a core component of an FSP's 'Operational Ability'. A loss of data due to a lack of backup is a failure of this operational control.

Want to test yourself on 700+ more questions like this?

Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.

More Record Keeping questions