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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.
- a) Financial Soundness.
- b) Honesty and Integrity.
- c) Operational Ability (Business Continuity and Control).Correct
- 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.
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