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Record Keeping Comply with regulated record keeping requirements

An FSP loses client records to a system crash and has no backup. Which 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) Operational ability (business continuity and controls).Correct
  2. b) Financial soundness.
  3. c) Honesty and integrity.
  4. d) Competence.

Why this is the answer

The ability to keep records securely — with backups and disaster recovery — is part of operational ability. Losing data for want of a backup is an operational-control failure, not a solvency, integrity or competence issue.

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