All RE5 questions
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 breached?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Competence, because the loss reflects poor representative product knowledge.
- b) Financial soundness, because the lost data was a capital asset.
- c) Operational ability, in its business-continuity and data-management dimension, which should have prevented the loss.Correct
- d) Honesty and integrity, because losing data is always deliberate.
Why this is the answer
Losing records with no backup is a failure of operational ability — business continuity and data management. It is not a solvency issue, not a reflection of product competence, and accidental loss is not in itself dishonesty.
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