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Fit & Proper FSP License (Fit & Proper/Operational Ability)
An FSP places new representative Lwazi under the supervision of Nomvula. Nomvula has been with the FSP for a year and is herself still working under supervision while she completes her qualification. Is this arrangement acceptable?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) No. A supervisor must personally be competent, so a person under supervision cannot supervise.Correct
- b) Yes. A person with at least one year of experience in the category may act as a supervisor.
- c) Yes. The FSP may choose any representative as supervisor, since it remains responsible in any event.
- d) No. Only a key individual of the FSP may act as the supervisor of a representative.
Why this is the answer
Supervision exists so that a competent person guides and takes responsibility for someone who does not yet meet the requirements. A supervisor must therefore have the competence required for the services being supervised; a person who is still under supervision cannot fill that role. The supervisor need not be a key individual.
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