An FSP receives money or premiums on behalf of a client and a product supplier. Under the General Code, how must it handle that money?

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

1. a) Pay it into the appropriate account within one business day and keep client money separate from the FSP’s own funds.Correct
2. b) Mix it with the FSP’s operating funds to simplify bookkeeping.
3. c) Hold it in cash indefinitely until the client asks for it.
4. d) Use it to cover the FSP’s monthly expenses until the supplier follows up.