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Fit & Proper FSP License (Fit & Proper/Operational Ability)
An insurer materially changes the benefits and exclusions of a policy that Kabelo has sold for years. Kabelo completed product-specific training on the original version. What must happen before he continues to render services on the amended product?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) He must complete product-specific training on the amendments first.Correct
- b) Nothing, because product-specific training is required only once for each product.
- c) He must work under supervision for 12 months on the amended product.
- d) He must rewrite the regulatory examination, because the product has changed.
Why this is the answer
Product-specific training must be completed before rendering a financial service on a product, and again when the product is materially amended, so that the representative understands what he is selling. A material change does not restart supervision or the regulatory examination, which tests the legislation and not individual products.
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