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FAIS Act FAIS Act and Subordinate Legislation
Which statement about levies in the financial-services regulatory system is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) FSPs are liable to pay prescribed regulatory levies that help fund the regulator and related bodies.Correct
- b) FSPs never pay anything to the regulator under any circumstances.
- c) Levies are paid by clients directly to the FAIS Ombud for each complaint.
- d) Levies replace the need to be licensed.
Why this is the answer
FSPs must pay prescribed regulatory levies that contribute to funding the regulator and associated bodies. Levies are an obligation of licensed FSPs and do not substitute for licensing.
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