All RE5 questions
FAIS Act FAIS Act and Subordinate Legislation
Nomsa renders financial services for an FSP but has just been told her mandate is limited to long-term insurance subcategory B. What does this mean for her day-to-day work?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) She automatically becomes a key individual for that subcategory.
- b) She may advise on any financial product she feels confident about.
- c) She may only advise on or arrange products within that authorised subcategory, not outside it.Correct
- d) She may ignore the mandate because she is experienced.
Why this is the answer
A representative may only render services within the categories/subcategories the FSP is authorised for and for which the representative is competent. A limited mandate confines her to that subcategory; she cannot stray outside it.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.
More FAIS Act questions
- Thuli is employed by an FSP. She never recommends products. Her work is to collect clie…
- The Authority receives evidence that an FSP is misappropriating client funds and that e…
- Two former licensees want to operate again. Zinhle voluntarily and finally surrendered…
- On 2 April an FSP discovers that a representative has been misleading clients. He resig…