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FAIS Act FAIS Act and Subordinate Legislation
Officials of the Authority arrive unannounced at an FSP's office during business hours to carry out a supervisory on-site inspection. The key individual refuses them entry until they produce a warrant. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) No warrant is needed, but the Authority must give at least seven days of written notice of the inspection.
- b) A warrant is needed unless the FSP is suspected of an offence, in which case entry may be forced.
- c) No warrant is needed to inspect business premises during business hours, and the FSP must cooperate.Correct
- d) A warrant is always needed, so the key individual is entitled to refuse entry until one is produced.
Why this is the answer
The Financial Sector Regulation Act allows the Authority to conduct a supervisory on-site inspection of the business premises of a supervised entity during normal business hours without a warrant, and without advance notice. The entity and its staff must cooperate and produce documents. Consent or a warrant is needed only to enter a private residence.
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