All RE5 questions
FAIS Act FAIS Act and Subordinate Legislation
What is the overarching requirement in terms of the FAIS Act and General Code of Conduct for all services rendered by an FSP?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The FSP must use an independent compliance officer.
- b) All services must be rendered honestly, fairly, with due care, skill, and diligence.Correct
- c) The FSP must only advise on products with guaranteed returns.
- d) The FSP must renew its license annually on the same date.
Why this is the answer
This is a foundational principle of the FAIS Act, reinforced by the General Code of Conduct (Sec 2). The primary duty of an FSP and its representatives is to act professionally and ethically, which is encapsulated by the requirement to render services honestly, fairly, and with due care, skill, and diligence.
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