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Fit & Proper FSP License (Fit & Proper/Operational Ability)
Which of the following is part of the 'operational ability' an FSP must demonstrate?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Adequate systems, procedures, governance and resources (including suitable key individuals and record-keeping) to render the services it is licensed for.Correct
- b) A celebrity brand ambassador.
- c) Membership of a golf club.
- d) A guarantee that markets will always rise.
Why this is the answer
Operational ability means having the systems, procedures, governance, premises, staff (including key individuals) and record-keeping capacity to render the licensed services properly. It is about capability, not branding or market predictions.
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