All RE5 questions
FAIS Act FAIS Act and Subordinate Legislation
What penalty does the FAIS Act provide for serious contraventions such as continuing a declared undesirable practice?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A fine of up to R10 million, or imprisonment of up to 10 years, or both.Correct
- b) A written apology with no further consequence.
- c) A maximum fine of R100 only.
- d) Automatic promotion of the FSP to a higher category.
Why this is the answer
The Act's offence provisions allow substantial penalties — a fine of up to R10 million or imprisonment of up to 10 years (or both) — for serious contraventions. The other options are not real consequences.
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
- Under the FAIS definition of 'advice', which of the following actions by Mandla would a…
- Which person fits the FAIS definition of a 'representative'?
- In terms of the FAIS Act, which of the following roles is EXCLUDED from the definition…
- After an illness, Zinhle voluntarily surrendered her FSP licence; she has now recovered…