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FAIS Act FAIS Act and Subordinate Legislation
Which person fits the FAIS definition of a 'representative'?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Anele, who services and maintains, on behalf of an FSP, products clients bought from a product supplier.Correct
- b) Boitumelo, a bank teller who only hands clients incidental, factual leaflets about products.
- c) Dineo, who assists a representative but has no employment contract or mandate with the FSP herself.
- d) Chris, who provides a purely factual data-capture service and gives no advice or intermediary service.
Why this is the answer
A representative renders a financial service (advice or an intermediary service) for or on behalf of an FSP under employment or mandate. Servicing/maintaining client products on the FSP's behalf qualifies. Giving only incidental factual information, a purely factual non-intermediary service, or assisting without any contract/mandate does not make a person a representative.
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