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Organizational Structure FAIS Act Compliance
What is the primary purpose of the mandate agreement between an FSP and its representative?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) To remove the need for the FSP itself to hold a licence.
- b) To fix the commission the representative will earn from product suppliers.
- c) To exempt the representative from the General Code of Conduct.
- d) To define the scope of authority and the specific financial services the representative may render for the FSP.Correct
Why this is the answer
The mandate sets the boundaries of the representative's authority — which products and services they may handle on the FSP's behalf. It does not replace the FSP's licence, is not a commission schedule, and cannot exempt anyone from the Code.
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