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Fit & Proper FSP License (Fit & Proper/Operational Ability)
Priya has ten years' experience advising on short-term insurance. Her FSP now appoints her to advise on investments as well, a category in which she has never worked. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) She needs no further experience, provided she completes product-specific training on each fund.
- b) She may not be appointed for investments at all until she has experience gained at another FSP.
- c) She must gain the experience required for investments, under supervision in the meantime.Correct
- d) She needs no further experience, because ten years in any category satisfies the requirement for all.
Why this is the answer
The experience requirement is specific to the category and products for which a person is appointed. Experience in short-term insurance does not count for investments. She may be appointed for the new category and gain the experience under supervision. Product-specific training is a separate requirement and does not replace experience.
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