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FAIS Act FAIS Act and Subordinate Legislation
The Registrar may suspend or withdraw an FSP's licence in which circumstance?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Where the FSP no longer meets the licensing requirements or has seriously contravened the Act, subject to a fair process.Correct
- b) Only if the FSP voluntarily asks to be shut down.
- c) Whenever a competitor lodges a complaint, automatically.
- d) Never — once granted, a licence can never be suspended or withdrawn.
Why this is the answer
The Registrar may suspend or withdraw a licence where the FSP fails to meet the requirements or seriously contravenes the law, following a fair process. Licences are not immune from regulatory action, nor are they removed merely because a competitor complains.
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