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FAIS Act FAIS Act and Subordinate Legislation
Which statement about the relationship between the FAIS Act and the FIC Act for a typical FSP is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) An FSP must comply with both: FAIS governs how it renders financial services, while the FIC Act imposes anti-money-laundering duties such as CDD and reporting.Correct
- b) Complying with FAIS automatically exempts the FSP from the FIC Act.
- c) The FIC Act only applies to banks, never to FSPs.
- d) An FSP may choose to comply with only one of the two Acts.
Why this is the answer
The two Acts operate together: FAIS regulates the conduct of financial services, and the FIC Act adds anti-money-laundering obligations (customer due diligence, record-keeping, reporting). An FSP that is an accountable institution must comply with both, not pick one.
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