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Fit & Proper FSP License (Fit & Proper/Operational Ability)
A representative is appointed to render services on both funeral policies (Tier 2) and retirement annuities (Tier 1). Sixty per cent of his business is funeral policies. Must he pass the RE5?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) No, because the majority of his business is in Tier 2 products.
- b) Yes, but only if Tier 1 products come to exceed half of his business.
- c) No, because the exemption for Tier 2 applies to every product he sells.
- d) Yes, because he renders services on a Tier 1 product.Correct
Why this is the answer
The exemption from the regulatory examination applies to a representative who renders services only in respect of Tier 2 products. Once he is appointed for any Tier 1 product the RE5 is required. The proportion of business is irrelevant.
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