All RE5 questions
FAIS Act FAIS Act and Subordinate Legislation
Which statement about a representative's mandate under the FAIS Act is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A representative must act within the scope of the mandate or employment arrangement with the FSP, for whose conduct the FSP is responsible within that scope.Correct
- b) A representative may act outside the FSP’s authorised categories whenever they wish.
- c) A representative needs no relationship with the FSP to act on its behalf.
- d) A representative is mandated directly by each individual client.
Why this is the answer
A representative acts within the scope of the mandate/employment with the FSP, and the FSP bears responsibility for that conduct within scope. Acting outside the FSP's authorised categories, or with no relationship at all, is not permitted.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.
More FAIS Act questions
- Under the FAIS definition of 'advice', which of the following actions by Mandla would a…
- Which person fits the FAIS definition of a 'representative'?
- In terms of the FAIS Act, which of the following roles is EXCLUDED from the definition…
- After an illness, Zinhle voluntarily surrendered her FSP licence; she has now recovered…