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Fit & Proper FSP License (Fit & Proper/Operational Ability)
Sibusiso was first appointed for a Tier 1 product two years ago and has worked under supervision since. He writes the RE5 in the final month and fails. His FSP proposes to keep him advising under closer supervision for another year. 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) He may continue under supervision, because supervision exists for representatives who are not yet competent.
- b) He no longer meets the competence requirements, so he may not continue, supervised or not.Correct
- c) He may continue for six more months, because one further attempt at the examination is always allowed.
- d) He may continue if he moves to another FSP, because the two-year period starts afresh on a new appointment.
Why this is the answer
Supervision allows a person to render services while completing the requirements within the prescribed periods; it does not extend those periods. Once two years from the date of first appointment have passed without the regulatory examination, he no longer complies with the competence requirements and the FSP must remove him from rendering those services. Changing FSP does not restart the period.
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