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FAIS Act FAIS Act and Subordinate Legislation

Themba's FSP licence was suspended and then withdrawn. He now wants to operate again. Which statement reflects the FAIS Act position?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) Where a licence has been withdrawn, he may apply afresh for a new licence provided he has not been permanently barred from holding one.Correct
  2. b) A suspended licence can never, in any circumstances, be reinstated.
  3. c) Suspension is something the FSP itself initiates over its own licence.
  4. d) A withdrawn licence is automatically restored once any outstanding levies are paid.

Why this is the answer

A suspension is imposed by the Registrar and may be lifted if the conditions that caused it are remedied; it is not self-initiated by the FSP. Once a licence is withdrawn, the route back is a fresh application — available unless the person has been permanently disqualified from being licensed.

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