All RE5 questions
Regulatory Bodies Twin Peaks Financial Stability
Under the Twin Peaks model, what is the primary role of the Prudential Authority?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) To combat money laundering and issue related fines.
- b) To regulate the market conduct of all FSPs.
- c) To resolve consumer complaints against FSPs.
- d) To supervise the safety and soundness (solvency) of institutions such as banks and insurers.Correct
Why this is the answer
The Prudential Authority (housed in the SARB) is 'Peak 1' — it safeguards the financial soundness of institutions. Market conduct is the FSCA, complaints are the Ombud, and money laundering is the FIC.
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.