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FAIS Act FAIS Act and Subordinate Legislation
Two former licensees want to operate again. Zinhle voluntarily and finally surrendered her licence last year when she fell ill. Themba's licence was withdrawn by the Authority last year for non-compliance. 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) Zinhle may apply afresh at any time; Themba only after the period for which he was debarred from applying.Correct
- b) Zinhle may have the old licence reinstated because she surrendered it voluntarily; Themba may never hold a licence again.
- c) Neither may apply for 12 months, because the same waiting period applies whenever a licence comes to an end.
- d) Both may ask the Authority to reinstate the old licence, because surrender and withdrawal are both reversible on request.
Why this is the answer
A surrendered licence has lapsed; there is no reinstatement, but nothing prevents a fresh application. A person whose licence has been withdrawn is debarred, for a period specified by the Authority, from applying for a new licence. Withdrawal is not automatically permanent, and there is no general 12-month rule for licensees.
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