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FAIS Act FAIS Act and Subordinate Legislation
Xolani has obtained accreditation under section 65(3) of the Medical Schemes Act. Before he may market the relevant product, what does FAIS require?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) He must be authorised to market the product for or on behalf of a registered/authorised FSP.Correct
- b) His Medical Schemes accreditation alone lets him market any financial product he likes.
- c) He must obtain a separate further accreditation before he may even market medical schemes.
- d) The Medical Schemes Council, not the FAIS Registrar, issues him a financial-services licence.
Why this is the answer
Medical-schemes accreditation under section 65(3) is not a FAIS licence. To market the product under FAIS, Xolani must be authorised to do so for or on behalf of a registered FSP. The accreditation does not extend to all financial products, and the Medical Schemes Council does not issue FAIS licences.
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