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Topic 7- Licensing Conditions of an FSP

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 Circle the correct Answer

1. When the Register intends to suspect or withdraw a license, the licensee is:
a) Entitled to be given a reasonable opportunity to make a submission in this regard
b) Entitled to appeal against the decision
c) Not allowed the opportunity to make a submission in this regard
d) Allowed to continue working for another three months in order to conclude all
outstanding business

2. Under which of the following circumstances may a license lapse?

a) Only when the licensee has died
b) Only when the licensee voluntarily surrenders his license
c) When the licensee has died, is sequestrated or voluntarily surrenders his license
d) When the license is withdrawn

3. The Commissioner may withdraw a license:

a) Only on his own initiative
b) Only on application by the licensee
c) On application by the licensee or on his own initiative
d) On his own initiative or when advised by the FAIS Ombud to do so

4. Howard is a sole proprietor who is applying for an FSP license. Which of the
following roles will Howard be fulfilling?
i. FSP
ii. Representative
iii. Key individual
iv. Compliance officer

a) i and ii
b) i and iii
c) i, ii, iii and iv
d) i, ii and iii

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 5. Which of the following is INCORRECT? The Commissioner may impose
conditions on a license if:
a) A key individual is replaced by a new key individual
b) A new additional key individual is appointed
c) The circumstances of the key individual change in a way which affect his Fit and
Proper status
d) A key individual resigns and is not replaced

6. As a sole proprietor FSP, Mrs. Naidoo is concerned about losing her license. She
explains the circumstances to you. Under which of the following circumstances
may she lose her license?
a) she still owes levies payable to the Commissioner and these have been
outstanding for some time
b) She was off work for six months due to injuries following a motor vehicle accident
c) She made an unintentional typographical error on her form when she applied for
her license to be renewed
d) a dissatisfied client has submitted a complaint to the FAIS Ombud about what the
client felt was unsatisfactory investment performance of a product that Mrs
Naidoo advised him to take

7. Which of the following is INCORRECT? The license of a natural person who is an

FSP may lapse if the FSP:
a) Dies
b) Is finally sequestrated
c) Voluntarily and finally surrenders his license
d) Has a court judgment given against him?

8. Best Cover Pty Ltd brokers have just received their license as an FSP. They have
employed people to specific functions within the business. Their key individual
needs help in deciding which of these employees’ names must be included in
the representative register:
i. Jabu who will be canvasing for new business

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 ii. George who will accompany Jabu on sales calls to large clients and as he is a
confident speaker, George will be conducting the actual presentation of the
brokerage’s policy benefits and options
iii. Nasreen who will process applications, changes to policies and client claims
iv. Sherry will be working full time in the office responding to new and existing
client calls, resolving queries regarding products and benefits, and assisting
Nasreen with paper work and processes

a) i, ii, iii and iv

b) i, iii and iv
c) i, ii and iv
d) i and ii

9. A lapsed FSP license:

a) May never be reinstated
b) May be reinstated on application by the FSP to the Commissioner after 12
months, subject to Fit and Proper requirements being met
c) May be reinstated on application by the FSP to a court, subject to Fit and Proper
requirements being met
d) May be reinstated at the discretion of the commissioner, subject to Fit and
Proper requirements being met

10. In order for an FSP to maintain its license, the FSP must do which of the
following?
a) Remain up-to-date in respect of all changes to pertinent legislation
b) Report to the FSB every 15 days to find out if any pertinent legislation has been
changed
c) Only remain up-to-date with financial services specific legislation
d) Rely on the compliance officer to ensure that the FSP is advised on all changes to
legislation

Total 10 Marks

© 2021 Copyright – Aris Expert Training (Pty) Ltd

© 2021 Copyright – Aris Expert Training (Pty) Ltd