Subject Title - INSETA

It is clear from the above that the FSP must get the „approval‟ of theRegistrar before sequestration, winding-up or closure of the business willbecome effective and legal. Such approval will only be given if the Registraris satisfied that there are arrangements in place to meet obligations toclients. Until such time, the business of the FSP will be regarded as „ongoing‟and the FSP cannot rely on any protection or remedies available under therelevant legislation.Summary An FSP who is a natural person may lapse a licence if the FSP isfinally sequestrated, dies or becomes permanently unable to carry onbusiness because of physical or mental illness. Any other FSP may lapse a licence if it is finally liquidated or thebusiness is dissolved, or became dormant or the FSP voluntarily andfinally surrenders the licence to the Registrar. The FSP must get the "approval" of the Registrar beforesequestration, winding-up or closure of the business will becomeeffective and legal. Such approval will only be given if the Registrar issatisfied that there are arrangements in place to meet obligations toclients. Until such time, the business of the FSP will be regarded as "ongoing"and the FSP cannot rely on any protection or remedies availableunder the relevant legislation.Self-Assessment QuestionsPlease note that the questions which follow are formative in nature. Thequestions were not developed by the FSB‟s examination bodies and as suchcannot be used as an indication of the nature/structure/level of the questionsthat you will encounter in the FSB‟s regulatory examination.1. A natural person may lapse a FAIS Licence:a) only if the licensee is finally sequestratedb) only with permission from the FAIS Registrarc) if the licensee is finally sequestratedd) if the licensee diese) if the licensee becomes permanently unable to carry onbusiness because of physical or mental illnessf) c), d), and e)© INSETA - Section 1 12a 213