Subject Title - INSETA

2. A licence of ANY FSP may lapse:a) if the licensee is finally liquidated or dissolvedb) if the business of the licensee has become dormantc) in any other case where the licensee voluntarily and finallysurrenders the licence to the Registrard) All the above3. Which of the following statements is TRUE?a) Suspension or withdrawal of a licence is initiated by theRegistrar following actions or omissions by the FSPb) Lapsing of a licence is initiated by the FSB following an eventthat gave reason for the lapsec) There are provisions in the Act for the reinstatement of alapsed licenced) There are severe implications in terms of other legislationwhen a FAIS licence lapses4. Which of the following statements is FALSE?a) The Registrar may allow reinstatement of a suspendedlicence under certain conditionsb) There are no implications in terms of other legislation when aFAIS licence lapsesc) The Registrar must be advised in writing by the licensee, ofthe lapsing of a licence and the reasons therefore and theRegistrar may not publish any detail about the lapsingd) The Registrar must be advised in writing by the licensee, ofthe lapsing of a licence and the reasons therefore and theRegistrar may publish the lapsing of a licence by notice in theGazette5. Before sequestration, winding-up or closure of an FSP business willbecome effective and legal under the following condition/s:a) The FSP must lodge the necessary documentation with theFAIS Registrarb) The FSP must get the „approval‟ of the Registrarc) The court must agree to adequate distribution of assetsd) a) and b)214 © INSETA - Section 1 12a