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Key Individual Role of the Key Individual in terms of the FAIS Act
Abel holds an NQF 5 financial-planning certificate and has run a funeral-services unit for four years. His FSP applies to have him approved as a key individual for a subcategory that requires an NQF 6 qualification. What is the most likely outcome?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The Registrar must approve it because his practical experience always outweighs the qualification gap.
- b) Abel is automatically enrolled in a supervision programme that the Registrar guarantees to approve.
- c) The Registrar may refuse the application where the qualification requirement is not met, and must give the applicant reasons for the decision.Correct
- d) The Registrar will quietly let the application lapse without telling Abel anything.
Why this is the answer
Where an applicant does not meet a prescribed qualification level, the Registrar may refuse approval, and FAIS requires the Registrar to inform the applicant and give reasons. Experience does not automatically override a missing qualification, and the Registrar cannot simply ignore the application.
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