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Key Individual Role of the Key Individual in terms of the FAIS Act

Before a person may act as a key individual, what is required?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) Approval by the Registrar/FSCA, after meeting the fit-and-proper requirements for a KI.Correct
  2. b) A simple announcement to staff, with no regulatory approval.
  3. c) Nomination by the product supplier only.
  4. d) A vote by the FSP’s clients.

Why this is the answer

A key individual must be approved by the Registrar (FSCA) and must meet the KI fit-and-proper requirements (including the RE1 exam, qualifications, experience and honesty/integrity). Internal announcements or supplier nominations are not sufficient.

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