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Key Individual Role of the Key Individual in terms of the FAIS Act
A company FSP has a CEO who manages its financial services business, a CFO who deals only with finance and tax, and an HR director. All three are directors. Who must be approved as a key individual?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The CEO only, because a key individual manages or oversees the financial services activities.Correct
- b) The CEO and the CFO, because the control of the finances of the FSP is part of managing it.
- c) All three, because every director of an FSP is a key individual by virtue of holding that office.
- d) None of them, because a key individual must be an employee below the level of the board.
Why this is the answer
A key individual is a natural person responsible for managing or overseeing the activities of the FSP that relate to the rendering of financial services. The test is the function, not the title: a director who has no role in the financial services business is not a key individual, and seniority does not exclude anyone.
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