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Key Individual Role of the Key Individual in terms of the FAIS Act
A company FSP proposes to the Authority that its key individual should be 'Apex Management Services (Pty) Ltd', an outside company that will run its advice business under contract. Can this be approved?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) No. A key individual must be a natural person who manages or oversees the financial services.Correct
- b) Yes. Any person, natural or juristic, may be approved as a key individual of an FSP.
- c) Yes, provided the outside company is itself an authorised FSP with its own licence.
- d) No. A key individual must be a director of the FSP, and an outsider cannot hold the role.
Why this is the answer
A key individual is defined as a natural person responsible for managing or overseeing the financial services activities of the FSP. A company cannot be one, whatever its licensing status; the individuals within it who actually do the managing would each have to be approved. The key individual need not be a director.
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