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Key Individual Role of the Key Individual in terms of the FAIS Act
A consultant is the approved key individual of six unrelated FSPs in four provinces and visits each for one day a month. The Authority queries the arrangement. What is the Authority's most likely concern?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Whether each FSP has paid a separate levy for the appointment of an outside key individual.
- b) Whether he has passed a separate regulatory examination for each of the six FSPs.
- c) Whether he has the operational ability to oversee all six businesses properly.Correct
- d) Whether the Act permits a person to be the key individual of more than one FSP at all.
Why this is the answer
A person may be a key individual of more than one FSP, but must have and be able to demonstrate the operational ability to perform the role for each. One day a month at each of six businesses raises the question of whether real management or oversight is taking place. The examination is passed once and is not repeated for each FSP.
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