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Key Individual Role of the Key Individual in terms of the FAIS Act
Which statement correctly distinguishes a compliance officer's role from a key individual's role?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The compliance officer independently monitors and reports on the FSP’s compliance, whereas the key individual manages and oversees the rendering of financial services.Correct
- b) They are identical roles and may never be separated.
- c) The compliance officer renders advice to clients while the KI does the accounting.
- d) The key individual reports to the FAIS Ombud while the compliance officer reports to no one.
Why this is the answer
A compliance officer provides independent monitoring and compliance reporting; a key individual is responsible for managing and overseeing the FSP's financial-services activities. The functions are distinct (and independence of compliance matters), even if a small FSP may structure them carefully.
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