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

An FSP is licensed for both Category I and Category II. For which categories must its key individual be approved by the FSCA?

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

  1. a) All categories in which the FSP is licensed.Correct
  2. b) Only one of the categories, at the FSP’s choice.
  3. c) Only the category assessed as lowest-risk.
  4. d) Only Category I.

Why this is the answer

A key individual must meet the fit-and-proper (including competence) requirements for every category they manage. To oversee both Category I and Category II business, the KI must be approved for both — not just one or the lower-risk one.

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