All RE5 questions
Key Individual Role of the Key Individual in terms of the FAIS Act
An FSP licensed for long-term insurance has one key individual, whose experience and approval relate to long-term insurance only. The FSP now adds investments to its licence. Which statement about the key individual is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) He must meet the competence requirements for investments and be approved for that category.Correct
- b) He may oversee the new category at once, provided the representatives are competent in it.
- c) He may oversee the new category at once, because approval as a key individual covers all categories.
- d) He may not oversee the new category, and the law requires a separate FSP for investments.
Why this is the answer
A key individual's competence and approval relate to the categories of financial services he manages or oversees. Adding a category means the FSP needs a key individual who meets the requirements for it and is approved in respect of it. Competent representatives do not replace competent oversight, and one FSP may hold several categories.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.
More Key Individual questions
- A company FSP proposes to the Authority that its key individual should be 'Apex Managem…
- A growing FSP wants its operations manager to join the existing key individual in overs…
- An FSP's sole key individual spent two years focused on a new business venture and left…
- A company FSP has a CEO who manages its financial services business, a CFO who deals on…