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Key Individual Role of the Key Individual in terms of the FAIS Act
An FSP proposes its top adviser as an additional key individual. She has 15 years' experience advising clients and holds the qualification and the RE1, but has never managed or overseen anyone. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) She qualifies, because the RE1 is the only competence requirement for a key individual.
- b) She qualifies, because 15 years of advising clients exceeds any experience requirement.
- c) She lacks the required experience, because a key individual needs experience in managing or overseeing financial services.Correct
- d) She lacks the required experience, because a key individual must first have been a compliance officer.
Why this is the answer
A key individual's competence includes practical experience in the management or oversight of the rendering of financial services, which is a different skill from rendering them. Advice experience alone does not meet it, and the RE1 is only one of the competence requirements. There is no requirement to have been a compliance officer.
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