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Key Individual Role of the Key Individual in terms of the FAIS Act
A growing FSP wants its operations manager to join the existing key individual in overseeing the financial services business. The board lets him start immediately and submits the application to the Authority a month later. 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) He may not manage or oversee the financial services business until the Authority has approved him.Correct
- b) He may start at once on Tier 2 business, and on Tier 1 business after the Authority approves him.
- c) He may start at once, because the FSP already has one approved key individual who remains responsible.
- d) He may start at once, provided the application reaches the Authority within 15 days of his appointment.
Why this is the answer
No person may take part in the management or oversight of an FSP's financial services activities as a key individual unless approved by the Authority. Having another approved key individual, submitting the application afterwards, or limiting him to simpler products does not replace prior approval.
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