All RE5 questions
Key Individual Role of the Key Individual in terms of the FAIS Act
A key individual oversees ten representatives. One of them has failed to keep proper records of advice for six months, despite two warnings. Which statements describe an appropriate response? i) Increase supervision of his work. ii) Require further training on record-keeping. iii) Consider whether his conduct is a material contravention that may warrant debarment. iv) Ignore it, because the representative's sales are strong.
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) All four statements
- b) Statements i and ii
- c) Statements i, ii and iiiCorrect
- d) Statements ii, iii and iv
Why this is the answer
Managing and overseeing representatives is the key individual's core role. Persistent failure to keep records of advice calls for corrective action such as closer supervision and training and, if it continues, consideration of whether it is a material contravention warranting debarment. Strong sales do not excuse it.
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