All RE5 questions
Key Individual Role of the Key Individual in terms of the FAIS Act
A key individual oversees ten representatives. One repeatedly fails to keep proper records of advice. What is the key individual's appropriate response?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Address the failure through oversight — additional supervision, training or corrective action — to bring the representative into compliance.Correct
- b) Do nothing, since record-keeping is optional.
- c) Hide the issue from the compliance officer.
- d) Reward the representative for high sales despite the breaches.
Why this is the answer
Managing and overseeing representatives is the KI's core role. Persistent record-keeping failures must be corrected through supervision, training or other action — not ignored or concealed.
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