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Key Individual Role of the Key Individual in terms of the FAIS Act
A large FSP renders financial services across several distinct product divisions. What does this typically mean for its key individuals?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) It may need more than one key individual, each approved for and overseeing the relevant scope.Correct
- b) One key individual must personally do every transaction in every division.
- c) It needs no key individual at all if it is large enough.
- d) Each client must be appointed as a key individual.
Why this is the answer
Where an FSP's activities are broad, it may require multiple key individuals, each approved for and overseeing the part of the business within their competence and scope. A single KI need not personally perform every transaction, and no FSP is exempt from needing a KI.
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