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Key Individual Role of the Key Individual in terms of the FAIS Act
An FSP proposes to approve its top-selling representative as a key individual. She would carry on selling full-time and take no part in managing or overseeing the FSP's financial services. 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) That does not fit the role, because a key individual may not sell at all.
- b) That would not do: the role exists to direct and supervise how services are rendered.Correct
- c) That is acceptable, provided she has passed both the RE1 and the RE5 and has the experience.
- d) That is acceptable, because the key individual role exists to recognise the FSP's leading producer.
Why this is the answer
A key individual is a person responsible for managing or overseeing the FSP's rendering of financial services. Approving someone who will take no part in that would not meet the purpose of the role, whatever her examinations. A key individual may also render services, so the problem is not that she sells, but that she would not manage.
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