All RE5 questions
Key Individual Role of the Key Individual in terms of the FAIS Act
If a Representative fails to submit their required annual Fit and Proper declaration, what is the KI's mandatory action?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Ignore the matter if the Representative is performing well.
- b) Pay the Representative a bonus.
- c) Only inform the Product Supplier.
- d) Take corrective action, which may include suspension or debarment of the Representative.Correct
Why this is the answer
The KI is responsible for the FSP's compliance (Sec 17(1)) and ensuring all representatives remain Fit and Proper. Failure to submit a mandatory declaration is a compliance breach. The KI must take corrective action to enforce compliance, which could ultimately lead to suspension or debarment if the non-compliance persists.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.