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Key Individual Role of the Key Individual in terms of the FAIS Act
A representative has not given his FSP the annual confirmation that he still meets the Fit and Proper requirements, two years running. The key individual says it is 'just paperwork' while his sales are good. 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) The FSP must debar him at once, without notice, because the form is missing again.
- b) Only the product supplier needs to be told; the FSP itself need take no further step.
- c) The FSP must look into his position and, if he no longer qualifies, debar him.Correct
- d) The key individual is right: the confirmation is a formality that has no consequences at all.
Why this is the answer
An FSP must be satisfied, on an ongoing basis, that each representative remains fit and proper, and the key individual oversees that. A repeatedly missing confirmation must be followed up. If the representative no longer meets the requirements, he must be debarred, but only after the fair process the Act requires.
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