All RE5 questions
Key Individual Role of the Key Individual in terms of the FAIS Act
A representative fails to submit the required annual Fit and Proper declaration. 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) Reward the representative to encourage future compliance.
- b) Take corrective action, which may extend to suspending or debarring the representative.Correct
- c) Notify only the product supplier and take no internal step.
- d) Overlook it as long as the representative’s sales remain strong.
Why this is the answer
The KI must enforce ongoing fitness and propriety. A missing mandatory declaration is a compliance breach calling for corrective action — escalating to suspension or debarment if it persists. Ignoring it, rewarding it, or merely telling the product supplier are not adequate responses.
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