All RE5 questions
Key Individual Role of the Key Individual in terms of the FAIS Act
Which scenario represents a failure of the Key Individual's management and oversight duty?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The KI takes a one-day leave.
- b) The KI ensures all Representatives pass the RE5.
- c) The KI fails to implement a control that allows an unsupervised Representative to render advice on a new product.Correct
- d) The KI submits the annual compliance report on time.
Why this is the answer
The KI is responsible for the FSP's 'Operational Ability' (Sec 8(1)(c)), which includes internal controls and supervision. Allowing an unsupervised (and likely not competent) representative to render advice is a direct failure of the KI's management and oversight duty.
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