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Key Individual Role of the Key Individual in terms of the FAIS Act
Which of these are failures of a key individual's duty to manage and oversee the FSP's financial services? i) Letting a representative who is not yet competent advise clients without supervision. ii) Taking two weeks' leave after arranging for another key individual to stand in. iii) Ignoring repeated complaints about one representative's sales practices. iv) Submitting the FSP's annual compliance report on time.
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Statements i and iiiCorrect
- b) Statement i only
- c) Statements iii and iv
- d) Statements i, ii and iii
Why this is the answer
Allowing unsupervised advice by someone not yet competent and ignoring a pattern of complaints are both breakdowns of the oversight a key individual is responsible for. Taking leave with proper cover in place, and filing the compliance report on time, are not failures.
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