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Key Individual Role of the Key Individual in terms of the FAIS Act
Sipho is both a key individual and a representative of a company FSP. The FSP discovers that he misled clients when advising them. Which statement about removing him 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 may debar him as a representative, while withdrawing his approval as key individual is for the Authority.Correct
- b) The FSP must wait for the Authority to act, because it may not debar a person who is also a key individual.
- c) The FSP may not debar him at all, because a key individual cannot be debarred by anyone.
- d) The FSP may debar him in both capacities, because section 14 applies to all persons acting for an FSP.
Why this is the answer
Section 14 gives an FSP the power to debar its representatives (and the key individuals of its juristic representatives). Approval of the FSP's own key individual is granted by the Authority, and only the Authority can withdraw it. So the FSP deals with him as a representative and must inform the Authority, which decides on his key individual status.
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