Task3

• Key individual (KI)


  An important role player within an authorized financial services provider (FSP), who is a natural person (human being) employed by the FSP to ensure compliance with the FAIS Act
• Key individual


  • Responsible for the management and oversight of the business
  • Every FSP must have someone fulfilling the role of a key individual
  • For one-person businesses, the owner will be the FSP and also act as the key individual
• Applying for an FSP license

  1. Natural person operating in their own name (sole proprietor)

  2. Partnership where partners contribute money and time

  3. Trust operated by trustees

  4. Other legal entities such as private or public companies
• To operate as an authorized FSP, you need a FAIS license
• Commissioner, Registrar, Authority


  Refers to the regulator (the office of the FSCA)
• Role of the key individual

  • Managing and overseeing the rendering of financial services functions of the FSP
  • Monitoring and mitigating issues of non-compliance with the FAIS Act with the help of a compliance officer
  • Monitoring and supervising the work of the representatives of the FSP
• A key individual operating as a sole proprietor may also serve as a representative
• Key individual


  The person responsible for managing and overseeing the rendering of the financial services functions of an FSP
• Key individual's responsibilities


  • Managing and overseeing the rendering of the financial services functions of an FSP
  • Monitoring and mitigating issues of non-compliance with the FAIS Act with the help of a compliance officer
  • Monitoring and supervising the work of the representatives of an FSP
• Managing as a key individual

  1. Having executive control or authority

  2. Guiding the business to its success or profitability

  3. Following the rules and regulations

  4. Responsible for day-to-day operations of an FSP
• Day-to-day responsibilities of a key individual

  • Making sure the FSP maintains specified types of records for a period of five years
  • Maintaining full and proper accounting records and making sure that annual financial statements are timelessly submitted to the FSCA
  • Ensuring that fit and proper requirements are complied with on a continuous basis
  • Making sure that there are effective and adequate systems of corporate governance, risk management and internal controls
  • Making sure that the FSP only conducts business within the conditions of its authorization or licensed category and products or sub categories
  • Ensuring that only lawfully appointed representatives render financial services
  • Making sure that the representative register is maintained, updated and submitted to the FSCA or commissioner as required
  • Making sure that the FSP follows all directives issued by the FSCA
• Supervision or oversight role of a key individual


  Checking the representative's conduct and behavior through the work they do for the business to see if it's in line with the codes of conduct for representatives as set out in the legislation
• Task 3


  Defining the role of the key individual in terms of the phase act
• Task 3 qualifying criteria

  • 3 qualifying criteria
• Explain the implications for representative should a key individual no longer meet the good standing honesty and integrity requirements


  1. Explain the implications

  2. Key individual no longer meets good standing, honesty and integrity requirements
• Key individual


  Important role within an FSP
• How a key individual gets appointed by an FSP

  1. FSP applies to FSCA to have nominated key individual approved

  2. Applicant key individual fills in prescribed application form, signs it, gives it to FSP to lodge with FSCA or Commissioner for approval
• Conditions for key individual appointment approval

  • Key individual must meet fit and proper requirements as defined in FAIS Act
  • FSCA determines if key individual meets fit and proper requirements before granting approval
• After approval, FSP is able to appoint key individual to manage and oversee rendering of financial services and compliance with FAIS Act
• FSCA, Commissioner, Registrar, Authority are used interchangeably to refer to the regulator
• Fit and proper requirements for key individual

  • Character qualities
  • Competence
  • Operational abilities
• Character qualities


  Honesty, integrity, good standing
• Competence requirements


  • Qualification
  • Experience
  • Regulatory examinations
• Operational ability


  Capabilities of an FSP to conduct business in an organized and professional way
• Key individual responsibilities


  • Ensuring effective and adequate systems of corporate governance, risk management and internal controls
  • Ensuring only lawfully appointed representatives render financial services
  • Ensuring fit and proper requirements are complied with on a continuous basis
  • Ensuring specified records are kept for minimum 5 years
• Without a key individual, there is no one in the FSP to take full responsibility for management and supervision, which would be in contravention of the FAIS Act and render the FSP non-compliant
• Change in appointed key individual

  May cause change to FSP's license or authorization
• Appointment of additional key individual will not have negative implications if existing key individuals already meet prevailing requirements