Subject Title - INSETA

A key individual must have already obtained a qualification from the list whenapplying to the Registrar for approval.A key individual who onlymanages and overseesMust have obtained qualification relevant tokey individuals prior to being appointed andapproved as a key individual. 21A key individual whomanages and oversees, actsMust have obtained the relevant qualificationrecognised for the financial product(s) theas a representative and has key individual is authorised for as aadequate product experience. representative. 22Remember, a relevant qualification is just ONE (1) of the fit and propercompetency requirements, the key individual must still have the requiredmanagement and oversight experience as well as meeting the otherrequirements.2.3.9 Regulatory examinationsTo meet the fit and proper requirements in terms of competence, all keyindividuals and representatives have to complete the regulatory examinations(from 2010 onwards), except where there is provision for exemption, whichwe discuss below.The Registrar introduced the first-level regulatory examinations becausethere is a severe lack of understanding and application of the key principlesof the FAIS Act in the financial services industry.The focus of the first-level regulatory examinations is to test the applicationof factual knowledge of the representatives and key individuals with regard tothe:rendering of financial services applicable to specific categories orsubcategories to clients; andunderstanding and application of the relevant legal provisionspertaining to providers and clients.21 Section 5(1)(c) of BN 10622 Section 5(1)(c) of BN 10642 © INSETA - Section 1 12a