Subject Title - INSETA

Self-Assessment QuestionsPlease note that the questions which follow are formative in nature. Thequestions were not developed by the FSB‟s examination bodies and as suchcannot be used as an indication of the nature/structure/level of the questionsthat you will encounter in the FSB‟s regulatory examination.1. Which of the following statements describe a key individual best?a) In a sole proprietorship, it is not allowed for the keyindividual to also act as a representativeb) A person must be a senior manager or director to qualify forappointment as a key individualc) A key individual is a person within a company who takes fullresponsibility for the management and the supervision of thecompany in relation to the FAIS Act requirementsd) A key individual may be any person with some experienceregarding financial services2. Once a key individual is approved by the FSB:a) it is not necessary to ensure that he continue to meet thehonesty and integrity requirements at all timesb) it is necessary to ensure that he continue to meet thehonesty and integrity requirements at all timesc) it means that he can automatically be a representative in allproduct categoriesd) the key individual keeps the appointment for life but needs toreapply when he changes employment3. Part of the FAIS Act fit and proper requirements are that a keyindividual must meet the honesty and integrity requirements.InsCo is an insurance company, which needs to appoint a new keyindividual. Jody and Peter are potential candidates and you need tomake sure that they meet the honesty and integrity requirements.Consider the following scenario, read each statement carefully andthen choose the statement that is TRUE.a) Peter was found not guilty on a charge of fraud last year,everything else is fine, so he meets the honesty and integrityrequirements.48 © INSETA - Section 1 12a