What is the role of a Key Individual (KI) under FAIS?

• A. A junior adviser with no compliance duties.
• B. The external regulator.
• C. The firm’s compliance officer.
• D. A senior person responsible for ensuring the firm's compliance with FAIS and the Code of Conduct and for overall regulatory responsibility.

Answer: (D)

Under FAIS, a Key Individual is the senior person who has the authority and responsibility to ensure the firm complies with FAIS and the Code of Conduct, carrying the overall regulatory responsibility for the firm’s activities. This means they oversee the framework that keeps the business compliant—policies, procedures, training, and supervision of staff—so that advice given, product recommendations, and client interactions meet FAIS standards. They are the accountability point for regulators, so if the firm breaches FAIS or the Code, the KI bears ultimate responsibility. This role is distinct from a junior adviser or the external regulator, and while a compliance officer handles day-to-day checks, the Key Individual must oversee and be answerable for the firm’s entire regulatory compliance and conduct.