Symptoms
Client created a new role in K2 workspace, tested it with the SMO tester that it works, but it was not available in K2 Studio for them to use.
Diagnoses
Realized that the roles that were being shown in Studio were from the Dev server and not the Production server
Resolution
We changed the Server value in the to C:program datasourcecode and this resolved the roles issue (as it was pulling the roles from the dev server and not the live server)
This resolved the issue