RE5 - Chapter 1 Quiz

A CLIENT, AS DEFINED IN THE ACT, DOES NOT INCLUDE THE FOLLOWING;

WHICH OF THE BELOW FROM PART OF THE TWIN PEAKS REGIME?

WHICH OF THE FOLLOWING PRODUCTS IS NOT GOVERNED IN TERMS OF THE FAIS ACT?

WHICH SUBCATEGORY FROM THE LIST BELOW APPEARS ON CATEGORY I BUT NOT ON CATEGORY II?

NO PROVIDER MAY ACT AS A FINANCIAL SERVICES PROVIDER UNLESS SUCH PROVIDER HAS;

RANGER (PTY) LTD. WOULD LIKE TO APPLY FOR AUTHORISATION AS A FINANCIAL SERVICES PROVIDER TO THE FSCA, WHICH DEPARTMENT WITHIN THE FSCA WILL DEAL WITH HIS APPLICATION FOR LICENSE?

SELECT THE OPTION BELOW WHICH BEST DESCRIBES A CATEGORY IIA FINANCIAL SERVICES PROVIDER:

MPHO CONTACTS JOHN FOR MORE INFORMATION ON PREPARING FOR HIS RETIREMENT. JOHN EXPLAINS THE DIFFERENT RETIREMENT PRODUCTS TO MPHO AS WELL AS ADVISES HIM ON WHICH PRODUCTS WOULD BE BEST SUITED TO HIS NEEDS. WHAT TYPE OF FINANCIAL SERVICE DID JOHN PROVIDE?

THE FAIS ACT WAS PROMULGATED ON WHICH DATE AND BECAME EFFECTIVE WHEN?

The FAIS Act aims to [blank_start]professionalize[blank_end] the financial services industry and to [blank_start]adequately protect consumers[blank_end], maintain [blank_start]trust[blank_end] In the industry and maintaining [blank_start]systematic stability[blank_end].

THE ACT FOLLOWS A FUNCTIONAL APPROACH, MEANING THAT IT FOCUSES ON SPECIFIC INSTITUTIONS LIKE LOAN CREDIT GRANTORS REGISTERED UNDER NATIONAL CREDIT REGULATORS.

GENERAL CODE OF CONDUCT

FOREX INVESTMENT BUSINESS

SPECIFIC CODE OF CONDUCT

NOTICE ON CODES OF CONDUCT

The purpose of the Codes is to provide more detailed provisions regarding the rendering of financial services. These Code are part of the subordinate Legislation and are not binding on all FSP’s, Key Individuals and Representatives.

Friendly Society Benefits and Health Services Benefits are subcategories which are regulated under category I but not under category II/IIA.

In terms of the FAIS Act, to provide a financial service means to; A. Give advice only B. Provide an intermediary service only C. Give advice and provide an intermediary service only D. Give advice and/or provide an intermediary service only

Giving advice is to ❶[blank_start]…………………………..[blank_end], ❷…[blank_start]……………………….[blank_end]. and ❸[blank_start]………………………….[blank_end] Recommend Suggest Propose

Giving advice is to ❶[blank_start]………………………….[blank_end]., ❷[blank_start]…………………………..[blank_end] and ❸[blank_start]………………………….[blank_end]

An analysis or report on a financial report with an express or implied recommendation, guidance or proposal that a transaction in respect of the product meets the client’s needs, investment objectives or financial situation in terms of the FAIS Act, is not regarded as advice.

In terms of the Act, when a board member of any pension fund organization or friendly society advice members on benefits to be enjoyed by the members is not regarded as advice.

Mention four departments of the FAIS Division within the FSCA 1) [blank_start].......................................[blank_end] 2) [blank_start]……………………………………..[blank_end] 3) [blank_start]……………………………………..[blank_end] 4) [blank_start]……………………………………..[blank_end]

[blank_start]Category I[blank_end]

[blank_start]Catagory IIA[blank_end]

[blank_start]Catagory III[blank_end]

[blank_start]Catagory IV[blank_end]

An FSP can appoint a Key Individual and the Compliance Officer without the approval of the FSCA.

An FSP can appoint Joseph as a representative for their Joburg branch without the approval of the FSCA.

Angel a daughter to the Director of Sisonke Brokers CC wants to join her father’s business as a representative to learn the business. She currently has a judgement with Forschini. Can Sisonke Broker CC employ her and register her name on their register with FSCA as their representative?

An FSP plans to provide discretionary services in unit trust in which ONE of the following categories must they be authorized?

WHICH OF THE FOLLOWING STATEMENTS WITH REGARD TO THE FUNCTION OF THE ROLE PLAYERS IN TERMS OF THE FAIS ACT ARE CORRECT? I. The representative must ensure that records are kept in the correct manner. II. The key individual must ensure that complaints are handled in a procedural fair manner. III. The compliance officer must establish and maintain the compliance function. IV. The Authority must ensure that all financial services providers comply with the FAIS Act.

What classification of financial service is the following scenario in terms of the FAIS Act? “Audrey Selepe advises Edward Nkosi that it is a requirement to take out a short-term insurance policy when taking out a mortgage bond of Bank A”

Which of the following would qualify as a representative of an FSP in terms of the FAIS Act?

Financial services include:

CHOOSE THE CORRECT COMBINATION A. A functional approach means that the Act regulates certain functions across institutions ( (insurance companies, brokerages and banks). B. A functional approach focuses on specific institutions. C. The function of providing financial services across various institutions is governed by the FAIS

What is the definition of “advice” in terms of the FAIS Act?

What are the objectives of the FAIS Act?

Albert works at Medical Aid Broker. On the 17th January 2011, Mr Mkhwanazi called in to advise that his new born son, Julius born on the 16th January 2011, needs to be added into his medical aid with immediate effect. Albert sends the request through Momentous Cover, the underwriter. Which of the following financial services do Albert provide;