Lecture 8 - Regulatory Regulations

Question 1

What are regulated by FAA?

Answer 1

1. Futures contracts
2. Foreign exchange contracts
3. Life insurance products

Question 2

What are not regulated by FAA?

Answer 2

1. General insurance
   
   • Covered by Insurance Act
2. Bank deposits
3. Loans & Mortgages
   
   • Do not have any investment elements

Question 3

What is the selling role of a Financial Services Marketer?

Answer 3

They should not cold call or hard sell

Question 4

What are the steps in consultative selling?

P.S. customers buy benefits not features; solutions not products

Answer 4

• Research and understand products
• Ask for you customer needs
• Listen (actively)
• Demonstrate features & benefits
• Follow through

Question 5

What are the 5 outcomes from the Guidelines of Fair Dealing?

Answer 5

1. Confidence in Financial Institutions
2. Suitable products and services
3. Competent representatives
4. Clear, relevant, and timely information
5. Handle customer complaints in an independent, effective and prompt manner

Question 6

What are FIDReC?

Answer 6

It is an independent and impartial institution specialising in resolution in disputes between financial institutions and consumers.

Question 7

What does FIDReC do?

Answer 7

• Provides affordable and accessible one-stop avenue for consumers to resolve their disputes with the financial institutions.
• Streamlines disputes resolution processes in the financial sector