NB Cards Flashcards
(3 cards)
1
Q
Why is FAIS relevant to insurance?
A
- anyone selling/advising insurance needs to be FAIS registered FSP or associated with FSP
- need to be qualified, and do continuous exams
- advisers need to disclose: commission, terms and conditions of policy, whether tied/independent, risk and benefits of policy
- need to do full needs analysis with PH before recommending products
- keep record of all documents, quotes etc.
- if PH receives bad advice can go to the FAIS ombud
2
Q
National Credit act
A
- applies if life insurance policy taken out due to home loan
- ensure benefit amount is appropriate (enough to settle debt)
- cannot force PH to take out insurance with specific provider
- must disclose price of insurance separately to cost of loan
- ## maximum premiums on loan to ensure PH not exploited
3
Q
Financial Intelligence Centre
A
- ensure bank accounts not linked to terrorists
- ensure KYC steps complied with: ID documents, bank accounts checked, be aware of suspicious transactions
- must report on: terrorist property, suspicious transactions, cash transactions > R50k
- ensure customers scanned for money laundering risk or general high risk (politician)
