Part 1 Flashcards
(20 cards)
Who must submit complaince reports the Authority?
A.Key Individual
B.Compliance Officer
C.FSP
D.Compliance Officer or in their absence ,the authorised FSP
D.Compliance Officer or in their absence ,the authorised FSP
Rep will discuss detaild of the policy contract with the client.
Why does the Representative have to do this?
Choose one:
A.Ensure client knows % of commission earqned by FSP
B.Ensure client knows who to contact when they want to claim benefits on policy
C.Ensure client is given sufficient information about the contract to make an informed decision
D.Ensure client knows when premiums of the policy are due and how they will paid
C.Ensure client is given sufficient information about the contract to make an informed decision
After rep meets Fit & Proper requirements(except experience)
Why must they do CPD?
Choose one:
A.So they comply with FIC & FAIS
B.To force them to attend seminars to remain up to date with the latest software analysis programs
C.Maintain knowledge w.r.t product categories or subcats for which she is authorised
D.Assist them to maintain knowledge & skills at required levels to perform fin services of a high quality
D.Assist them to maintain knowledge & skills at required levels to perform fin services of a high quality
Which statements w.r.t GCOC are true?
i. Records must be kept for 5 years from inception of the product
ii.Adequate records of advertisements must be kept for a period of at least 5 years after publication
iii.Direct marketer must record telephone conversations with clients in the course of direct marketing & must have appropriate procedures & systems in place to store & retrieve such revordings
iv.Clients must be able to get copies of the telephonic advertisement records within 10 days of the request
Choose one:
a. i & iii only
b.ii & iii only
c.i,ii and iii only
d.ii and iv only
c.i,ii and iii only
Once a suspicious transaction has been reported and the authorities have investigated, the FIC must obtain information on the unlawful activities. How would they go about obtaining such information? Choose the INCORRECT statement.
Select one:
a.FIC can only apply for a warrant to access records of a bank.
b.FIC can apply for a warrant to access records.
c.FIC can apply for a warrant to access records provided that there are reasonable grounds to believe that the records will assist in identifying the proceeds of unlawful activities.
d.a and c.
a.FIC can only apply for a warrant to access records of a bank.
Choose the INCORRECT answer.
The General Code of Conduct requires that FSPs or Representatives must adhere to certain advertising principles. This means that advertisements must:
a.Be factually correct, including aspects of an advertisement constituting puffery.
b.Provide a balanced presentation of key information.
c.Not be misleading.
d.Be factually correct, excluding aspects of an advertisement constituting puffery.
d.Be factually correct, excluding aspects of an advertisement constituting puffery
Which of the following does not have to be disclosed by product suppliers?
Select one:
a.The types of products available from the product supplier.
b.Contact details of the compliance department.
c.Information about the complaints procedure of the product supplier.
d.Whether the FSP holds more than a 10% share in the product supplier
a.The types of products available from the product supplier.
When a client expresses dissatisfaction with a provider regarding financial services, it can be done by:
Select one:
a.Any means if it is in such a manner that the provider can record details to report and react to the complaint.
b.Writing a letter or email to the provider to resolve the complaint.
c.Completing a complaint registration form and sending a copy of the insurer’s final response.
d.Send a complaint affidavit to the financial service provider and product provider and give them 10 days to respond.
a.Any means if it is in such a manner that the provider can record details to report and react to the complaint.
Jody’s job description should describe the following duties with regard to his role as Compliance Officer:
Select one:
a.Monitoring and overseeing the compliance function.
b.Monitoring and providing support.
c.Providing support and training.
d.Monitoring and overseeing the compliance function and providing support by establishing and maintaining compliance procedures for the FSP.
d.Monitoring and overseeing the compliance function and providing support by establishing and maintaining compliance procedures for the FSP.
The Ombud for Financial Services Providers is the person appointed to resolve disputes between consumers and financial services providers relating to:
Select one:
a.The quality or nature of the advice given.
b.The contract between the insurer and the client.
c.The performance of an investment.
d.The experience of the advisor.
a.The quality or nature of the advice given.
As a Representative for MoonInsure you need to ensure that the following requirements are met with regard to the confidentiality of client information:
i. An FSP may not disclose any confidential information acquired or obtained from a client unless the client consented in writing after the disclosure.
ii. An FSP may not disclose any confidential information acquired or obtained from a client unless the client consented in writing beforehand.
iii. An FSP may not disclose any confidential information acquired or obtained from a client unless disclosure of the information is required in the Authority’s interest.
iv. An FSP may not disclose any confidential information acquired or obtained from a client unless disclosure is required in terms of any law.
Select one:
a. i and iv only.
b.ii and iii only.
c.ii and iv only.
d.i and ii only.
c.ii and iv only.
In order to be able to provide the client with appropriate advice, the Representative should, first of all, obtain appropriate and available information from the client regarding their:
Select one:
a.Financial situation.
b.Financial situation, financial product experience and objectives.
c.Financial product experience and objectives.
d.Financial situation and objectives.
b.Financial situation, financial product experience and objectives.
Tambu works for an FSP with a single subclass of business within a single class of business.
Once Tambu has met the competency requirements, he then has to meet the CPD Fit and Proper Requirement. Choose the CORRECT statement:
Select one:
a.The CPD Fit and Proper requirement will require him to complete five to 30 notional hours of development over a three-year cycle.
b.The CPD Fit and Proper requirement requires him to complete a minimum of 12 hours of CPD activities per CPD cycle.
c.The CPD Fit and Proper Requirement requires him to complete a minimum of six hours of CPD activities per CPD cycle.
d.The CPD Fit and Proper Requirement will require 15 to 50 notional hours of development over a two-year cycle.
c.The CPD Fit and Proper Requirement requires him to complete a minimum of six hours of CPD activities per CPD cycle.
A conflict of interest can arise when a Representative:
Select one:
a.Represents more than one product supplier.
b.Has business interests with the client.
c.Has conflicting business and personal interests.
d.Has personal interests as far as the client is concerned.
a.Represents more than one product supplier.
What is the definition of money laundering?
Choose the FALSE statement.
Select one:
a.Money laundering refers to any act that obscures the illicit nature or the existence, location or application of proceeds of crime.
b.Money laundering is the processing of proceeds received from criminal activities, to disguise their origin.
c.Money laundering refers to an act that obscures the illicit nature of the location of criminal activity.
d.a and c.
c.Money laundering refers to an act that obscures the illicit nature of the location of criminal activity.
The Authority may publish Codes of Conduct, which contains the details of the requirements when FSPs and Representatives render financial services to clients. There are a number of Codes, of which the most important is the General Code of Conduct.
Which of the following is NOT covered in the General Code of Conduct?
Select one:
a.Disclosure requirements.
b.Furnishing of advice.
c.Advertising and direct marketing.
d.Debarment of Representatives.
d.Debarment of Representatives.
Long-Term Insurance Category A financial services providers have a licence to sell:
Select one:
a.Assistance policies.
b.Risk policies.
c.Investment policies.
d.Health service benefits.
a.Assistance policies.
The FIC Act is aimed at identifying suspicious transactions so that the people who engage in money-laundering activities can be charged under:
Select one:
a.POCA.
b.FICA.
c.POCA and FICA.
d.FICA and POCDATARA
a.POCA.
The Fit and Proper requirements relating to Honesty, Integrity and Good Standing apply to:
Select one:
a.Key Individuals and Representatives.
b.Some FSPs, Key Individuals and some Representatives.
c.All FSPs, Key Individuals and Representatives.
d.All FSPs, Key Individuals and Representatives except those Representatives who are only appointed to render financial services in respect of a Tier 2 financial product.
c.All FSPs, Key Individuals and Representatives.
A Category I FSP that appoints Representatives to perform execution of sales must only be able to demonstrate their compliance with:
i. The Competence requirements relating to Class of Business Training.
ii. The Competence requirements relating to Qualifications.
iii. The Competence requirements relating to Regulatory Examinations.
iv. The Competence requirements relating to Product Specific Training.
Select one:
a.i and iii only.
b.i and iv only.
c.iv only.
d.i, ii, iii and iv.
c.iv only.
