Part 2 - General provisions Flashcards
(12 cards)
What is general duty of the provider?
must at all times render financial services honestly, fairly, with due skill, care and diligence, and in the interests of clients and the integrity of the financial services industry
Regarding specific information what are the key facts?
1.Factually correct
2.Plain language
3.Adequate & appropriate
4.Given timeously to give client enough time to make informed decision
5.Can be provided orally if requested by client
6.If in writing - clear & readable and printable size
7.Fees,sums,values charges,fees & remuneration or monetary obligations be provided in monetary terms otherwise calcs should be simple
When must conflict of interest be disclosed to client?
When provider has personal interests and they must take measures to ensure fair treatment of client
What are noncash incentives give by other provider to provider viewed as?
Form of conflict of interest
In which way must financial service be rendered?
According to contractual agreement & reasonable requests of clients
How should client transactions be handled?
Accurately
Why shouldnt there be insider trading?
It leads to misuse of price information to benefit provider & disadvantage clients
What should systems and processes of provider have in relation to information kept?
1.Record verbal & written comms
2.Store & retrieve such records safely
3.Keep records from destruction
How long must client records be kept?
Min 5 years from termination of product or 5 years from inception of financial services
Are 3rd party allowed to keep records?
Yes and fsps must be able to get them to registrar within 7days of request
How should records be stored?
Electronic or recorded format which are accesible & readily reducible to written or printed form
When can client or provider information be disclosed?
When client has given written consent beforehand or if it is in the interest of the public interest or under any law
