Part 3 Flashcards
(13 cards)
Which of the following is NOT a requirement of FAIS with regard to a licence?
Select one:
a.It must be prominently displayed in all the licensee’s business premises.
b.It must be made available to anyone who requests proof that the business is licensed.
c.Refer to the licence in all advertisements, business documentation and promotional material.
d.Refer to the licence in client contact.
d.Refer to the licence in client contact.
CryptoMoon, an authorised CASP, appoints Tumi as a Representative and places him on the Representative register. A complaint is later lodged against him for mis-selling. Who will be held responsible?
Select one:
a.Tumi will be held entirely responsible.
b. CryptoMoon and the Compliance Officer will be held responsible.
c.The FSCA will be held responsible.
d. CryptoMoon will be held responsible.
d. CryptoMoon will be held responsible.
The person performing the compliance function in the FSP must report a suspicious transaction to the FIC within:
Select one:
a.15 working days of learning of it.
b.15 days of learning of it or from when the suspicion arose.
c.15 working days from when the suspicion arose.
d.30 days of learning of it.
b.15 days of learning of it or from when the suspicion arose
Lerato works as a Representative for an FSP. He also writes a column on financial planning for a well-known blog. In terms of FAIS this is:
Select one:
a.Advice because Lerato is a Representative of an FSP.
b.Not advice because Lerato is not making specific recommendations or providing guidance or making a proposal in respect of a financial product.
c.Not advice because the FAIS definition of ‘client’ does not include the general public.
d.Advice because the FAIS Act defined advice as ‘any recommendation, guidance or proposal of a financial nature furnished by any means or medium, to any client or group of client’.
c.Not advice because the FAIS definition of ‘client’ does not include the general public
The Key Individual may:
Select one:
a.Fulfil two roles, namely that of a Key Individual and that of a Representative.
b.Only act as a Key Individual.
c.Not be a Representative.
d.Not be a director of an FSP.
a.Fulfil two roles, namely that of a Key Individual and that of a Representative.
What is/are the Financial Intelligence Centre’s main objective(s)?
i. Identifying proceeds of unlawful activities.
ii. Identification of person involved in money-laundering activities, offenses relating to the financing of terrorist and related activities, and proliferation financing activities.
iii. Combatting money-laundering activities, the financing of terrorist and proliferation financing activities.
iv. Implementing financial sanctions pursuant to resolutions adopted by the Security Council of the United Nations.
Select one:
a.i only.
b.i, ii and iii only.
c.i, ii, iii and iv.
d.ii and iii only.
c.i, ii, iii and iv.
Select the statement that correctly describes the involvement of all the relationships between industry players with regard to financial products, as defined in FAIS.
Select one:
a.The FSP requests a product supplier to design a product which can be sold to clients, and the Compliance Officer oversees this process to ensure compliance with FAIS.
b.The product supplier designs products, tests their suitability with Representatives of an FSP and markets the products once they have been approved by the FSP’s Compliance Officer.
c.The FSP designs its own products, asks a product provider to test the product for compliance with the FAIS Act and then the FSP’s Representatives may sell the product to their clients.
d.The product supplier provides the product to the FSP in terms of a distribution agreement, which the Representative sells to a client, the admin staff will process the application and the Compliance Officer oversees the process to ensure compliance with FAIS.
d.The product supplier provides the product to the FSP in terms of a distribution agreement, which the Representative sells to a client, the admin staff will process the application and the Compliance Officer oversees the process to ensure compliance with FAIS.
Elsie is a Representative and is advising his client Tshivhidzo regarding a funeral insurance solution for his family. As part of the quotation stage disclosures, Elsie is required to disclose information regarding:
Select one:
a.Names, contact and address details of the FSP.
b.Name and contact details of the relevant compliance department of the product supplier.
c.Whether Tshivhidzo holds professional indemnity cover or not.
d.The existence of any specific exemptions that the Authority may have granted to the provider with regard to any matter provided by the Act.
b.Name and contact details of the relevant compliance department of the product supplier.
The Act requires that certain prescribed information be recorded on a record of advice. Which of the following statements is FALSE?
Select one:
a.A record of advice is required to contain the financial product or products recommended.
b.A record of advice must contain detailed and comprehensive information and material on which the advice was based.
c.A record of advice must contain an explanation of why the product, or products selected, is or are likely to satisfy the client’s identified needs and objectives.
d.A record of advice must contain the financial products which were considered.
b.A record of advice must contain detailed and comprehensive information and material on which the advice was based.
No person my become or continue as an FSP or juristic Representative if:
Select one:
a.Declared insolvent.
b.Placed under liquidation.
c.Declared provisionally insolvent or placed under provisional liquidation.
d.All of the above.
d.All of the above.
According to Board Notice 194 of 2017, ‘automated advice’ means:
Select one:
a.The furnishing of electronic product comparisons through an electronic medium that uses algorithms and technology without the direct involvement of a natural person.
b.The furnishing of advice through an electronic medium that uses artificial intelligence without the direct involvement of a natural person.
c.The furnishing of advice through an electronic medium that uses algorithms and technology without the direct involvement of a natural person.
d.All of the above.
c.The furnishing of advice through an electronic medium that uses algorithms and technology without the direct involvement of a natural person.
If a client purchases a product from someone who is not an authorised FSP, then the agreement between the product supplier and the client will be:
Select one:
a.Unenforceable.
b.Enforceable.
c.Cancelled.
d.Amended.
b.Enforceable.
In which year did the FIC Amendment Act come into effect?
Select one:
a.2001.
b.2007.
c.2017.
d.2018.
c.2017.
