Part 4 Flashcards
(9 cards)
What is the cost for lodging a complaint with the FAIS Ombud?
Select one:
a.There is a standard administration fee as determined by the FAIS Ombud Office.
b.There is no cost, however, the Ombud, when accepting a complaint, may require the respondent to pay a case fee to the office.
c.There is a fee, as determined by the Ombudsman, which would amount to a percentage of the amount of money involved in the complaint.
d.There is no cost at all, no matter the grounds of the complaint.
b.There is no cost, however, the Ombud, when accepting a complaint, may require the respondent to pay a case fee to the office.
Which of the following statements are CORRECT in terms of the FIC Act?
i. If a person or entity has been identified by the United Nations Security Council, they can be accepted as a client, but should automatically undergo extensive due diligence.
ii. If a person or entity has been identified by the United Nations Security Council, they should not be accepted as a client.
iii. If a person or entity has been identified as a domestic politically exposed person, they can be accepted as a client but should automatically undergo extensive due diligence.
iv. If a person or entity has been identified as a foreign politically exposed person, they can be accepted as a client but must automatically undergo extensive due diligence.
Select one:
a.i only.
b.ii, iii and iv only.
c.ii and iv only.
d.iii and iv only.
c.ii and iv only.
Which of the following is a Representative?
Select one:
a.A person who renders clerical, administrative or technical services on behalf of a financial services provider.
b.A person who renders services on behalf of a financial services provider which requires judgment on the part of that person.
c.A person who renders financial services for or on behalf of a financial services provider.
d.A person who renders services on behalf of a financial services provider in response to general enquiries on the part of a client.
c.A person who renders financial services for or on behalf of a financial services provider.
The term ‘advice’ in the context of the FAIS Act does NOT refer to:
Select one:
a.A suggestion or recommendation of a financial nature made to a client by an employee of a financial institution.
b.A general proposal furnished to a client or group of clients by an FSP via any medium.
c.A proposal that contains guidance with regard to purchasing a financial product or varying the terms thereof.
d.A proposed change to the selection of financial products a client has during the course of financial planning activities.
b.A general proposal furnished to a client or group of clients by an FSP via any medium.
Class of Business Training may be undertaken separately from or in combination with:
i. Product Specific Training.
ii. A recognised qualification.
iii. Any qualification and Regulatory Examination.
Select one:
a.i only.
b.i and ii only.
c.ii only.
d.i, ii, and iii.
b.i and ii only.
The following penalties may be imposed as an administrative sanction on an individual failing to submit a cash threshold or suspicious transaction report to the FIC:
Select one:
a.Imprisonment of up to 15 years and a fine of R100 million.
b.Imprisonment of up to 15 years and a fine of R5 million.
c.Imprisonment of up to 15 years and a fine of R10 million.
d.Imprisonment of up to 10 years and a fine of R15 million.
a.Imprisonment of up to 15 years and a fine of R100 million.
The FSP must have a separate bank account at a bank, designated to receive funds and premiums from clients, which is separate from any other funds.
Which statement below is TRUE in respect of bank charges?Select one:
a.The FSP is responsible for bank charges including the charges which relate to deposit or withdrawals.
b.The FSP is responsible for bank charges except the charges which relate to deposit or withdrawals, which the client must pay.
c.The client is responsible for all bank charges, but the FSP must pay all interest accumulating in the account to the client or owner of the funds.
d.The FSP is responsible for all bank charges, but may retain all interest accumulating in the account.
b.The FSP is responsible for bank charges except the charges which relate to deposit or withdrawals, which the client must pay.
An FSP must provide clients with full and appropriate information regarding the nature and extent of monetary obligations assumed by the client in favour of the FSP. This includes:
a.The amount and payment frequency of any monetary obligations.
b.The client’s rights in relation to terminating those obligations and the consequences of terminating or failing to meet those obligations.
c.The details of the services that are to be provided by the provider or its Representatives in exchange therefor.
d.The payment method of any monetary obligations, which is via debit order only in terms of the General Code of Conduct.
d.The payment method of any monetary obligations, which is via debit order only in terms of the General Code of Conduct.
Select the INCORRECT statement.
A provider must, prior to providing a client with advice:
Select one:
a.Obtain from the client such information regarding the client’s needs and objectives, financial situation, risk profile and financial product knowledge and experience to provide the client with appropriate advice.
b.Conduct a comprehensive financial needs analysis for purposes of the advice based on the information provided by the client.
c.Identify the financial product or products that will be appropriate to the client’s risk profile and financial needs, subject to the limitations imposed on the provider under the Act or any contractual arrangement.
d.Take reasonable steps to establish whether the financial product identified is a replacement for another financial product, and if so, the provider must comply with subparagraph (d) of the General Code of Conduct.
b.Conduct a comprehensive financial needs analysis for purposes of the advice based on the information provided by the client.
