Part 5 Flashcards
(7 cards)
Serena, an employee of CryptoPesa, did not make the necessary disclosures in a very lucrative deal (which benefited her in her personal capacity) and realised that her actions warranted dismissal. She immediately handed in her resignation, which was accepted, and started working for Safari Bank Ltd. When the client suffered huge losses and complained to Cryptopesa, they could have responded as follows:
Select one:
a.They are unable to proceed with debarment as Serena is no longer in their employ, but they could inform the Authority.
b.They must debar Serena based on facts and information.
c.They could have advised the client to lodge their complaint with the Ombud for Financial Services Providers (FAIS Ombud), as Serena was no longer in their employment.
d.They could have provided Safari Bank Ltd with the evidence, recommending that they proceed with her debarment.
b.They must debar Serena based on facts and information.
Which of the following is an example of a document that should be maintained in terms of the FAIS Act?
Select one:
a.A cancellation of an endowment policy one year before it pays out.
b.An application for a retirement annuity.
c.A record of premium payments towards a policy.
d.A copy of a change of address received by a client.
a.A cancellation of an endowment policy one year before it pays out.
Select the INCORRECT option.
The Fit and Proper requirements in terms of Board Notice 194 of 2017 that are applicable to Representatives are:
Select one:
a.Honesty, Integrity and Good Standing requirements.
b.Experience requirements and qualifications.
c.Regulatory Examinations and Continuous Professional Development.
d.Financial Soundness.
d.Financial Soundness.
Choose the CORRECT answer.
An FSP would like to place an advertisement which makes reference to a loyalty benefit and a no-claim bonus. The advertisement:
i. Must not create the impression that the benefits or bonus is free.
ii. May indicate whether the loyalty benefit or no-claim bonus is optional.
iii. May express the cost of the benefit or bonus including, where applicable, the impact that such cost has on the premium or investment amount, only where such benefit is not optional and the impact is negligible.
iv. Must identify the grantor of the benefit or bonus.
a.i, ii and iv only.
b.i and iv only.
c.i, ii, iii and iv only.
d.None of the above.
b.i and iv only.
Ntsako has been found to be unfit in terms of FAIS and has been debarred. The first step in the debarment process that her FSP has to take, is to:
Select one:
a.Terminate the service agreement with Ntsako.
b.Request the Authority to remove Ntsako’s name from the central Register of Representatives.
c.Inform Ntsako of the reasons for the debarment.
d.Remove Ntsako’s name from the FSP’s Register of Representatives.
d.Remove Ntsako’s name from the FSP’s Register of Representatives.
When a person does not submit a return, information or document to the Authority as required by the FAIS Act, that person is liable to additional legal action. Which penalty will apply to an FSP if they do not comply with the FAIS requirement to submit annual financial statements to the Authority?
Select one:
a.To pay a fine of up to R1 000.00 (or as determined by the Authority) per day for every day that the return, information or document is late.
b.To pay a fine of up to R1 000.00 (or as determined by the Authority) per day for every day that the return, information or document is late, plus interest.
c.To pay a fine of R1 000.00 (or as determined by the Authority) per day for every day that the return, information or document is late, plus interest.
d.None of the options listed.
b.To pay a fine of up to R1 000.00 (or as determined by the Authority) per day for every day that the return, information or document is late, plus interest.
Thabo was debarred nine months ago due to non-compliance with some competency requirements and has applied for reappointment after completing all relevant competencies. You advise her that her debarment can be lifted, if:
Select one:
a.Full Competence has been achieved and all other requirements have been met.
b.Full Competence has been achieved and the lift of debarment can be requested.
c.12 months have lapsed since the debarment date and she meets all the Fit and Proper requirements.
d.12 months have lapsed since the debarment date and all unconcluded business has been properly concluded.
a.Full Competence has been achieved and all other requirements have been met.
