Part A Flashcards
What % gives qualifying stake via voting rights,shareholding etc?
15%
Choose incorrect option.
Fsp that appoints supervised rep to work under supervision must:
A.Have operational ability
B.Appoint compliancr officer who will conduct supervision
C.Have human,technical resources to appoint a supervised rep
D.Have controls & procedures & an adequate & effective governance framework to appoint a supervised rep
B.Appoint compliancr officer who will conduct supervision
Choose the incorrect option.
A Cat 1 or Cat 4 FSP,which has appointed a supervised rep,may appoint the suoervised rep without a matric certificate for which product
A.Long term Subcat A
B.Health Service Benefits
C.Assistance policies with a benefit amount of up to R30 000
D.Friendly Society Benefits
B.Health Service Benefits
A supervised representative who has been appointed for to perform the execution of sales of a Category I FSP must meet which entry level requirement.
A.Grade 10
B.Grade 12 National Certificate
C.Diploma
D.Degree
A.Grade 10
A supervised representative who has been appointed by a Category II, IIA or III FSP must meet which entry level requirement.
A.Grade 10
B.Grade 12 National Certificate
C.Diploma
D.Degree
D.Degree
When must a supervised representative achieve RE5?
A.1 year after the date of first appointment.
B.2 years after the date of first appointment.
C.6 years after the date of first appointment.
D.30 June after the expiry of 2 years after the date of first appointment.
B.2 years after the date of first appointment.
When must a supervised representative achieve a recognized qualification?
A.A representative who does not meet only more than one of the competency requirements who renders financial services under supervision.
B.A representative who does meet the experience requirement, who renders financial services.
C.A representative who meets all the competency requirements who renders financial services under supervision.
D.A representative who does not meet one or more of the competency requirements who renders financial services under supervision.
D.A representative who does not meet one or more of the competency requirements who renders financial services under supervision.
The guidance, instruction and oversight given by a supervisor using a variety of assessment, observation and oversight methods to assess the level of competence of a supervised representative is known as:
A.Supervision
B.Compliance
C.Operational Ability
D.Financial Service
A.Supervision
Choose the incorrect option. Execution of sales is applicable under the following conditions:
A.The representative has a Grade 12 National certificate.
B.The execution of sales is performed in accordance with a script approved by a key individual and the relevant governance structure of the FSP.
C.When the execution of sales is performed by telephone, only complaints from the client must be recorded and stored and must be retrievable.
D.The FSP has sufficient and adequate controls in place to ensure the representative does not furnish clients with advice.
C.
When the execution of sales is performed by telephone, only complaints from the client must be recorded and stored and must be retrievable.
A financial service performed by a person on instruction of a client to buy, sell, deal, invest, disinvest, replace, vary one or more financial products in known as
A.Consultancy service
B.Advice
C.Execution of sales
D.Intermediary service
C.Execution of sales
When must a supervised representative comply with the class of business training requirements applicable to the financial product?
A.1 year after the date of first appointment
B.2 years after the date of first appointment.
C.6 years after the date of first appointment.
D.30 June after the expiry of 2 years after the date of first appointment.
A.1 year after the date of first appointment
When must a supervised representative comply with the applicable CPD requirement?
A.From the date when the representative met all the competence requirements
B.After six years from the date of first appointment
C.Every year by the 31 May
wrong
D.a and b
D.a and b
Choose the incorrect option. What are the experience requirements to a supervised representative?
A.Must work under supervision for at least the minimum experience periods applicable to the categories of the financial services and the financial products for which the representative is appointed.
B.Must remain under supervision until being assessed as having the required experience in respect of the particular category financial service and financial products for which the representative is appointed.
C.Must not continue working under supervision after meeting the other competence requirements even though not having met the experience requirements in respect of the particular category financial service and financial products for which the representative is appointed.
D.May work under supervision for at most 6 years from the date of first appointment
C.Must not continue working under supervision after meeting the other competence requirements even though not having met the experience requirements in respect of the particular category financial service and financial products for which the representative is appointed.
Which statement is incorrect concerning a supervision agreement?
A.The agreement may not necessarily state the name of the supervisor.
B.The agreement must state out the tasks, functions, the supervised representatives must perform on behalf of the FSP.
C.The agreement must state the categories of financial services and products which the supervised representative will deal with
D.The agreement must set out the training needs of the supervised representative and the training programme that will be implemented to address those needs.
A.The agreement may not necessarily state the name of the supervisor.
Which of the following statements is a true statement with respect to the details set out in the supervision agreement?
A.The supervisor must have relevant skills, knowledge and expertise in respect to the financial services and financial products.
B.The supervisor must be someone who is a key individual
C.The supervisor must meet the minimum competency requirements including CPD requirements applicable.
D.May be an key individual approved to manage the financial services and class of business for which the supervised representative will be working undersupervison.
B.The supervisor must be someone who is a key individual
Which of the following skills are required from a supervisor or a supervised representative?
A.Coaching skills
B.Assessment and Oversight skills
C.Ability to transfer skills
D.All of the above
D.All of the above
On which register must an FSP reflect the details of their supervised representatives?
i. Register of representatives
ii. Competency register
iii. Central register
A.i only
B.i and ii only
C.i and iii only.
D.i, ii and iii.
D.i, ii and iii.
When must an FSP update the registers after a representative ceases to render financial services under supervision?
A.Record and document the method, frequency and level of intensity of supervision.
B.Mentor and coach the representative.
C.Review and assess the learning activities.
D.All of the above.
D.All of the above.
When must a supervisor report to the FSP any unfair treatment of a client as a result of the supervised representative’s actions?
A.Within 1 business day
B.Within 15 days
C.immediately
D.Within 7 days
C.immediately
Which records of supervision must be kept by the supervisor?
i. Development and Training
ii. Supervision activities
iii. Assessments
iv. Decisions to implement a reduced level of supervision.
A.i, iii and iv only.
B.i , ii and iii only.
C.ii, iii and iv only.
D.i, ii, iii and iv.
D.i, ii, iii and iv.
Which of the following duties are duties of a supervised representative.
A.Actively pursue completion of class of business training, regulatory examinations and recognised qualifications within prescribed times.
B.Comply with the provisions of the supervision agreement.
C.Disclose to the clients that he is rendering services under supervision
D.All of the above
D.All of the above
A Category I or IV FSP who does not receive or hold clients funds or financial products must maintain:
A.Suitable Guarantees of R1m or Suitable Professional Indemnity of R1m
B.Suitable Guarantees of R1m or Suitable Professional Indemnity and Fidelity Insurance R1m
C.Suitable Guarantees of R1m or Suitable Professional Indemnity of R5m
D.Suitable Guarantees of R5m or Suitable Professional Indemnity of R5m
A.Suitable Guarantees of R1m or Suitable Professional Indemnity of R1m
A Category I or IV FSP who does receive or hold clients funds or financial products must maintain:
A.Suitable Guarantees of R1m or Suitable Professional Indemnity of R1m
B.Suitable Guarantees of R1m or Suitable Professional Indemnity and Fidelity Insurance R1m
C.Suitable Guarantees of R1m or Suitable Professional Indemnity of R5m
D.Suitable Guarantees of R5m or Suitable Professional Indemnity of R5m
A.Suitable Guarantees of R1m or Suitable Professional Indemnity of R1m
A Category II FSP who does not receive or hold clients funds or financial products must maintain:
A.Suitable Guarantees of R1m or Suitable Professional Indemnity of R1m
B.Suitable Guarantees of R1m or Suitable Professional Indemnity and Fidelity Insurance R1m
C.Suitable Guarantees of R1m or Suitable Professional Indemnity of R5m
D.Suitable Guarantees of R5m or Suitable Professional Indemnity of R5m
A.Suitable Guarantees of R1m or Suitable Professional Indemnity of R1m
