Part A Flashcards
(25 cards)
When can a license of a natural person lapse?
Choose incorrect answer:
A. Licensee dies
B.Licensee is finally sequestrated
C.Licensee is temporarily mentally incapacitated
D.Licensee becomes permanently unable to perform duties due to physical inury
C.Licensee is temporarily mentally incapacitated
When can a license of a pty Ltd lapse?
Choose incorrect answer.
A.It is finally sequestrated.
B.Pty Ltd is finally dissolved
C.Pty Ltd is dormant
D.Pty Ltd finally surrenders the license to the commissioner
A.It is finally sequestrated.
Choose incorrect statement w.r.t lapsing of a FSPs license.
A.Commisioner may be advised verbally bu the licensee of the reasons for lapsing the license.
B.Commissioner may make known the reasons for the lapsing of the licensee on the official website.
C.Executor of the estate must apply for the lapsing of a license to the commissioner in the event of death of the sole proprietor FSP.
D.Reasons for the lapsing of the license will always be required .
A.Commisioner may be advised verbally bu the licensee of the reasons for lapsing the license.
Who initiates the lapsing of a license?
A.The Commissioner
B.The FSP
C.The Ombudsman
D.The Compliance Officer
B.The FSP
Can a lapsed license be reinstated?
A.No, there’s no provision for reinstatement of a lapsed license.
B.Yes,the commissioner may grant leave for reinstatement.
C.No,the commissioner may not allow for reinstatement because lapsing is initiated by the commissioner.
D.Yes,the FSP may apply for the lapsed license to be reinstated.
A.No, there’s no provision for reinstatement of a lapsed license.
What must an FSP do before debarring a representative?
Choose the incorrect option.
A.Give adequate notice verbally to the representative statign its intention to debar
B.Give the representative the grounds & reasons for debarment
C.Inform the representative of any terms attached to the debarment
D.Make measures for the protection of the interests of the clients
A.Give adequate notice verbally to the representative statign its intention to debar
When must an FSP notify FSCA of the grounds and the reasons for the debarment of a representative?
A. Within 5 days
B.Within 15 days
C.After 5 days
D.After 15 days
B.Within 15 days
Esteban is a rep for FSP A & FSP B. FSP A has debarred Esteban and have updated their register.When should FSP B institute debarment after getting to know of the debarment of Esteban by FSP A?
A.Within 5 days
B.After 5 days
C.Within 15 days
D.FSP B may not debar Esteban of he has done nothing wrong in connection with their business.
A.Within 5 days
A debarment i.r.o a person who is no longer a rep of an FSP must be commenced within what period ,from the date the person ceased to be a rep of the FSP?
A.12 months
B.6 months
C.3 months
D.At any time when the FSP got to know of the case
B.6 months
Can an FSP use infromation from the ombudsman in order to debar a representative?
A.No,the ombudsman only resolves client’s complaints.
B.No,debarment is a labour matter between the FSP and rep.
C.Yes,the FSP must consider any information from the commissioner,ombudsman or any related party wehn debarring a representative.
D.Yes,the ombudsman,always rules against the representatives and the FSP in favour in favour of the clients.
C.Yes,the FSP must consider any information from the commissioner,ombudsman or any related party wehn debarring a representative.
Choose incorrect option.Which of the following parties may be debarred by an FSP?
A.Representative
B.Key Individual
C.Compliance Officer
D.Supervised representative
C.Compliance Officer
Before effecting a debarment the FSP must ensure the debarment is …?
A.Lawful
B.Reasonable
C.Fair
D.All of the above
D.All of the above
A representative register must contain:
I.Business address
II.Personal Details of the representative
III.Key Individuals
IV.Whether the representative is an employee or mandate
V.Categories & subcategories of financial services the representative is competent on.
A.I,II and III
B.I,II,III and IV
C.I,II,III,IV and V
D.II,III,IV and V
C.I,II,III,IV and V
Order the process after a debarment has been effected by an FSP.
I.Remove the name of the representative from the representative register.
II.Withdraw any authority of the representative to act on behalf of the FSP
III.Any unconcluded business must be properly concluded
IV.Provide the commissioner with the grounds and reasons for the debarment in the format required by the commissioner within 15 days
A.II,I,IV,III,V
B.I,II,III,IV,V
C.I,III,II,IV,V
D.III,II,I,IV,V
A.II,I,IV,III,V
15.Choose the incorrect option.
What is the cause of a suspension or withdrawal of a license?
A.Non-payment of levies
B.Failing to comply with the provisions of the FAIS Act
C.No longer meeting the FIT and proper requirements
D.Sole proprietor mentally incapacitated.
D.Sole proprietor mentally incapacitated.
Choose the incorrect option.What is the cause of a suspension or withdrawal of a license?
A.Not having an approved key individual
B.Not making full disclosure at the time of applying for the license.
C.Failing to comply with the commissioner’s directive
D.FSP finally sequestrated
D.FSP finally sequestrated
Which license can be reinstated?
A. Lapsed license
B.Revoked license
C.Suspended license
D.Withdrawn license
C.Suspended license
Choose the incorrect statement.
A.Where a license has been suspended or withdrawn,the commissioner must make known the reasons,only if requested by the license.
B.License has an expiry date
C.A license may have conditions
D.A license may be revoked
B.License has an expiry date
Choose the incorrect answer.
Which of the following conditions must the commissioner inform the licensee when contemplating suspension of a license?
A.Terms to facilitate the lifting of the suspension
B.Terms prohibiting conclusion of any new business.
C.Period of suspension
D.Evidence in the possession of the commissioner against the licensee.
D.Evidence in the possession of the commissioner against the licensee.
An FSP is required to maintain full and proper accounting records.These recorded must be updated…?
A.Weekly
B.Monthly
C.Quarterly
D.Annually
B.Monthly
Financial statements of the FSP must be updated..?
A.Weekly
B.Monthly
C.Quarterly
D.Annually
D.Annually
When must the financial statement submitted to the commissioner?
A. 6 weeks after the providers financial year end
B. 4 months after the providers financial year end
C.6 months after the providers financial year end
D.12 months after the providers financial year end
B. 4 months after the providers financial year end
Which of the following records must be maintained for a period of five years?
A.Premature cancellations
B.Complaints and how they have been resolved
C.Continued Compliance by reps
D.All of the above
D.All of the above
Any person aggrieved by the decision of an FSP to debar that person may apply for recourse to the..?
A.Tribunal
B.Commissioner
C.Ombudsman
D.Prudential Authority
A.Tribunal
