Part A Flashcards
(25 cards)
A client calls Brad, a representative. The client wants to add a new born baby on a medical aid. Brad sends the details of the client for underwriting process to be concluded. In terms of FAIS Act, what is the role played by Brad?
A.Intermediary
B.Advice
C.Administrative and advice
D.Administrative
A.Intermediary
Molamo inherited R30 000.00 from his grandmother. He informs the representative that he did not pay tax for 5 years. What must the representative do?
A.Report him for tax evasion to FIC
B.Report to the money laundering reporting officer
C.He is an undesirable client
D.Report him to FIC
B.Report to the money laundering reporting officer
A client took an insurance plan in 2014 from a sole proprietor. In Jan 2015, the sole proprietor lapsed the license. The client wants to complain against the advice that he was given. In which time frame should the client take the complaint to the ombudsman.
A.Jan 2018
B.April 2015
C.October 2015
D.Jan 2016
B.April 2015
Pierre is a rep working for an FSP ABC and has a database of ABC’s clients. Pierre resigns from ABC to work for another FSP, DEF. Pierre is now calling clients from the ABC´s database to offer them products of FSP, DEF. In terms of FAIS, what is this?
A.This is unethical because he does not have written consent from the clients
B.There is nothing wrong with giving clients better options for insurance
C.There is conflict of interest because he was once worked for FSP ABC.
D.It is ethical if he proposes better products to the clients
A.This is unethical because he does not have written consent from the clients
A category I FSP which holds clients funds, holds guarantees of R400 000.00. What other arrangement must the FSP have in place to be fully compliant?
A.Guarantees of R500 000
B.Guarantees of R400 000 and (FI and PI)of R200 000
C.PI of R1m
D.PI of R600 000 and FI of R400 000
D.PI of R600 000 and FI of R400 000
A rep sells a product for FSP A. The KI said the product is approved but the FSP does not have the license for the product category. Who will be debarred?
A.Rep
B.FSP
C.KI
D.Rep and KI
D.Rep and KI
A client would like to make a deposit for an investment of R4million. There is suspicion that the client is involved in money laundering. To whom must this be reported to:
A.FSCA and decline to take the deposit
B.KI and decline to take the deposit
C.FIC and decline to work on the investment
D.FIC and proceed with the investment
D.FIC and proceed with the investment
In which case will an FSP need to make disclosures for commission and total remuneration?
A.Less than 10%
B.More than 10%
C.Less than 30%
D.More than 30%
D.More than 30%
Which institution verifies qualifications?
A.FPI
B.FSP
C.SAQA
D.FSCA
C.SAQA
Mark works for FSP A and gives advice on behalf of FSP A. What should be disclosed before rendering advice?
A.Mandate
B.License certificate
C.Business Card
D.Brochure
A.Mandate
Which one of the following applies to the displaying of an FSP licence
A.Original license in all branches
B.Certified copies in all the branches
C.Original at the main branch and certified copies at all other branches
D.Copies of license in all branches
B.Certified copies in all the branches
Thato is a rep for the company A. A is to merge with company B to offer financial service in different categories. What needs not to be disclosed by Thato when rendering financial service? Choose the incorrect answer.
A.Thato’s salary
B.Conflict of interest
C.Commission and remuneration
D.Replacement details
A.Thato’s salary
The FSP should on an annual basis provide the following record to the Commissioner?
A.Non compliance
B.Complaints
C.Financial Statements
D.Premature cancellations
C.Financial Statements
A KI and a Rep meets a client for the first time. What must be provided to the client?
A.Mandate
B.Business card with name
C.Certificates of qualifications
D.Certified copy of license
A.Mandate
Records must be maintained for 5 years as per which act?
(I) FAIS
(II) FIC
(III) NCA
(IV) CIPC
A.I
B.II
C.I, II
D.I, II, and III
C.I, II
If record keeping is outsourced to a third party, which of the following is not applicable when record keeping is outsourced?
A.Agreement
B.Adequate safekeeping, separation and protection of clients funds
C.SLA with the third party
D.Penalties for non-compliance
B.Adequate safekeeping, separation and protection of clients funds
Where the rep is due for RE and cannot work under supervision, what will be done by the FSP?
A.
Remove the rep from the register and inform the commissioner within 15 days
B.Immediately debar and inform the commissioner within 15 days
C.Inform the registrar after 15 days
D.You can release the rep and reappoint him if he becomes compliant
B.Immediately debar and inform the commissioner within 15 days
The FSP found out that the rep falsified a qualification. What must be done?
A.Suspend the rep.
B.Debar the rep.
C.Dismiss the rep.
D.Let the rep work under supervision whilst the matter is being investigated.
B.Debar the rep.
Nate is working under supervision for 2 years. A client complained of the advice she received 6 months ago. Rose is the supervisor. What could have been done to avoid this?
A.Rose must have informed the client that John is working under supervision.
B.Rose should have overseen the advice that John gave.
C.Nate should have disclosed that he is working under supervision.
D.Nate must have given the details of the supervisor to the client.
C.Nate should have disclosed that he is working under supervision.
How long must the FSP keep the record of a premature cancellation?
A.Within 5 years
B.After 5 years
C.Minimum 5 years
D.Maximum 5 years
C.Minimum 5 years
A clients wants to invest R50 000 cash in an investment. What must the rep do?
A.Continue with the transaction and report it to the money laundering reporting officer
B.Inform the client that you cannot continue with the transaction because it is suspicious
C.Ask the client where he got the money and record the answer
D.Inform him to come tomorrow and deposit the other funds since it is above R24 999.99.
A.Continue with the transaction and report it to the money laundering reporting officer
A client takes on a policy on the 28th of April 2014. It kicks in on the 1 May 2014. On 1 June 2015, the client finds out that the policy was incorrect. The client send an email to the KI to lodge a complaint. When can the client take the matter to the ombudsman?
A.June 2015
wrong
B.May 2015
C.Sept 2015
D.June 2018
C.Sept 2015
Which is the correct statement for Category II license.
i. Category II licenced FSPs render advice and/ or intermediary service.
ii. There are 26 Subcategories for Category II licensed FSP.
iii. Category II licensed FSPs render only intermediary services.
iv. There are 20 Subcategories for Category II FSPs
A.i and ii
B.ii and iii
C.iii and iv
D.iii only
C.iii and iv
Which of the following product is a Tier I Product. Choose the incorrect option.
A.Short Term Insurance Commercial Lines
B.Friendly society benefits
C.Health Service Benefits
D.Shares
B.Friendly society benefits
