Part B Flashcards
A Category II A 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 and Fidelity Insurance of R5m respectively
D.Suitable Guarantees of R5m or Suitable Professional Indemnity and Fidelity Insurance of R5m respectively
A Category III 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 and Fidelity Insurance of R5m respectively
D.Suitable Guarantees of R5m or Suitable Professional Indemnity and Fidelity Insurance of R5m respectively
A Category IIA 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
D.Suitable Guarantees of R5m or Suitable Professional Indemnity of R5m
Which of the following activities constitutes intermediary services as defined in the FAIS ACT? Choose the CORRECT option.
A.
An FSP which keeps clients funds in safe custody.
B.
Informing a client of the advantages and disadvantages of having a life insurance cover.
C.
Premiums paid into a product supplier’s account at Bank ABC.
D.Jean-Pierre works for a product supplier and processes claims.
D.Jean-Pierre works for a product supplier and processes claims.
Which of the following products are Category I products?
i. Credit life insurance
ii. Derivatives instruments
iii. House bond with Bank ABC
iv. Third-party motor Insurance Policy
v. Motor Vehicle finance
vi. Cryptoassets
A.i, iii and iv only.
B.i, ii and iii only.
C.iii and iv only.
D.i, ii, iv and vi only.
D.i, ii, iv and vi only.
Which one of the following actions are actions which are part of the FAIS Act?
A.Giving out leaflets which states the benefits of purchasing the latest watches.
B.Handing out a pamphlet of a funeral policy plan to members of a union.
C.Advertising a new account on radio.
D.Recommending members of a specific stockvel to take out a loan.
D.Recommending members of a specific stockvel to take out a loan.
An FSP which renders financial products on instruction of a client and which uses the method of bulking should be registered in which Category?
Category III
Choose the incorrect option. Which of the following is a function of a key individual?
A.Overseeing the compliance function
B.Maintaining the representatives registers.
C.Ensuring Representatives meet the Fit and Proper requirements.
D.Monitoring complaints and how they are handled.
A.Overseeing the compliance function.
What must an FSP do to establish if a representative meets the honesty, integrity and good standing requirements of an applicant representative?
FSP are not limited to any means and they can use any means available to establish if the representative meets the fit and proper requirements.
Which one of the following requirements is a minimum requirement for a person rendering long term category A products.
Class of Business Training and Product Specific Training Only
When a representative fails to meet the qualification requirement, what must the Key individual do?
Debar the representative or amend the register to remove the product categories for which the representative is not qualified.
Lerato has met with a client and given financial advice after doing a through needs analysis. The client however is choosing not to take his recommended product but another product. What must Lerato do?
A.There is no further action required. The client has the final decision.
B.She must formulate a detailed record of advice and send a copy to the client.
C.She must convince the client to change his mind.
D.She must notify the client in writing as soon as possible the clear existence of any risk and advise the client to take care to consider whether the product selected is appropriate to meet the financial objectives, situation and needs.
D.She must notify the client in writing as soon as possible the clear existence of any risk and advise the client to take care to consider whether the product selected is appropriate to meet the financial objectives, situation and needs.
How many money laundering legislations are there in South Africa?
4
If a client requests a record it must be provided within how many days
7 days
What is the relevant period, prior to an application should be considered for a representative experience.
6 years
The sole proprietor of Jacaranda FSP has passed away. Which statement is true?
A.
Clients of Jacaranda must contact the FSCA to be assisted in transferring their business to another FSP.
B.The executor of the deceased estate must write to the commissioner giving reasons for the lapsing of the license.
C.Clients must contact FSCA to request the license to be suspended.
D.The accountant for FSCA must contact FSCA to request the license to be suspended.
B.The executor of the deceased estate must write to the commissioner giving reasons for the lapsing of the license.
Which of the following does not form part of the operational ability requirements?
A.Telephone
B.Record keeping facilities
C.Bank account with a registered bank
D.Professional indemnity insurance
D.Professional indemnity insurance
Choose the incorrect statement. What is the purpose of the representative register?
A.To record all the details of the representatives working for the FSP
B.Updating the central register
C.Calculation of levies
D.Provide for the auditing of the FSP
D.Provide for the auditing of the FSP
Bitholidays brokers is an FSP and they use Bitholidays Administrators, a Category IV FSP to assist in the administration of policies on behalf of the Product supplier. Before using the services of the Bitholidays administrators what must Bitholidays Brokers do in terms of the FAIS Act.
A.Obtain approval from the FSCA Commissioner.
B.Register iEnsure Administrators as a juristic representative.
C.Request a copy of the FSP License for Bitholidays Administrators
D.Obtain permission from the Product supplier.
C.Request a copy of the FSP License for Bitholidays Administrators
