Part B Flashcards
(19 cards)
If a record is requested by the commissioner.It must be provided..?
A.Within 7 days
B.7 working days
C.After 7 days
D.Immediately
A.Within 7 days
Choose the incorrect option.The following are prohibited in terms of the FAIS Act
A.Undesirable business practice
B.Sign on bonus
C.Waiver of rights
D.Execution of sales
D.Execution of sales
Choose the incorrect option.Financial soundness is not applicable to the following….
A.Key Individuals & representatives who are natural persons
B.An FSP who is a registered bank
C.A registered insurer
D.a juristic representative
D.a juristic representative
Choose the incorrect option:
A. Record keeping may be outsourced
B.Records may be kept in an appropriate electronic or recorded format which can be readily be reducible into written or printable form
C.All records must be kept for a period of five years after termination to the knowledge of the provider
D.A provider may not disclose confidential information without the clients consent either verbally or written
D.A provider may not disclose confidential information without the clients consent either verbally or written
A FSP must have appropriate procedures & systems in place to…
A.Record such verbal or written communications
B.Store & retrieve such records
C.Keep the records safe from direction
D.Keep the records themselves without compromising confidentiality by outsourcing the record keeping function
D.Keep the records themselves without compromising confidentiality by outsourcing the record keeping function
Choose the incorrect statement.
Representations made & information provided to a client by a provider must be…
A.provided in writing,the small print may be used to detail the terms & conditions
B.provided in plain language,avoid uncertainty or confusion
C.provided timeously to provide the client enough time to make an informed decision
D.provided orally & at the clients request,be confirmed in writing within a reasonble time period after such request
A.provided in writing,the small print may be used to detail the terms & conditions
Choose the incorrect option.
Any conflict of interest between a provider & client must..
A.Disclosed to the client in writing
B.Be disclosed including the measures taken to avoid or mitigate the conflict of interest
C.Be disclosed including any immaterial financial interest applicable.
D.Be disclosed including any relationship or arrangement with a third party that gives rise to a conflict of interest
C.Be disclosed including any immaterial financial interest applicable.
Choose the correct statement.
A.Fees for the servce rendered must be specifically agreed to verbally between the FSP and the client
B.Fees may be stopped at the discretion of the FSP.
C.Commission must comply as authorised under the applicable act such as the Long-Term Insurance Act for Long Term policies.
D.Financial interest must not be disclosed if its below R1500.
C.Commission must comply as authorised under the applicable act such as the Long-Term Insurance Act for Long Term policies
When can an FSP disclose confidential information?
A.With consent from the client whether verbal or written
B.If the disclosure is in public interest
C.If there is a warrant from a court in any jurisdiction
D.If the information is requested by a FIC official.
B.If the disclosure is in public interest
If an outcome of a client’s complaint is not in favour of the client.The FSP must inform the client of the alternative complaint resolution options such as the FAIS ombuds.When must the client take the matter to the ombudsman after receiving an unfavourable response from the FSP?
A.6 weeks
B.6 months
C.Immediately
D.12 months
B.6 months
If a client requests to terminate an agreement with a provider in relation to a financial product,the FSP must…
A.Give immediate effect to the request
B.Allow a 1 month period
C.Convince client not to terminate agreement ecuase of consequences of not having the cover
D.Voluntarily terminations are no longer allowed in terms of the FAIS Act
A.Give immediate effect to the request
Which of the statements is incorrect if the provider other than a representative cease to operate as a provider?
A.Immediately notify all affected clients
B.Give clients a notice with immediate effect to look for another provider
C.Take reasonable steps to esnure all uncompleted business is completed promptly
D.Work in consultation with clients & product suppliers to transfer the clients to another provider
B.Give clients a notice with immediate effect to loook for another provider
A holding company would like to establish an insurance susbidiary.They have come to you for advice on a license they would like to buy.What would be the best response to their question?
A.A license is not transferable from one licensee to another party
B.Its easy to buy an existing license than to apply for a new license
C.Buying an exisiting license is advantageous because they will not pay application fee
D.There is no need to inform the commissioner when you buy an exisiting license
A.A license is not transferable from one licensee to another party
A material financial interest is an incentive,gift,voucher of..
> R1000 per calendar year
A person who gives an appointed auditor or compliance officer information which is false,misleading or conceals material facts is guilty of an offence liable to..
Fine <=R10m or imprisonment not exceeding 10 years
Experience of a rep lapses when they havent rendered any financial service i.r.o a financial product for a period of ..
5 years
Choose the incorrect option. A conflict of interest management policy must provide for conflict of interest management through the following…
A.Mechanism for the identification of conflict of interest.
B.Measures for the disclosure of conflict of interest.
C.Measures to avoid, limit, circumvent conflict of interest through an associate.
D.Stating the consequences of non-compliance with the policy.
C.Measures to avoid, limit, circumvent conflict of interest through an associate
Choose the circumstances in which a provider must not offer any financial interest.
I. Giving preference to the quantity of business to the exclusion of the quality of service
II. Giving preference to a specific product supplier where a representative may recommend more than one product supplier.
III. Giving preference to a specific product of a product supplier where a representative may recommend more than one product of that product supplier.
A.I only
B.I, II only
C.I, III only
D.I, II and III
D.I, II and III
Which FSP must appoint a compliance officer?
A.FSP with one of more representatives
B.A Close Corporation with one KI and one representative
C.An FSP with two or more KIs
D.All the above
D.All the above
