Part B Flashcards
(25 cards)
Choose the correct answer. Which of the following products is a Tier II product.
A.Forex investments
B.Debentures and securitised debt
C.Participatory interest in a CIS Hedge fund
D.Long term subcategory A
D.Long term subcategory A
How many Tier II Financial Products are there?
A.26
B.20
C.19
D.7
D.7
How many Tier I Financial Products are there?
A.26
B.20
C.19
D.7
C.19
Roland wants to deposit R25 000 into a bank account. He informs the representative that he did not pay tax for 3 years. The representative has reported the matter internally. What must happen to this suspicious transaction?
A.Report him for tax evasion to FIC
B.Report to the KI
C.Report to the money laundering reporting officer.
D.Report him to FIC
D.Report him to FIC
A client is in a hurry and wants to complete an investment because he is going overseas. The client does not have time to complete the disclosure and asked the rep to continue and conclude the transaction. What must the rep do?
A.The rep must ask the client to waive his rights on disclosure.
B.The rep must inform the client that they will complete the transaction when he is back.
C.Do not continue with the transaction and just leave the transaction.
D.Continue with the transaction.
D.Continue with the transaction.
Josie resigns with immediate effect from ABC Brokers. She got a job overseas in London. She is leaving on Friday after serving her notice. Before the notice period is over, ABC Brokers discovers that there was an undesirable transaction. ABC Brokers require her to come for a hearing on the Monday after the notice period has lapsed. What does they do?
A.They must debar her.
B.They must wait for her to return from London.
C.They can only debar her is she was present for the hearing.
D.Continue with the hearing even in her absence.
D.Continue with the hearing even in her absence.
Which of the following statements defines Assistance Business FSPs. Choose the incorrect statement?
A.They perform the administration of assistance policies
wrong
B.They includes a person who is a binder holder
C.They include the implementation of bulking.
D.They include work involved in the processing of claims, payments of fees and commission.
C.They include the implementation of bulking.
Which of the following statements defines Administrative FSPs. Choose the correct statement?
A.They perform the administration of assistance policies
B.They includes a person who is a binder holder
C.They include the implementation of bulking.
D.They include work involved in the processing of claims, payments of fees and commission.
C.They include the implementation of bulking.
Which of the following statements describes limited underwriting. Choose the incorrect statement.
A.There is a requirement that a life assured must undergo an HIV Test
B.There is a furnishing of a health declaration.
C.There are not more than eight questions relating to specific medical conditions.
D.There is no requirement by a product supplier for any medical, financial, demographic of lifestyle information.
D.There is no requirement by a product supplier for any medical, financial, demographic of lifestyle information.
How many classes of business are there?
A.9
B.20
C.26
D.7
A.9
Which of the following is not a class of business?
A.
Health Service Benefits
B.Investments
C.Forex Investments
D.Retail Pension Funds
D.Retail Pension Funds
Who is exempted from completing regulatory examinations? Choose the incorrect answer.
A.A representative authorised to render financial service on long term insurance subcategory A
B.A representative authorised to render financial service on Tier 1 financial products.
C.A representative authorised to render financial service on Tier 2 Financial products.
D.A representative authorised to render financial service on friendly society benefits.
B.A representative authorised to render financial service on Tier 1 financial products.
Jane is a representative, date of first appointment is 1 February 2019. When must Jane complete the regulatory examination?
A.30 June 2021
B.2 February 2021
C.1 February 2021
D.2 February 2020.
B.2 February 2021
Joseline is a representative, date of first appointment is 1 February 2019. When must Joseline complete a recognised qualification?
A.30 June 2025
B.2 February 2025
C.1 February 2025
D.2 February 2021.
B.2 February 2025
Oprah a representative renders financial services short term personal lines and short term commercial lines and long term insurance. How many classes of business is she dealing with.
A.2
B.9
C.3
D.1
C.3
The FSP License is granted by:
A.The Prudential Authority
B.The SA Reserve Bank
C.The Financial Service Conduct Authority
D.The Financial Services Board.
C.The Financial Service Conduct Authority
The Key Licensing requirements for a representative include certain criteria. Choose the correct criteria.
A.Operational Ability
B.Financial Soundness of the representative.
C.Location and premises of the FSP.
D.Personal character qualities of honesty, integrity and good-standing
D.Personal character qualities of honesty, integrity and good-standing
If a representative does not meet one or more of the competence requirements by the cut off date, the key individual must:
A.Let the representative continue with the rendering of financial services but must do so under supervision.
B.Remove the representative from the rep register.
C.Ensure the representative continues with the rendering of intermediary services only
D.Give the representative a written final warning
B.Remove the representative from the rep register.
The Financial Sector Regulatory Act, 2017 was created to establish a system of financial regulation by establishing the Prudential Authority and the Financial Services Conduct Authority. These Authorities we assigned powers to establish the Financial Services Tribunal. What is the role of the Financial Services Tribunal?
A.Make provision for the licensing of financial institutions
B.Establish the Ombud Council
C.Protection and promotion of the rights in the financial sector as set out in the constitution
D.It has powers to reconsider decisions by the financial sector regulators, the ombuds council and certain market infrastructures.
D.It has powers to reconsider decisions by the financial sector regulators, the ombuds council and certain market infrastructures.
Choose the incorrect statement?
A.Where representatives and key individuals work across various subcategories and products, there must be internal controls to ensure that the financial service they provide correspond with the specific license conditions.
B.The specific conditions on a license of an FSP may include the details of fit and proper status of the key individual who need to obtain certain qualifications within a certain period of time from the date of licensing the FSP.
C.Specific conditions include the exemptions applicable to the licensed FSP
D.It is the role of a representative to ensure that the FSPs adhere to the conditions of the license and that they are adequate systems and processes in the business to ensure compliance with the conditions.
D.It is the role of a representative to ensure that the FSPs adhere to the conditions of the license and that they are adequate systems and processes in the business to ensure compliance with the conditions.
Which of the following role players must comply with the determination of Fit and Proper requirements?
I. FSP
II. Representatives
III. Key Individuals
A.II or III
B.II only
C.II & III
D.I, II & III
D.I, II & III
Suspicious cash transaction must be reported to FIC within how many days?
A.2 working days
B.5 working days
C.7 working days
D.15 working days
A.2 working days
A representative has helped a client with an investment product. The client is paying for the investment of R50 000, which the client claims comes from the sales from his savings. When should the money laundering report officer supposed to report the suspicious transaction to FIC.
A.Within 15 working days
B.After 15 working days
C.Within 2 working days
D.After 2 Working days
A.Within 15 working days
The FIC has requested an accountable institution to freeze a suspicious transaction of a new investment by a client. When can an FSP continue with the transaction?
A.Within 5 working days
B.After 5 working days
C.Within 15 working days
D.After 15 Working days
B.After 5 working days
