Compliance Officer Functions and Conflict of Interest Quiz

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Why is it crucial for a compliance officer to be free from conflicts of interest?

To maximize profits for the company

To reduce job satisfaction for the compliance officer

To ensure accurate reporting of non-compliance and irregularities (correct)

To increase the workload of the compliance officer

In which section of the FAIS Act are the definitions provided?

Section 36

Section 1 (correct)

Section 100

Section 14

Which activity will a compliance officer struggle to perform if a conflict of interest exists?

Ensuring maximum profitability for the company

Identifying instances of non-compliance (correct)

Avoiding communication with regulators

Promoting a conflict of interest culture within the organization

What is the definition of 'direct marketing' as provided in the General Code extracts?

Rendering financial services through various channels excluding advertisements Signup and view all the answers

Which activity does the FAIS Act primarily focus on in Section 14?

Defining key terms in the legislation Signup and view all the answers

Why does the FAIS Act exclude publication of an advertisement from its definition of 'direct marketing'?

To differentiate between marketing channels and promotional activities Signup and view all the answers

What is a key responsibility of a Financial Service Provider according to the text?

Monitoring changes in legislation and ensuring adherence to it Signup and view all the answers

Who is responsible for ensuring compliance within the Financial Service Provider?

The key individual Signup and view all the answers

Which role-player provides the Financial Product to the Financial Services Provider?

The Product Supplier Signup and view all the answers

What is the primary duty of a Financial Services Provider regarding technological systems?

Ensuring the systems eliminate risks to clients and other role-players Signup and view all the answers

What is the key function of a Compliance Officer within a Financial Service Provider?

Driving compliance and ensuring adherence to all applicable legislation Signup and view all the answers

What is the main obligation of a Financial Service Provider toward their representatives?

Mandating them to provide financial services to clients Signup and view all the answers

What is the primary responsibility of the FSP and key individuals regarding the compliance officer?

Ensuring the compliance officer has adequate resources to meet FAIS Act requirements Signup and view all the answers

Which of the following is a requirement for the compliance officer according to the general code?

Establishing specific control measures as part of the risk management framework Signup and view all the answers

What is one of the duties of the compliance officer regarding reporting to the FSCA?

Providing written reports on compliance monitoring duties and recommendations Signup and view all the answers

What must the compliance officer do regarding non-compliance incidents?

Keep records of all non-compliance incidents and reasons for non-compliance Signup and view all the answers

What is required of the compliance function according to the legislation?

It must be exercised with diligence, care, and a reasonable degree of competency Signup and view all the answers

Under what condition can the FSP outsource the compliance function?

The outsourced compliance practice must have adequate staff, resources, and skills, and be approved by the Commissioner Signup and view all the answers

Compliance Officer Functions and Conflict of Interest Quiz

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