FAIS Act Regulations

Providers such as FSPs and their Representatives have specific duties when giving financial advice and representations to their clients. Which statement is TRUE?

The FAIS Act requires that the FSP/Key Individual must ensure that the Representatives are fit and proper at recruitment and appointment stage and secondly that the Representatives remain fit and proper throughout their employment. Consider the following statements carefully and then choose the statement that is FALSE.

Which of the following requirements are not applicable to Custody of Client Funds and Premiums?

Consider the following statements carefully and then choose the statement that is FALSE.

Which of the following statements are TRUE regarding record keeping obligations in terms of the Act?

The FAIS Act requires that a Key Individual needs to be appointed in certain circumstances. Choose the INCORRECT statement:

Once a Representative has been removed from the FSP Representative's register, who needs to be informed in writing of this? Choose one answer.

Which of the following statements is TRUE regarding record keeping? Choose one answer.

Which of the statements is TRUE regarding the lapsing of a license? Choose one answer.

Whose responsibility is it to ensure that client information is securely filed and protected against any misuse by any unauthorised person? Choose one answer.

The General Code under Section 9 details the steps a Representative must take in the recording of the advice given. The records of advice for authorised FSPs and their Representatives involved in Forex Investment Business include one additional step, what is this?

The person appointed in the supervisory capacity has certain duties. Which statement below is INCORRECT and is NOT included in their duties?

All Key Individuals must meet certain criteria to be approved. Which one of the following statements is INCORRECT?

If a FSP wants to register as a Sole Proprietor he/she must meet certain criteria before the license is granted. Which statement is INCORRECT?

Which of the following statements describe a Key Individual best?

The Exemption for Representatives appointed for the first time into a FAIS role between 30 September 2004 and 31 December 2009 states that:

The FAIS Registrar exempted Representatives from meeting the competence requirements under certain conditions. This exemption applies to services under supervision. Services under supervision will apply: Choose one answer.

As a Representative of TrustUs, you need to understand the requirements to comply with the FICA requirements embedded in the FAIS legislation. Consider the following statements carefully and then choose the statement that is TRUE.

InsureMe, an authorised short term insurance provider appoints John as a representative and place him on the rep register. A complaint is later lodged against him for mis-selling. Who will be held responsible?

The Registrar must draft and publish Codes of Conduct, which must contain the requirements when FSP's and Representatives render financial services to clients. There are a number of Codes, of which the more superior is the General Code of Conduct. Which of the following is NOT covered in the General Code of Conduct?

With regard to specific responsibilities of a FSP or Key Individual in respect of the actual supervision, the supervisor must observe selected meetings between the supervisee and customers. The frequency of this may vary depending on:

The FSP and Key Individual are responsible to ensure that the appointed FAIS Compliance Officer has adequate resources available to meet all the compliance requirements of the FAIS Act. Which of the following is NOT the responsibility of the Compliance Officer?

When a Representative terminates their employment or mandate with an FSP, thus ending their representation, what are the Representatives obligations in terms of the General Code of Conduct?

Which Regulatory Examinations for Representatives needs to be passed before the representative can assume his/her role? Choose the CORRECT one.

There are certain timelines that have to be met for successful completion of the experience, qualifications, regulatory examinations and CPD requirements. Failure by a Representative to meet the competency requirements by the relevant date means that the FSP is required to take appropriate action. Which statement is TRUE?

As a Representative for TrustUs you need to ensure that the following requirements are met with regard to the confidentiality of client information: i. A FSP may not disclose any confidential information acquired or obtained from a client unless the client consented in writing after the disclosure. ii. A FSP may not disclose any confidential information acquired or obtained from a client unless the client consented in writing beforehand. iii. A FSP may not disclose any confidential information acquired or obtained from a client unless disclosure of the information is required in the Registrar's interest. iv. A FSP may not disclose any confidential information acquired or obtained from a client unless disclosure is required in terms of any law.

All Key Individuals have to meet certain criteria regarding management experience before they will be approved by the Registrar. One of the statements below reflects the required criteria, choose the CORRECT one.

ABC Investments has been notified by the Registrar by notice in the Government Gazette that one of its business practices has finally been declared undesirable. Choose the FALSE Statement from the list below:

In Section 13 of the FAIS Act, certain duties and responsibilities on FSPs are imposed. Which of the following statements is INCORRECT?

If a Representative is found guilty of misconduct regarding the Code of Conduct and is no longer Fit and Proper, what will be the restrictions imposed? Choose the CORRECT one.

Which of the following statements is FALSE in respect of the Representatives register?

Section 24 (3) stipulates that if the accountable institution appoints a third party to keep records on its behalf, then particulars of the third party keeping records on behalf of the accountable institution must be provided to which body?

The Act requires that certain prescribed information be recorded on a record of advice. Which of the following statements is FALSE?

The FICA imposes certain following duties on accountable institutions. Which of the following statements are FALSE with regard to these duties? i. Accountable institutions may keep certain records. ii. Accountable institutions may report certain information. iii. Accountable institutions must be able to establish and verify the identity of their clients. iv. Accountable institutions must implement measures that will assist them in complying with the FICA.

Which of the following statements are FALSE? i. If the FSP or a designated third party receives funds or financial documents, reasonable steps must be taken to ensure that they are adequately safeguarded. ii. The funds or financial products must be dealt with according to the broker's mandate with the FSP. iii. The client has easy access to an amount paid into the separate account, less all relevant deductions but subject to other applicable laws. iv. When the FSP receives funds from a client, without a bank being involved the money must be paid into the bank account within seven days of receipt.

There are specific supervision conditions that apply to Categories II, IIA and III. Of the following, identify one such condition:

When a person does not submit a return, information or document to the Registrar as required by the FAIS Act, that person is liable to additional legal action. All FICA penalties will apply to an FSP if he/she does not comply with the FAIS requirements in respect of the FICA. Choose the CORRECT one.