RE5 Task QC PDF

Regulatory Exam: 5 Description: RE 5: Regulatory Examination: Representatives in all Categories of FSPs Task Knowledge (K) Task...

Regulatory Exam: 5 Description: RE 5: Regulatory Examination: Representatives in all Categories of FSPs Task Knowledge (K) Task QC Qualifying Criteria Legislation Reference No or Skill (S) 1 Demonstrate 1 Describe the FAIS Act and subordinate legislation. K GCOC – Definition of Direct Marketing understanding of the FAIS FAIS Act - Sec 1 Definitions Act as a regulatory FAIS Act - Preamble framework. 2 Provide an overview of the financial services and different K FAIS Act - Sec 1 Definition of Financial Product types of financial products a Representative can deal with. FAIS Act - Sec 1 Definition of Intermediary Services FAIS Act - Sec 1 Definition of Advice GCOC – Sec 4 & 5 & 7 3 Apply knowledge of the financial products within the S FAIS Act - Sec 1 Definition of Financial Product financial services environment. FAIS Act - Sec 7(3) Long-term Insurance Act - Sec 1 Definition of Long-Term Policy GCOC - Sec 8(1) 4 Describe the role and function of a Compliance Officer. K FAIS Act - Sec 17 FAIS Act - Sec 17(1) FAIS Act - Sec 17(1)(c) FAIS Act - Sec 17(4) FAIS Act - Sec 18 FAIS Act - Sec 18(d) FAIS Regulations - Reg 5 FAIS Regulations - Reg 5(1) FAIS Regulations - Reg 5(3) GCOC - Sec 3(1) 01 July 2024 – Version 3 Page 1 of 9 Task Knowledge (K) Task QC Qualifying Criteria Legislation Reference No or Skill (S) 2 Contribute towards 1 Explain the requirements a FSP must meet to maintain a FSP K FAIS Act - Sec 8 maintaining a FSP licence. licence. FAIS Act - Sec 8(2) & (4) FAIS Act - Sec 8(10)(a)(i) FAIS Act - Sec 9 FAIS Act - Sec 9(1) FAIS Act - Sec 9(1)(g) FAIS Act - Sec 9(2) FAIS Act - Sec 9(3) & (4) FAIS Act - Sec 11 FAIS Act - Sec 13 FAIS Act - Sec 19 FAIS Act - Sec 41(2) BN 123 of 2009 - Sec 3 Licensing conditions 2 Assist in maintaining a FSP licence by executing the required S FAIS Act - Sec 1 Definition of Representative actions as a Representative, in terms of the Act. FAIS Act - Sec 1 Definition of Intermediary Services FAIS Act - Sec 8 & 8(1) & 8(8) FAIS Act - Sec 13(1) & 13(2) FAIS Act - Sec 17(4) GCOC - Sec 2 GCOC - Sec 21 3 Discuss the requirements around the display of licences. K FAIS Act - Sec 8(8) 4 Explain the implications for a Representative if an K FAIS Act - Sec 8(7) accreditation is suspended or withdrawn or lapsed in terms FAIS Act - Sec 9 of the Medical Schemes Act, 1998, or any other enabling FAIS Act - Sec 9(1)(b) legislation. FAIS Act - Sec 9(2) FAIS Act - Sec 11 5 Explain what is meant by "undesirable practices". K FAIS Act - Sec 34 FAIS Act - Sec 34(2) FAIS Act - Sec 34(6) 6 Check that the execution of duties and actions as a S FAIS Act - Sec 34 Representative does not constitute undesirable business practices. 7 Describe the implications for a Representative if the K FAIS Act - Sec 14 Authority declares a business practice to be undesirable. FAIS Act - Sec 34 FAIS Act - Sec 34(2) FAIS Act - Sec 34(4) 01 July 2024 – Version 3 Page 2 of 9 Task Knowledge (K) Task QC Qualifying Criteria Legislation Reference No or Skill (S) 8 Explain the reparation measures available to the Authority if K FAIS Act - Sec 34 a Representative continues with undesirable business FAIS Act - Sec 34(4) & (5) & (6) practices. FAIS Act - Sec 36 9 Describe the offenses prescribed by the FAIS Act. K FAIS Act - Sec 36 FAIS Act - Sec 36(d) FAIS Act - Sec 36(b) & (d) 3 Define the role of the key 1 Describe the roles and responsibilities of key individuals as K FAIS Act - Sec 1 Definition of Key Individual individual in terms of the defined in the FAIS Act. FAIS Act - Sec 1 Definition Advice FAIS Act. FAIS Act - Sec 14(1) FAIS Act - Sec 17(4) FAIS Act - Sec 19(2) BN 194 of 2017 – Sec 37(2)(b) FAIS Act - Sec 18 FSB Guidance Note on Key Individual GCOC - Sec 11 2 Describe the regulated management and oversight K FAIS Act - Sec 1 Definition of Key Individual responsibilities of a key individual. FAIS Act - Sec 7(3) FAIS Act - Sec 18 BN 194 of 2017 – Sec 8 BN 194 of 2017 – Sec 12 BN 194 of 2017 – Sec 32 FSCA FAIS Notice 86 of 2018 – Condition 4(1)(f) 3 Explain the implications for a Representative should a key K FAIS Act - Sec 8(4) individual no longer meet the honesty, integrity and good FAIS Act - Sec 8(4)(b)(iii) standing requirements. FAIS Act - Sec 9(1) FAIS Act - Sec 9(1)(a) FAIS Act - Sec 13 FAIS Act - Sec 13(1) FAIS Act - Sec 14 Licence conditions BN 194 of 2017 – Sec 9(1) BN 194 of 2017 – Chapter 2 4 Adhere to the specific 1 Describe the general and specific duties of a provider. K GCOC - Sec 2 Codes of Conduct. GCOC - Sec 3 GCOC - Sec 3(1) GCOC - Sec 3(3) GCOC - Sec 7 01 July 2024 – Version 3 Page 3 of 9  GCOC - Sec 8(1) GCOC - Sec 10 GCOC - Sec 12 Task Knowledge (K) Task QC Qualifying Criteria Legislation Reference No or Skill (S) 2 Describe what could possibly be a conflict of interest. K GCOC – Part 1 Definitions GCOC – Part 1 Definition Immaterial Financial Interest GCOC - Sec 3(1) GCOC - Sec 3(1)(b) & (c) GCOC - Sec 3(A) 3 Define the requirements and impact of the disclosure rules K GCOC - Sec 5 on the FSP. GCOC - Sec 5(e) GCOC - Sec 7(1) GCOC - Sec 14 GCOC - Sec 15(6) 4 Apply the requirements of the General Code of Conduct for S GCOC - Sec 8(1) FSPs and Representatives. GCOC - Sec14 5 Explain the disclosures that need to be made by a K FAIS Act - Sec 13(1) Representative before rendering a financial service. GCOC - Sec 3(1)(b) GCOC - Sec 4 GCOC - Sec 4(1)(d)(ii) 6 Explain disclosures that must be made by a Representative K GCOC - Sec 2 when rendering a financial service. GCOC - Sec 4 GCOC - Sec 4(1) GCOC - Sec 5 GCOC - Sec 7 GCOC - Sec 7(1)(a) GCOC - Sec 8(4) 7 Describe the required disclosures regarding the provider, K GCOC - Sec 4 product supplier and financial service. GCOC - Sec 5 GCOC - Sec 4(1) GCOC - Sec 7 GCOC - Sec 7(1) 8 Explain the specific disclosure requirements regarding fees K GCOC - Sec 7 and commission. GCOC - Sec 7(1) GCOC - Sec 7(1)(c) GCOC Sec 7(1)(c)(vi) GCOC - Sec 7(1)(c)(iii)(bb) 9 Apply disclosure requirements in terms of financial services. S GCOC - Sec 7 01 July 2024 – Version 3 Page 4 of 9  GCOC - Sec 7(1)(c) GCOC - Sec 7(4) GCOC - Sec 8(4) GCOC - Sec 15(1) GCOC - Sec 15(6) GCOC - Sec 21 Task Knowledge (K) Task QC Qualifying Criteria Legislation Reference No or Skill (S) 10 Explain the process of advice that should be followed by a K GCOC - Sec 7(1)(d) Representative. GCOC - Sec 8 GCOC - Sec 8(1) GCOC - Sec 8(4) 11 Explain the requirements when a Representative receives K GCOC - Sec 10 custody of financial products and funds. GCOC - Sec 10(1) GCOC Sec 10(1)(d) 12 Explain the manner in which complaints are to be handled by K FAIS Act - Sec 20 & 27 a Representative as required by the General Code of Conduct GCOC – Sec 16 Definition Complainant for FSPs and Representatives. GCOC – Sec 16 Definition Reportable Complaint GCOC – Sec 16 Definition Compensation Payment GCOC - Sec 17 GCOC - Sec 17(3) GCOC - Sec 17(3)(b) GCOC - Sec 17(4)(a) GCOC - Sec 17(7)(b) GCOC - Sec 17(8)(a) GCOC - Sec 17(8)(c) GCOC - Sec 17(8)(g) GCOC - Sec 18 GCOC - Sec 18(1)(a) GCOC - Sec 18(1)(b) GCOC - Sec 18(4)(a) GCOC - Sec 19 Ombud Council rules for the Ombud for Financial Services Providers, 2024 13 Follow the complaints procedures and processes that are in S GCOC – Sec 16 Definition Complainant place for Representatives. GCOC – Sec 16 Definition Reportable Complaint GCOC - Sec 16 GCOC - Sec 17 01 July 2024 – Version 3 Page 5 of 9  GCOC - Sec 17(3) GCOC - Sec 17(5) GCOC - Sec 17(6)(b) GCOC - Sec 17(7)(c) GCOC - Sec 17(8) GCOC - Sec 18 GCOC - Sec 18(1)(b) GCOC - Sec 19 FAIS Act - Sec 27(3) 14 Explain the requirements of the General Code of Conduct for K GCOC - Sec 20 FSPs and Representatives relating to the termination of an GCOC - Sec 20(a) agreement. GCOC - Sec 20(c) 5 Comply with regulated 1 Explain the record keeping obligations by a Representative as K FAIS Act - Sec 13(2) record keeping prescribed by the FAIS and FIC Acts. FAIS Act - Sec 13(3) requirements. FAIS Act - Sec 13(4) FAIS Act - Sec 18 FAIS Act - Sec 18(b) FAIS Act - Sec 18(d) FICA - Sec 22 & 23 & 24 FICA - Sec 29(1) GCOC - Sec 3 GCOC - Sec 3(2) GCOC - Sec 3(2)(a) & (c) GCOC - Sec 3(2)(b) & (d) GCOC - Sec 3(3) GCOC - Sec 8(4) GCOC - Sec 9 & 9(1) BN 194 of 2017 - Sec 37(2)(b) Task Knowledge (K) Task QC Qualifying Criteria Legislation Reference No or Skill (S) 2 Carry out the record keeping and retrieval of records S FAIS Act - Sec 18 functionality correctly. GCOC - Sec 3(2) GCOC - Sec 10(1) BN 194 of 2017 - Sec 39(2) 6 Comply with the 1 Explain the requirements specific to a FSP prescribed by the K FIC Act Preamble requirements of the FIC FIC Act. FIC Act Schedule 1 Act and Money Laundering FIC Act Schedule 3 01 July 2024 – Version 3 Page 6 of 9  and Terrorist Financing FIC Act - Sec 3 control regulations, as it FIC Act - Sec 21 applies to the FSP. FIC Act - Sec 21(1) FIC Act - Sec 21(1)(a) FIC Act - Sec 22 & 22A FIC Act – Sec 29(1) FIC Act - Sec 43 FIC Act - Sec 43(A) & 45C FIC Act - Sec 45C(3)(e) FIC Act - Sec 62 FIC Act - Sec 68(2) Money Laundering and Terrorist Financing control regulations - Chapter 4 Money Laundering and Terrorist Financing control regulations – Sec 22A & 22A (4) & 23 2 Describe how the FIC Act impacts a Representatives' K FIC Act - Sec 21A interaction with a client. FIC Act - Sec 21(1)(a) & (b) FIC Act - Sec 22 FIC Act - Sec 29 FIC Act - Sec 29(1) Money Laundering and Terrorist Financing control regulations – Sec 24 7 Dealing with complaints 1 Explain the role and authority of the Ombud for FSPs. K FAIS Act - Sec 1 Definition of Complaint that have been submitted FAIS Act - Sec 20 to the Ombud for FSPs. FAIS Act Sec 20(3) & (4) FAIS Act - Sec 27 FAIS Act - Sec 27(3) FAIS Act - Sec 27(3)(a) & (b) FAIS Act - Sec 27(4) FAIS Act - Sec 28 FAIS Act - Sec 28(1) FAIS Act - Sec 28(4)(a) FAIS Act - Sec 31 Ombud Council rules for the Ombud for Financial Services Providers, 2024 01 July 2024 – Version 3 Page 7 of 9 Task Knowledge (K) Task QC Qualifying Criteria Legislation Reference No or Skill (S) 8 Operate as a 1 Describe the roles and responsibilities of Representatives as K FAIS Act - Sec 1 Definition of Representative Representative in terms of defined in the FAIS Act. FAIS Act - Sec 1 Definition of Intermediary Services the FAIS Act. FAIS Act - Sec 1 Definition of Advice FAIS Act - Sec 1(3) FAIS Act - Sec 13 FAIS Act - Sec 13(1) FAIS Act - Sec 13(1)(b) FAIS Act - Sec 13(2) Licensing conditions Guidance Note on Intermediary Services and Representative 2 Apply knowledge of the role of the Representative in terms S FAIS Act - Sec 1 Definition of Representative and person of the FAIS Act. FAIS Act - Sec 1 Definition of Advice FAIS Act - Sec 1 Definition of Intermediary Services 3 Explain the fit and proper requirements that apply to a K FAIS Act - Sec 1 Definition of Representative and person Representative (honesty, integrity, good standing, FSCA FAIS Notice 86 of 2018 – Exemption of Services under qualifications, experience, knowledge tested through Supervision regulated examinations and continuous professional BN 194 of 2017 development). BN 194 of 2017 - Sec 1 Definition of Experience BN 194 of 2017 - Sec 1 Definition of Qualification BN 194 of 2017 - Sec 1 Definition of Recognised Qualification BN 194 of 2017 - Sec 9 BN 194 of 2017 - Sec 12 & 16 BN 194 of 2017 - Sec 25 BN 194 OF 2017 - Annexure 3 4 Distinguish between advice and intermediary services in K FAIS Act - Sec 1 Definition of Advice terms of the FAIS Act. FAIS Act - Sec 1 Definition of Intermediary Services FAIS Act - Sec 1 Definition of Representative FAIS Act - Sec 13(4) FSCA FAIS Notice 86 of 2018 – Exemption of Services under Supervision 5 Describe the purpose and requirements of the register of K FAIS Act - Sec 1 Definition of Representative Representatives. FAIS Act - Sec 13 FAIS Act - Sec 13(3) FAIS Act - Sec 13(4) FAIS Act - Sec 13(5) FSCA FAIS Notice 29 of 2023 - Form 5 01 July 2024 – Version 3 Page 8 of 9 Task Knowledge (K) Task QC Qualifying Criteria Legislation Reference No or Skill (S) 6 Explain when a Representative should be under supervision. K FSCA FAIS Notice 86 of 2018 – Exemption of Services under Supervision FAIS Act - Sec 8 BN 194 of 2017 - Sec 12 BN 194 of 2017 - Annexure One 7 Explain the disclosure requirements for a Representative K FSCA FAIS Notice 86 of 2018 – Exemption of Services under under supervision. Supervision FSCA FAIS Notice 86 of 2018 – Exemption of Services under Supervision Sec – 6(1)(c) 8 Describe the implications if a Representative no longer K FAIS Act - Sec 14 meets the Fit and Proper requirements. BN 194 of 2017 - Sec 23 BN 194 of 2017 - Sec 52 9 Define the purpose of debarment. K FAIS Act - Sec 14 FSR Act – Sec 153(1) 10 Describe when debarment should be considered. K FAIS Act - Sec 13 FAIS Act - Sec 13(2) FAIS Act - Sec 14 FAIS Act - Sec 44 BN 194 of 2017 - Sec 22(1)(b)(i) BN 194 of 2017 - Sec 25(1)(b)(i) BN 194 of 2017 - Sec 28(3) FSR Act – Sec 153(1) 11 Explain the debarment process that should be followed in K FAIS Act - Sec 14 the event of a possible contravention of the FAIS Act. FAIS Act - Sec 14(1) & (3) Guidance notes on Debarment 1 of 2019 FSR Act - Sec 153 FSCA FAIS Notice 17 of 2018 12 Explain what recourse a debarred Representative may have. K FAIS Act - Sec 39 BN 82 of 2003 - Sec 2(b) FSR Act – Sec 153 FSR Act – Sec 230 01 July 2024 – Version 3 Page 9 of 9