Financial Advisory and Intermediary Services Act 2002 (Act No. 37 of 2002)

TABLE 4

Task No.

Task

QC

Qualifying Criteria

Knowledge (K)

or Skill (S)

1

Demonstrate understanding of the FAIS Act as a regulatory framework

1

Describe the FAIS Act and subordinate legislation

K

2

Provide an overview of the financial services and different types of financial products a Representative can deal with.

K

3

Apply knowledge of the financial products within the financial services environment.

S

4

Describe the role and function of a Compliance Officer.

K

2

Contribute towards maintaining an FSP licence

1

Explain the requirements an FSP must meet to maintain an FSP licence.

K

2

Assist required actions as a Representative, in terms of the Act.

S

3

Discuss the requirements around the display of licences.

K

4

Explain the implications for a Representative if an accreditation is suspended or withdrawn or lapsed in terms of the Medical Schemes Act, 1998, or any other enabling legislation

K

5

Explain what is meant by "undesirable practices."

K

6

Check that the execution of duties and actions as a Representative does not constitute undesirable business practices.

S

7

Describe the implications for a Representative if the Registrar declares a business practice to be undesirable

K

8

Explain the reparation measures available to the Registrar if a Representative continues with  undesirable business practices.

K

9

Describe the offenses prescribed by the FAIS Act

K

3

Define the role of the key

individual in terms of the

FAIS Act.

1

Describe the roles and responsibilities of key individuals as defined in the FAIS Act.

K

2

Describe the regulated management and oversight responsibilities of a key individual

K

3

Explain the implications for a Representative should a key individual no longer meet the good standing, honesty and integrity requirements

K

4

Adhere to the specific Codes of Conduct

1

Describe the general and specific duties of a provider

K

2

Describe what could possibly be a conflict of interest

K

3

Define the requirements and impact of the disclosure rules on the FSP.

K

4

Apply the requirements of the General Code of Conduct for FSPs and Representatives.

S

5

Explain the disclosures that need to be made by a Representative before rendering a financial service

K

6

Explain disclosures that must be made by a Representative when rendering a financial service

K

7

Describe the required disclosures regarding the provider, product supplier and financial service

K

8

Explain the specific disclosure requirements regarding fees and commission

K

9

Apply disclosure requirements in terms of financial services

S

10

Explain the process of advice that should be followed by a Representative

K

11

Explain the requirements when a Representative receives custody of financial products and funds

K

12

Explain the manner in which complaints are to be handled by a Representative as required by the General Code of Conduct for FSPs and Representatives.

K

13

Follow the complaints procedures and processes that are in place for Representatives.

S

14

Explain the requirements of the General Code of Conduct for FSPs and Representatives relating to the termination of an agreement

K

5

Comply with regulated record keeping requirements

1

Explain the record keeping obligations by a Representative as prescribed by the FAIS and FIC Acts.

K

2

Carry out the record keeping and retrieval of records functionality correctly

S

6

Comply with the requirements of the FIC Act and Money Laundering and Terrorist Financing control regulations, as it applies to the FSP.

1

Explain the requirements specific to an FSP prescribed by the FIC Act

K

2

Describe how the FIC Act impacts a Representatives' interaction with a client.

K

7

Dealing with complaints that have been submitted to the Ombud for FSPs

1

Explain the role and authority of the Ombud for FSPs

K

8

Operate as a Representative in terms of the FAIS Act.

1

Describe the roles and responsibilities of Representatives as defined in the FAIS Act.

K

2

Apply knowledge of the role of the Representative in terms of the FAIS Act.

S

3

Explain the fit and proper requirements that apply to a Representative (good standing, honesty, integrity, qualifications, experience, knowledge tested through regulated examinations and continuous professional development)

K

4

Distinguish between advice and intermediary services in terms of the FAIS Act.

K

5

Describe the purpose and requirements of the register of Representatives

K

6

Explain when a Representative should be under supervision.

K

7

Explain the disclosure requirements for a Representative under supervision

K

8

Describe the implications if a Representative no longer meets the Fit and Proper requirements

K

9

Define the purpose of debarment

K

10

Describe when debarment should be considered.

K

11

Explain the debarment process that should be followed in the event of a possible contravention of the FAIS Act

K

12

Explain what recourse a debarred Representative may have.

K