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FAIS stands for?
Financial Advisory and Intermediary Services act
One of the main objectives of FAIS is to protect the interests of consumers.
True
The main objective of FAIS is to combat money laundering activities.
False
In terms of the FAIS Act nobody is allowed to render financial services regarding financial products without being authorised as a financial services provider or appointed as a Representative of an authorized provider.
True
The objective of FAIS is to protect the financial services industry.
True
A Financial Service Provider may not be an un-rehabilitated insolvent.
True
You need to be able to manage your finances before you can advise other on how to manage theirs.
True
When a Representative does not meet the Competence Fit and Proper requirements, they will be given a chance to work under supervision until he/she becomes compliant
True
Who may supervise?
A person who meets the competence Fit and Proper requirements and is also accredited to sell the products that the supervisee is selling
• If a client want to replace an existing policy, you must explain the risks and potential losses, waiting periods, differences between the 2 products and charges that the client can incur
True
A financial Advisor must do a proper financial needs analysis BEFORE discussing products
True
If you are prosecuted and are convicted, you will be liable to a fine of up to R100 Million
False
If you do not comply with any of the FAIS Fit and Proper requirements or you break the law (the FAIS Act) in a material way you will be debarred.
True
If you are prosecuted and are convicted, you will be liable to Imprisonment for up to 15 years
False
Giving the client false information is prohibited by the FAIS act.
True
You are allowed to give advice to a client before you conduct the FNA if that client is your friend.
False
