BANKSETA
Inter-Bank Compliance Project
FAIS Overview
Question Sheet
Demonstrate knowledge and insight of the Financial
Advisory and Intermediary Services Act (FAIS) (Act 37
of 2002)
Name
Bank
Tel no
Job Title
e-Mail
address
B A N K S E T A
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p r o j e c t
Assessment Instrument: FAIS Training: Question sheet
Overview Question Sheet
FAIS
Purpose of assessment:
This final assessment represents a cumulative record of what you should have learnt
and understood throughout the course. This assessment will be the final evaluation
tool to assess your ability to demonstrate an understanding of an overview of FAIS
and your level of competence after completing the course. It will be evidence of
whether you have achieved the expected learning outcomes.
Instructions.

Read through the questions and select the correct answer for each.
 The questions are presented in two formats: multiple choice and true/false. Each
question has only one correct answer.
o
Tick () the applicable option of the multiple choice questions clearly
o Write True or False in to the box for the True/False questions.
 You will need to complete the assessment within 90 minutes.
 The required competency level pass rate is 80% or 24/30.
 When you have finished the assessment, hand the complete answer sheet back
to your course facilitator.*
*This instruction applies to classroom-facilitated sessions.
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Assessment Instrument: FAIS Training: Question sheet
Examples:
Multiple-choice question
Q1:
FAIS legislation:
a Was investigated by the Ministry of Finance as early as 1993
b Was investigated to regulate market conduct within the financial services industry
c Was investigated to enhance the integrity of the South African financial services
industry
d Was enacted (Became law) in November 2002.
1.1
All of the choices are true
1.2
None of the choices are true
1.3
Choice (a) applies
1.4
Choices (b) and (c) are true
1.5
Choices (a), (b) and (c) are true.

True False question
Statement
Is the statement True
or False?
1.1.1
The external Auditor is responsible for compiling the False
internal audit report.
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Assessment Instrument: FAIS Training: Question sheet
Assessment Starts Here.
Module 2
2.1.
The Key licencing requirements include:
a Personal character qualities of honesty and integrity, competence and
operational ability
b Number of employees in the organisation
c Financial soundness for the FSP
d Location and premises of the FSP.
2.1.1 All of the choices are true
2.1.2 Choices (a) and (c) are true
2.1.3 Choice (a) applies
2.1.4 Choices (b) and (c) are true
2.1.5 None of the choices are true.
2.2.
The FSP licence is granted by:
a The South African Reserve Bank
b The Insurance Institute
c The Banking Council
d The Financial Services Board
e Department of Labour.
2.2.1 All of the choices are true
2.2.2 Choice (a) applies
2.2.3 Choices (a) and (d) applies
2.2.4 Choices (b) and (c) are true
2.2.5 Choice (d) is true.
2.2.6 None of the choices are true.
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Assessment Instrument: FAIS Training: Question sheet
2.3.
FSPs, KIs and Representatives all need to meet specific requirements relating
to:
a Honesty and integrity
b Competence (qualifications and experience)
c Management ability
d Approval by the Banking Council.
2.3.1 All of the choices are true
2.3.2 Choices (a) and (b) are true
2.3.3 Choices (b) and (d) applies
2.3.4 Choices (a) and (c) are true
2.3.5 Choices (b) and (c) are true
2.3.6 None of the choices are true.
2.4.
KIs are responsible for:
a Managing or overseeing the activities relating to the FSP
b KIs bring both technical competence in a particular financial product
category and managerial skill to their organisations
c Legal and accounting reporting.
2.4.1
All of the choices are true
2.4.2
Choices (a) and (b) are true
2.4.3
Choices (b) and (c) applies
2.4.4
Choice (a) is true
2.4.5
Choice (b) is true
2.4.6
None of the choices are true.
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Assessment Instrument: FAIS Training: Question sheet
2.5.
A Representative:
a Can be a temporary, a casual, a consultant or an outsourced person
b Is responsible for attaining and maintaining their “Fit and Proper” status for
each product
c Is a person who renders a financial service to a client on behalf of a FSP
d Is listed on the FSPs register of representatives.
2.5.1 All of the choices are true
2.5.2 None of the choices are true
2.5.3 Choice (a) and (b) are true
2.5.4 Choices (a) and (c) are true
2.5.5 Choices (b) and (c) are true.
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Assessment Instrument: FAIS Training: Question sheet
Module 3
Statement
3.1
Is the statement
True or False?
Advice means any financial recommendation,
guidance or proposal given to any client or group of
clients on any financial product with the intention of
getting the client to consider:

Entering into a financial transaction in respect of a
financial product
3.2

Investing in a financial product

Varying, replacing or terminating any of these.
An intermediary service occurs when a person
performs any act for or on behalf of a client or product
supplier, including giving advice, which facilitates a
transaction relating to a financial product.
3.3
For the purposes of FAIS, advice does NOT include
factual advice given:

On the procedure for entering into any transaction
relating to a financial product

In relation to the description of a financial product

In response to a routine administrative query

In the form of objective information about a
specific financial product

By the display or distribution of promotional
material.
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Assessment Instrument: FAIS Training: Question sheet
3.4.
The Codes of Conduct makes it clear that representatives have to:
a Obtain information from clients
b Base their advice on the client’s financial situation
c Keep records of the advice given
d Adhere to all legal requirements
e Act honestly and ethically in all dealings with clients.
3.4.1 All of the choices are true
3.4.2
Choices (a), (b) and (c) are true
3.4.3
Choices (c), (d) and (e) applies
3.4.4
Choices (b) and (c) and (e) are true
3.4.5 None of the choices are true.
Statement
3.5
You are not allowed to compare financial products
offered by different banks or insurance companies, if
you cannot provide factual reasons for the
comparisons.
3.6
A FSP which conducts business that covers more than
one financial category will be able to select the
requirements of the Code of Conduct with which it
chooses to comply.
Ms Walters from ABC Bank’s branch in Kuruman is not
a representative. She phones people in the town trying
to sell the new funeral plan to them. This is acceptable.
3.7
3.8
Is the statement
True or False?
Mr Ndlou is unhappy with the performance of his
investment account. He goes to the branch to
complain. The correct procedure for this staff member
is to inform him that he has to go home and write a
letter to the Head Office as they are the only people
who can assist him.
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Assessment Instrument: FAIS Training: Question sheet
3.9.
FSPs need to keep records of advice. The following does NOT need to be
kept:
a The advice given to clients
b Brochures handed to the client
c The clients salary statements
d A brief summary of the information and material on which the advice was
based
e Which financial products were considered?
3.9.1 All of the choices are true
3.9.2 None of the choices are true
3.9.3
Choices (a), (c) and (d) are true
3.9.4
Choices (a), (d) and (e) are true
3.9.5
Choices (b) and (c) are true.
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Assessment Instrument: FAIS Training: Question sheet
Module 4
Statement
4.1
Is the statement
True or False?
The Registrar of FSPs is appointed to deal with FAIS
complaints.
4.2
If the Ombud requests information about a complaint,
the information must be supplied within two weeks.
4.3
The Ombud is required to act in the best interests of
the FSP when dealing with a complaint.
4.4
The Respondent does not have to allow the
Complainant access to their facilities in order to submit
the complaint and reduce it to writing.
4.5
A complaint must conform to the following in order to
be considered under FAIS:

It must fall within the ambit of FAIS

It must have arisen at the time that FAIS was
effective.
4.6
The Registrar has the power to institute action against
any person who falls within the ambit of FAIS who has
contravened or not complied with one or more
provision of FAIS.
4.7.
The Registrar may institute a court action against a person for payment:
a Of an amount to compensate the losses suffered by any other person as a
result of the contravention or non compliance
b Bank Charges
c Interest
d The cost of the lawsuit.
4.7.1 All of the choices are true
4.7.2 None of the choices are true
4.7.3
Choices (a), (b) and (c) are true
4.7.4
Choices (a), (c) and (d) are true
4.7.5
Choices (b), (c) and (d) are true.
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Assessment Instrument: FAIS Training: Question sheet
Module 5
5.1.
The FAIS Compliance Officer is responsible for:
a Providing the FSP with written reports on the course of and progress
achieved with compliance monitoring duties
b Making recommendations to the FSP regarding any aspect of the required
compliance or monitoring duties
c Monitoring compliance with FAIS by the FSP, KIs and its Representatives
d Liasing with the Registrar.
5.1.1 All of the choices are true
5.1.2 None of the choices are true
5.1.3
Choice (a), (b) and (c) are true
5.1.4
Choices (a) (c) and (d) are true
5.1.5
Choices (b), (c) and (d) are true.
Statement
5.2
Is the statement
True or False?
Non-compliance occurs when people do not adhere
to statutory, regulatory and supervisory
requirements.
5.3
The FSP must appoint a CO who must be approved
by the Ombud.
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