Regulatory Exam: 5 Description: RE 5: Regulatory .

Regulatory Exam: 5Description: RE 5: Regulatory Examination: Representatives in all Categories of FSPsTaskNo1QCDemonstrateunderstanding of the FAISAct as a regulatoryframework.1Describe the FAIS Act and subordinate legislation.2Provide an overview of the financial services and differenttypes of financial products a Representative can deal with.K3Apply knowledge of the financial products within thefinancial services environment.S4Describe the role and function of a Compliance Officer.K03 January 2021 – Version 1Qualifying CriteriaKnowledge (K)or Skill (S)KTaskLegislation ReferenceGCOC – Definition of Direct MarketingFAIS Act - Sec 1 DefinitionsFAIS Act - PreambleFAIS Act - Sec 1 Definition of Financial ProductFAIS Act - Sec 1 Definition of Intermediary ServicesFAIS Act - Sec 1 Definition of AdviceGCOC – Sec 4 & 5 & 7FAIS Act - Sec 1 Definition of Financial ProductFAIS Act - Sec 7(3)Long-term Insurance Act - Sec 1 Definition of Long-Term PolicyGCOC - Sec 8(1)FAIS Act - Sec 17FAIS Act - Sec 17(1)FAIS Act - Sec 17(1)(c)FAIS Act - Sec 17(4)FAIS Act - Sec 18FAIS Act - Sec 18(d)FAIS Regulations - Reg 5FAIS Regulations - Reg 5(1)FAIS Regulations - Reg 5(3)GCOC - Sec 3(1)Page 1 of 10

TaskNo2Knowledge (K)or Skill (S)KTaskQCQualifying CriteriaContribute towardsmaintaining a FSP licence.1Explain the requirements a FSP must meet to maintain a FSPlicence.2Assist in maintaining a FSP licence by executing the requiredactions as a Representative, in terms of the Act.S34Discuss the requirements around the display of licences.Explain the implications for a Representative if anaccreditation is suspended or withdrawn or lapsed in termsof the Medical Schemes Act, 1998, or any other enablinglegislation.KK5Explain what is meant by "undesirable practices".K6Check that the execution of duties and actions as aRepresentative does not constitute undesirable businesspractices.Describe the implications for a Representative if theAuthority declares a business practice to be undesirable.S703 January 2021 – Version 1KLegislation ReferenceFAIS Act - Sec 8FAIS Act - Sec 8(2) & (4)FAIS Act - Sec 8(10)(a)(i)FAIS Act - Sec 9FAIS Act - Sec 9(1)FAIS Act - Sec 9(1)(g)FAIS Act - Sec 9(2)FAIS Act - Sec 9(3) & (4)FAIS Act - Sec 11FAIS Act - Sec 13FAIS Act - Sec 19FAIS Act - Sec 41(2)BN 123 of 2009 - Sec 3Licensing conditionsFAIS Act - Sec 1 Definition of RepresentativeFAIS Act - Sec 1 Definition of Intermediary ServicesFAIS Act - Sec 8 & 8(1) & 8(8)FAIS Act - Sec 13(1) & 13(2)FAIS Act - Sec 17(4)GCOC - Sec 2GCOC - Sec 21FAIS Act - Sec 8(8)FAIS Act - Sec 8(7)FAIS Act - Sec 9FAIS Act - Sec 9(1)(b)FAIS Act - Sec 9(2)FAIS Act - Sec 11FAIS Act - Sec 34FAIS Act - Sec 34(2)FAIS Act - Sec 34(6)FAIS Act - Sec 34FAIS Act - Sec 14FAIS Act - Sec 34FAIS Act - Sec 34(2)FAIS Act - Sec 34(4)Page 2 of 10

TaskNoTaskQC834Define the role of the keyindividual in terms of theFAIS Act.Adhere to the specificCodes of Conduct.03 January 2021 – Version 191Qualifying CriteriaExplain the reparation measures available to the Authority ifa Representative continues with undesirable businesspractices.Describe the offenses prescribed by the FAIS Act.Describe the roles and responsibilities of key individuals asdefined in the FAIS Act.Knowledge (K)or Skill (S)KKK2Describe the regulated management and oversightresponsibilities of a key individual.K3Explain the implications for a Representative should a keyindividual no longer meet the honesty, integrity and goodstanding requirements.K1Describe the general and specific duties of a provider.KLegislation ReferenceFAIS Act - Sec 34FAIS Act - Sec 34(4) & (5) & (6)FAIS Act - Sec 36FAIS Act - Sec 36FAIS Act - Sec 1 Definition of Key IndividualFAIS Act - Sec 1 Definition AdviceFAIS 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 18FSB Guidance Note on Key IndividualGCOC - Sec 11FAIS Act - Sec 1 Definition of Key IndividualFAIS Act - Sec 7(3)FAIS Act - Sec 18BN 194 of 2017 – Sec 8BN 194 of 2017 – Sec 12BN 194 of 2017 – Sec 32FSCA FAIS Notice 86 of 2018 – Condition 4(1)(f)FAIS Act - Sec 8(4)FAIS Act - Sec 8(4)(b)(iii)FAIS Act - Sec 9(1)FAIS Act - Sec 9(1)(a)FAIS Act - Sec 13FAIS Act - Sec 14Licence conditionsBN 194 of 2017 – Sec 9(1)BN 194 of 2017 – Chapter 2GCOC - Sec 2GCOC - Sec 3GCOC - Sec 3(1)GCOC - Sec 3(3)GCOC - Sec 7GCOC - Sec 8(1)GCOC - Sec 10GCOC - Sec 12Page 3 of 10

TaskNoTaskQCKnowledge (K)or Skill (S)K2Describe what could possibly be a conflict of interest.3Define the requirements and impact of the disclosure ruleson the FSP.K4Apply the requirements of the General Code of Conduct forFSPs and Representatives.Explain the disclosures that need to be made by aRepresentative before rendering a financial service.S503 January 2021 – Version 1Qualifying CriteriaK6Explain disclosures that must be made by a Representativewhen rendering a financial service.K7Describe the required disclosures regarding the provider,product supplier and financial service.K8Explain the specific disclosure requirements regarding feesand commission.K9Apply disclosure requirements in terms of financial services.SLegislation ReferenceGCOC – Part 1 DefinitionsGCOC - Sec 3(1)GCOC - Sec 3(1)(b) & (c)GCOC - Sec 3(A)GCOC - Sec 5GCOC - Sec 5(e)GCOC - Sec 14GCOC - Sec 8(1)GCOC - Sec14FAIS Act - Sec 13(1)GCOC - Sec 4GCOC - Sec 4(1)(d)(ii)GCOC - Sec 2GCOC - Sec 4GCOC - Sec 4(1)GCOC - Sec 5GCOC - Sec 7GCOC - Sec 7(1)(a)GCOC - Sec 8(4)GCOC - Sec 4GCOC - Sec 5GCOC - Sec 4(1)GCOC - Sec 7GCOC - Sec 7(1)GCOC - Sec 7GCOC - Sec 7(1)GCOC - Sec 7(1)(c)GCOC - Sec 7GCOC - Sec 7(1)(c)GCOC - Sec 7(4)GCOC - Sec 8(4)GCOC - Sec 15(6)GCOC - Sec 21Page 4 of 10

TaskNo5TaskComply with regulatedrecord keepingrequirements.03 January 2021 – Version 1Knowledge (K)or Skill (S)KQCQualifying Criteria10Explain the process of advice that should be followed by aRepresentative.11Explain the requirements when a Representative receivescustody of financial products and funds.K12Explain the manner in which complaints are to be handled bya Representative as required by the General Code of Conductfor FSPs and Representatives.K13Follow the complaints procedures and processes that are inplace for Representatives.S14Explain the requirements of the General Code of Conduct forFSPs and Representatives relating to the termination of anagreement.Explain the record keeping obligations by a Representative asprescribed by the FAIS and FIC Acts.K1KLegislation ReferenceGCOC - Sec 7(1)(d)GCOC - Sec 8GCOC - Sec 8(1)GCOC - Sec 8(4)GCOC - Sec 10GCOC - Sec 10(1)FAIS Act - Sec 20 & 27GCOC - Sec 16GCOC - Sec 17GCOC - Sec 18GCOC - Sec 19BN 81 of 2003 - Rule 6(b)GCOC - Sec 16GCOC - Sec 17GCOC - Sec 18GCOC - Sec 19FAIS Act - Sec 27(3)GCOC - Sec 20GCOC - Sec 20(a)GCOC - Sec 20(c)FAIS Act - Sec 13(2)FAIS Act - Sec 13(3)FAIS Act - Sec 13(4)FAIS Act - Sec 18FAIS Act - Sec 18(b)FAIS Act - Sec 18(d)FICA - Sec 22 & 23 & 24FICA - Sec 29(1)GCOC - Sec 3GCOC - 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)Page 5 of 10

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TaskNo67TaskComply with therequirements of the FICAct and Money Launderingand Terrorist Financingcontrol regulations, as itapplies to the FSP.Dealing with complaintsthat have been submittedto the Ombud for FSPs.03 January 2021 – Version 1QCQualifying CriteriaKnowledge (K)or Skill (S)S2Carry out the record keeping and retrieval of recordsfunctionality correctly.1Explain the requirements specific to a FSP prescribed by theFIC Act.K2Describe how the FIC Act impacts a Representatives'interaction with a client.K1Explain the role and authority of the Ombud for FSPs.KLegislation ReferenceFAIS Act - Sec 18GCOC - Sec 3(2)GCOC - Sec 10(1)BN 194 of 2017 - Sec 39(2)FIC Act PreambleFIC Act Schedule 1FIC Act Schedule 3FIC Act - Sec 3FIC Act - Sec 21FIC Act - Sec 21(1)FIC Act - Sec 21(1)(a)FIC Act - Sec 22 & 22AFIC Act – Sec 29(1)FIC Act - Sec 43FIC Act - Sec 43(A) & 45CFIC Act - Sec 45C(3)(e)FIC Act - Sec 62FIC Act - Sec 68(2)Money Laundering and Terrorist Financing control regulations Chapter 4Money Laundering and Terrorist Financing control regulations– Sec 22A & 22A (4) & 23FIC Act - Sec 21AFIC Act - Sec 21(1)(a) & (b)FIC Act - Sec 22FIC Act - Sec 29FIC Act - Sec 29(1)Money Laundering and Terrorist Financing control regulations– Sec 24FAIS Act - Sec 1 Definition of ComplaintFAIS Act - Sec 20FAIS Act - Sec 27FAIS Act - Sec 27(3)FAIS Act - Sec 27(3)(a) & (b)FAIS Act - Sec 27(4)FAIS Act - Sec 28FAIS Act - Sec 28(1)Page 7 of 10

FAIS Act - Sec 28(4)(a)FAIS Act - Sec 3103 January 2021 – Version 1Page 8 of 10

TaskNo8QCOperate as aRepresentative in terms ofthe FAIS Act.1Describe the roles and responsibilities of Representatives asdefined in the FAIS Act.2Apply knowledge of the role of the Representative in termsof the FAIS Act.S3Explain the fit and proper requirements that apply to aRepresentative (honesty, integrity, good standing,qualifications, experience, knowledge tested throughregulated examinations and continuous professionaldevelopment).K4Distinguish between advice and intermediary services interms of the FAIS Act.K5Describe the purpose and requirements of the register ofRepresentatives.K03 January 2021 – Version 1Qualifying CriteriaKnowledge (K)or Skill (S)KTaskLegislation ReferenceFAIS Act - Sec 1 Definition of RepresentativeFAIS Act - Sec 1 Definition of Intermediary ServicesFAIS Act - Sec 1 Definition of AdviceFAIS Act - Sec 1(3)FAIS Act - Sec 13FAIS Act - Sec 13(1)FAIS Act - Sec 13(1)(b)FAIS Act - Sec 13(2)Licensing conditionsGuidance Note on Intermediary Services and RepresentativeFAIS Act - Sec 1 Definition of Representative and personFAIS Act - Sec 1 Definition of AdviceFAIS Act - Sec 1 Definition of Intermediary ServicesFAIS Act - Sec 1 Definition of Representative and personFSCA FAIS Notice 86 of 2018 – Exemption of Services underSupervisionBN 194 of 2017BN 194 of 2017 - Sec 1 Definition of ExperienceBN 194 of 2017 - Sec 1 Definition of QualificationBN 194 of 2017 - Sec 1 Definition of Recognised QualificationBN 194 of 2017 - Sec 9BN 194 of 2017 - Sec 12 & 16BN 194 of 2017 - Sec 25BN 194 OF 2017 - Annexure 3FAIS Act - Sec 1 Definition of AdviceFAIS Act - Sec 1 Definition of Intermediary ServicesFAIS Act - Sec 1 Definition of RepresentativeFAIS Act - Sec 13(4)FSCA FAIS Notice 86 of 2018 – Exemption of Services underSupervisionFAIS Act - Sec 1 Definition of RepresentativeFAIS Act - Sec 13FAIS Act - Sec 13(3)FAIS Act - Sec 13(4)FAIS Act - Sec 13(5)FSCA FAIS Notice 1 of 2018 - Form FSP 5Page 9 of 10

TaskNoTaskQCKnowledge (K)or Skill (S)K6Explain when a Representative should be under supervision.7Explain the disclosure requirements for a Representativeunder supervision.Describe the implications if a Representative no longermeets the Fit and Proper requirements.K9Define the purpose of debarment.K10Describe when debarment should be considered.K11Explain the debarment process that should be followed inthe event of a possible contravention of the FAIS Act.K12Explain what recourse a debarred Representative may have.K803 January 2021 – Version 1Qualifying CriteriaKLegislation ReferenceFSCA FAIS Notice 86 of 2018 – Exemption of Services underSupervisionFAIS Act - Sec 8BN 194 of 2017 - Sec 12BN 194 of 2017 - Annexure OneFSCA FAIS Notice 86 of 2018 – Exemption of Services underSupervisionFAIS Act - Sec 14BN 194 of 2017 - Sec 23BN 194 of 2017 - Sec 52FAIS Act - Sec 14FSR Act – Sec 153(1)FAIS Act - Sec 13FAIS Act - Sec 13(2)FAIS Act - Sec 14FAIS Act - Sec 14FAIS Act - Sec 14(1) & (3)Guidance notes on Debarment 1 of 2019FSR Act - Sec 153FSCA FAIS Notice 17 of 2018FAIS Act - Sec 39BN 82 of 2003 - Sec 2(b)Page 10 of 10

Regulatory Exam: 5 Description: RE 5: Regulatory Examination: Representatives in all Categories of FSPs Task No Task QC Qualifying Criteria Knowledge (K) or Skill (S) Legislation Reference 1 Demonstrate understanding of the FAIS Act as a regulatory framework. 2 1 Describe the FAIS Act and subordinate legislation.