Chapter 8: Investment advice Flashcards
1
Q
Any recommendation, guidance or proposal of a financial nature furnished, by any means or medium, to any client or group of clients –
A
- in respect of the purchase of any financial product; or
- in respect of the investment in any financial product; or
- on the conclusion of any other transaction, including a loan or cession, aimed at the incurring of any liability or the acquisition of any right or benefit in respect of any financial product; or
- on the variation of any term or condition applying to a financial product; or
- on the replacement of any such product; or
- on the termination of any purchase of or investment in any such product,
2
Q
In terms of the Act, authorised Financial Services Providers, and their representatives, must follow the FAIS general code of conduct in which they are obliged to:
A
- Act honestly and fairly, and with due skill, care and diligence, in the interests of clients and the integrity of the financial services industry.
- Have and employ effectively the resources, procedures and appropriate technological systems for the proper performance of professional activities.
- Seek from clients appropriate and available information regarding their financial situations, financial product experience and objectives in connection with the financial service required.
- Act with circumspection and treat clients fairly in a situation of conflicting interests.
- Comply with all applicable statutory or common law requirements applicable to the conduct of business.