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,
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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.
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