Task 1 Part A

Question 1

Define direct marketing in your own words?

Answer 1

rendering of financial services through:
1.telephone
2.internet
3.media insert
4.direct mail
5.electronic mail
*Excludes adverts not containing transaction requirements

Question 2

Define avdertisement as per GCOC?

Answer 2

Written,printed,electronic or oral communication which is directed to general public,section or subsection by FSP

Question 3

What is a direct marketer?

Answer 3

Provider who uses direct marketing

Question 4

Define a provider?

Answer 4

Authorised fsp & includes representative

Question 5

Define transaction requirement?

Answer 5

Any application,proposal,order,instruction or other contractual information needed to be completed for or submitted to a product supplier by or on behalf of a client in relation to purchase of or investment in any financial product incl any amendment

Question 6

Define writing?

Answer 6

Includes comms by telefax or any appropriate electronic medium & can be printed

Question 7

Define advice under Fais Act?

Answer 7

Recommendation,guidance or proposal of a financial nature furnished by any means ir medium to any client or group of clients-
a) irof purchase
b)irof investment in any financial product
c)on the conclusion of any other transaction,including a loab or cession aimed at incurring liability or acquisition
d) variation of any term or cndtn applying to a fin product on the replacement of any such product or on termination of any purchase of or investment in any such product irresepective of whether or not such advice
i) is furnished in the course of or incidental to fin planning in connection with the affairs of the client
ii)results in any such purchase,investment,transaction,variation,replacement or termination,as the case may be,being effected

Question 8

Alternative investment fund definiton?

Answer 8

Collective investment which
a) raises capital from one or more investors to facilitate the participation or interest in subscrptn,contrbtn or commitment to a fund or portfolio with a view to investing it in accordance with a defined investment policy for the benefit of the investors
b) does not require approval as a collrctive investment scheme in terms of the Collective Investment Schemes control Act 2002(Act No 45 of 2002)

Question 9

Define application definition from an fsp?

Answer 9

Refers to that of submission to Fsca to become authorised fsp

Question 10

Define auditor?

Answer 10

Means auditor registered in terms of Auditing Profession Act,2005

Question 11

Define authorised fsp?

Answer 11

Person who has been granted an authorisation as service provider by issue of that person of a license under sec8

Question 12

Define authority under Fais Act?

Answer 12

Financial Sector Conduct Authority