Vrae Flashcards
Regulatory measures intended to protect investors in the financial markets include which of the following?
- Compensation if prejudiced through unlawful actions.
- Access to a voluntary of statutory ombudsman.
- Fit and proper requirements for suppliers of financial services.
The twin-peaks approach to regulation to be followed in South Africa involves which of the following aspects?
- A separate regulator for prudential oversight.
- A separate regulator for market conduct.
- Ensuring that other regulators also consider financial stability.
The objects of the Financial Markets Act include which of the following?
- Furthering a stable securities market environment.
- Reducing risk in the financial system.
- Ensuring transparency in the markets.
Who may prohibit an authorized user from operating a trust account?
The High court.
Which of the following statements with regard to trust accounts are correct?
- Clients are responsible for bank charges relating to deposits and withdrawals.
- The excess remaining after client funds and interest have been accounted for is not trust property.
- Interest on trust account accrue to the person entitled to the funds.
The Directorate of Market Abuse has which of the following powers?
- Summon persons who possess documents to appear before it.
- Copy or make extracts from documents supplied.
The registrar may order an inspection of which of the following associated institutions?
- A legal person in which an unregistered financial institution has an interest.
- A participant employer in a pension fund.
- An administrator of a pension fund.
If the Financial Market Act has been contravened, which of the following enforcements actions may be taken?
- The registrar may direct that a regulated person prohibited specified activities of a director.
- The registrar may direct a regulated person to refrain from certain actions.
Which of the following statements with regard to the enforcement committee are correct?
- Its orders may be taken on appeal to the High Court.
- A panel of no less than three suitably qualified members must decide a case.
- The registrar may refer any contravention of a law to the enforcement committee.
Which of the following actions will constitute advisory services in terms of the Financial Advisory and Intermediary Services (FAIS)?
- A financial proposal to invest in bonds.
- A recommendation to purchase shares.
Which of the following are operational requirements for a financial services provider in terms of the FAIS?
- A business bank account.
- Money laundering control systems.
A financial interest for purposes of determining conflicts of interest in terms of the FAIS include the which of the following ing?
- Cash equivalent
- Incentives
- Travel and accommodation associated with training
In terms of the Financial Advisory and Intermediary Services (FAIS) Act, a conflicts of interest management policy must include which of the following aspects?
- The nature and the extent of ownership interest held by third parties in the financial services provider.
- A motivation of how a particular financial interest payable does not amount to prohibited financial interest.
- Consequences of non-compliance by a financial services provider’s employees.
- Measures for the avoidance of conflicts of interest.
Which of the following are duties and prohibitions of a financial services provider in terms of the Financial Advisory and Intermediary Services (FAIS)?
- A representative may not deal in a financial product on the basis of non-public price-sensitive information.
- Disclosure of a client’s confidential information make take place if the client consents.
What information about a product supplier must a financial services provide (FSP) the client?
- The contractual relationship with the product supplier.
- Whether the FSP indirectly hold more than 10% of the product supplier’s shares.
- The name and the contact details of the complaints or compliance department.
