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.
What information must a Financial Services provider (FSP) supply to a client regarding the FSP?
- Whether fidelity guarantee insurance is held.
- Conditions applicable to the services it is authorized to supply.
- Whether the registrar has provided any exemption.
What information must a financial services provider (FSP) supply to a client with regard to the financial service?
- Nature and material terms of the transaction.
- The manner in which benefits are derived and calculated.
- Any material investment or other risk applicable to the financial product.
Which of the following statements with regard to the duties and prohibitions in terms of the Financial Institutions (Protections of funds)?
- The definition of Invest in the Act includes the granting of a unsecured loan.
- Directors’ declaration of interest in an investment must be included in the minutes of the governing body.
