Financial Services Definitions Mini Assignment

Answer the questions based on your employment as an insurance sales representative for a reputable financial services provider (FSP). An individual is interested in purchasing a long-term insurance policy. Your role in this transaction would involve both providing advice and intermediary services.

Briefly explain the difference between providing advice and providing an intermediary service in the context of this scenario. How would these definitions apply to your interactions with the individual? 

The individual is a little uncertain about the terms and conditions of the long-term insurance policy. You need to help them understand. Describe how you would do this without crossing into the territory of giving ‘advice’ as defined by the FAIS Act. 

If the individual decides to go ahead with the purchase of the long-term insurance policy, describe the intermediary services you would then provide. 

Lastly, explain why it is important that you, as an insurance sales representative, follow the guidelines for advice and intermediary service provision as set out in the FAIS Act.