RE 5 Topic 8 Quiz 3

In terms of the Code of Conduct, a representative must inform the client of which of the following regarding the completion or submission of any transaction requirement by the client?

i. A statement that all material facts must be accurately and properly disclosed, and that the accuracy and completeness of all answers, statements or other information provided by or on behalf of the client, are the client’s own responsibility.

ii. A statement that if the FSP completes or submits any transaction requirement on behalf of the client, the client should be satisfied as to the accuracy and completeness of the details.

iii. A statement of the possible consequences of the misrepresentation or non-disclosure of material facts or the inclusion of incorrect information.

iv. The client’s right to be supplied, on request, with a copy or written or printed record of any transaction requirement within 7 days.

Which of the following statements with regard to the FSP’s complaints handling process are correct?

i. The FSP may insist that the client put the complaint in writing and attached documents relevant to the matter.

ii. The FSP must acknowledge receipt of a complaint within 3 days of receipt of complaint witch must include the complaints department details.

iii. The FSP must give the complaint due consideration and resolve the complaint within 3 weeks of receipt of complaint.

iv. The FSP must notify client, that the client has 6 months to pursue the matter with the Ombud after resolution of complaint.

v. The FSP must have a complaints’ register in stating the details of the complaint and the outcome of the resolution of the complaint.

Alpha Advisors authorised to provide financial service in long-term insurance C only decided to advertise an endowment policy by posting information on the product to the current client base of Alpha Advisors. Which of the following disclosures must be included in the advertisement?

i. Warning statement regarding the current volatile economic markets.

ii. Warning statement regarding the risks involved in the buying of the product.

iii. Warning statement that the investment value of the policy is not guaranteed.

iv. A disclosure that the FSP hold the necessary Professional Indemnity cover.

In which of the following instances is an Administrative Financial Services Provider permitted to disclose a client’s confidential information.

i. Provide the client’s transactional information to the Authority without the client’s written consent.

ii. Provide the client’s contact and geographical information to a company to conduct a survey on the financial activity of individuals without the client’s written consent.

iii. Sell the client’s contact information to a third-party for marketing purposes with the client’s written consent.

iv. Provide the client’s transactional information to the Financial Intelligence Centre without the client’s written consent.

Jack is representative of Jill Brokers CC. Jack has inherited 15% shareholding in one of the insurance companies Jill Brokers has a distribution agreement with. Which one of the following statements is correct in this regard in terms of the Code of Conduct?