Definitions Quiz

Which of the following constitutes “advice” as defined in the FAIS Act?

Which scenario best describes an “intermediary service” under the FAIS Act?

Which of the following best qualifies as a “representative” under the FAIS Act?

Which of the following persons would fall within the definition of “client” as per the FAIS Act?

I. A person to whom advice was rendered regarding a financial product, even if the product was never purchased
II. A person who inherited a financial product from a deceased policyholder
III. A member of the general public who receives a marketing email from an FSP
IV. A person listed as the beneficiary of a funeral policy

Which of the following would be classified as a “complaint” under the FAIS Act?

Sipho is an intern at a financial planning firm. He refers his friend to the senior planner, and during the meeting, Sipho offers his personal opinion on which annuity to choose. Sipho is not appointed as a representative under the FSP’s license.

Which of the following statements are TRUE in terms of the FAIS Act?

I. Sipho may be rendering advice without being authorised to do so
II. The friend qualifies as a client under the FAIS Act, even if no policy is concluded
III. Sipho qualifies as a representative under the Act by giving a personal opinion on a product
IV. The FSP may be held liable for the financial services rendered in its name

Choose the correct combination: