Lesson 4 Quiz:

1. The FAIS Department within the FSCA is responsible for:

2. Which of the following entities is responsible for handling disputes between financial services providers and consumers?

3. Who heads up the FSCA?

4. Which of the following statements regarding the FSCA’s departments are true?

   I. The FAIS department is responsible for administering the FAIS Act.

  II. The Supervision department conducts onsite visits to FSPs.

  III. The Compliance department deals with complaints against FSPs.

  IV. The Registration department issues FSP licenses.

5. The FSCA receives a complaint about an FSP. Which division of the FAIS Department will attend to this?

6. An FSP wants to apply for a license. Which FAIS Division should be contacted?

7. An FSP is suspected of market abuse. Which FSCA department should investigate?

8. Peak Performance Investments, an FSP, is under investigation for both potential market abuse and for non-compliance with its annual financial statement submission requirements. Which FSCA departments and/or FAIS divisions are involved, and how might their responsibilities overlap?

9. Client First Advisors, an FSP, receives a complaint about a representative’s misconduct that leads to a debarment. This debarment also then results in a regulatory warning and corrective action against the FSP, including a fine. Which FSCA divisions are involved, and what are their respective roles? Choose the correct option.

10. The Financial Sector Conduct Authority has launched an investigation into allegations of misconduct by a financial services provider. The FSP is accused of providing false information to clients and failing to comply with the requirements of the FAIS Act. As part of the investigation, the FSCA’s Enforcement Committee has recommended that the FSP’s license be suspended pending the outcome of the investigation. However, the FSP’s key individual has objected to the suspension, claiming that it would cause undue harm to the FSP’s clients and business. The FSCA’s Commissioner must now decide whether to uphold the Enforcement Committee’s recommendation or to allow the FSP to continue operating while the investigation is ongoing. Select the best options that describe the Commissioner’s considerations and decision: