SAQA All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.
SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Demonstrate knowledge and insight of the Financial Advisory and Intermediary Services Act (FAIS) (Act 37 of 2002) 
SAQA US ID UNIT STANDARD TITLE
12164  Demonstrate knowledge and insight of the Financial Advisory and Intermediary Services Act (FAIS) (Act 37 of 2002) 
ORIGINATOR
SGB Financial Services 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 
2004-12-02  2006-11-16  SAQA 1657/04 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2007-11-16   2010-11-16  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard is replaced by: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
242584  Demonstrate knowledge and understanding of the Financial Advisory and Intermediary Services Act 2002 (FAIS) (Act 37 of 2002) as it impacts on a specific financial services sub-sector  Level 4  NQF Level 04  Complete 

PURPOSE OF THE UNIT STANDARD 
This unit standard is intended for learners who give financial advice.

The qualifying learner is capable of:
  • Explaining the purpose of the Financial Advisors and Intermediaries Services` legislation (FAIS).
  • Describing the authorisation process.
  • Applying disclosure and conduct requirements to a selected sub sector.
  • Explaining the mechanisms for enforcement and the implications for the intermediary and the industry.
  • Explaining the rights of recourse available to aggrieved clients. 

  • LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    There is open access to this unit standard. Learners should be competent in communication and Mathematical Literacy at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • The Financial Advisors` and Intermediaries Services` legislation. 

  • Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the purpose of the Intermediaries Services' (FAIS) legislation. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The need for the FAIS legislation is explained with reference to the history of the legislation. 

    ASSESSMENT CRITERION 2 
    2. The problems of different legislation applying to different sectors of the industry are analysed and an indication is given of how FAIS will address these problems. 

    ASSESSMENT CRITERION 3 
    3. Terminology used in the legislation is explained in own words and used appropriately in context. 

    ASSESSMENT CRITERION 4 
    4. The concept of a financial services provider is explained in own words in at least two different ways. 

    ASSESSMENT CRITERION 5 
    5. The term financial product is explained and an example is given of products in each category. 

    ASSESSMENT CRITERION 6 
    6. Measures for consumer protection are explained as contained in the legislation. 

    ASSESSMENT CRITERION 7 
    7. The relationship between different players in the industry is explained and illustrated diagramatically with reference to a particular organisation. 

    SPECIFIC OUTCOME 2 
    Describe the authorisation process. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. Career paths affected by FAIS are identified and requirements for licensing by the Financial Services Board are indicated for three different career paths. 

    ASSESSMENT CRITERION 2 
    2. Additional legislation applicable to the three selected career paths is named and an indication is given as to why FAIS and the named legislation control each career path. 

    ASSESSMENT CRITERION 3 
    3. An indication is given of the minimum requirements needed to be licensed in own situation. 

    ASSESSMENT CRITERION 4 
    4. The relationship between Financial Services Providers and representatives is described as envisaged in the legislation. 

    ASSESSMENT CRITERION 5 
    5. The concept of a natural person is explained as defined in the FAIS legislation. 

    ASSESSMENT CRITERION 6 
    6. Interrelationships between Financial Service Providers are described in terms of co-responsibility. 

    ASSESSMENT CRITERION 7 
    7. Exemptions that are possible in terms of the legislation are named and identified in case studies. 

    ASSESSMENT CRITERION 8 
    9. Conditions under which suspensions, withdrawals and reinstatement of authorisation may be imposed are listed with examples. 

    ASSESSMENT CRITERION 9 
    8. The role of recognised industry bodies in licensing and compliance is explained with reference to the process of licensing and approval of compliance officers. 

    SPECIFIC OUTCOME 3 
    Apply disclosure and conduct requirements to a selected sub sector. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The disclosure rules are interpreted for a sub sector of the financial services industry. 

    ASSESSMENT CRITERION 2 
    2. The importance of timing and extent of disclosure is explained and an indication given of the implications if disclosure is not made timeously. 

    ASSESSMENT CRITERION 3 
    3. The code of conduct for a selected sub sector of the Financial Services sector is outlined and an indication is given of what proof is required as evidence of compliance. 

    ASSESSMENT CRITERION 4 
    4. Requirements regarding record keeping are indicated with reference to what records should be kept and for how long different records should be maintained in terms of the legislation. 

    ASSESSMENT CRITERION 5 
    5. Compliance provisions made by an organisation are investigated, evaluated and findings are presented in a report. 

    ASSESSMENT CRITERION 6 
    6. The requirements of disclosure required by legislation are demonstrated for three selected products. 

    ASSESSMENT CRITERION 7 
    7. The effect of disclosure requirements on commission is explained with reference to a line of business and a specific policy/product. 

    ASSESSMENT CRITERION 8 
    8. The concept of commission deregulation is explained and an indication given of the effect that this will have on brokers and other intermediaries. 

    SPECIFIC OUTCOME 4 
    Explain the mechanisms for enforcement and the implications for the intermediary and the industry. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The role and functions of the Registrar are explained as envisaged in the legislation. 

    ASSESSMENT CRITERION 2 
    3. The consequences of non-compliance are explained with reference to steps that the Registrar could take in cases of non compliance. 

    ASSESSMENT CRITERION 3 
    4. The role of the various industry bodies is described in relation to standard setting for FAIS. 

    ASSESSMENT CRITERION 4 
    6. The role, duties and powers of the courts are described in terms of judgements against organisations and redress through the courts. 

    ASSESSMENT CRITERION 5 
    5. Remedies available to the industry and avenues for reinstatement are indicated for an organisation. 

    ASSESSMENT CRITERION 6 
    2. The role and functions of the FAIS Ombuds are explained as envisaged in the legislation. 

    SPECIFIC OUTCOME 5 
    Explain the rights of recourse available to aggrieved clients. 

    ASSESSMENT CRITERIA
     

    ASSESSMENT CRITERION 1 
    1. The role, powers and duties of the Ombudsman are explained as they apply to individual clients. 

    ASSESSMENT CRITERION 2 
    2. The role, powers and duties of the Registrar are explained as they apply to individual clients. 

    ASSESSMENT CRITERION 3 
    3. The role, powers and duties of the courts are explained as they apply to individual clients. 

    ASSESSMENT CRITERION 4 
    4. The manner in which complaints are handled by the industry is investigated with reference to Financial Services Board directives. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
    This unit standard will be internally assessed by the provider and moderated by a moderator registered by INSQA or a relevant accredited ETQA. The mechanisms and requirements for moderation are contained in the document obtainable from INSQA, INSQA framework for assessment and moderation. 

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO ORGANISING 
    Learners are able to organise and manage themselves effectively in applying disclosure and conduct requirements. 

    UNIT STANDARD CCFO COLLECTING 
    Learners can collect, organise and critically evaluate information in analysing FAIS legislation and its effect on a sub sector. 

    UNIT STANDARD CCFO COMMUNICATING 
    Learners can communicate effectively using visual, mathematics and language skills to explain aspects of the legislation, write reports and illustrate concepts graphically. 

    UNIT STANDARD CCFO DEMONSTRATING 
    Learners are able to demonstrate an understanding of the world as a set of related systems when explaining the implications of non-compliance, and the need for legislation to regulate the industry. 

    UNIT STANDARD CCFO CONTRIBUTING 
    Learners are able to act as responsible citizens in the organisation and local community by understanding the mechanisms for enforcement and the implications for the intermediary and the industry.

    Explore education and career opportunities in indicating the requirements for licensing.

    Participate as a responsible citizen in the life of local and national communities by knowing and applying disclosure and conduct requirements. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    UNIT STANDARD NOTES 
    This unit standard has been replaced by unit standard 242584, which is "Demonstrate knowledge and understanding of the Financial Advisory and Intermediary Services Act 2002 (FAIS) (Act 37 of 2002) as it impacts on a specific financial services sub-sector", Level 4, 2 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  66609   Further Education and Training Certificate: Retail Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Core  20638   National Certificate: Collective Investment Schemes  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Core  48640   National Certificate: Financial Services Management  Level 4  Level TBA: Pre-2009 was L4  Reregistered  2023-06-30  INSETA 
    Core  48493   National Certificate: Financial Services: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2007-02-11  Was INSETA until Last Date for Achievement 
    Core  20773   National Certificate: Long Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Core  23973   National Certificate: Financial Services: Wealth Management  Level 5  Level TBA: Pre-2009 was L5  Passed the End Date -
    Status was "Registered" 
    2006-08-13  Was INSETA until Last Date for Achievement 
    Elective  93997   National Certificate: Contact Centre and Business Process Outsourcing Support  Level 3  NQF Level 03  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  49089   National Certificate: Financial Services  Level 3  NQF Level 03  Reregistered  2023-06-30  INSETA 
    Elective  49649   Further Education and Training Certificate: Long-term Insurance  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Elective  49529   Further Education and Training Certificate: Long-Term Risk Assessment  Level 4  NQF Level 04  Reregistered  2023-06-30  INSETA 
    Elective  66610   Further Education and Training Certificate: Short Term Insurance  Level 4  NQF Level 04  Reregistered  2021-06-30  As per Learning Programmes recorded against this Qual 
    Elective  20639   National Certificate: Healthcare Benefits Administration: Claims Assessing  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2004-12-05  INSETA 
    Elective  24396   National Certificate: Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2006-10-08  Was INSETA until Last Date for Achievement 
    Elective  21796   National Certificate: Short Term Insurance  Level 4  NQF Level 04  Passed the End Date -
    Status was "Registered" 
    2005-06-12  Was INSETA until Last Date for Achievement 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    1. ACADEMY OF LEARNING JHB CENTRAL 
    2. Alcari Learning Centre (Pty) Ltd 
    3. BC TRAINING ACADEMY 
    4. BRC Solutions (Pty) Ltd 
    5. CBM TRAINING PTY LTD 
    6. CKP Development Agency (Pty) Ltd. 
    7. CUSTOMER CENTRIC SOLUTIONS PTY LTD 
    8. De Vries Management & Training Services cc 
    9. Discovery Life Ltd 
    10. EJW Financial Services (Pty) Ltd 
    11. Executive People Development Solutions (Pty) Ltd 
    12. Faisit (Pty) Ltd 
    13. Indwe Risk Services (Pty) Ltd 
    14. Intec College 
    15. Intelligo Solutions Pty (Ltd) 
    16. Invuya Institute of Learning (Pty) Ltd 
    17. Masifunde Training Centre (Pty) Ltd 
    18. O'Keeffe & Swartz Consultants (Pty) Ltd 
    19. Octomate (Pty) Ltd 
    20. OSCAR MADLALA CONSULTING AND PROJECTS CC 
    21. Outsurance Insurance Company Ltd 
    22. Ripple Effect 4 (Pty) Ltd 
    23. Sanlam Life Insurance Ltd 
    24. Sanlam Life Insurance Ltd. 
    25. The Institute of Health Risk Managers (Pty) Ltd 
    26. TSHIREDO TRAINING ACADEMY CC 
    27. Umfolozi FET College - Central Office 



    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.