SAQA

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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	2
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	2

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	Passed the End Date - Status was "Reregistered"	2023-06-30	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	Passed the End Date - Status was "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	Passed the End Date - Status was "Reregistered"	2023-07-30	As per Learning Programmes recorded against this Qual
Elective	49089	National Certificate: Financial Services	Level 3	NQF Level 03	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Elective	49649	Further Education and Training Certificate: Long-term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Elective	49529	Further Education and Training Certificate: Long-Term Risk Assessment	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-06-30	INSETA
Elective	66610	Further Education and Training Certificate: Short Term Insurance	Level 4	NQF Level 04	Passed the End Date - Status was "Reregistered"	2023-07-30	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.

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