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 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 
SAQA US ID UNIT STANDARD TITLE
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 
ORIGINATOR
SGB Insurance and Investment 
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" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

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 replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
12164  Demonstrate knowledge and insight of the Financial Advisory and Intermediary Services Act (FAIS) (Act 37 of 2002)  Level 4  NQF Level 04  2   

PURPOSE OF THE UNIT STANDARD 
This Unit Standard is intended for learners in the Financial Services sector who are construed to give financial advice under FAIS. It will be useful for Financial Planners, Intermediaries and learners employed by financial service providers.

The qualifying learner is capable of:
  • Explaining the purpose of the Financial Advisory and Intermediary Services Act (FAIS).
  • Explaining the requirements for licensing under FAIS.
  • Explaining the mechanisms for enforcement and the implications for the intermediary and the industry.
  • Discussing the effects of requirements for transparency and the right to information on the financial services industry. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • Financial Advisory and Intermediary Services Act 2002 (FAIS) (Act 37 of 2002) as it applies to Financial Service Providers, Financial Advisors and Intermediaries. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the purpose of the Financial Advisory and Intermediary Services Act (FAIS). 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The need for the Financial Advisory and Intermediary Services Act (FAIS) is explained with reference to the historical situation in South Africa and similar international legislation. 

    ASSESSMENT CRITERION 2 
    The concepts of financial services providers and financial products are explained with examples. 

    ASSESSMENT CRITERION 3 
    The protection of consumers afforded by FAIS is explained with examples. 

    SPECIFIC OUTCOME 2 
    Explain the requirements for licensing under FAIS. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Work roles affected by FAIS are identified with reference to requirements for licensing by the Financial Services Board related to each work role. 

    ASSESSMENT CRITERION 2 
    The relationship between Financial Services Providers and representatives is explained with reference to accountability and responsibility. 

    ASSESSMENT CRITERION 3 
    The concept of a natural person is explained as defined in the FAIS legislation. 

    ASSESSMENT CRITERION 4 
    The process to be followed for licensing and on-going compliance is explained for a financial service provider. 

    ASSESSMENT CRITERION 5 
    Conditions under which suspensions, withdrawals and reinstatement of authorisation may be imposed are explained with examples. 

    SPECIFIC OUTCOME 3 
    Explain the mechanisms for enforcement and the implications for the intermediary and the industry. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The role and functions of the Registrar are explained with reference to the relationship to the Financial Services Board and the steps that the Registrar could take in cases of non-compliance. 

    ASSESSMENT CRITERION 2 
    The role and functions of the FAIS Ombuds are explained with reference to recent rulings and the implications for a sub-sector. 

    ASSESSMENT CRITERION 3 
    The role, duties and powers of the courts are described in terms of judgements against organisations and redress through the courts. 

    ASSESSMENT CRITERION 4 
    The rights of recourse available to aggrieved clients are explained with examples. 

    SPECIFIC OUTCOME 4 
    Discuss the effects of requirements for transparency and the right to information on the financial services industry. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    The manner in which complaints are handled by the industry is investigated with reference to Financial Services Board directives. 

    ASSESSMENT CRITERION 2 
    The consequences arising from rulings from an approach to a regulatory body by a client are discussed for a specific organisation. 

    ASSESSMENT CRITERION 3 
    The impact as a result of rulings by the Ombud is discussed for a selected sub-sector. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
    		•

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

    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 financial service providers, the intermediary and the industry.
  • Learners are able to explore education and career opportunities in indicating the requirements for licensing. 
    		•

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 12164, "Demonstrate knowledge and insight of the Financial Advisory and Intermediary Services Act (FAIS) (Act 37 of 2002)", Level 4, 2 credits.

    Search words: FAIS, Financial Advisory and Intermediary Services Act 2002 (FAIS) (Act 37 of 2002), licensing, Fit and Proper requirements. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Core  59097   Further Education and Training Certificate: Real Estate  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  SERVICES 
    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  64289   Further Education and Training Certificate: Automotive Sales and Support Services  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  MERSETA 
    Elective  57613   Further Education and Training Certificate: Short-Term Risk Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2012-06-30  INSETA 
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 
    Elective  66611   National Certificate: Wealth Management  Level 5  NQF Level 05  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    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.
     
    NONE 


    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.