Subject Title - INSETA

Clearly defined rules, such as the FAIS Codes, which provideguidance and instructions towards ethical business conduct.Transparency and disclosure between clients and their financialadvisers.Record-keeping, as required in the FAIS Act, also contributes towardsethical conduct.An example of unethical conduct is Insider Trading.Each individual should develop and maintain an ethical compass, whichclearly defines between right and wrong behaviour, and collectively ourcompasses should be able to guard us against unethical conduct.8.6 STEPS TO BE TAKEN BY A REPRESENTATIVE WHEN GIVINGADVICE TO A CLIENTWe discussed the concept of „financial service‟ in Chapter 1.5 above. Toprovide a financial service means that a representative gives advice orprovides an intermediary service or both.The General Code prescribes the steps to be followed and the action to betaken when representatives give advice to clients.Key individuals must ensure that these requirements are met and thatrepresentatives are aware of and following these principles.The two (2) main requirements of giving advice is establishing suitability andkeeping a record of advice.We look at Suitability first.8.6.1 SuitabilityA provider other than a direct marketer, must, before providing a client withadvice do the following: 751. Take reasonable steps to get information from the client on hisfinancial situation, experience and objectives and do an analysis forthe purpose of the advice, based on information obtained.75 Section 8(1)(a) to (c) of the General Code© INSETA - Section 1 12a 151