Subject Title - INSETA

4. What needs to be disclosed to clients in terms of commissionsreceived by representatives?a) Any fees or commission that the provider may earn as aresult of the rendering of the financial service, must bedisclosedb) Where the maximum commission amount or rate isprescribed by law, it must state that the amount is notdeterminablec) The forex intermediary must disclose to a client only cashrelatedincentives offered or other indirect considerationpayable to the forex intermediary because of theintermediating on the client's investmentsd) Remuneration, also known as valuable consideration, which ispayable to a provider must be disclosed but not the identityof the product supplier who is paying it5. Where a financial product is being replaced by another financialproduct held by the client:a) only disclosure of the potential financial implications must bemadeb) only disclosure of the actual financial implications must bemadec) only disclosure of the costs and consequences of thereplacement must be maded) Disclosures must be made of the actual and potentialfinancial implications6. The General Code states that:a) where a provider advertises a financial service by means of apublic radio service, the advertisement need not include areference to the fact that the provider is an authorised orlicensed FSPb) the FSP should ensure that they use resources, proceduresand appropriate technological systems that can be expectedto reasonably eliminate the risk of clients, other providersand representatives suffering financial loss through theft,fraud, other dishonest acts, poor administration, negligence,professional misconduct or blameworthy oversightsc) the FAIS registrar may not prescribe the guarantee orprofessional indemnity amounts that providers need to havein placed) All the above168 © INSETA - Section 1 12a