Subject Title - INSETA

Self-Assessment Answers1. Which of the following requirements are NOT applicable to Custody ofClient Funds and Premiums?a) The bank account must be designated to receive funds andpremiums from clientsb) The account may contain other funds of the FSPc) The FSP is responsible for bank charges except deposit orwithdrawal chargesd) The FSP must have a separate bank account at a bank2. Which of the following disclosure requirements must be adhered to?a) A representative need not disclose that he is renderingservices under supervisionb) Representatives need not disclose detail about the legalrelationships between the FSP, product supplier andrepresentativec) There must be adequate disclosures on the product supplier.The disclosure must include the name, physical location,postal and telephone contact details of the product supplierd) All the above3. Which of the following requirements are NOT applicable when an FSPreceives money from a client without a bank being involved?a) The FSP must pay the money into the bank account within amonth of receiptb) The FSP must pay the money into the bank account withinone (1) day of receiptc) The FSP must issue a written confirmation when the money isreceivedd) None of the above4. 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 notdeterminable170 © INSETA - Section 1 12a