Subject Title - INSETA

Self-Assessment Answers1. The operational ability requirements for FSPs include:a) a fixed business addressb) adequate storage and filing systems for the safe‐keeping ofrecords, business communications and correspondencec) an account with a registered bank including, where requiredby the Act, a separate bank account for client fundsd) All the above2. The financial soundness requirements for FSPs include the following:a) An FSP must not be an unrehabilitated insolvent or underliquidation or in provisional liquidationb) A Category 1 FSP that holds client assets or receivespremiums or money must at the time of the financial audithave assets (excluding goodwill, other intangible assets andinvestments in related parties) that exceed the FSPs liabilities(excluding loans validly subordinated in favour of all othercreditors)c) A Category 1 FSP that holds client assets or receivepremiums or money must AT ALL TIMES maintain liquidassets equal to or greater than 8/52 weeks of annualexpenditured) All the above3. Section 19 of the FAIS Act requires FSPs to meet certain accountingand audit requirements which includes, full and proper accountingrecords, which must be updated:a) annuallyb) quarterlyc) monthlyd) None of the above236 © INSETA - Section 1 12a