Task 5 Record keeping

Created by

Happiness Mokoena

Cards (22)

Record-keeping obligations 
Responsibilities imposed on representatives by the FAIS Act
Responsibility of an FSP 
Ensure its key individuals and representatives comply with fit and proper requirements
Take reasonable steps to ensure its representatives comply with the code of conduct and other regulations
Duty to keep and maintain records
Records an FSP must keep
Records relating to cancellations, complaints and compliance issues
Register of all representatives
Record of advice or financial needs analysis
Electronic voice logged recordings or transcripts of telephonic advertising
Business governance documents
Documents relating to the safe keeping of financial products and funds
Cancellations, complaints and compliance issues records
Record of known premature or early cancellation of transactions or financial products by clients
Formal record of complaints and how they were resolved
Record that proves the FSP is complying with its license conditions
Records of cases of non-compliance with the FAIS Act and how they were rectified
Records that provide evidence of representatives' continued compliance with the FAIS Act
Register of representatives 
Record of an FSP's representatives and key individuals, including personal information, fit and proper requirements, licensed categories and financial products
Record of advice or financial needs analysis
Documents the process followed when rendering financial services to a client, including a summary of personal information, financial products considered, product recommended with explanation, and disclosures
Advertising and direct marketing records
FSPs must record all telephonic conversations for financial services advertising
Business governance documents 
Documents describing the FSP's operations, including risk management policies, accounting procedures, remuneration policies, and business continuity plans
Records of client money and financial products
Separate bank account for client funds
Receipts for cash payments received
Written confirmation of client documents held for safekeeping
Complying with regulated record-keeping requirements 
Carry out the record keeping and retrieval of records functionality correctly
Tabo and Lerato run an FSP and decided to use telemarketing or telephone selling to advertise for new business
Requirement when contracting a prospective client telephonically
A copy of all records must be provided to a client only on request
Requirement when telephonic interaction results in a sale
The full details of that interaction should be sent to the client in writing within 30 days
The Financial Intelligence Centre Act of 2001 (Act 38 of 2001) (FICA) requires an accountable institution to maintain records of the identity of clients for a period of five years after the date of the last transaction
Records that need to be maintained
Identity of the client
Documents used to confirm the identity of clients
How long an FSP must keep records of transactions with a client
5 years from the date of termination of the transaction
Appropriate format for storing and retrieving records
Appropriate electronic or recorded format which can easily be converted into written or printed formats
A record of advice or record of financial needs analysis is required to contain the financial product or products recommended
A record of advice or record of financial needs analysis is not required to contain detailed and comprehensive information and all material on which the advice was based
Records that need to be kept in terms of section 18 of the FAIS Act
Records of known premature cancellations of transactions or financial products by clients of the FSP
Continued compliance with license conditions
Where the FSP must store records 
In an appropriate facility which is safe from destruction
Proof of a client's acceptance of a transaction when telephonic advertising is done
A recording of the telephone call or transcript between the client and the representative