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HMEMS80
EXAM PACK
DISTINCTION QUALITY
UNISA EXAM
, NOTES 2026
1. Describe the general and specific duties of a provider
Thus, the FSP and representative must:
➢ Act honestly and fairly, in the interest of clients, with due skill, care and
diligence, and the integrity of the financial service industry
➢ Have and employ, effectively the resources, procedures and systems to
operate
➢ Obtain appropriate and available information from clients regarding their
financial planning needs
➢ Consider all possible circumstances and consequence, treating clients fairly in
situations of conflict.
➢ Comply with all laws applicable to conduct of business.
➢
2. Obligations on the FSP and representative are
➢ Disclosure requirements
➢ Record keeping
➢ Advertising and what to avoid
➢ Handling of clients funds
➢ Fidelity and indemnity insurance/guarantees
➢ Prohibitions on incentives
➢ Any other aspect that is necessary to be regulated.
Qualifications of representatives and duties of authorized financial
services providers
4. FAIS Act - SECTION 13
5.
➢ carry on business by rendering financial services to clients for or on
behalf of any person who— (i) is not authorised as a financial services
provider; and (ii) is not exempted from the application of this Act relating
to the rendering of a financial service;
➢ act as a representative of an authorised financial services provider,
unless such person— (i) prior to rendering a financial service, provides
confirmation, certified by the provider, to clients that a service contract or
other mandate, to represent the provider, exists; that the provider accepts
responsibility for those activities of the representative performed
within the scope of, or in the course of implementing, meets the fit and
proper requirements; and
,General Duty of a provider:
, A provider must at all times render financial services honestly, fairly, with due skill, care
and diligence, and in the interests of clients and the integrity of the financial services
industry.
Conflict of Interest:
This may be defined as a situation in which a provider or representative has an interest
in the service they are offering and that interest affects their objectivity in servicing the
client. Thus, personal interests affect their judgement in providing the client with
impartial advice/service. The concern is that the representative or provider may be
influenced by this conflict and thus render service in a bias or unfair manner.
Specific duties of a provider
➢ The information provided to a client must be:
➢ Factually correct, In plain language, Adequate and appropriate with regards to the
service for that particular client, Timeous enough for the client to make an informed
decision, Reflect any specific monetary terms, Be duplicated and repeated if
significant changes have occurred
➢ A FSP and its representative must avoid and where possible mitigate, any conflict of
interest that may arise between the FSP/representative and the client
➢ Disclosure regarding conflict of interest must be made at the earliest reasonable
opportunity to the client in writing, including conflict of interest management policy,
ownership or financial interest; nature of relationship that may give rise to the
potential or actual conflict of interest.
➢ Services provided must be within the contractual relationship between the client and
provider
➢ Transactions must be accurately accounted for
➢ Not act in own interest and for own benefit
Section 3A of the Board Notice 58 of 2010 states the financial interest that a
provider or representative can engage in and what they cannot engage in
respectively.
What should not be done?
1. Compromising quality of service for quantity
2. Preference to a specific product supplier
3. Preference to a specific product of a product supplier
The notice also stipulates what must be contained in the Conflict of interest
management policy. Every provider must adopt, maintain and implement this policy. All
employees of a provider must be made aware of the policy and trained accordingly.
HMEMS80
EXAM PACK
DISTINCTION QUALITY
UNISA EXAM
, NOTES 2026
1. Describe the general and specific duties of a provider
Thus, the FSP and representative must:
➢ Act honestly and fairly, in the interest of clients, with due skill, care and
diligence, and the integrity of the financial service industry
➢ Have and employ, effectively the resources, procedures and systems to
operate
➢ Obtain appropriate and available information from clients regarding their
financial planning needs
➢ Consider all possible circumstances and consequence, treating clients fairly in
situations of conflict.
➢ Comply with all laws applicable to conduct of business.
➢
2. Obligations on the FSP and representative are
➢ Disclosure requirements
➢ Record keeping
➢ Advertising and what to avoid
➢ Handling of clients funds
➢ Fidelity and indemnity insurance/guarantees
➢ Prohibitions on incentives
➢ Any other aspect that is necessary to be regulated.
Qualifications of representatives and duties of authorized financial
services providers
4. FAIS Act - SECTION 13
5.
➢ carry on business by rendering financial services to clients for or on
behalf of any person who— (i) is not authorised as a financial services
provider; and (ii) is not exempted from the application of this Act relating
to the rendering of a financial service;
➢ act as a representative of an authorised financial services provider,
unless such person— (i) prior to rendering a financial service, provides
confirmation, certified by the provider, to clients that a service contract or
other mandate, to represent the provider, exists; that the provider accepts
responsibility for those activities of the representative performed
within the scope of, or in the course of implementing, meets the fit and
proper requirements; and
,General Duty of a provider:
, A provider must at all times render financial services honestly, fairly, with due skill, care
and diligence, and in the interests of clients and the integrity of the financial services
industry.
Conflict of Interest:
This may be defined as a situation in which a provider or representative has an interest
in the service they are offering and that interest affects their objectivity in servicing the
client. Thus, personal interests affect their judgement in providing the client with
impartial advice/service. The concern is that the representative or provider may be
influenced by this conflict and thus render service in a bias or unfair manner.
Specific duties of a provider
➢ The information provided to a client must be:
➢ Factually correct, In plain language, Adequate and appropriate with regards to the
service for that particular client, Timeous enough for the client to make an informed
decision, Reflect any specific monetary terms, Be duplicated and repeated if
significant changes have occurred
➢ A FSP and its representative must avoid and where possible mitigate, any conflict of
interest that may arise between the FSP/representative and the client
➢ Disclosure regarding conflict of interest must be made at the earliest reasonable
opportunity to the client in writing, including conflict of interest management policy,
ownership or financial interest; nature of relationship that may give rise to the
potential or actual conflict of interest.
➢ Services provided must be within the contractual relationship between the client and
provider
➢ Transactions must be accurately accounted for
➢ Not act in own interest and for own benefit
Section 3A of the Board Notice 58 of 2010 states the financial interest that a
provider or representative can engage in and what they cannot engage in
respectively.
What should not be done?
1. Compromising quality of service for quantity
2. Preference to a specific product supplier
3. Preference to a specific product of a product supplier
The notice also stipulates what must be contained in the Conflict of interest
management policy. Every provider must adopt, maintain and implement this policy. All
employees of a provider must be made aware of the policy and trained accordingly.
