Custody, client funds and premium Disclosure requirements Managing transparency and conflict of interest Ethical conduct in Financial Services Complaints handling Risk management, insurance, advertising and direct marketing Termination

Separate Bank Account Steps taken to safeguard funds and that funds dealt with ito mandate Distinguished from FSP funds Steps taken to safeguard funds and that funds dealt with ito mandate Distinguished from FSP funds Receive funds separate from others FSP pays bank charges FSP pays accumulated interest Issue written confirmation, and include document description for identification purposes Issue written confirmation and paid into Bank account with in 1 day of receipt Client access to funds Receipt of Funds Safe guarding of funds Safe guarding of funds Receipt of title documents Source: FAIS Act Section 10

Source: Section 2 General Code of Conduct A p r o v i d e r m u s t a t a l l t i m e s r e n d e r f i n a n c i a l s e r v i c e s h o n e s t l y, f a i r l y, w i t h d u e s k i l l, c a r e a n d d i l i g e n c e, a n d i n t h e i n t e r e s t s o f c l i e n t s a n d t h e i n t e g r i t y o f t h e f i n a n c i a l s e r v i c e s i n d u s t r y.

Source: Section 7(1)(a) & (b) A r e a s o n a b l e a n d a p p r o p r i a t e g e n e r a l e x p l a n a t i o n o f t e r m s F u l l a n d f r a n k d i s c l o s u r e T o e n a b l e c l i e n t t o m a k e a n i n f o r m e d d e c i s i o n

P r o v i d e c l i e n t w i t h m a t e r i a l c o n t r a c t u a l i n f o r m a t i o n a n d m a t e r i a l i l l u s t r a t i o n s. E n s u r e c l i e n t u n d e r s t a n d s t h e a d v i c e a n d i s a b l e t o m a k e a n i n f o r m e d d e c i s i o n

Source: Section 4 (1) Code of Conduct KI must ensure systems and procedures in place to meet disclosure requirements on FSP’s Financial service details and conditions /restrictions and professional indemnity Is Rep acting under supervision Specific exemption applicable to FSP Full business name, registration no, postal and physical address, contact numbers, address Legal relationship between product supplier, representative and responsibility for Reps actions Name and contact details of Compliance and Complaints Dept

All amounts, sums, values charges, fees, remuneration Monetary obligations mentioned, or referred to and payable to product supplier or provider Must be reflected in specific monetary terms, …. the basis of the calculation must be adequately described

A provider other than a direct marker Disclose nature, extent and frequency of Any incentive, remuneration, consideration, Fee or brokerage payable to provider directly or indirectly By any product supplier Or any person other than client For which provider may become eligible As well as identity of product supplier Or person offering valuable consideration Source: Section 3 (1) and 7 (1) of Code of Conduct

Source: Section 7 (1) (c) of Code of Conduct Provider must as early as possible name,class, type of financial product Any rebate arrangements Any platform fee arrangements Underlying products must disclose net investment amount Realisable funds and material tax considerations Terms conditions exclusions and warranties and waiting periods Any guaranteed minimum periods Restrictions, penalties and cooling off rights Increase in premium

Source: Section 4 (1) Code of Conduct KI must ensure systems and procedures in place to meet disclosure requirements on product suppliers FSP holds more than 10% shares in provider and has received more than 30% commission in 12 months Product supplier FSP who has contract with other FSP must provide required information about itself FSP to give client information on product supplier asap or within 30 days after oral info Name, physical location, postal and telephone contact details. Contractual relationship between FSP and product supplier Name and contact details of Compliance and Complaints Dept

 Means any situation in which a provider or a representative has an actual or potential interest that may, in rendering a financial service to a client, - ◦ (a)influence the objective performance of his, her or its obligations to that client; or ◦ (b)prevent a provider or representative from rendering an unbiased and fair financial service to that client, or from acting in the interests of that client,  including, but not limited to - ◦ (i)a financial interest; ◦ (ii)an ownership interest; ◦ (iii)any relationship with a third party;  Definition of “conflict of interest” inserted by BN 58/2010 w.e.f. 19 April 2010 Source: Definition: Code of Conduct

Source: Definition: Code of Conduct and Section 3 Actual or potential interest that may influence service to client and prevent rendering of financial services in an unbiased and fair manner Disclose existence of personal interest or actual or potential conflict and take steps to treat client fairly Non-cash incentives and other indirect consideration could be viewed as a potential conflict of interests

Disclosure Transparency Honesty Integrity Internal rules Record keeping Misrepresentation Fraud Forgery Dishonesty Misuse of client funds

Confidentiality Trust Client respect Disclosure Right to information Right to knowledge and skills End of chapter 4 slides

Source: Section 13 of Code of Conduct A p r o v i d e r, e x c l u d i n g a r e p r e s e n t a t i v e, m u s t, i f, a n d t o t h e e x t e n t, r e q u i r e d b y t h e r e g i s t r a r m a i n t a i n i n f o r c e s u i t a b l e g u a r a n t e e s o r p r o f e s s i o n a l i n d e m n i t y o r f i d e l i t y i n s u r a n c e c o v e r.

Advertising principles Performance data Performance data Illustrations and forecasts No guarantees and for illustration only Warning about risks in buying/sellin g Information about past performance Telephonic advertising must be recorded Records produced on request in 7 days Source: Section14 General Code of Conduct Advertisement May not contain statement, promise or forecast which is fraudulent, untrue or misleading

Give effect to client request Take steps to ensure client undertsands implications Notify clients immediately Take steps to complete or transfer business promptly Reps stops operating Provider terminates Client terminates Notify clients immediately Take steps to complete or transfer business promptly Source: Section 20 Code of Conduct