RSK4802 Assignment 2 2
2024 - DUE 28 October
2024
QUESTIONS WITH ANSWERS
[School]
[Course title]
, RSK4802 Assignment 2 2 2024 - DUE 28 October 2024
The Financial Advisory and Intermediary Act places a lot of importance on the Compliance
Officer position within the structures of a Financial Services Provider (FSP). According to the
Act, a Compliance Officer must be “fit and proper”. Discuss the Five fit and proper requirements
under the Act and explain the importance of these requirements in the in the context of risk
management.
The Financial Advisory and Intermediary Services (FAIS) Act sets out the "fit and proper"
requirements for individuals who perform key functions within a Financial Services Provider
(FSP), such as a Compliance Officer. These requirements ensure that individuals in such roles
are competent, honest, and ethical in their duties, which is crucial for risk management in
financial services.
Here are the five main "fit and proper" requirements under the FAIS Act and their importance in
the context of risk management:
1. Honesty and Integrity
Individuals must demonstrate honesty and integrity, meaning they must not have any record of
dishonesty, fraud, or unethical behavior. This is important because a Compliance Officer has
access to sensitive financial information and is responsible for ensuring that the FSP complies
with all applicable laws and regulations. A lack of honesty or integrity could lead to unethical
practices that expose the FSP to legal, financial, and reputational risks.
2024 - DUE 28 October
2024
QUESTIONS WITH ANSWERS
[School]
[Course title]
, RSK4802 Assignment 2 2 2024 - DUE 28 October 2024
The Financial Advisory and Intermediary Act places a lot of importance on the Compliance
Officer position within the structures of a Financial Services Provider (FSP). According to the
Act, a Compliance Officer must be “fit and proper”. Discuss the Five fit and proper requirements
under the Act and explain the importance of these requirements in the in the context of risk
management.
The Financial Advisory and Intermediary Services (FAIS) Act sets out the "fit and proper"
requirements for individuals who perform key functions within a Financial Services Provider
(FSP), such as a Compliance Officer. These requirements ensure that individuals in such roles
are competent, honest, and ethical in their duties, which is crucial for risk management in
financial services.
Here are the five main "fit and proper" requirements under the FAIS Act and their importance in
the context of risk management:
1. Honesty and Integrity
Individuals must demonstrate honesty and integrity, meaning they must not have any record of
dishonesty, fraud, or unethical behavior. This is important because a Compliance Officer has
access to sensitive financial information and is responsible for ensuring that the FSP complies
with all applicable laws and regulations. A lack of honesty or integrity could lead to unethical
practices that expose the FSP to legal, financial, and reputational risks.
