task 4 talks about adhering to the specific codes of conduct [Music] task 4 has 14 qualifying criteria let's look at task 4 qualifying criteria 9 apply disclosure requirements in terms of financial services in task 4 we will cover endurance to the specific codes of conduct in qualifying criteria 9 we cover the application of disclosure requirements in terms of financial services here we're going to cover the disclosure requirements in terms of financial services rendered we therefore need to look at a few sections section 7 of the code of conduct which prescribes certain information that the fsp must provide when giving advice to a client section 8 of the code of conduct which covers the suitability of advice provided or given to a client section 21 of the code of conduct which covers the waivering of the client's rights first we take a look at section 7 of the code of conduct this section deals with the information that an fsp must provide the client with regards to the financial service they are rendering when an fsp gives advice to the client the fsp must disclose and provide certain information relating to the financial services being rendered the fsp must inform the client of their responsibility in terms of providing accurate information it is important to remember that the client provides the fsp with certain information in order for the fsp to provide and or render a financial service therefore it is important that the information received from the client is accurate as well otherwise the fsp cannot give the correct advice or financial service it is also important to note that an fsp may not request the client to sign any written or printed documents unless all the required information has been included or sign a blank document so here we can see that this sets up the relationship between the parties the client must give accurate information and the fsp cannot ask the client to sign anything unless the fsp has provided all the required information per section 7 the fsp must at the request of the client provide a statement of account in connection with the financial service rendered to the client the fsp must provide a client with a statement of identifying and listing financial products still in existence at least annually this statements must include specific information we will explore this information a bit later let's start with when the fsp gives advice to the client they must provide certain information relating to the rendering of the financial service provider we can divide this information into three categories one general explanations 2 material information 3. specific disclosure in terms of general explanations the fsp is to provide the client with reasonable and appropriate general explanations of the nature and material terms of the contract and the transaction the fsp is to provide full frank and honest disclosure of information that is reasonably expected to be disclosed to enable the client to make an informed decision in terms of material information the fsp is to provide the client with material contractual information facts illustrations projections or forecasts that they have in terms of specific disclosure section 7 of the code of conduct goes into detail as to what needs to be disclosed section 7 paragraph 1c states the following information must be disclosed at the earliest reasonable opportunity and time 1. the name class or type of financial product 2.
the benefits of the financial product and how they are calculated accrued and paid out three the specific information for financial products marked as an investment product or has an investment component 4. the obligation to the product provider nature extent and frequency of monetary obligation and escalation increases or additions five the obligation to the fsp nature extent and frequency of monetary obligation 6. any special terms and or exclusions 7.
any guaranteed minimum benefits eight how accessible will the funds be nine any early termination consequences 10 tax implications 11 the cooling of period 12. the nature extent and frequency of payment of commission fees and or brokerage fees 13. any and all risks associated with the product 14.
