Assessment

Select the correct statement.

Select the incorrect statement.

Select the correct statement.

The object of COFI is to provide for a regulatory framework for the conduct of financial institutions that will—

True or False

The six TCF outcomes contained in COFI are:

1. Culture – Financial Institutions must demonstrate a culture of treating customers fairly.

2. Financial Institutions must demonstrate that product design and the marketing of financial products are appropriate.

3. Clear information – Financial Institutions must be transparent regarding the product information such as product features, terms, conditions, risks, cost etc. 

4. Suitable advice – Financial Institutions must provide suitable / appropriate advice to financial customers.

5. Product standards – Financial products must deliver on the outcomes that Financial Institutions present to financial customers.

6. No post sale barriers – Financial Institutions must not charge unreasonable penalties when financial customers want to cancel or change financial products.

True or False 

COFI will add to the burden of administration of Financial Institutions as they will have to re-register as financial institutions with the FSCA and their proposed reporting on their activities in terms of the proposed Omni-CBR (Conduct of Business Return) will be onerous and time-consuming. Therefore, Financial Institutions will have to have a strategy in place to transition from FAIS to COFI effectively.