Unit Standard No.12164Page 66
WHAT IS A FINANCIAL PRODUCT AND WHAT ARE THE CATEGORIES OF FINANCIAL PRODUCTS?
A Financial Product is quite broadly defined and in terms of the
Fit and Proper Determination include:
As can be seen from the definition of Financial Product in the glossary of terminology from module 1, it is quite comprehensive. It is apparent from the list of products that the ambit of the Act is quite extensive and far- reaching, even so far as to include the products of Banks, Healthcare organisations and unit trust companies, to name a few.
The following CATEGORY OF PRODUCTS is clearly defined in the FAIS Fit and Proper Determination:
“Long-Term Insurance Category A” means assistance policies as defined in the Long-term Insurance Act, 1998 (Act No. 52 of 1998), but excludes policies mentioned in Long-term Insurance Categories B and C.
“Long-Term Insurance Category B” means the following long-term insurance contracts as defined in the Long-term Insurance Act, 1998 (Act
No. 52 of 1998):
(a) risk policies which provide cover in respect of death, disability and health events, and which are not marketed as investment or savings policies;
(b) investment/savings policies (including recurring premium retirement annuity policies, but excluding single premium retirement annuity policies and policies issued to and/or in respect of preservation funds) which guarantee a minimum return of capital invested at a specified future date or dates, and
where such minimum is ascertainable in Rand terms at inception;
(c) annuities which guarantee a minimum annuity for the term of the policy which is ascertainable in Rand terms at inception; and
INSMAT final materials31/10/03