Page 25 - Profile's Unit Trusts and Collective Investments 2021 issue 2

How to use this book

Instead of a Glossary at the back of the book, key terms are incorporated into the body of the
book where they are most useful (usually in sidebars or text boxes). All important terms are
indexed – to look up a particular keyword just find it in the main index and turn to the page
indicated.
A note on Terminology
Both the Collective Investment Schemes Control Act (CISCA) and the National Qualifications
Framework (NQF) introduced new terminology which should be used where possible.
The term “learner”, for example, has been adopted, perhaps because it is more encompassing
than old terminology like “scholar” (someone who is at school) or “student” (which tends to imply
attendance at college or university). “Learner” encompasses something of the old concept of
“apprentice” (ie, a student who receives on-the-job training and experience).
An example from CISCA is the use of “portfolio” to describe what has always been called a
“fund”. In other words, a unit trust fund is now correctly called a portfolio of a collective investment
scheme, although fund remains popular and widely used. Another example: what was called a
“unit” (in a “fund”) is now correctly called a participatory interest in a collective investment scheme.
To assist readers in not getting confused with the new terminology, notes, sidebars and
definitions in the text highlight old and new terms and give examples of usage.
Conventions Used in the Chapters
Profile’s Unit Trusts & Collective Investments uses various conventions to help you find information
quickly and effortlessly. Notes, sidebars, and definitions, as shown here, are placed strategically
throughout the chapters to alert you to important information.

Note
Asides and important bits of information.

Sidebars
Boxed text containing background information and side issues. Usually not “required
reading”.

Definition
Definition of an important industry term, or clarification of terminology that may be
confusing.

NQF Link
Unit standard and outcome references to assist in mapping chapter material to NQF
requirements.
Qualifications for Financial Advisors
One of the main objectives of the FAIS Act was to set consistent standards for all holders of a
Financial Services Provider’s licence. An FSP or financial advisor who is “fit and proper” is a person
who meets the requirements of Honesty and Integrity, Competency, Good Standing and
Operational ability. The latest Fit and Proper Requirements, published in December 2017 (Board
Notice 194 of 2017), came into effect during the course of 2018 (see chapter 5 for more details).
The regulations governing qualifications for financial advisors are complex. A broad range of
diplomas, certificate, degrees and other qualifications are recognised by the FSCA as appropriate.
There is therefore no simple answer to the question “What qualification must a financial advisor
hold?”
In addition, a financial advisor needs more than an appropriate qualification in order to hold a
licence. The FSCA’s requirements for FSPs include:

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Profile’s Unit Trusts & Collective Investments — Understanding Unit Trusts