Provide a Standard Investment Solution

LEARNERS ASSESSMENT PACK

Provide A Standard Investment Solution For A Personal Banking Customer (7244)

ORGANISATION:

COURSE NO: OR RPL: INDEX

Page No

Instructions to Learner 1

Assignment: Assessment Questionnaire 4

Declaration of Authenticity 21

Version 1 – March 2004 Unit Standard SAQA 7244 – Provide a standard investment solution for a personal banking customer

INSTRUCTIONS TO LEARNER

Purpose of the The purpose of assessment against this unit standard is to: Assessment: 1. Award credits on the NQF to learners who are able to:

- Establish the nature of the customer’s needs - Link the customer’s needs to the appropriate product - Open the investment account

2. FAIS Compliance

To enable you, the learner, to meet the minimum requirements in terms of the FAIS legislation as within the Fit and Proper.

Context of the Unit This unit standard is registered on the National Qualifications Standard Framework as follows:

Field: Business, Commerce and Management Studies Sub-field: Finance, Economics and Accounting Number: 7244 Level: 4 Credits: 10

Learning The entry requirement for this unit standard is set as open. Assumptions: No other assessment is required prior to the assessment against this unit standard.

Assessment The following assessment methods will be used for this Methods: assessment: - Written/or oral questioning

Assessment Step 1 – Planning for the Assessment Process: - You will need to complete an assessment plan together with your assessor/line supervisor. - Your assessor will prepare you for your assessment and complete the assessment preparation plan with you. - Ensure you are familiar with what is expected of you for this assessment and the unit standard.

Version 1 – March 2004 1 Unit Standard SAQA 7244 – Provide a standard investment solution for a personal banking customer

INSTRUCTIONS TO LEARNER (CONT.)

Assessment Step 2 – Completing the Assessment Process - This assessment will be by means of questionnaire (Cont): detailed on page 4. - Hand in the questionnaire fully completed as per the instructions by the date agreed on the assessment plan. - Your assessor may ask you additional questions. - Your assessor will record the evidence that you have submitted onto the assessment guide. - Based on this evidence, the assessor will make a judgement of 'Competent' or 'Not Yet Competent' or 'Not Assessed' for each assessment criteria and overall for the total unit standard. Step 3 – After the Assessment - If 'Not Assessed' you and the assessor will agree the criteria not assessed and arrange an additional assessment date. - If 'Not Yet Competent' you and the assessor will identify why this judgement has been made and the action/s necessary. A re-assessment date should also be agreed upon. - All decisions will be recorded on the assessment guide, which all parties should sign. - You will only be declared 'Competent' if you have provided sufficient and valid evidence against all the assessment criteria and specific outcomes of this unit standard. - After declaration of competence, your assessment is subject to the internal moderation process. - Once this is complete, your results will be entered onto SAQA's NLRD – National Learner Record Database.

Special - The declaration of authenticity on page 21 must be signed Conditions: by your manager, your assessor and yourself to certify that the evidence is authentic and that this has been applied in your workplace. - Feedback on your assessment will be given to you by your Line Manager/Assessor.

INSTRUCTIONS TO LEARNER(CONT.)

Resources: The following additional/supporting resources will help you when preparing for your assessment:

Available Resource Reference From

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE

NAME: ______DATE: ______

DEPARTMENT: ______

For office use QUESTION 1

Describe a situation, where you established a customer’s need and matched it to an appropriate product.

1.1 How did you establish what the customer’s needs were?

1.2 What was the customer’s need?

1.3 What product did you match it to?

QUESTION 2

Describe how you explained the appropriate products or product range to the customer so that the customer could make an informed decision.

ASSIGNMENT ASSESSMENT QUESTIONNAIRE (CONT.)

Describe how you would determine the customer’s need to access the investment and the interest

QUESTION 4

Describe how you would identify the period and nature of an investment from a customer.

QUESTION 5

Describe the features and benefits of a product that falls into the “Deposit less than or up to 12months category*.

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE (CONT.) For office use QUESTION 6

A wealthy businessman, Mr Peter Brown, approaches you with R95 000 to invest. He stipulates that he wants the best possible interest rate and that the funds should be available on demand. Mr Brown would also like to be able to make transfers from this account and make 3rd party payments. Furthermore, he would like to be able to draw funds from the account at an ATM, should he require the funds.

Which product/s best suit Mr Browns needs?

a) Basic savings account b) Cheque account c) Visa or Master card d) Investment account with a high interest rate and full transactional duties QUESTION 7

An existing cheque account customer, Ms Penny Dube walks in to the bank with R75 000 to invest for an indefinite period of time. She requires an account where she can earn better interest than her cheque account, but still have immediate access to the funds. She will be paying out rather large amounts of at least R2 500 at a time. She wants to transfer these funds across to her cheque account as she will be paying the builders who are renovating her house, by cheque.

Which product/s best suit Ms Dube's need? a) Long Term Investments b) Basic savings account c) Short Term Investment account with limited transactional capabilities d) Cheque Account QUESTION 8 When explaining a product to a customer, which of the following are you required to discuss in detail?

a) Features b) Benefits c) Terms and Conditions d) Terms of Reference e) Interest Rates and Fees

ASSIGNMENT - ASSESSMENT QUESTIONNAIRE (CONT.)

STATEMENT TRUE FALSE A feature refers to the characteristics of a product or service. A feature refers to the contractual obligation between the bank and the customer. A benefit explains how a feature of a product or service will address a specific need of a customer.

The benefit is not specific to each customer, it is therefore important to link the features to the customer’s need to determine the benefit for the customer. Terms & Conditions refer to the contractual obligations of the Bank and the customer. Fees do not refer to the cost applicable to an account. Interest rates are the percentage of returns or income the customer would earn by depositing funds into a savings or investment account. Fees are the percentage of returns or income the customer would earn by depositing funds into a savings or investment account. In terms of the Code of Banking Practice, as a bank we must be transparent with our customers so that they are aware of what to expect from a product or service so that they can make a decision.

Describe a situation when you addressed a customer’s concern/s about a Short – Term Savings and Investment account that you were about to open on his/her behalf.

10.1 What was the concern?

10.2 How did you address it?

10.3 What was the customer’s reaction?

QUESTION 11

Describe how you would review a customer’s choice of a product/s.

QUESTION 12

When dealing with a new customer, what documents would you require?

a) Original South African ID document or a valid South African passport

b) Utility bill

c) Birth Certificate

QUESTION 13

When dealing with an existing customer, what document/s would you require?

a) South African ID document b) Valid Drivers Licence c) Valid South African passport

QUESTION 14

When dealing with a minor what document/s would you require?

a) Guardians Drivers Licence b) Birth Certificate c) Guardians South African ID document QUESTION 15

Why is it important to identify customers and verify ID's? a) To improve customer service b) To meet sales targets c) To reduce the risk of fraud within the bank d) To greet customers by their names

QUESTION 16

In order to identify an authentic ID document you must:

a) Check the ID document under the UV light b) Check the ID number c) Check the photograph d) Check the font size and type QUESTION 17

You obtained a South African ID book from a middle aged male customer and did the necessary checks to establish if it is authentic or not. While checking the ID document you noticed the following:

- Only the photo shined under the UV light. - Every page displayed the watermark under the U.V light. - The I.D document was issued in 1998 and the date of issue was printed in block letters. - The I.D number was 651128 5039 089 and he was born on the 28th of November 1965. - The I.D book was stitched between pages 4 & 5, pages 1 & 4 were laminated and beared non-smudged coats of Arms and no creasing appeared. This ID Book is TRUE FALSE Authentic QUESTION 18

You obtained a South African ID book from a young female customer and did the necessary checks to establish if it is authentic or not. While checking the ID document you noticed the following:

- The photo was dull under the UV light. - The printing was straight and the letters were the same density, type and height. - Every page displayed the watermark under the UV light. - The I.D document was issued in 1998 and the date of issue was not printed in the block. - The I.D number was 760526 6319 089 and she was born on the 26th of May 1976.

This ID Book is Authentic TRUE FALSE

You obtained a South African ID book from a male customer and did the necessary checks to establish if it is authentic or not. While checking the ID document you noticed the following:

- Every page displayed the watermark under the UV light. - The printing was straight and the letters were the same type and density - The photo and the plastic shined under the UV light - The I.D document was issued in 1991 and the date of issue was printed in the block. - The I.D number was 740414 3001 089 and he was born on the 14th of April 1974.

This ID is not authentic because:

a) Only the photo should shine under the UV light. b) Pages 4 and 5 should display the watermark. c) The date of issue should not have been printed in the block. d) The middle four digits of the ID number is 3001, but the customer is male. QUESTION 20

STATEMENT TRUE FALSE

Digits 7 to 10 of an ID number, indicates a persons sex.

The laminated pages of the ID book bear 5 coats of arms.

If the coat of arms on the ID book are smudged it could mean that the document has been tampered with (by steam). The photograph on an ID book must be in black and white only. After 1990 the date of issue and date of birth are printed in a block format.

Some letters in the ID Book can be lighter or darker than others. Each ID book is stitched in the middle. These stitches should not shine under the U.V light and should be dull. If glue is used in an ID Book, it would turn shiny under the U.V light. The photos of newer ID's are dull under the U.V light.

The watermark in the ID Book is a square with RSA printed inside.

QUESTION 21

A female customer comes into the branch and requests to open a Short Term Investment Account. You collect her ID Book and notice that her name appears as Suzy Wong. She advises you that her surname has actually changed to Jackson, as she was recently married. Which of the additional document/s would you request from her?

a) Her husband's ID book b) Her marriage certificate c) Her birth certificate d) Her husband's drivers licence QUESTION 22

A customer requests you to invest R550 000. While interviewing the customer you establish that the customer has just won the money in the LOTTO. Which additional document/s would you request?

a) Drivers licence

b) The winning LOTTO ticket

c) A passport

An official letter or certificate from the National Lotto confirming that R 550 000 was paid to the customer as a result of the draw.

QUESTION 23

Why does the Bank require a customer's personal information? a) To credit score the customer b) To detect any possible fraud situations c) To contact the customer on his/her birthday d) To keep in contact with the customer.

Why is it important to capture as much personal information as possible about the customer, accurately and correctly?

a) The system won't allow you to proceed with the transaction unless all the information is captured

b) The information is used to help Banks understand and analyse customers so that opportunities to enhance their relationship with customers may be identified

c) The information is provided to SARS for tax purposes

QUESTION 25

Which of the following personal information about the customer would you be required to capture?

YES NO Full Name Religion Race Identity Number Address Details Drivers Licence code Salary Details

QUESTION 26

Which of the following account information would you be required to capture?

YES NO Features Investment Period Terms and Conditions Maturity date Benefits Beneficiary details Fees Interest Payment Details Type of account QUESTION 27

What account opening forms would the customer be required to check and sign?

a) Terms and conditions b) Code of Banking Practice c) Copies of the ID Book d) The Savings and Investments account opening forms QUESTION 28

STATEMENT TRUE FALSE The Code of Banking Practice is a charter or an undertaking from customers to the Bank to behave in a certain manner. An example of how to apply the Code of Banking Practice when opening an account for personal customers is to explain the features, benefits, etc with the customer. The relevance of the Code of Banking Practice when opening accounts for personal customers is for the customer to be honest, fair and polite towards the bank.

What steps would you follow when requesting the customer to sign the account opening forms?

a) Explain the content of the forms b) Ask the customer to check for inaccuracies c) Request the customer to sign the forms

QUESTION 30

Which statement below best indicates the consequences of not obtaining a customers signature on the account opening forms?

a) The customer can close his/her account at any time b) There will be no valid contract between the Bank and the Customer c) The customer may take legal action against the Bank

QUESTION 31

STATEMENT TRUE FALSE

Most short-term savings and investment accounts, will be activated once a deposit is made into the account.

Deposits into new accounts can only be made at an ATM. Customers can only access their savings or investment account via Internet banking.

A deposit could be made into the new account by cheque, transfer from another account or a cash deposit.

You have just opened a basic savings account for a customer and the customer wishes to deposit R 4 200 cash into this new account. List the steps you would follow to arrange for this deposit.

QUESTION 33

You just opened a short-term savings or investments account for an existing customer. The customer wishes to transfer R 15 000 from his existing cheque account to this new account. List the steps you would follow to arrange for this transfer.

When explaining ways of accessing the account, which of the following needs to be explained to the customer?

a) When the account matures? b) How to give notice? c) How to make withdrawals? d) How to get statements?

QUESTION 35

Which of the following are direct channels of banking?

a) Branch b) Post Office c) Internet d) Telephone

QUESTION 36

What is the procedure you would follow if the customer requests access to Internet banking in order to access the newly opened savings or investment account?

What procedure would you follow if the customer requests an ATM card to access the newly opened savings or investment account?

QUESTION 38

Which forms would you forward to complete the account opening process?

a) Birth certificate for minors b) Certified copy of the ID's c) The savings and investments account opening forms d) COBP Checklist e) Terms and conditions form

QUESTION 39

To whom would you forward these completed account-opening documents?

QUESTION 40

What procedure would you follow when forwarding these documents?

ASSESSORS COMMENTS:

ASSESSOR SIGNATURE: DATE:

Version 1 – March 2004 20 Unit Standard SAQA 7244 – Provide a standard investment solution for a personal banking customer DECLARATION OF AUTHENTICITY

We the undersigned hereby declare that ______has completed all of the specified requirements for assessment against this unit standard.

SIGNED: ______

LEARNER: ______

DESIGNATION: ______

DATE: ______

SIGNED: ______

LINE SUPERVISOR: ______

DESIGNATION: ______

DATE: ______

SIGNED: ______

ASSESSOR: ______

DESIGNATION: ______

DATE: ______

Version 1 – March 2004 21