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SOUTH AFRICAN QUALIFICATIONS AUTHORITY 
REGISTERED UNIT STANDARD THAT HAS PASSED THE END DATE: 

Explain fiduciary responsibilities and the associated risks 
SAQA US ID UNIT STANDARD TITLE
243152  Explain fiduciary responsibilities and the associated risks 
ORIGINATOR
SGB Insurance and Investment 
PRIMARY OR DELEGATED QUALITY ASSURANCE FUNCTIONARY
-  
FIELD SUBFIELD
Field 03 - Business, Commerce and Management Studies Finance, Economics and Accounting 
ABET BAND UNIT STANDARD TYPE PRE-2009 NQF LEVEL NQF LEVEL CREDITS
Undefined  Regular  Level 4  NQF Level 04  2 
REGISTRATION STATUS REGISTRATION START DATE REGISTRATION END DATE SAQA DECISION NUMBER
Passed the End Date -
Status was "Reregistered" 		 2018-07-01  2023-06-30  SAQA 06120/18 
LAST DATE FOR ENROLMENT LAST DATE FOR ACHIEVEMENT
2026-06-30   2029-06-30  

In all of the tables in this document, both the pre-2009 NQF Level and the NQF Level is shown. In the text (purpose statements, qualification rules, etc), any references to NQF Levels are to the pre-2009 levels unless specifically stated otherwise.  

This unit standard replaces: 
US ID Unit Standard Title Pre-2009 NQF Level NQF Level Credits Replacement Status
113923  Explain fiduciary responsibilities and the associated risks  Level 4  NQF Level 04  1   

PURPOSE OF THE UNIT STANDARD 
Fiduciary responsibility is about the delegated duty, duty of care and good faith between business partners, co-directors, co-members, trustees and other business relationships. This unit standard is intended for learners in a financial services environment, but applies to members of business entities and business partners in any sector. It will add value to Trainee Financial Planners, Intermediaries, Administrators, Principal Officers, and Trustees of Medical Schemes and Retirement Funds.

The qualifying learner is capable of:
  • Explaining how the relationship between fiduciary responsibility and personal liability occurs.
  • Identifying the fiduciary risk in a specific situation.
  • Analysing and quantifying the consequences of breach of fiduciary responsibility in a specific situation.
  • Propose a solution to manage fiduciary risk in a specific situation. 
    		•

    LEARNING ASSUMED TO BE IN PLACE AND RECOGNITION OF PRIOR LEARNING 
    It is assumed that learners are competent in Communication and Mathematical Literacy at Level 3. 

    UNIT STANDARD RANGE 
    The typical scope of this unit standard is:
  • Risks include, but are not limited to, conflict of interest, failure to apply the mind, delegation, fettering indiscretion, secret profits and acting in bad faith.
  • Parties may be jointly and severally responsible.
  • Common Law is to be found in the Justinian Institutes, Roman Law, Roman Dutch Law and other generally accepted, but not necessarily legislated, judicial precedent.
  • Legislation may include, but is not limited to, the Pensions Fund Act, Sectional Title Act, Common Law, Company Law, Law of Precedent, Medical Schemes Act, Administration of Estates Act, and the Trust Act as applicable in a given situation.
  • Governing Documents may include, but are not limited to, Rules of Schemes and Funds, Constitutions and Articles of Memorandum.
  • Relationships include, but are not limited to co-trustees, co-partners, and other joint business relationships including employer employee relationships. 
    		•

    Specific Outcomes and Assessment Criteria: 

    SPECIFIC OUTCOME 1 
    Explain the relationship between fiduciary responsibility and personal liability. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Legislation and common law that regulates fiduciary duties is identified for a specific situation. 

    ASSESSMENT CRITERION 2 
    The concept of fiduciary responsibilities is explained with reference to who or what the duty relates to and where accountability resides. 

    ASSESSMENT CRITERION 3 
    The legal liability associated with fiduciary responsibility is explained with examples. 

    SPECIFIC OUTCOME 2 
    Identify the fiduciary risk in a specific situation. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Case studies are analysed to identify and rank the fiduciary risk, and an indication is given of why each poses a risk. 

    ASSESSMENT CRITERION 2 
    The parties who would bear the fiduciary risk are identified for different scenarios and an indication is given of the consequences in situations where there is only one Trustee. 

    SPECIFIC OUTCOME 3 
    Analyse and quantify consequences of fiduciary risk in a specific situation. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Governing documents are analysed and compared to actual practice and an indication is given of any discrepancies between the two. 

    ASSESSMENT CRITERION 2 
    The consequences of having incurred each identified risk are explained with reference to statutory penalties, personal consequences, reputational risk and consequences to third parties. 

    SPECIFIC OUTCOME 4 
    Propose a solution to manage fiduciary risk in a specific situation. 

    ASSESSMENT CRITERIA     

    ASSESSMENT CRITERION 1 
    Possible alternatives are suggested to avoid identified risks and to minimise the impact of the risk situation. 

    ASSESSMENT CRITERION 2 
    A solution is proposed and substantiated to manage fiduciary risk in a specific situation. 


    UNIT STANDARD ACCREDITATION AND MODERATION OPTIONS 
  • Anyone assessing a candidate against this Unit Standard must be registered as an assessor with the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Any institution offering learning that will enable achievement of this Unit Standard must be accredited as a provider through the relevant ETQA or ETQA where a Memorandum of Understanding (MOU) exists with the relevant ETQA.
  • Moderation of assessment will be overseen by the relevant ETQA according to the moderation guidelines and the agreed ETQA procedures. 
    		•

    UNIT STANDARD ESSENTIAL EMBEDDED KNOWLEDGE 
    N/A 

    UNIT STANDARD DEVELOPMENTAL OUTCOME 
    N/A 

    UNIT STANDARD LINKAGES 
    N/A 


    Critical Cross-field Outcomes (CCFO): 

    UNIT STANDARD CCFO IDENTIFYING 
    The learner is capable of identifying and solving problems and making decisions in analysing the fiduciary risks and responsibilities in a specific situation and proposing a solution to manage the risk. 

    UNIT STANDARD CCFO ORGANISING 
    The learner is capable of organising him/herself and his/her own activities in suggesting ways to minimise or avoid fiduciary risk. 

    UNIT STANDARD CCFO COMMUNICATING 
    The learner is capable of communicating effectively in proposing and substantiating a solution to manage fiduciary risk. 

    UNIT STANDARD CCFO DEMONSTRATING 
    The learner is capable of demonstrating cultural sensitivity in identifying the fiduciary risk, responsibility and accountability in a specific situation and proposing a solution to manage the risk. 

    UNIT STANDARD ASSESSOR CRITERIA 
    N/A 

    REREGISTRATION HISTORY 
    As per the SAQA Board decision/s at that time, this unit standard was Reregistered in 2012; 2015. 

    UNIT STANDARD NOTES 
    This unit standard replaces unit standard 113923, "Explain fiduciary responsibilities and the associated risks", Level 4, 1 credits. 

    QUALIFICATIONS UTILISING THIS UNIT STANDARD: 
      ID QUALIFICATION TITLE PRE-2009 NQF LEVEL NQF LEVEL STATUS END DATE PRIMARY OR DELEGATED QA FUNCTIONARY
    Elective  66613   Further Education and Training Certificate: Wealth Management  Level 4  NQF Level 04  Passed the End Date -
    Status was "Reregistered"     		 2023-06-30  As per Learning Programmes recorded against this Qual 


    PROVIDERS CURRENTLY ACCREDITED TO OFFER THIS UNIT STANDARD: 
    This information shows the current accreditations (i.e. those not past their accreditation end dates), and is the most complete record available to SAQA as of today. Some Primary or Delegated Quality Assurance Functionaries have a lag in their recording systems for provider accreditation, in turn leading to a lag in notifying SAQA of all the providers that they have accredited to offer qualifications and unit standards, as well as any extensions to accreditation end dates. The relevant Primary or Delegated Quality Assurance Functionary should be notified if a record appears to be missing from here.
     
    NONE 


    All qualifications and part qualifications registered on the National Qualifications Framework are public property. Thus the only payment that can be made for them is for service and reproduction. It is illegal to sell this material for profit. If the material is reproduced or quoted, the South African Qualifications Authority (SAQA) should be acknowledged as the source.