All RE5 questions
Record Keeping Comply with regulated record keeping requirements
An accountable institution ends its business relationship with a client on 30 June 2022. The last transaction for that client was concluded on 15 January 2020. Under the FIC Act, until when must the client identification records and the record of that transaction be kept?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Identification records until 30 June 2027, and the transaction record until 15 January 2025.Correct
- b) Both until 30 June 2027, because all records run from the end of the relationship.
- c) Both until 15 January 2025, because all records run from the last transaction.
- d) Identification records until 15 January 2025, and the transaction record until 30 June 2027.
Why this is the answer
Under the FIC Act, records of a client's identity must be kept for at least five years from the date on which the business relationship is terminated, while transaction records must be kept for at least five years from the date on which the transaction is concluded. The two periods run from different dates.
Want to test yourself on 700+ more questions like this?
Start your free RE5 simulator today — timed mock exams, full answer explanations and cloud-synced progress tracking.
More Record Keeping questions
- An FSP advised a client on a unit trust in 2016. The client sold the whole investment,…
- An FSP scans all client documents, stores them in a cloud system and shreds the paper o…
- An adviser gives a client detailed advice by telephone. The client accepts it and the t…
- An accountable institution submits a suspicious and unusual transaction report to the C…