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Record Keeping Comply with regulated record keeping requirements
An adviser gives a client detailed advice by telephone. The client accepts it and the transaction is concluded. The adviser makes no note of the call and there is no recording. Which statement is correct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) This complies with the Code, provided the client receives the policy document from the supplier.
- b) This breaches the Code, which requires verbal communications on a service to be recorded.Correct
- c) This complies with the Code, because only written communications with clients need to be recorded.
- d) This breaches the Code only if the client later complains about the advice given in the call.
Why this is the answer
A provider must have appropriate procedures and systems to record verbal and written communications relating to a financial service rendered to a client, and to store and retrieve those records. Telephone advice must therefore be recorded or noted and a record of advice kept. The duty does not depend on a complaint arising.
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