All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
When advising on a product, the Representative must explain the consequences of early termination (e.g., penalties or loss of benefits). This is a crucial part of the disclosure requirements for:
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) The FSP's internal audit.
- b) The Representative's CPD.
- c) Understanding the client's contractual rights and obligations.Correct
- d) The FSP's insurance policy.
Why this is the answer
The General Code of Conduct (Sec 3) requires full and fair disclosure. To make an informed decision, the client must understand all material terms, which includes their contractual obligations and the financial consequences (like penalties) if they terminate the product early.
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