All RE5 questions
Code of Conduct Adhere to the specific Codes of Conduct
Before recommending a product, the General Code requires the representative to obtain appropriate information about the client. What is this step commonly called?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Conducting a needs analysis (gathering the client’s relevant financial information and objectives).Correct
- b) Conducting a credit check on the representative.
- c) Performing an actuarial valuation of the entire insurer.
- d) Auditing the product supplier’s financial statements.
Why this is the answer
The Code requires the representative to take reasonable steps to obtain appropriate and available information about the client's needs, objectives and circumstances — a needs analysis — so any recommendation can be shown to be suitable.
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 Code of Conduct questions
- Sive receives premium money from a client to pass on to the product supplier. Under the…
- Israel receives cash directly from a client into safe custody, without it going through…
- Terrific Custody Services has started holding clients' documents of title. Under the Ge…
- Lwazi gives a client advice orally, and the client proceeds to buy the recommended prod…