RegulatoryExams
All RE5 questions
Code of Conduct Adhere to the specific Codes of Conduct

Before a transaction is concluded, which of the following must an FSP disclose to the client?

RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.

  1. a) Only an estimate that may differ wildly from the real charges.
  2. b) Only the benefits of the product, never its costs.
  3. c) The actual fees, charges, commission or other remuneration the FSP or representative will receive.Correct
  4. d) Nothing about cost, since the product supplier handles all disclosure.

Why this is the answer

The Code requires clear, prior disclosure of the actual costs, fees, charges and remuneration (commission/fees) so the client can make an informed decision. Hiding costs or relying solely on the product supplier breaches the disclosure duty.

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.

Start the free simulator Open the RE5 study guide

More Code of Conduct questions