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A broker receives a client's premium cheque at 16:00 on the Thursday before Good Friday. The following Monday is Family Day. By when must the funds be paid into the separate client account under the General Code?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) By Good Friday, because the period is 24 hours from receipt.
- b) By the following Thursday, because the period is seven days from receipt.
- c) By the Tuesday after Family Day, which is the next business day.Correct
- d) By the Saturday, because the period is two days from receipt.
Why this is the answer
Funds received on behalf of clients must be paid into the separate account within one business day of receipt. Good Friday and Family Day are public holidays and the weekend is not a business day, so the next business day after Thursday is the Tuesday. The rule is expressed in business days, not hours or calendar days.
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