All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
A client holds units in a unit trust. How is her investment classified under FAIS?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A participatory interest in a collective investment schemeCorrect
- b) A share in the management company that runs the fund
- c) A long-term insurance policy issued by the management company
- d) A bank deposit held with the unit trust's trustee
Why this is the answer
A unit trust is a collective investment scheme, and the investor holds a participatory interest in the portfolio. It is not an insurance policy, a deposit or a share in the management company, whose own shares are separate from the portfolio.
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