All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
Which of the following is the correct classification of a unit trust investment?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) A collective investment scheme (participatory interest).Correct
- b) A short-term insurance policy.
- c) A bank fixed deposit.
- d) A friendly society benefit.
Why this is the answer
A unit trust is a collective investment scheme; an investor holds a participatory interest in a pooled fund. It is not insurance, a bank deposit or a friendly-society benefit.
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 Financial Products questions
- Which licence category is held by an FSP that gives advice and/or renders intermediary…
- Under the FAIS Act, who qualifies for a Category IIA licence?
- Which of the following are 'financial products' as contemplated by the FAIS Act? i) Deb…
- When categorising products under the FAIS Act, which of the following is NOT a recognis…