All RE5 questions
TCF Communication Disclosure
A client was properly advised and bought a suitable investment. Over the next three years the provider stops sending statements, and raises the annual fee without telling her. The product itself performs as expected. Which Treating Customers Fairly outcome has failed?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Outcome 3, because she was not kept appropriately informed after the point of sale.Correct
- b) Outcome 6, because she faced unreasonable barriers when she tried to claim.
- c) Outcome 4, because the advice she received was not suitable for her circumstances.
- d) Outcome 5, because the product did not perform as she had been led to expect.
Why this is the answer
Outcome 3 requires that customers are given clear information and are kept appropriately informed before, during and after the point of sale. The advice was suitable (Outcome 4), the product performed (Outcome 5), and nothing on the facts concerns barriers to claiming, switching or complaining (Outcome 6).
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