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Code of Conduct Adhere to the specific Codes of Conduct
A client refuses to provide the necessary information for a proper needs analysis. Which ONE of the following actions is the Representative required to take according to the General Code of Conduct?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Refuse to provide any advice or service to the client.
- b) Complete the needs analysis using market averages and assumptions.
- c) Proceed with the transaction but make no record of it.
- d) Clearly inform the client of the risks and limitations of the advice given as a result.Correct
Why this is the answer
The General Code of Conduct (Sec 7(3)) states that if a client refuses to provide information, the representative must clearly inform the client that this refusal may limit the appropriateness of the advice and that the client must accept the risks associated with this limitation. This must also be recorded.
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