All RE5 questions
Financial Products Apply knowledge of the financial products and services environment
A client wants exposure to listed shares without buying individual shares directly. Which product is most appropriate to discuss?
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 (e.g. an equity unit trust) that pools investors’ money into a diversified portfolio.Correct
- b) A short-term motor insurance policy.
- c) A funeral policy.
- d) A personal loan.
Why this is the answer
An equity collective investment scheme gives diversified exposure to listed shares without buying each share directly. Motor cover, funeral policies and loans do not provide that exposure.
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