All RE5 questions
Code of Conduct Adhere to the specific Codes of Conduct
The Code of Conduct stipulates that advice must be 'appropriate' to the client. What must the Representative do to ensure this requirement is met?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Only recommend the cheapest product.
- b) Ensure the product recommended is suitable for the client's needs and financial objectives.Correct
- c) Guarantee a specific return on the investment.
- d) Ensure the client signs a waiver confirming they accept all risks.
Why this is the answer
The General Code of Conduct (Sec 7(1), linked to Sec 8 on suitability) requires advice to be appropriate. This is achieved by conducting a needs analysis to understand the client's needs and objectives, and then recommending a product that is suitable for that specific client.
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.