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TCF Adhere to the specific Codes of Conduct
Which of the following is an example of treating a customer fairly under TCF Outcome 2 (product design)?
RE5 practice question with a worked answer. This is one of hundreds of FSCA RE5 questions in the RegulatoryExams question bank.
- a) Designing a funeral product specifically for the needs of a clearly identified low-income customer group.Correct
- b) Selling a complex derivative product to inexperienced retail clients as a “safe savings plan”.
- c) Designing products with deliberately hidden fees.
- d) Targeting unsuitable products at vulnerable customers.
Why this is the answer
Outcome 2 requires products to be designed to meet the needs of identified customer groups. Designing a suitable funeral product for a defined group meets it; mis-targeting complex or hidden-fee products at unsuitable customers does not.
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